High-potential talent and a conducive ecosystem support multinational companies in their quest to innovate and bring innovation successfully to market
Leading multinational companies (MNCs) with centres based in Greater Kuala Lumpur that are focused on developing advanced systems and cutting-edge solutions play an integral part in the ongoing global revolution known as Industry 4.0 (Fourth Industrial Revolution). This wave is characterised by technological development in areas such as artificial intelligence (AI), big data, fifth-generation telecommunications networking (5G), nanotechnology and biotechnology, robotics, the Internet of Things (IoT) and quantum computing.
Schlumberger and Novartis International AG are among the leading global companies to establish centres in Greater KL, which enabled their participation in the development of advanced technological solutions with clients and partners. These local operations support the MNC and/or its clients within Malaysia and the wider East Asia region. In some cases, these local centres also bring innovation to market.
“The Novartis Capability Centre in Kuala Lumpur (NGSC KL) is one of our five global shared services centres around the world. NGSC KL is part of our customer and technology solutions (CTS) organisation and delivers a broad variety of solutions to Novartis’ divisions and organisations worldwide. Our purpose is to reimagine medicine, with advanced and cutting-edge products, and serve 32 million Malaysians in living longer and happier lives,” says Patrik Grande, country president for Novartis Malaysia.
Novartis is a leading global medicines company that uses innovative science and digital technologies to create transformative treatments in areas of great medical need. Its products reach nearly 800 million people, while about 108,000 people, of more than 140 nationalities, work at this MNC.
Schlumberger is a technology company that partners with its customers, mainly from the oil and gas (O&G) industry, to unlock access to energy for the benefit of all. This leading MNC in oilfield services has a presence in more than 120 countries and a talent pool comprising about 160 nationalities.
“Schlumberger chose Greater KL as home to one of seven centres located around the world that form its global INNOVATION FACTORI network. In the INNOVATION FACTORI Kuala Lumpur, Schlumberger domain and data science experts work with energy industry customers to accelerate their AI adoption in East Asia, enabling them to take digital solutions from concept to full deployment, at scale,” says Haitao Sun, digital manager for Schlumberger East Asia.
An excellent base with suitable talent for high-tech development
Schlumberger and Novartis have found Greater KL to be an ideal location for operations that focus on developing leading technologies and digital solutions. “To achieve our vision of reimagining medicine, we require an environment that is aligned with our strategy and needs, and facilitates innovation. Malaysia has a supportive business environment, with sophisticated procedures and processes, as well as investor-focused agencies such as InvestKL that are adaptive to the changing environment,” says Grande.
Solutions offered by Novartis’ NGSC KL team include technology transformation, people and organisation services, finance, procurement, real estate and facilities services, and CONEXTS (a network of internal specialists providing high-end commercial, medical, clinical, legal and consulting services and solutions) services. “All our domains cover Asia-Pacific, including China and Japan, the Middle East and Africa. Some of our domains even have a global remit,” notes Grande.
“By pivoting towards next-generation digital industries and developing a knowledge-based economy, KL has built a winning ecosystem with elements that are conducive to our business needs. These elements include a strategic location within Southeast Asia, ample investment and business opportunities, the availability of suitable talent and attractive government incentives that strengthen the country’s position as a regional healthcare hub,” he adds.
Schlumberger decided to establish its INNOVATION FACTORI in Greater KL due to its central location and world-class pool of talent. “Malaysia has a central position in the region and hosts key activities for Schlumberger, ranging from a shared services hub that provides support to Europe, Africa, the Middle East and Asia to manufacturing units, operations and headquarters of our Asia-Pacific operations. The proximity of our INNOVATION FACTORI to customers like Petronas, which has ambitious digital transformation goals, is a considerable advantage. Furthermore, Malaysia provides access to an important talent pool for the company,” says Sun.
