PENANG STATE SHARED SERVICES & OUTSOURCING (SSO) & CREATIVE MULTIMEDIA CONTENT (CMC) COUNCIL (PSSCC) LAUNCHING & INAUGURAL MEETING
OPENING REMARKS BY THE CHIEF MINISTER OF PENANG
27th Jan, 2015
1. Good afternoon, everyone. And welcome to this launching and inaugural meeting of Penang State Shared Services & Outsourcing & Creative Multimedia Content Council (PSSCC).
2. I would like specially thank all of you for your presence here this afternoon. Your presence here clearly confirms that Penang is on the right track in promoting and pursuing the Shared Services Outsourcing (SSO) & Creative Multimedia Content (CMC) Industry as one of our focus area.
3. Penang has experienced 2 growth transformations to achieve successful industrialized economy. First growth was Penang as Malaysia's first Free Trade Zone in Bayan Lepas in 1970s. Second growth was, the expansion of industry clusters, Electronic & Electrical, semiconductor, and the set up of many SMEs (Small and Medium Enterprises) to support the MNCs, based in Penang in the 1980-1990s. Now Penang’s economy is targeted to move up the value-chain driven 3rd growth wave of knowledge intensive and innovation-led services. We are now starting to see that transformation taking place in Penang. Penang is ready to propel itself further up the value chain by focusing on high value-added industries such as shared services and outsourcing (SSO) and creative multimedia content (CMC).
4. The global Shared Services & Outsourcing (SSO) sector has seen an increased growth recently with Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) services worldwide expected to grow to RM517.9 billion and RM898.4 billion respectively in 2015 (Gartner). In tandem with the SSO industry, the global animation and gaming market is forecasted to grow to $242.03 billion by 2016 while the revenue of Malaysian creative multimedia content industry is forecasted to reach RM23.847 billion by Year 2017.
5. Penang is working very hard to fully tap this huge potential to achieve its aspirations of becoming an International and Intelligent City. In working towards this achievement, we recognise the importance of developing the SSO & CMC hub in Penang.
6. To realize Penang’s vision as an international and intelligent city, we are also diligently promoting higher value activities to enhance Penang as a highly modern and intelligent working location in tandem to other developed countries worldwide. This will help us to keep our young and talented generation back in Penang and attract other foreign talents to come and work in Penang.
7. Penang’s potential to attract SSO business has been recognized for several years. Among the prominent companies providing global shared services in Penang are First Solar, Citigroup Transaction Services Malaysia, IHS, Wilmar, Osram and AirAsia.
8. Penang has the potential to become a promising destination of choice to the SSO & Creative industry because of the many attractive features offered here. At the top of the list is the fact that Penang has the requisite conditions of 3Ts of Talent, Technology and Tolerance of new ideas to succeed in the new innovation-based economic transformation, in addition to the excellent infrastructure.
9. With the Memorandum of Understanding (MoU) signed between Penang Development Corporation (PDC) and Temasek to develop the BPO Prime and Penang International Technology Park (PITP) valued at RM11.3 billion, as well as the launching of Creative Animation Triggers (CAT) in the heart of George Town, we are optimistic that the State’s SSO & Creative sector will flourish to a greater level.
10. We are also interested in applying cloud computing, Big Data Analysis (BDA), an internet of things (IOT) – new growth areas valued at hundreds of billions of dollars.
11. Penang with its capacity as a knowledge driven state and its effort to move up the value chain has the potential to become a strong SSO & animation cluster for Malaysia in the future.
12. The promising growth in these industries enabled SSO and Creative Multimedia Content (CMC) to become the core focus in the economic development of Penang towards achieving a high-income and knowledge-based economy.Amongst state’s initiative includes launching of BPO-ITO hub and Creative Animation Triggers (CAT) in March 2014, PDC-Temasek MOU in May 2014, leasing of Wisma Yeap Chor Ee from Wawasan Open University in June 2014 to support the development of the Creative Animation Triggers (CAT) and Penang Science Cluster, revitalization and rejuvenation of Bayan Lepas Industrial Park and Bayan Baru with the development of Innoplex Complex/Motorola, SME Centre, Osram’s Skill Development Centre and Technocentre to support the growth of high end activities such as R&D, design, SSO & CMC as well as a few series of conferences and business matching to nurture the growth of local players and help them move up the value chain.
13. To spearhead a more focused growth of the SSO and CMC sectors in Penang, the State has established a high level Penang State SSO-CMC Council (PSSCC). The PSSCC provides direct advocacy and advisory to the State Government to enhance Penang as destination of choice for investments in the SSO, Creative Multimedia and other related sectors as well as to steer planning, development & promotion of these ecosystems in Penang. Advocacy & advisory :-
• Custodianship of State’s master development plan in SSO and creative multimedia
• State level, planning, coordination and monitoring of development, operation and process of MSC Cybercity/Cybercentres & SSO sector in Penang
• Planning development, implementation of the digital creative animation sector including the Creative Animation Triggers (CAT) projects.
14. The PSSCC will be chaired by the Chief Minister of Penang, YAB Tuan Lim Guan Eng and will consist of leaders and expert in these fields. Proposed council members includes; Dato’ Lee Kah Choon, Special Advisor to the Chief Minister of Penang; Dato’ Azman Mahmud, Chief Executive Officer of Malaysia Industrial Development Authority (MIDA), Dato’ Yasmin Mahmood, Chief Executive Officer of Multimedia Development Corporation (MDeC), Dato’Rosli Jaafar, General Manager of Penang Development Corporation (PDC), Ms Loo Lee Lian, General Manager of investPenang and two from the industry, Mr Ooi Kok Seng, Partner of KPMG and Mr. Mark Chang of Jobstreet.
15. The collaborative effort of the government agencies, including Federal Authorities and industry representative through the establishment of Penang State SSO & CMC Council are expected to garner a stronger relationship and support between the government and the industry players as well as support the State’s programme for the Rakyat.
16. As the State Promotion Agency and State Cybercity Manager (CCM), investPenang will be managing and supporting activities of the PSSCC including overseeing all the investments and development related to SSO & CMC sector in Penang.
Ladies and Gentleman
17. To win the future we must invest in our children's education. To build the future we must build a sound education system in Science and Technology! The various educational initiatives have seen a growing number of school-children benefiting from the Penang International Science Fair held at sPICE Stadium, the best and biggest in Malaysia, the Penang Science Cafe teaching robotics and the introducing STEM teaching of Science, Technology, Engineering and Mathematics.
18. I strongly believe that Malaysia and Penang in particular are well-positioned to be a major player for SSO and Creative Multimedia because Penang offers the best in terms of conducive business environment and quality lifestyle.
19. I believe the Penang State SSO and CMC council will take the lead to enact a greater focus and create powerful synergies between the agencies and industries for the benefit of the Rakyat.
I wish all of us a promising and successful endeavor ahead.
-- CN Version --