KUALA LUMPUR, July 30 – Bumiputera entrepreneurs must be prepared to take advantage of the effects of liberalisation on the 27 services subsectors, said Minister of International Trade and Industry DatHe said the subsectors have been opened up to attract the inflow of such large investments that local investors may not be able to allocate.
“When foreign participation is accepted, the multiplier effects from the investments should be taken advantage of by all entrepreneurs including Bumiputeras,” he said during an interview with RTM 1 on the Program Dialogue aired here Wednesday night.
The topic of “Liberalising Services Sector” was discussed during the programme.
Among the 27 subsectors liberalised without any share equity restriction are the health and social services, tourism and transportation.
The announcement of liberalisation measures three months ago has given a boost of confidence to foreign investors, Mustapa said.
“Malaysia is seen as a country preparing to face competition once the economy recovers. Local entrepreneurs should also be ready to gain from the effects of liberalisation,” he said.
He also reiterated that the issue of Bumiputera participation being jeopardised with the liberalisation did not arise as there was minimal participation.
Mustapa said the decision to liberalise the 27 subsectors was made following 18 months of deliberation with the related ministries and agencies as well as after consideration was made for the needs and concerns of local entrepreneurs including Bumiputera entrepreneurs in the said sectors.
The ministry also discussed with Bumiputera business chambers and councils as well as trade and industry organisations before announcing the measures.
Mustapa said there were reasons for selecting the sector for liberalisation.
For example, there is a rationale for the liberalisation of the theme park subsector as it requires large investment amount and Malaysian investors usually decline to invest in projects requiring long construction period, he said.
He said the services sector was also an important component in the Malaysian economy whereby it should be contributing 70 per cent to the country's Gross Domestic Product (GDP) in 2020, in line with Malaysia's aim to become a developed country.
“The New Economic Model being formulated by the government will certainly emphasise on the services sector,” he said.
He said an Act will be also created where the existing regulations involving the services and professional sector will be streamlined to equip the sector for liberalisation.
The services sector is the country's main sector. It contributed 55 per cent to GDP last year, followed by manufacturing at 30 per cent, agriculture 10 per cent and construction 10 per cent.
Mustapa said although the liberalisation has been effected, the government will continue to provide assistance and support the local services providers to increase their competitiveness.
He said prior to the announcement of the liberalisation, the government had already created the Capacity Building Fund for the services sector with an initial allocation of RM100 million to help reduce the impact for the services providers of the country. - Bernama
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