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Why More CFOs Are Turning to Finance Shared Services for Agility and Insights
- syazwinaagosasia
- 7 days ago
- 3 min read
As the global business landscape grows increasingly volatile and complex, Chief Financial Officers (CFOs) are seeking more resilient, agile, and data-driven operating models. One model gaining traction across public listed companies, government-linked corporations (GLCs), and multinational corporations (MNCs) is the Finance Shared Services Center (FSSC).
Finance Shared Services—often housed within broader Global Business Services (GBS) organizations—have evolved from simple cost-saving initiatives into strategic enablers. They now provide timely insights, ensure compliance, standardize processes, and drive digital transformation.
Why Shared Services Make Strategic Sense for CFOs
The traditional finance operating model is under pressure:
Manual and fragmented processes limit efficiency.
Business units demand real-time analytics for better decision-making.
Regulatory and ESG compliance requirements are intensifying.
Talent shortages and rising costs challenge sustainability.
A well-structured finance shared services model can help address these challenges by:
Consolidating transactional processes (e.g., Procure-to-Pay, Order-to-Cash, Record-to-Report) under one roof.
Enabling process harmonization across entities.
Embedding automation and analytics for faster, smarter reporting.
Freeing up in-country finance teams to focus on strategic business partnering.
Case Example: Sunway Group’s Finance Shared Services Journey
Malaysia’s own Sunway Group has been recognized for its finance transformation journey, where it centralized multiple finance functions into a single shared services center. The transformation included:
Standardizing accounts payable and receivable processes across its diverse business units.
Implementing automation tools to reduce manual effort and improve cycle times.
Investing in analytics and reporting dashboards to support better decision-making.
The result: greater visibility, improved control, and a scalable model that supports business growth.
What This Means for Public Listed and GLC CFOs
For many Malaysian PLCs and GLCs, the time is ripe to explore shared services. Key benefits include:
Better governance through centralized controls and audit readiness.
Improved agility in responding to market changes.
Increased employee satisfaction through clearer roles and digital tools.
Long-term cost efficiency and scalability.
However, successful shared services transformation goes beyond technology. It requires thoughtful design of the operating model, a clear process improvement roadmap, stakeholder buy-in, and robust change management.
Why MNCs Are Choosing Malaysia for Finance Shared Services
Malaysia has become a preferred destination for MNCs setting up GBS or finance shared services hubs due to:
A multilingual talent pool with strong finance and accounting capabilities.
Competitive operating costs and government incentives.
Maturity of existing shared services ecosystems in cities like Kuala Lumpur, Cyberjaya, and Penang.
Proximity to regional markets in ASEAN and Asia-Pacific.
Companies such as British American Tobacco, Schlumberger, and Huawei have established finance shared services operations in Malaysia, leveraging both the cost and capability advantages.
Final Thoughts
Finance Shared Services is no longer just a back-office strategy—it is a CFO’s strategic asset. When designed and implemented well, it can improve reporting accuracy, support enterprise-wide digital transformation, and create the foundation for long-term business agility.
Ready to Explore Finance Shared Services?
Whether you're a public listed company rethinking your finance model or an MNC looking for a regional hub, AGOS Asia can help. As one of Malaysia’s leading GBS transformation consultants, we support clients through the entire shared services journey—from feasibility study and design, to implementation and continuous improvement.
As industry experts, AGOS Asia is committed to guiding GBS organizations through their AI transformation journey. Whether you are exploring AI for the first time or looking to optimize existing implementations, our team is here to support you. Connect with us to discuss how AI can elevate your GBS operations. Reach out at contact@agosasia.com or visit www.agosasia.com to explore how we can help drive your AI strategy forward.
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