MSC Malaysia : A Must Have for Foreign IT Companies

Foreign investors should look into MSC Malaysia. MSC Malaysia, also known as the Multimedia Super Corridor program, was established in 1996. This program was created to lead Malaysia into becoming a modern state and develop and multimedia hotspot within the country. This boosted information technology development and attracted both local and foreign investors by providing government help to companies willing to export or go into the Malaysian market.

How Does MSC Malaysia Help My Company?

MSC Malaysia is a government program that provides rights, assistance, and incentives to technology and information companies wishing to expand their business into Malaysia. A few of the incentives include:

  • Low-cost business plans

  • Tax exemption (offered by the Malaysian Investment Development Authority for up to 10 years; only available to companies whose offices are located in one of the country’s “CyberCities”)

  • Support of other businesses

  • Profitable capital

  • Cost deductions in expansion and promotion (reduced tax on exports, or sometimes even paid for by the government)

  • Position and business area specific benefits

  • Attracts various investors (due to increased profits)

In order to receive MSC Malaysian status a company must first apply for it. Most companies, cannot achieve this on their own. They’re usually required to hire a company that will guide them in developing their MSC Malaysia plan. Even if you don’t think you need a specialised company’s help, it is wise to do so. This assures that you are receiving all the benefits and connections available to you.

Different companies offer different plans. When hiring a company it is best to pay attention to these details:

  • Expertise and connections with various Asian building companies

  • Knowledge of local and foreign markets

  • Government and private connections/relationships

  • Existing relationships or experience with companies similar to your own

  • A history of success when working with companies

What Other Services Should I Look For?

Most MSC Malaysia Plan companies are willing to go above and beyond when trying to help your investments succeed. Your success is also their success. Many will offer additional services and benefits such as:

  • Fixed-cost and low-risk solutions

  • Direct sales to consumers and other businesses

  • A detailed plan of action

  • A business model that will most help you in development and marketing

  • Commercial opportunities

  • Help you asses the success, potential growth, and viability for your company

Does My Company Qualify Under MSC Malaysia?

Multiple companies and industries qualify under MSC Malaysia. A few examples include:

  • Finance

  • Oil/gas/energy companies

  • Software development

  • Sales and marketing

  • Manufacturing

  • Technology

As you can see with Malaysia’s current economic growth, the MSC was a successful program. If you plan on bringing your company to Malaysia, make sure applying for MSC Malaysian is one of the first things you do.

StravCorp International (SI) provides strategic, innovative solutions to clients in BPO transformation and delivery. Together with our partner Nityo Infotech (a global IT solutions and BPO company) we transform the delivery of processes for our clients in IT, Finance & Accounting, Tax Compliance, HR Operations, at our Nityo-Stravcorp Centre of Excellence in Iskandar, Malaysia.

We also provide end to end Management Consulting services incorporating a private equity approach to company’s wishing to expand their businesses across SE Asia and Australasia. In addition SI provides advisory services to governments on economic development.



Market Entry Strategies in Malaysia : What You Must Know

Every investor knows there are plenty of ways to enter a market. But they also know, that there are only a few sure fire ways that will lead to profits. In a market foreign to you, it is important that you have a knowledgeable BPO Company under your wing that can provide you with sound market entry strategies based on their expertise and experience: -

  • Staffing, training, and onboarding for new employees

  • Business matching

  • Logistic and strategic planning; along with market navigation

  • Business development

  • Market Representation and marketing in general

  • Brand building

  • Company and office incorporation

  • Help with finding government incentives and negotiating with them

  • Connections with other markets locally and in different countries (to allow easier expansion in the future)

Licensing

Licensing is very important when entering into a new market. Without licensing, any company can use your products, services, or manufacturing processes. Getting licensed is best for companies that wish to keep all these items solely their own.

This doesn’t mean everything and anything can be licensed. Getting your business property licensed can be a long, pricey, and complicated process, but it should never be delayed. Not only will it protect you from “knock-off” companies, but it will increase your profits.

How you might ask? Without your product being licensed anyone can recreate your services, products, or manufacturing processes as their own. If they offer it at a cheaper price, where will the market go? The cheaper option of course!

Franchising

It’s also a good idea to create your business into a franchise. Everything nowadays is branded. From toilet paper, to food products, to the clothes you wear. With the growth of advertisement, thanks to internet and TV, having a known brand is crucial to market success. Without brand recognition, consumers and other investors may not know what the product or service is and be unwilling to spend their money on it.