Federal government policies and incentives have also been instrumental in supporting these global MNCs that, in turn, work and share their expertise with local companies and government entities. For example, Schlumberger has partnered with CENTEXS (Centre of Technical Excellence Sarawak) to train talent with technical skills needed by the O&G industry. This is aligned with the government’s efforts, a key priority area in Budget 2022, to address employment and upskilling of the local workforce, especially in the O&G services and equipment industry.
Novartis is also participating in developing talent for the pharmaceutical industry. “We reinvest our capital in our people and support Malaysia’s ambition to be a hub for knowledge-based jobs. We have strategic partnerships with local tertiary institutions such as Taylor’s University by providing placements for pharmacy graduates and supporting the government’s protege programme via a one-year company rotation internship,” says Grande.
Apart from talent development, Novartis is exploring public-private partnerships via clinical trials and other areas that strengthen the healthcare industry as well as by buying goods and services from local vendors, amounting to RM250 million in indirect contribution in 2020.
Sun and Grande agree that talent is central to technical innovation and both companies provide world-class talent development programmes. According to Sun, Schlumberger is known in the O&G industry for providing comprehensive education and training to its employees. Besides providing training and development in the first three to four years of a new employee’s career with the company, employees also receive career-long training and development and have the opportunity to take positions around the world, as Schlumberger aims to hire locally and promote from within.
Greater KL advances into a leading technology and innovation hub
By Muhammad Azmi Zulkifli, InvestKL’s CEO
The future beyond companies, society and economic growth is shifting rapidly thanks to the breakthroughs in technological development. Consider the potential for artificial intelligence (AI) to bring about a “Second Great Divergence” of productivity. This is where countries and firms, the earliest and most successful adopters, leap ahead of others much like how the “First Great Divergence” was brought about by the Industrial Revolution.
Within this region, Greater KL has gained promising recognition as a hub for technological innovation. According to KPMG’s global Technology Industry Survey 2021, industry insiders ranked Kuala Lumpur the ninth top city in Asia-Pacific, which is seen as a leading technology innovation hub over the next four years.
World-leading multinational companies (MNCs) such as Novartis International AG, a giant in pharmaceuticals, and Schlumberger, a leader in the energy industry, have established operations in Greater KL that focus on innovation and advanced technology.
These operations are far more than system users or implementers. They are integral cogs in the innovation process and have successfully brought cutting-edge innovations to the market.
Like many companies that are participating in the development of Industry 4.0 technology and digital solutions, Novartis and Schlumberger point to skilled talent as the driving force behind innovation. These companies have made it a strategic imperative to attract and retain top talent and have programmes in place that focus on continuous training and upskilling. This is exactly what we seek from companies operating here — to support the government’s agenda of nurturing a talent pool that meets the future needs of industries.
Greater KL is an urban locale that attracts young professionals and has a pipeline for skilled talent. These factors, coupled with modern infrastructure, positive demographics growth trends and government incentives, have enabled it to become a technology innovation hub. But more must be done to augment this solid foundation.
I am confident that the 12th Malaysia Plan (12MP) will further enhance Greater KL’s standing as a leading location for environment, social and governance (ESG) activities and sustainable innovation-led investments in the region. Additionally, government initiatives to encourage more local companies, especially small and medium enterprises (SMEs) and micro-SMEs, to be more technologically savvy will contribute to the conducive ecosystem for innovation as well as complement the supply chain for MNCs to work with.
InvestKL’s Greater KL Live Lab programme aligns with the government’s aspiration to attract global companies to collaborate with local players towards elevating the ecosystem for quality, innovation-led and knowledge-intensive activities. We have already secured five companies this year, exceeding our target for 2021.
On another note, leading MNCs with operations in Greater KL are also advancing Malaysia’s aspirations to decarbonise while increasing the appeal of this country among global investors who have incorporated ESG principles in their investing strategy. Schlumberger and Novartis have ESG activities that encourage local companies to attain net-zero greenhouse gas emissions and bolster the country’s efforts to address the current health pandemic respectively.