The Shared Services Agreement is essential for organizations implementing centralized service delivery models in Malaysia. It establishes the legal and operational framework for consolidating support functions such as finance, HR, IT, and procurement into a single shared services entity serving multiple group companies. This document is particularly relevant in the Malaysian business context where many multinational corporations establish their regional shared services centers due to favorable business conditions and skilled workforce availability. The agreement ensures compliance with Malaysian laws while detailing service scope, performance metrics, pricing mechanisms, governance structures, and operational procedures. It's commonly used by organizations seeking to optimize operations, achieve cost efficiencies, and standardize processes across their corporate group.
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1. Parties: Identification of the service provider and recipient entities, including registration details and addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the shared services arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of shared services to be provided, including service categories and delivery methods
5. Service Levels: Performance standards, KPIs, and measurement methodologies
6. Charges and Payment: Pricing structure, payment terms, invoicing procedures, and cost allocation methodology
7. Governance and Management: Management structure, reporting requirements, meeting cadence, and escalation procedures
8. Data Protection and Security: Compliance with PDPA 2010, data handling procedures, and security requirements
9. Confidentiality: Protection of confidential information, permitted disclosures, and survival terms
10. Intellectual Property: Ownership and licensing of IP, including pre-existing IP and newly created IP
11. Term and Termination: Duration, renewal terms, termination rights, and consequences of termination
12. Liability and Indemnities: Limitation of liability, indemnification obligations, and insurance requirements
13. Force Majeure: Events constituting force majeure and consequences
14. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Staff Transfer: Terms for transfer or secondment of employees, applicable when staff transitions are part of the arrangement
2. Business Continuity: Disaster recovery and business continuity requirements, recommended for critical services
3. Change Control: Procedures for implementing changes to services or agreement terms, useful for long-term or complex arrangements
4. Anti-Bribery and Corruption: Compliance with anti-corruption laws, recommended for high-value contracts or government-related services
5. Environmental, Social and Governance: ESG commitments and reporting, relevant for organizations with ESG policies
6. International Data Transfers: Additional provisions for cross-border data transfers, needed if services involve multiple jurisdictions
7. Non-Competition: Restrictions on competitive activities, relevant when sharing sensitive operational information
8. Step-In Rights: Rights to take over services in specific circumstances, important for critical service arrangements
1. Service Descriptions: Detailed specifications of each service category including scope, deliverables, and exclusions
2. Service Levels and KPIs: Detailed performance metrics, measurement methods, and reporting requirements
3. Charges and Pricing: Detailed pricing structure, rate cards, cost allocation methods, and pricing adjustments
4. Governance Framework: Detailed governance structure, roles and responsibilities, meeting schedule, and reporting templates
5. Implementation Plan: Transition or implementation timeline, milestones, and responsibilities
6. Operating Level Agreement: Detailed operational procedures, processes, and working methods
7. Personnel: Key personnel, qualifications, and any transferred or dedicated staff details
8. Technical Requirements: IT systems, infrastructure, and technical specifications
9. Security Requirements: Detailed security protocols, standards, and compliance requirements
10. Business Continuity Plan: Detailed procedures for service continuity and disaster recovery
11. Exit Plan: Detailed transition-out procedures and knowledge transfer requirements
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Manufacturing
Technology
Telecommunications
Healthcare
Professional Services
Retail
Energy
Logistics
Consumer Goods
Banking
Insurance
Education
Real Estate
Hospitality
Relevant Teams
Legal
Finance
Human Resources
Information Technology
Operations
Procurement
Compliance
Risk Management
Facilities Management
Customer Service
Business Process Excellence
Strategy
Commercial
Internal Audit
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Head of Shared Services
Legal Counsel
Operations Director
Finance Director
HR Director
IT Director
Procurement Director
Service Delivery Manager
Contract Manager
Business Process Manager
Compliance Officer
Risk Manager
Project Manager
Strategy Director
Commercial Director
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