Hi! Edwin here and we will talk about what are Shared Service Centres and why Malaysia a Preferred Location.
Most multinational companies who have presence in Malaysia most likely have their Global shared service centres located in Malaysia as well. A shared service centre means all functions of a department in the company are done in a particular location and the only benefit is cost savings.
Take for instance, the Royal Dutch Shell Company’s placed its accounting functions for all its entities in the Asia Pacific region to its branch in Malaysia. Therefore, all its account invoices and documents received for Shell Thailand are sent to Malaysia for entry and other administrative functions.
Remember the debate between Philippines and India on who gives the best telemarketing outsourcing service to the US? This is similar. But why do companies do this?
Firstly, Malaysia salary scale is more competitive than the originating country. Most of the time, it is not really because Malaysians are earning lesser but rather, it is more competitive in the sense that foreign currency translation of a weaker Ringgit and lower cost of living (Malaysia subsidizes and regulate certain products) makes Malaysia a preferred choice.
The Malaysian education system is also well known for its ability to churn out educated and skilled pool of workers. We have a section on Malaysia Education for more information on studying in Malaysia.
I hope this information is useful for you. If you have anything to add or to comment, you may Contact Us.
