Leverage - Malaysia stands out as a strategic location for the SSO industry in the Asia Pacific

Region

A case study of Cyberjaya, a globally connected city and a successful and proven location for the SSO industry

3 POINTERS • The SSO industry can leverage on Malaysia

which stands out as a strategic location in the Asia Pacific Region.

• Within Malaysia, Cyberjaya has the largest market share for SSO locations and is the best connected city in Malaysia.

• In future, Malaysia and Cyberjaya is going to be

an even better place for the SSO industry to locate.

The SSO Industry

Business Process Outsourcing

IT Outsourcing

Knowledge Process Outsourcing

• Contact – Call Centre • Transaction Processing • Payroll Processing • Supply Chain

Management • Finance & Accounting • Customer Relationship

Management

• Data Centre/ Disaster Recovery Data Centre

• IT Helpdesk • Systems Integration • Software Development • Digital Forensic

• Legal Services • Engineering R&D • Tele-medicine • Pharma R&D • Business & Market

Research • Tax & Treasury • Equity Research • Analytics • Investment Research &

Analysis

Source: Duke University CIBER, Fuqua School of Business Offshoring Research Network, July 2014

Attractive locations in the world for the SSO Industry

• The global management consulting firm, AT Kearney has consecutively ranked Malaysia third in their Global Services Location Index since 2004, which measures financial attractiveness, people skills and availability, and business environment.

• Malaysia has the highest score of 1.84 for business environment and is number 2 on financial attractiveness.

• Malaysia is also ranked Number 6 in the World Bank’s Ease of Doing Business Report in 2014 & Number 12 in IMD World Competitiveness Ranking 2014.

Malaysia’s Geographic Proximity to Other Nations in APAC

Japan 7 Hours

Hong Kong 3.5 Hours

Perth 5.5 Hours

Bangalore 4 Hours

Dubai 7 Hours

Singapore 54 Mins

What is unique about Malaysia as a Location?

• Strong support from the Government and Industry Association – Government Vision and Policies – ETP/EPP – MSC Status for companies, MSC Guidelines and Bill of Guarantees – Implementing Agencies

• MDeC / MITI / MIDA / MATRADE • Pemandu

– Industry Association • Outsourcing Malaysia

• Infrastructure Availability – Good Highways – Ready availability of utilities – Good Airports and Ports

• Strong language Capabilities

– Many Non-native languages , higher than most destinations for outsourcing – Eg. English, Malay, Chinese Dialects, Tamil, Arabic, Thai, Korean and Japanese – Able to cater to demand from APAC region

• Stable Business and Economic Environment

SSO Industry in Malaysia

• Cyberjaya has the largest market share for SSO Location in Malaysia.

Calling Malaysia a negara hebat (great nation), the chief US diplomat highlighted the country’s success in generating entrepreneurs in a multicultural setting, singling out Cyberjaya and prominent entrepreneurs Jimmy Choo and Tony Fernandes as among its success stories. (Source : The Star Online, Oct 12 2013)

Cyberjaya – Global Acknowledgement

US Secretary of State John Kerry addressing the fourth Global Entrepreneurship Summit (GES) Kuala Lumpur, Oct 11, 2013

“….And when most of the world was still discovering the World Wide Web in the 1990s, guess what? This country created Cyberjaya, the first city on earth to be fully wired with high-speed internet.”

• Strategically located within 1st tier locational center of gravity for Greater Kl / Klang Valley

• Travelling distance

– 30km to KL

– 29km to PJ

– 28km to KLIA/KLIA2

– 17km to Puchong

• Adjacent to Putrajaya, Federal Administrative Centre

Proximity To Key Klang Valley Locations

Source : Ho Chin Soon

Excellent Connectivity and Accessibility

• Expressways linking major towns and cities

PLUS

LDP

MEX

ELITE

SKVE

• About 20 min travelling time from KLCC and KLIA respectively

• Connected to the Ekspres Rail Link in Putrajaya and the future MRT station in Putrajaya by feeder bus.

• Cyberjaya currently has a dedicated bus transportation system

– Serving major hubs in Klang Valley & Seremban

– Operates on 24/7 basis

• Catering to 75,000 population of knowledge workers and students in Cyberjaya

Excellent Connectivity and Accessibility

Source:

Overview of MSC Malaysia Performance Standard

Source:

Source:

Cyberjaya has the biggest market share in the SSO Industry in Malaysia

• It has a track record of 64 companies being located here employing more than 20,000 knowledge workers

Excellent Infrastructure available in Cyberjaya

Fiber laid for Cyberjaya to Global Standards. Best connectivity in Malaysia • World class city with Global Connectivity • Fiber laid throughout the city • Carrier neutral fiber infrastructure • Companies able to lease dark fiber • More than 10 telcos offering services • Internet costs are 20 to 30% cheaper than Kuala Lumpur City.

