Putrajaya, 18 July 2011 – The Government of Malaysia has agreed to host the
United Nations Development Programme‟s (UNDP) Global Shared Services
Centre on International Public Sector Accounting Standards.

The UNDP Global Shared Services Centre (GSSC) is being established to support
UNDP‟s adoption of “best practice” International Public Sector Accounting
Standards (IPSAS) from January 2012. It will be a centre of excellence,
specialising in IPSAS transactions that are complex and require expert skills. The
Centre will support the three most challenging areas of UNDP‟s Financial
Management processes including Revenue, Asset and Expense management. It
will also provide training and other IPSAS support to UNDP‟s global offices.

The joint announcement on the establishment of the Centre was made by YBhg
Tan Sri Dr. Wan Abdul Aziz bin Wan Abdullah, Secretary General to the Treasury,
Ministry of Finance Malaysia and Ms. Rebeca Grynspan, United Nations Under
Secretary General & Associate Administrator, United Nations Development

Ms. Rebeca Grynspan, who is on a four day official visit to Malaysia said,
“Malaysia has recently identified and prioritized the professional services sector,
especially financial services, as one of its most important contributors to the future
growth of the Malaysian economy. The growth of this sector is central to
Malaysia‟s aspirations to achieve Vision 2020 and to become a high income nation
Announcement on UNDP GSSC on IPSAS                                      News Release - 2

by that year. As such this UNDP Global Shared Services Centre should be viewed
as consistent with and a contribution to Malaysia‟s New Economic Model, the 10 th
Malaysia Plan and the Economic Transformation Programme, all of which were
recently announced in 2010.

UNDP‟s Global Shared Service Centre will also directly contribute to Malaysia‟s
aim of becoming a provider of complex and professional financial services. The
aim of the Global Shared Service Centre is to provide high-value complex
accounting services to UNDP‟s global operations, providing professional support to
development activities in over 176 countries and territories.”

As a key step towards increasing transparency, accountability and raising financial
management standards, UNDP will adopt IPSAS on 1 January 2012. The adoption
of IPSAS has been mandated by UN General Assembly resolution 60/283. For
UNDP, IPSAS is of significant importance given UNDP‟s mandated roles by the
General Assembly, including, most importantly, to support the UN Resident
Coordinator system and provide services to the entire UN system.

Ms. Rebeca Grynspan added that “The shortlist included strong competitor UN
member states from Latin America, East and Southern Africa, Eastern Europe and
Asia. Malaysia was identified by UNDP as the preferred location from within the
final shortlist of global options, subject to discussions, including on incentives, with
the Government of Malaysia.

Given the importance and prestige attached to the location of the GSSC, UNDP
commissioned an independent study conducted by a reputable consulting firm on
optimal possible global locations for the GSSC. The study looked at many factors
including infrastructure, skill sets, labour productivity and cost, scalability and
sustainability, as well as host government incentives, for locations throughout the
globe on the basis of stringent criteria. This shows Malaysia‟s attractiveness in the
eyes of international agencies.”
Announcement on UNDP GSSC on IPSAS                                        News Release - 3

The establishment of the GSSC increases the size of operations of United Nations
agencies in Malaysia. Various UN agencies have already set up bases here, such
as the World Health Organisation Global Service Center in Cyberjaya, and more
recently, the World Food Programme Regional Humanitarian Depot for the Asia-
Pacific Region in Subang. This is in addition to the presence of UNDP, UNICEF,
WHO, UNHCR, UNU and many other agencies of the UN.

Mr. Kamal Malhotra, UNDP Resident Representative for Malaysia, Singapore and
Brunei Darussalam said, „The move to host the GSSC will also be viewed
positively as a Malaysian Government contribution to the establishment of a global
centre of excellence for the United Nations in the area of finance, specifically on
International Public Sector Accounting Standards, which is regarded as “best
practice” in this area.

It is clearly very prestigious for Malaysia to be selected by UNDP as the country of
choice from a list of possible worldwide location options for the establishment of
such a global Centre of Excellence.”

The UNDP GSSC - IPSAS will initially comprise of some forty personnel, over
ninety percent of whom will be highly-qualified knowledge workers with six to
seven being international professionals. In addition to its day-to-day operations,
the Centre will also attract other UNDP activities. One major event throughout
November 2011 will be the provision of face-to-face training in IPSAS for around
150 UNDP personnel currently located in other countries in the Asia – Pacific

ABOUT UNDP: UNDP is the UN‟s global development network, advocating for change
and connecting countries to knowledge, experience and resources to help people build a
better life. We are on the ground in 176 countries and territories, working collaboratively
on their own solutions to national and global development challenges. Please visit:
Announcement on UNDP GSSC on IPSAS                       News Release - 4

For queries, please contact:

Mr Ahmad Hafiz Osman, Communications Officer, UNDP Malaysia, Singapore
and Brunei Darussalam
 E:    ahmad.hafiz@undp.org
DL: 603-2091 5154
M:    012 302 1234
F:    603-2095 2870
W:    www.undp.org.my

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