Enterprise resource planning is an ERP system that focuses on the integration of all the operational processes in an organization. The ERP software plays a very crucial role in any company, because it is considered to be a vital tool that helps to organize, manage and control an organization’s business activities. With the growth of companies in southeast Asia, the demand for ERP software has increased tremendously. To cater to the needs of organizations from countries in southeast Asia, several ERP systems have been developed. However, the most popular ERP in Southeast Asia is ERP: Malaysia.
ERP: Malaysia is being used by companies in southeast Asia mainly because the country is a member of the Southeast Asian Financial Association (SFA). This provides them with excellent facilities in terms of economy and infrastructure. It also allows them to avail of cheap labor force. In addition, Malaysia’s government has been pro-active in ensuring that companies in the country can comply with local regulations and standards in terms of ERP software services. This has helped the industry tremendously as any errors made by the ERP system would surely be costly.
This means that Southeast Asia’s leading ERP provider is now becoming the market leader in the ERP software services industry. This was evident when Sybase chose to invest $120 million in upgrading its ERP system in mid-2021. This followed by other software giants in the region investing massive amounts of money in setting up manufacturing facilities in the country. Sybase is currently the only remaining true industry leader in southeast Asia. This growth is due largely to the rise of the Malaysian economy, which is now rising at a steady rate.
A big reason for the rise in ERP popularity in Malaysia is the government’s focus on manufacturing industry. The Malaysian economy is growing at a rapid pace and the government is taking all necessary steps to ensure that the nation becomes the fastest growing manufacturing hub in the world. As a result, more industries are venturing into the country to create jobs for millions of workers. For instance, the state-owned metal fabrications and machineries Corporation, Kong Corporation and Toshiba are just some of the major players in the machineries and fabrications industry that have established bases in Malaysia. In fact, these three companies alone account for a significant number of jobs that have been created in this regard.
Another reason why this has become the case in Malaysia is the presence of the national market as a huge potential market for both domestic and foreign businesses. While governments in other nations have taken pains to promote the sale of their respective currencies in an effort to encourage foreign investment, the Malaysian government has not done the same. This has led to a situation where foreign companies are now establishing factories in Malaysia and selling their ERP systems to the locals. If this trend continues, the impact of ERP on the manufacturing industry in Malaysia will be tremendous.
This is why the present government has taken a very important step towards promoting the manufacturing industry in Malaysia. The Business Processing Outsourcing (BPO) sector in Malaysia has been given much importance. BPO refers to the process of gathering services and goods from the local production environment for the purpose of reselling them to the international market. Given the burgeoning economy of Malaysia and the need to tap the resources of other countries, this has become one of the lucrative areas in the country. To make it possible, the government has set up many trading platforms which will act as gateways to connect these businesses with global clients.
As it is, in this day and age, outsourcing has become a common phenomenon. Even companies that produce goods for domestic usage will also seek the services of a third party company to handle their production process. This is where erp software comes in. By installing an ERP system in the manufacturing company, the system will integrate all the systems and information from different departments and units together and then provide the tools and resources required by the company in order to streamline operations and improve productivity. In other words, it will create a “one stop solution” for the company.