Activpayroll, a leading integrated global HR and payroll platform, strengthened its strategic position in Malaysia and is set to tap into the growing Asia Pacific (APAC) payroll and HR outsourcing market following the grand opening of its new office in Bukit Damansara, which was officiated by Malaysia’s Deputy Minister of Digital, Yang Berhormat Datuk Wilson Ugak Kumbong. Notably, the event was also attended by Her Excellency, Ailsa Terry, British High Commissioner to Malaysia, and Mahadhir Aziz, CEO of Malaysia Digital Economy Corporation (MDEC).
By 2027, the market is projected to reach USD $37.9 billion, growing at a compound annual growth rate (CAGR) of 8.2% from 2022 to 2027.
Andrew Philp, Executive Director of APAC, Activpayroll giving his speech during the official launch ceremony
This strategic expansion in Malaysia is also in response to the increasing demand for professional services covering cross-border regional and global-scale HR and payroll in APAC. It is particularly significant considering 57% of companies in Asia outsource their HR functions, and this trend is expected to grow in the coming years.
Andrew Philp, Activpayroll’s Executive Director for Asia Pacific (APAC), said, “As the industry experiences unprecedented growth, our expansion in Kuala Lumpur is timely. This move not only strengthens our presence here but also sets the stage for Activpayroll to lead in shaping the future of global payroll and HR services in the region.”
“We see our continued investment in our operational teams, who are based in Malaysia, instrumental in growing and evolving the Activpayroll service in the region. With the availability of skilled resources in Kuala Lumpur, we are confident of being able to offer the close support our clients need to excel in APAC,” he added.
Activpayroll’s new Kuala Lumpur office will serve as its primary Global Support Service Centre (GSS) for both global and Asia Pacific operations. By establishing a full suite of teams, including tech and international payments, they aim to streamline service delivery and enhance customer experience. The new office is set to become Activpayroll’s largest in terms of headcount, with expectations of a robust top-line revenue expansion exceeding 40%.
Furthermore, Activpayroll plans to quadruple its workforce by 2028, supported by an average operational and capital expenditure increase of 37%. The office has already doubled its number of employees in less than a year. In response to the industry’s need for versatile and skilled talent, Activpayroll has invested significantly in training and development programs to upskill local talent, thereby supporting Malaysia’s goals of becoming a hub of skilled talent pool.
Yang Berhormat Datuk Wilson Ugak Kumbong, Deputy Minister of Digital Malaysia giving his speech during the official launch ceremony
During this event, Activpayroll was presented with its Malaysia Digital (MD) Status certificate from Malaysia Digital Economy Corporation (MDEC). Mahadhir Aziz, MDEC CEO said “Activpayroll’s increased investment in Malaysia and their decision to position Kuala Lumpur as a regional hub serving its APAC clients is a clear indicator of the strong infrastructure and conducive business environment that the country has been working hard to create. Now, with the MD certification, we eagerly anticipate their accelerated journey, further enhancing Malaysia’s prominence within the dynamic digital economy ecosystem.”
This strategic move by Activpayroll is not only a testament to its commitment to the Malaysian market but also a significant contribution to Malaysia’s goal of becoming a regional leader in innovation and digital transformation
The company is committed to assisting businesses in navigating global complexities within their markets, offering tailored solutions to meet diverse needs such as tax compliance, global mobility, global payroll, and global HR. With existing clients within Asia such as Kellogg’s, BMW, AXA, British Council and many more, Activpayroll is confident that with Malaysia serving as the focal point in the region, it can propel significant growth for the company.
Her Excellency Ailsa Terry CMG, British High Commissioner to Malaysia giving her speech during the official launch ceremony
Manish Mehta, Regional Director of Payroll Operations and Head of Global Support Services, Activpayroll, said, “As we embark on the early days of our inaugural Global Support Services (GSS) centre, we are proud to host critical functions such as technology and software management, management accounting, credit control, international payroll and payments, commercial and contracts, business development, and HR. Our unwavering dedication lies in ensuring that the GSS centre becomes a resounding success, aligning seamlessly with our global business growth.”
The establishment of the Kuala Lumpur hub highlights Activpayroll’s commitment to the rapidly growing Malaysian market and broader APAC region. A substantial investment drive initiated in December 2022 has led to an over 60% increase in investment outlays in Malaysia. The targeted focus on the Malaysian market will not only drive significant growth and industry leadership but also contribute meaningfully to the economic growth, and advancement of the professional services industry, empowering Malaysian businesses and their workforces to thrive in the dynamic APAC landscape.
For more information on the company, visit www.activpayroll.com.
