Predictive Analytics the Game-Changer To Maximising Potentials of Global Services Hubs

In today’s interconnected world, businesses are increasingly looking beyond their borders to tap into new markets and unlock growth opportunities. Predictive analytics has emerged as a game-changer driving informed decision-making, enhancing customer experiences to help unlock new opportunities for growth and maximise their potential in global markets.

In Malaysia, this technological revolution is not just a trend but a strategic imperative for staying relevant and competitive. According to a market research report by Precedence Research,¹ the global predictive analytics market size was valued at USD10.2 billion in 2022, and it is expected to hit around USD67.86 billion by 2032 with a registered compound annual growth rate (CAGR) of 21.4% during the forecast period 2023 to 2032. The predictive analytics market is expanding as a result of enterprises being more aware of the generated data that can be utilised to anticipate future events utilising predictive analytic solutions.

From consumer behaviour forecasting to supply chain optimisation, there is no limit to what Artificial Intelligence (AI) and data analytics can do. A study conducted by PricewaterhouseCoopers (PwC)² indicated that the application of AI can increase the global gross domestic product (GDP) by 14% or equivalent to US$15.7 trillion in 2030 through insights on making key decisions and optimising their operations as follows:

Improved decision-making: By analysing large volumes of data using advanced algorithms, AI can provide valuable insights that enable more informed and data-driven decision-making. This allows businesses to identify opportunities, mitigate risks, and optimise strategies for growth.

Targeted marketing and sales: Data analytics can help businesses better understand their customers’ behaviour, preferences, and needs. AI-powered tools can then use this information to personalise marketing messages, recommend products or services, and target the right audience segments more effectively, leading to higher conversion rates and sales.

Predictive analytics: AI algorithms can analyse historical data to predict future trends, customer behaviour, and market changes. This foresight enables businesses to anticipate demand, optimise inventory management, and proactively address the potential challenges, thus gaining a competitive advantage.

Process optimisation: By leveraging AI and data analytics, businesses can automate repetitive tasks, streamline operations, and improve efficiency across various functions such as supply chain management, logistics, and customer service. This optimisation frees up resources that can be redirected towards strategic initiatives and business development efforts.

Identifying new opportunities: Data analytics can uncover hidden patterns, correlations, and market trends that might not be apparent through traditional methods. By mining both internal and external data sources, businesses can identify new market opportunities, untapped customer segments, and potential areas for expansion.

Risk management: AI can analyse vast amounts of data to identify potential risks and threats to the business, such as fraud, cybersecurity breaches, or market volatility. By detecting anomalies and patterns indicative of risk, businesses can take proactive measures to mitigate threats and safeguard company operations.

Enhanced customer experience: By leveraging AI-powered chatbots, virtual assistants, and predictive analytics, businesses can deliver personalised and responsive customer experiences thus improving customer satisfaction and enhancing customer loyalty.

Mamee Double Decker has successfully transformed itself from a homegrown company into a global player. Managing five (5) factories and six (6) sales offices from its base in Malaysia, Mamee has achieved a significant feat of doubling its revenue within five (5) years and increasing export sales by 28% in just one year. This remarkable achievement is attributed to the effective integration of AI and utilisation of data, which have shaped and enhanced its journey of product innovation, consumer understanding, and technological advancement.

Guided by Mamee’s key principles; data driven organisation, adoption of cloud smart approach and digitalisation with 3S approach (suitability, scalability and sustainability), the company has gained access to cutting-edge technologies and has empowered Mamee to selectively embark on digital initiatives aligned with its growth strategies.

Harnessing the power of AI algorithms to analyse social media, customer reviews and other online sources has enabled Mamee to extract meaningful insights and identify emerging trends and sentiments. This data-driven approach has facilitated informed decision-making throughout the entire product development and marketing launch cycle. Furthermore, leveraging AI-driven customer segmentation techniques has enabled Mamee to tailor marketing strategies and customer engagement initiatives to specific demographics groups, fostering brand loyalty and enhancing user satisfaction.

Looking ahead, Mamee plans to also explore the utilisation of data analytics and AI modelling to predict consumer behaviours and taste profiles, aiming for targeted innovation and increased speed-to-market. Much like how Spotify would recommend songs based on listening habits and preferences, AI models can predict human sensory perception of flavour, aroma, and texture across various demographics. This predictive capability eliminates the need for actual human sensory tests, allowing Mamee to keep pace with the ever-changing shift in consumer preferences.

As the Government’s principal investment promotion agency, MIDA is committed to ensuring that Malaysia achieves its goal of becoming a global services hub for high-value added services, with a focus on digital innovation and technology-driven initiatives as underlined in the New Industrial Master Plan 2030.

The Global Services Hub tax incentive introduced under the Malaysian Budget 2024 which is an extension of the Principal Hub incentive introduced in 2015 adopts an outcome-based approach, aims to maintain Malaysia’s position as a preferred location to house and consolidate high-impact strategic services hub in the region. Under this scheme, eligible companies that make Malaysia as a base to manage, control and support its key business functions such as risk management and strategic business decision making may be considered an income tax rate of either 5% or 10%. From May 2015 until 31 December 2022, MIDA has approved a total of 46 Principal Hub projects, with an estimated total operating expenditure of RM68.8 billion and the creation of 10,866 highly skilled job opportunities. These projects span various industries, including electrical and electronics, aerospace, oil and gas, food and beverage, chemistry, and information technology.

For more information, please contact the Business Services and Regional Operations Division of MIDA at www.mida.gov.my/staffdirectory/business-services-and-regional-operations-division/

¹Precedence Research (2023) – https://www.precedenceresearch.com/predictive-analytics-market.

²Artificial Intelligence – Global | Statista Market Forecast. (2024). Statista; Statista. – https://www.statista.com/outlook/tmo/artificial-intelligence/worldwide

³Data Analytics Global Market. (2024) –  https://www.researchandmarkets.com/report/data-analytics