Even though this is a good idea in theory, it is not for every business. Franchising requires hands on management. With employees from another country controlling your business, quality control might be a little harder to supervise.

Partnerships

Partnerships are very crucial in getting a strong hold of a market. With tight-knit partnerships you’re not only given help when needed, but also the ability to reach more investors and a bigger market.

But it is very important to read the fine print before agreeing in a partnership. Partnerships are usually long-term and require give-and-take between the two companies. If this partnership is tarnished, it can affect the company’s image and profits.

StravCorp International (SI) provides strategic, innovative solutions to clients in BPO transformation and delivery. Together with our partner Nityo Infotech (a global IT solutions and BPO company) we transform the delivery of processes for our clients in IT, Finance & Accounting, Tax Compliance, HR Operations, at our Nityo-Stravcorp Centre of Excellence in Iskandar, Malaysia.

We also provide end to end Management Consulting services incorporating a private equity approach to company’s wishing to expand their businesses across SE Asia and Australasia. In addition SI provides advisory services to governments on economic development.

Investment in Malaysia : Why Consider a Business Investment in Malaysia

Many investors are looking for ways to expand their options in business. With constant growth in the Asian market many are thinking of ways to put their investments towards this large continent that boasts 60% of the world’s population! Some might question why anyone would invest their money in a place unknown to them. But as the economy booms in certain Asian countries, so does the population. That means more workers, available land, a bigger available market, consumers, and more opportunity! Malaysia is one of those booming markets. With a 0.06% GDP growth, there’s much opportunity in this country alone. Here are a few incentives and reasons to consider an investment in Malaysia: -

Incentives in Malaysia

Here in Malaysia, the people are very open to foreign investors from all kinds of industries. In fact, they even welcome them by offering some incentives when certain criteria and guidelines are met.

Foreign manufacturers get to keep 100% of their company’s equity. Plus, you would never have to restructure your equity as long as your investment is approved for this policy.

Tax incentives are also provided such as investment and reinvestment allowances, industrial allowance, and pioneer status. Pioneer status gives certain businesses and industries a tax break so they can get their company up and running. They also provide incentives when your company is undergoing strategic projects, purchasing high-level and expensive technology, reducing export promotion, training employees, among other incentives.

“Why do they do this?” you might ask. To increase their economy of course! In recent years their GDP has risen by 0.06%. A lot of this is thanks to foreign investors that boost their economy, provide services, and give jobs to the country’s citizens.

It might be costly in the beginning to give so many tax breaks, but in the end it’s very beneficial for its population and economy.

How do I Invest in Malaysia Successfully?

When investing in Malaysia it is very important to have a knowledgeable BPO company working with you. The right BPO Company will help you get the most out of Malaysian investment incentives available to you. With their expertise in the Malaysian market, they should also help you navigate and plan your strategy.

In the end, the right BPO Company will help you achieve the highest profits possible in a market that’s totally new to you. Eventually, you would have enough knowledge and experience to expand not only in Malaysia, but to other Asian markets as well.

StravCorp International (SI) provides strategic, innovative solutions to clients in BPO transformation and delivery. Together with our partner Nityo Infotech (a global IT solutions and BPO company) we transform the delivery of processes for our clients in IT, Finance & Accounting, Tax Compliance, HR Operations, at our Nityo-Stravcorp Centre of Excellence in Iskandar, Malaysia.

We also provide end to end Management Consulting services incorporating a private equity approach to company’s wishing to expand their businesses across SE Asia and Australasia. In addition SI provides advisory services to governments on economic development.

Business Strategy, Innovation and Management

Strategy, innovation and management is an important part of any successful, growing business. In Malaysia, you can find many companies that are willing to work with you to make sure you have the best strategy to work in their market. The right company will help you search for opportunities to stand out in your industry, expand locally, find joint ventures, partnerships, alliances, possible mergers, along with marketing your business. A few other things they should offer include:

  • Licensing

  • Opening up offshore operations

  • Asses financial capacities

  • Brand imaging and advertisement

  • Establishing a local office to help you reach your consumers in person

Strategies for Small Companies

Nowadays, many small companies consider partnerships with established companies in order to reach their target consumers. This also provides them with resources and the guidance of a company who has been there and done that in their particular market. With their knowledge and know-how, they eventually see to achieve success in their own company.

