Activpayroll strengthens presence in APAC with Kuala Lumpur Office to meet rising industry demands

• The expansion meets the demand for HR, payroll services in APAC
• Aims to quadruple its workforce by 2028, with a 37% increase in opex and capex 

Activpayroll, a leading integrated global HR and payroll platform, has strengthened its  position in Malaysia and is poised to tap into the growing Asia Pacific (APAC) payroll and HR outsourcing market with the opening of its new office in Bukit Damansara, officiated by Malaysia’s Deputy Minister of Digital, Wilson Ugak Kumbong. Also in attendance were Ailsa Terry, British High Commissioner to Malaysia, and Mahadhir Aziz, CEO of Malaysia Digital Economy Corporation (MDEC).

The market for HR and payroll outsourcing in APAC is projected to reach US$37.9 billion (RM181 billion) by 2027, growing at a compound annual growth rate (CAGR) of 8.2% from 2022 to 2027. This expansion in Malaysia addresses the increasing demand for professional services covering cross-border regional and global-scale HR and payroll in APAC, where 57% of companies outsource their HR functions, a trend expected to grow.

Andrew Philp, Activpayroll’s executive director for APAC, stated, “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, the firm aims to streamline service delivery and enhance customer experience. The new office is expected to become Activpayroll’s largest in terms of headcount, with expectations of a robust top-line revenue expansion exceeding 40%.

Furthermore, the company 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.

During the event, Activpayroll was presented with its Malaysia Digital Status certificate from 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 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.

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 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.