Top 5 Reasons for Outsourcing to Malaysia

Until recently, the big leagues of the outsourcing industry felt concentrated in only a few Asian countries. China, India, and the Philippines, to name just a few, were the global hotspots for countless companies in need of third-party services. However, the Covid-19 pandemic has created such a shift that it gave way for other countries to digitally transform and equip themselves with the necessary infrastructure to face the new normal – one of which is Malaysia.  

When you think of outsourcing, Malaysia isn’t the country you’ll immediately think of. But maybe it’s time to put the Malaysian outsourcing industry with the top players. Their fast-tracked digital transformation to cope with the pandemic didn’t just give way to better technology, but to new opportunities they can offer for business continuity. Read more below about why you should outsource to Malaysia. 

1. Supportive Government Policies 

The Malaysian government has pro-business policies that helped make the country a growing star within the outsourcing industry. They have initiatives that contribute to an increase in foreign investment and attention. The National ICT Association of Malaysia (PIKOM) and the Malaysia Digital Economy Corporation (MDEC) both work as organizations that support investments and the digital transformation of the country. PIKOM specifically offers help to small and medium-sized outsourcing companies to boost the country’s outsourcing industry. On the other hand, MDEC powers businesses through digital transformation and digital skills. 

2. Digital Infrastructures 

As was hinted before, Malaysia has undergone many digital transformations to support its effort to advance its digitization. This included a lot of digital initiatives and national programs to build a more digitally-advanced Malaysia. The country has leveraged technologies like AI, Big Data & Analytics, and more to support various day-to-day services. They have also created technology hubs and various telecommunication structures to make work more efficient.  

3. High-Value Skilled Workers  

Malaysia started to gain a technically skilled workforce during the 1970s to support the big electronic companies that were starting their operations there. As technology progresses, Malaysia has made it a point to widen its talent pool and introduced educational reforms to improve the skills of its citizens. Now, they boast a workforce of highly skilled workers that meet global standards. 

4. English Proficiency 

Aside from being skilled technical workers, Malaysians also offer something that a lot of international companies value – a proficiency in the English language to cater to globalization. The Malaysian government has measures in place to ensure that the youth is English-ready when they come out of school. They have education policies dedicated to improving their English skills from a young age. As such, Malaysia has a high rating in English proficiency, ranking third among Asian countries and 28th globally. 

5. Cost-Effective 

Often, companies outsource some of their business functions to be more cost-effective. And like most other outsourcing hubs, Malaysia offers inexpensive operations while still giving high-quality work. Their cost of living and their employee incomes is also relatively lower. So if you are comparing, you might find that Malaysia is a more inexpensive outsourcing option than other countries where the talents are slowly starting to scale their prices up. 

Outsourcing to Malaysia 

One of the most exciting things about outsourcing to Malaysia is the country’s bright future. It seems that they are just unlocking their potential in a digitally-saturated age where anything is possible. They already have the infrastructure and the policies in place to support a booming industry, companies only need to pay attention to them to reap the benefits of working with the Malaysian people.  

If you have been thinking about outsourcing to Malaysia and the opportunities that await your company there, we are happy to answer any questions you might have. Book a free business consultation with Outsource Asia today. 


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