Nontraditional Strategies

In the past, traditional branding has been used to attract consumers. Although these are still in use, people are becoming more and more cautious of where they are spending their money. They research a product before buying it, look at reviews, and even videos of the product at work! Because of this, businesses have been trying to think of new ways to market and attract the general public.

When venturing into a new market, especially with different consumers, this is where an experienced marketing company comes in handy. They will guide you through the best marketing strategies for their consumers as well as help you implement them.

Many times, if a company decides to go into an unknown market on their own, they come out empty handed. It is very recommended that you get the expertise of another; either through a partnership or hired assistance.

No Two Business Are the Same

When working with hired assistance for business strategy, innovation, and management, make sure the company you hire addresses your every marketing and strategy need. Different strategies work for different business models.

It is also a good idea to work with the company in person and less through e-mail or phone communication. This ensures that everything you want is done to benefit your business. E-mail and phone is great for short memos, but a lot can me misunderstood or forgotten when not discussed through in person.

StravCorp International (SI) provides strategic, innovative solutions to clients in BPO transformation and delivery. Together with our partner Nityo Infotech (a global IT solutions and BPO company) we transform the delivery of processes for our clients in IT, Finance & Accounting, Tax Compliance, HR Operations, at our Nityo-Stravcorp Centre of Excellence in Iskandar, Malaysia.

We also provide end to end Management Consulting services incorporating a private equity approach to company’s wishing to expand their businesses across SE Asia and Australasia. In addition SI provides advisory services to governments on economic development.

Overview of Business Outsourcing in Malaysia

In recent years, Asia has become a hub for modern, global business. Companies are outsourcing their operations for many reasons. A few of those reasons include cheap labor, tax exemptions, government help, a new market, access to more consumers, and expanding their horizons.

Many investors and businessmen consider Malaysia one of the best places to outsource. These investors often think of SSO Malaysia, which stands for “Shared Services and Outsourcing”. The SSO is a collection of services that uses human resources, Information and Communication Technology (ICT), accounting, financing, engineering, and design all to create the best competitive strategy.

Economic Transformation Plan

SSO Malaysia is growing industry part of the Economic Transformation Plan. This plan was created to develop Malaysia into a “high income” economy. This plan is the reason Malaysia has become a data-center and information technology hub. Their goal is to push three criteria: capability, capacity, and credibility. Following these criteria has helped Malaysia become a more credible and safe place for investor money.

How Successful is Outsourcing in Malaysia?

Outsourcing in Malaysia can become very safe and successful. At the moment Malaysia is ranked high in multiple business opportunity rankings. These rankings include:

  • 12th in World Bank’s Ease of Doing Business Report (2013)

  • 3rd in Global Services Location Index according to AT Kearney due to Malaysia’s international service industry; including, people skills, business environment, availability, financial gains. (consecutively since 2004)

  • 15th in IMD World Competitiveness Ranking (2013)

Are There Many Businesses Outsourcing in Malaysia?

Many people are looking to invest in Malaysia. In fact, the government welcomes it with open arms. They give certain tax incentives, breaks, and government help to businesses willing to outsource in their country. At the moment there are more than 250 foreign and multinational companies who are in Malaysia. These businesses have brought thousands of job opportunities and billions of dollars invested. All this has helped boom their economy even further.

Types of Outsourcing

The SSO can be divided into three different outsourcing types.

  • Information Technology Outsourcing (ITO) delivers information technology to aid in business processes, infrastructure design, application services, and predicting business outcomes. Information technology also supports web content management, managing assets, hardware support, as well as programming.

  • Business Process Outsourcing (BPO) are solely business operations in Malaysia. They are usually human resources, financing, and customer service companies. Call centers and technical support is a great example of this type of outsourcing.

  • Knowledge Process Outsourcing (KPO) involves outsourcing information related business activities. It requires a lot of expertise in analytical, technical, and domain skills.

StravCorp International (SI) provides strategic, innovative solutions to clients in BPO transformation and delivery. Together with our partner Nityo Infotech (a global IT solutions and BPO company) we transform the delivery of processes for our clients in IT, Finance & Accounting, Tax Compliance, HR Operations, at our Nityo-Stravcorp Centre of Excellence in Iskandar, Malaysia.

We also provide end to end Management Consulting services incorporating a private equity approach to company’s wishing to expand their businesses across SE Asia and Australasia. In addition SI provides advisory services to governments on economic development.