Uninterrupted power and water supply Redundancy available Modern city with green spaces, wide roads, spacious offices.

Fiber laid for Cyberjaya to Global Standards. Best connectivity in Malaysia • World class city with Global Connectivity • Fiber laid throughout the city • Carrier neutral fiber infrastructure • Companies able to lease dark fiber • More than 10 telcos offering services • Internet costs are 20 to 30% cheaper than Kuala Lumpur City.

Uninterrupted power and water supply Redundancy available Modern city with green spaces, wide roads, spacious offices.

• High percentage of land in Cyberjaya dedicated to greenery, public facilities and amenities

– Twice that of typical township developments in Malaysia

Diverse Recreational Activities

48%

17%

9%

21%

5%

Land Allocation

Greenery & Public Amenities

Enterprise

Commercial

Residential

Institutional

Diverse Recreational Activities

• Cyberjaya Lake Gardens

– 400-acre green lung

• 86 acres developed with facilities including

– 15 acres of main lake

– 29 acres of natural and wetland

– Visitors Information Centre

– Boardwalk

– Look-Out Tower

– Children's Playground

Diverse Recreational Activities

• Public Facilities

– Cyberjaya Lake Garden Community Club

– Sports Arena

– State-Of-The-Art Police Station Complex

– 31 CCTVs throughout Cyberjaya connected to the Central Command Centre

– Modern fire station

• Recreational Events in Cyberjaya / Putrajaya

Diverse Recreation Facilities

• Cyberview Lodge Resort & Spa

– 5 star boutique garden resort hotel with recreational and full convention facilities

Diverse Facilities Available In Cyberjaya

• More than 200 F&B outlets already operating within Cyberjaya itself

• Upcoming Shopping Malls in Cyberjaya – D’PULZE MALL @ CBD PERDANA by DPulze Ventures (by 2014)

• Anchor tenants to include TGV Cinemas, Jaya Grocer, U Bowl Centre, Song Box, Yamaha Music School and an international fitness chain

– CENTRUS @ Cyberjaya by Setia Haruman (by 2015)

– The Place and SkyPark@Cyberjaya by MCT

– Others by Setia Eco-Glade, Mah Sing & OSK Property Holdings

Highlights of Cyberjaya

• Hub for the SSO industry • Hub for Datacenters • Hub for SME/Start-ups

– MAGIC – SME Technoprenuer Centre – Yayasan Innovasi – Agensi Innovasi Malaysia

• Location for Government Related IT Centres – Bank Negara – JPJ – MIGHT – E-perolehan

• Readily available buildings and land – Fully serviced land readily available – Readily available buildings for expansion – Build to suit options available

• Critical mass has been built and Cyberjaya is at the

tipping point – Population of 75,000 – 800 business entities, which includes

• 600 Technology Companies • 486 MSC status Companies • 40,000 knowledge workers

– 13 mil sq. ft. of Office space available – 822 Shops – 6800 Residential Units (28,000 units by 2016) – 6 Universities and Colleges; 6 Schools

The Future is bright for the SSO Industry in Malaysia

Transforming Malaysia Into a High Income Nation By 2020 • Cyberjaya Flagship Zone already possesses ready platform to complement and

accelerate national growth initiatives • Four of the twelve identified NKEAs (National Key Economic Areas) under the ETP

are DIRECTLY relevant to Cyberjaya

CYBERJAYA FLAGSHIP ZONE

• Transforming the region into a world-class metropolis that will boast top standards in every area from business infrastructure to liveability

• Outsourcing in business, IT and knowledge processing and data centres, pure-play engineering design services, green technology

• Developing the spectrum of education in the country • Developing Malaysia into a regional education hub

• Improving communications infrastructure and the uptake of services • Enriching content space in terms of value and quality of content produced

