October 19, 2014 (Sun): David Wong, the Chairman of Outsourcing Malaysia (OM), an initiative under PIKOM, today shares his views on the Budget 2015.
Fourth: Reintroducing the Services Export Fund (SEF)
Services Export is an important thrust under OM and the reintroduction of SEF augurs well for our members. The financial assistance provided will help accelerate growth as well.
60. To enhance use of new technology, automation and innovation in the development of SMEs, RM80 million is allocated for a Soft Loan Scheme for Automation and Modernisation of SMEs under the Malaysian Industrial Development Finance Berhad.
This is in line with OM’s call to its members to automate and deploy technology innovatively to deliver business services. We hope our members in the outsourcing industry will tap into the loan scheme. Automation is one of the key ways Malaysian outsourcing players can use to move into niche markets and differentiate themselves from the other outsourcing players in the region.
Third: Further deduction on training expenses incurred by an employer for employees to obtain certificate qualifications from accredited vocational and professional bodies.
The double tax deduction for various training schemes are welcome by the industry. This encourages and motivates businesses to invest in its employees for better productivity .The annual growth of income level for SSO industry is high and it has to correspond with higher level of productivity and output.
Measure 8: Enhancing Graduate Employability
OM applauds the govt for this initiative as it will enhance the employability of graduates in the SSO industry. OM is currently collaborating with TalentCorp through the SSO GEM programme on this initiative at selected universities and framework for internship had been developed with our members and MDEC. We look forward to collaboration with more higher learning institutions to achieve a much higher employability percentage compared to current employability at single digit percentage point. Talent development is the key to the advancement of the industry as it will help boost a skilled and competent work force for the industry.
95. In addition, graduates’ self-confidence and English proficiency skills will be enhanced.
We are happy with the response from the government to take a stronger stand in enhancing English proficiency and soft skill at tertiary level. We are also hoping that the government will reintroduce PPSMI as English is a global language and most commonly used in the SSO and many other industries globally.
Fifth strategy: upholding role of women
We welcome more women into the SSO industry. With technology, many can even work remotely and be part of the ecosystem to deliver services worldwide.
Accelerating upskilling to 5,000 trainees through the 1Malaysia Skills and Employability Scheme
One of the biggest challenges the Outsourcing players face is the lack of skilled employees which is why OM applauds and supports the newly introduced Upskilling program. We have been working in collaboration with PSMB , MDEC and Talentcorp to introduce various upskilling programmes. Through Upskilling , graduates from different discipline can be equipped with the right domain skill to serve in another industry such as the outsourcing and shared services sector (SSO).
On our part OM has already set up the OM Talent Council which is made up of industry members who are focused on overlooking the SSO academia and syllabus to enhance the employability of students from the university levels itself and close the talent gap currently faced by the industry. Outsourcing industry in Malaysia currently employs more than 47,000 people and is expected to hit 88,000 by 2017 at 12.2% CAGR.
Through the Talent Council, OM is currently working with universities and colleges to educate fresh graduates and building awareness about shared services outsourcing (SSO) as a career of choice.The objective of the programme is to start the awareness at a young age.