Malaysia Rises to Become a Global Accounting Hub
Multinational companies are now looking into Malaysia to house their accounting and finance functions. This is because of the growing number of competent accountants in the country. As a result, Malaysia is rising to compete globally when it comes to the accounting profession.
Malaysia becoming a global accounting hub simply means that the nation is receiving more accounting service contracts from global companies. This means that Malaysia is becoming an accounting and finance hub or service provider on a global scale.
Many factors influence this development in the accounting sector. It includes the country producing quality accountants with a multi-language skill set. Additionally, decent infrastructures like excellent Information Technology (IT) and lower operating costs add value to Malaysia’s accounting sector. Further, the government’s tax incentives and flexible immigration policies make the country business-friendly for multinational companies.
The Accountancy Profession in Malaysia
Accountancy has been a very popular profession for young dreamers in Malaysia. Many young talents sign up every year to take Accountancy in colleges and universities. This just proves that the accountancy profession is booming in the country.
Moreover, Malaysia had a long history of offering world-class accountancy graduates. Many Malaysian accountancy students competed and won world awards and prizes in recent years.
Currently, Malaysia has 35,000 qualified and competent accountants. With the increasing demand for Malaysian talents, the goal is to increase this number to 60,000. Further, the government is in line to expand globally, with the creation of a good economic environment for international companies.
Competing with other countries of the region, like the Philippines, India, and China, Malaysia envisions sharpening its competitive edge and further strengthening its accountancy sector. As such, actions like aligning accountancy standards to the International Financial Reporting Standards (IFRSs) are put in place to improve the quality of accounting services to par with international standards.
Facing the Challenges
To move on a global scale comes to the challenge of making sure that Malaysians can compete internationally, too. This means that the accountancy sector has to take on mechanisms to increase its talents and improve the country’s links to global companies.
At the moment, Malaysia’s accounting sector is continuing to collaborate with stakeholders like the government, professional bodies, regulators, and academicians. The goal is to develop relevant frameworks to ensure industry preparation and training. The vision is to hone future-ready professionals that hold relevant skill sets.
Furthermore, the accountancy sector also anticipates the future of the industry with the advancing technology. The accountancy profession looks forward to bracing talents to changes like robotic process automation, data analytics, cybersecurity, IT audit, forensics, and finance transformation.
As a result, the accountancy profession is integrating a holistic digital transformation program in their work. This program includes the use of cloud computing, audit software, and data analytic tools.
Malaysia’s World-class Standards
Malaysia’s economy entices more and more multinational businesses to set a foothold in the country. This increases the demand for accountants to handle these businesses’ financials. And as Malaysia rises to become a global accounting hub, changes must also be set in place to support this development.
Foremost, the industry has to increase its talents. This task is in the hands of academicians to invite and shape young talents into competent and globally-competitive accountants. As these talents are the foundation for this global accounting hub, we have to make sure that they possess the right skills and qualities to work and adapt on a global scale.
Moreover, the accounting industry has to expect technological changes that will affect them. Therefore, they have to ride with the tide of improving their processes and tools that integrate automation and cloud-based systems.
Lastly, Malaysia’s accounting standards must align with international standards. This allows Malaysian firms to handle multinational companies. Further, this movement raises the bar for accounting firms on producing the quality of their output.
Top Malaysian Accounting Service Provider
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