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Drawing
inspiration
Services
sector
liberalised
MOVE IN COMPLIANCE WITH MALAYSIA’S
MEMBERSHIP IN AEC AND WTO, SAYS NAJIB
by Tim Leonard
newsdesk@thesundaily.com
P
UTRAJAYA: The government
has lifted the 30% bumiputra
equity condition on 27 services
sub-sectors with immediate
effect, kicking off an on-going
liberalisation of the sector which is
a stable contributor to economic
growth.
In announcing this yesterday,
Prime Minister Datuk Seri Najib
Abdul Razak also gave notice that he
will announce the liberalisation of the
financial services sector next week.
The liberalisation initiatives are
in-line with the country’s compliance
with its membership in the Asean
Economic Community and the World
Trade Organisation.
Najib said the liberalisation of the
services sector – in the areas of health
Member of Audit Bureau of Circulations (Malaysia)
» Charge flawed: Karpal pg4
pg20
and social services, tourism services,
transport services, business services
and computer and related services
– will not adversely affect the domestic
services industry as the government
will continue to help build capacity
and to open up export markets.
Najib, who is also finance minister,
said a services sector capacity develop-
ment fund of RM100 million has been
established under the first economic
stimulus package and the fund is
managed by the Malaysian Industrial
Development Authority (Mida).
He said a National Committee for
Approval of Investments in the Serv-
ices Sector has also been established
under Mida and the committee will
act as a focal point to receive and
process applications of investments,
excluding investments in financial
services, air travel, utilities, Economic
Development Corridors, Multimedia
30 SEN for delivery to your doorstep
TELLING IT AS IT IS
» China’s economy recovering: Central bank pg17
Super Corridor (MSC) and Bionexus
status companies and distributive
trade (see www.sun2surf.com for
full list of sub-sectors).
Najib also announced that as part
of the measures to develop Malaysia
as an international Islamic financial
hub, the legal profession will be
liberalised to allow up to five top in-
ternational law firms with expertise
in international Islamic finance to
practise in Malaysia.
“These firms will only be allowed
to offer legal services in international
Islamic finance. Successful law firms
will be determined based on creden-
tials and the business plans in respect
of the offices to be established in
Malaysia.”
The country, said Najib, is plan-
ning to raise the contribution of the
services sector to 60% of the Gross
Domestic Product (GDP).
Award winning newspaper
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No. 4744 PP 2644/12/2009 (023092)
Thursday
April 23, 2009
www.sun2surf.com
He said in terms of export, the
services sector contributed RM102.1
billion while imports amounted to
RM99.8 billion for 2008.
“In 2007, for the first time, Malay-
sia recorded a surplus in its services
trade and likewise in 2008.”
The services sector contributed
55% to the GDP in 2008, of which
47.6% was contributed by non-gov-
ernment services. The sector accounts
for 57% of total employment.
Approved investments in the serv-
ices sector totalled RM50.1 billion in
2008, exceeding the investment target
of RM45.8 billion per annum. The
share of foreign investments was 11 %
of the total investments and is expected
to increase with the liberalisation.
Hitherto, foreign services com-
panies such as retailers need a local
partner who owns 30% equity in the
business.
business
EPAPIC
S. Africans
vote ...
A SOUTH African voter
casts his ballot by candle
light during national elections
in Khayelitsha, Cape Town,
yesterday. The African National
Congress looks assured of a
fourth straight win since defeating
white minority rule in 1994 under
Nelson Mandela and will make
its leader Jacob Zuma president
weeks after he was able to get
corruption charges dropped on a
technicality. But the party faces
an unprecedented challenge
from opposition parties hoping
to capitalise on frustration over
corruption, poverty and crime,
and could lose the two-thirds
majority that gives it the right
to change the constitution and
entrench its power further.
» Reports pages 12 and 14