In the Shared Prosperity Vision 2030 (SPV) policy document, Advanced and Modern Services is highlighted as a key economic growth area due to the outsize impact that the services sector has on Malaysia’s economy. Despite a pandemic-affected year, the services sector still accounted for the bulk of Malaysia’s Gross Domestic Product (GDP), at 57.7%.

Therefore, modernisation and diversification of the sector must be in line with technological advancement and current market demand. Emphasis on sub-sectors such as environmental services, professional services and technology services will catalyse an increase in inclusive sources.

The SPV 2030 complements existing policies related to the Green Economy (particularly for environmental services sub-sector), Global Business Services (for professional services), as well as the Fourth Industrial Revolution (4IR) and Digital Economy (for technology services).

As more sectors adopt 4IR technologies and join the global Digital Economy, the need to make business processes more sustainable in the long-term will grow in tandem with customer and client demands. As a result, environmental services such as lifecycle review of assets and resources, energy efficiency and conservation, waste disposal and recycling, as well as resource allocation will become more vital.

The increase in technical knowledge and digital know-how will also follow the rise in 4IR adoption. On par with that, businesses will also require more advanced professional services to support their growth ambitions, especially in finance, accounting, legal, architecture, and engineering.

Technology services that support digital adoption across multifunctional organisations include cybersecurity professionals, cloud computing providers, data centres, software developers and even fintech consultancies. In August 2021, Kuala Lumpur was ranked among the top 10 Asia Pacific cities seen by KPMG as leading technology innovation hubs, further burnishing the city’s reputation in this area.