Source : http://etp.pemandu.gov.my/

Cyberjaya : Natural Hub For Malaysia’s High Income Economy

• Positioning of Cyberjaya Flagship Zone • Strategic location with

excellent accessibility • Superior IT

infrastructure and connectivity

• Well planned “CLEAN, GREEN & LUSH” ecosystem

• Established global business hub, home to multitude of high impact MNCs

• Elevating Malaysia to developed nation status by 2020 • Targeting GNI per

capita of US$15,000 • Attracting

US$444bn in investments

• Creating 3.3m new jobs

• Setia Haruman Sdn Bhd • Master developer with

largest undeveloped landbank in Cyberjaya

• SHSB initiatives • Up-skilling graduates to

match MNCs demands through industry-academia collaboration

• To attract foreign investments and high-impact companies into Cyberjaya

“Developing Cyberjaya is the Government’s commitment in its national transformation policy because Cyberjaya is a vital component in the ETP”

Prime Minister Datuk Seri Najib Tun Razak (April 2013)

Cyberjaya - Making it an even better place for the SSO Industry Cyberjaya is going tto become an even more attractive location for the SSO industry

• More Shopping Malls Opening

• More facilities are going to be available:

– More Hotels

• Tune Hotel recently opened, another hotel (Citadines by The Ascott Group is expected to open it’s door by November 2014)

• Three other smaller Hotels and Service Suites are currently in operation

– More Schools / Colleges

• Currently 4 Universities, 2 Colleges, an International School, a Govt Boarding School for Girls, a Government Secondary and Primary School

• 1 more University and a Chinese School are currently being built

– More Affordable Housing

• 960 units launched by EMKAY Group in Sept 2014

– Mosques

• To be completed in 2015

– Cinemas / Bowling Alleys

• To be open in November 2015

• Transport

– Various measures are being taken to improve the transportation network

MAKING Cyberjaya an even better place for the SSO Industry in Malaysia Cyberjaya is being developed by Setia Haruman Sdn Bhd - A pro active developer with vision

• Setia Haruman is the Master Developer for Cyberjaya

– 7000 acre site

– Has sold land to many of the leading developers in the country to partake in the development

– Major Developers currently in Cyberjaya who have announced their project values are :-

Developer GDV Developer GDV

EMKAY GROUP 4.4 bn Prima Properties 620 mil

SP Setia 3 bn Paramount Malaysia 530 mil

MCT 3 bn D’Pulze 500 mil

Setia Haruman 2.5 bn Ikhasas 400 mil

OSK Property 1.38 bn Country Heights 300 mil

UEM Sunrise 1 bn Villamas 240 mil

Mah Sing 1 bn Glomac 150 mil

Crystalville 1 bn Andaman Property 700 mil

Total RM20.72 bn

Setia Haruman (SHSB) is more than a Property Developer

– SHSB owns the Cyberjaya Fiber Metro Network – SHSB owns and rent 10 Office Buildings – SHSB owns the Cyberview Resort & Spa – SHSB has initiated the CEO’s Roundtable in 2012 and has been

holding it periodically – SHSB has started the Industry Academia Collaboration initiative

in 2013 and is encouraging further collaboration

• Cyberjaya Graduate Employability Enabler (CGEE)

• SHSB communicates and coordinates with Industry and Government Agencies where possible to try and achieve solutions for the SSO Industry to be more cost competitive.

• SHSB continues to build on its significance as a leading hub for Malaysia’s high income economy

– Creating a CLEAN, GREEN & LUSH ecosystem that is facilitative and conducive to businesses to drive economic activities

• SHSB continues to strive to make Cyberjaya a centre of excellence for knowledge and highly-skilled manpower

– Attract and retain the world’s leading MNCs and their knowledge workers

– Be a catalyst for MNCs and Malaysian corporations to create value-added activities and move up the value chain

– Nurturing start-ups, SMEs and “technopreneurs”

– Collaborate with Universities, private institutions and skills development centers to educate and prepare knowledge workers

THE BEST GLOBALLY CONNECTED CITY IN MALAYSIA

• An excellent location in Malaysia for the SSO industry

Strategic location with proximity to key Klang Valley locations

Excellent connectivity with expressways and rail links supported by feeder bus services

Superior IT infrastructure and communications backbone supported by extensive fibre optics backbone

Safe living and working environment with security features including gated and guarded projects & CCTVs

Ecological environment, allocation for greenery and public facilities and amenities is much more than that of the average townships

Well-planned and low density ecosystem, with no transportation bottlenecks, including that for public transport

Cyberjaya - The Globally Connected City Of The Future

3 POINTERS • The SSO industry can leverage on Malaysia

which stands out as a strategic location in the Asia Pacific Region.

• Within Malaysia, Cyberjaya has the largest market share for SSO locations and is the best connected city in Malaysia.

• In future, Malaysia and Cyberjaya is going to be

an even better place for the SSO industry to locate.

THANK YOU