PLAN TO MAKE MALAYSIA A PREFERRED GLOBAL SSO HUB BY 2010

KUALA LUMPUR, Nov 4 (Bernama) -- The Malaysian government aims to make
Malaysia the preferred global SSO (shared services and outsourcing) hub by 2010,
yielding a targeted export revenue of RM6 billion a year, said National SME
Development Council (NSDC).

In its annual SME Report 2008 released here Wednesday, the NSDC said the SSO
sector was expected to contribute significantly to gross domestic product,
investment as well as employment.

It said under the Ninth Malaysia Plan, the government aimed to attract local
companies to undertake high-end SSO-related services in the areas of marketing,
project management, product development and supply chain.

"To complement this initiative, the government provides attractive incentive
package (for MSC Malaysia-status companies and operational headquarters) and
other assistance to enable local outsourcing firms to acquire world-class
competencies, have access to greater offshore markets and expand their
operations," it said.

The report said the legal framework for intellectual property rights
protection would be also be strengthened to enhance the environment for
outsourcing activity.

It said the worldwide market for SSO was huge, around US$1 trillion
(US$1=RM3.39) per year, and was expected to increase to US$1.5 trillion in
future, driven by liberalisation of the services sector.

In Malaysia, the outsourcing activities began since early 1990s, with the
establishment of operational headquarters, international procurement centres and
regional distribution centres, it said.

It said Malaysia has already established itself as a premier outsourcing
destination.

NSDC said the A.T. Kearney Study ranked Malaysia the world's third most
attractive location for outsourcing centre, after India and China

It said Gartner ranked Malaysia as Asia Pacific's fourth leading location
for outsourcing activities due to favourable government support and
infrastructure, political and economic stability as well as availability of
labour pool as among the main advantage.

"Malaysia is a natural choice for outsourcing due to attractive cost
structure and business environment among emerging markets as well as high levels
of global integration," it said.

-- BERNAMA