Making Malaysia a Better Place for Investment
Malaysia, which has successfully attracted more than 3,000 foreign companies from around the world over the years since globalization started. In effort to drive more foreign funds into the country, the Government has liberalized 27 services sub-sectors and relaxed listing rules on Bursa Malaysia, the local stock exchange.
The nation has launched two stimulus packages essentially to strengthen the economy, following the financial meltdown in the US and in many developed countries. A total of about RM67 billion has been earmarked for this purpose. It is to be implemented in 2009 and 2010. Under the policy, there will be no more 30% Bumiputra equity requirement for 27 sub-sectors in the service industry covering the following sectors:
Computer and Related Services
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1.
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Consultancy services related to the installation of computer hardware
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2.
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Software implementation services - systems and software consulting services; systems analysis services; systems design services; programming services and systems maintenance services
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3.
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Data processing services - input preparation services; data processing and tabulation services; time sharing services and other data processing services
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4.
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Database services
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5.
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Maintenance and Repair Services of Computers
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6.
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Other services - data preparation services; training services; data recovery services; and development of creative content
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Health and Social Services
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7.
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All veterinary services
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8.
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Welfare services delivered through residential institutions to old person and the handicapped
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9.
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Welfare services delivered through residential institutions to children
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10.
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Child day-care services including day-care services for the handicapped
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11.
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Vocational rehabilitation services for handicapped
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Tourism Services
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12.
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Theme Park
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13.
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Convention and Exhibition Centre (seating capacity of above 5,000)
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14.
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Travel Agencies and Tour Operators Services (For inbound travel only)
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15.
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Hotel and Restaurant services (for 4 and 5 star hotels only)
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16.
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Food Serving Services (for services provided in 4 and 5 star hotels only)
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17.
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Beverage Serving Services for consumption on the premises (for services provided in 4 and 5 star hotels only)
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Transport Services
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18.
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Class C Freight Transportation (Private Carrier License – to transport own goods)
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Sporting and other Recreational Services
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19.
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Sporting Services (Sports event promotion and organisation services)
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Business Services
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20.
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Regional Distribution Centre
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21.
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Internal Procurement Centre
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22.
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Technical Testing and Analysis Services - composition and purity testing and analysis services, testing and analysis services of physical properties, testing and analysis services of integrated mechanical and electrical systems, and technical inspection services
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23.
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Management Consulting Services - general, financial (excluding business tax), marketing, human resources, production and public relations services
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Rental/Leasing Services without Operators
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24.
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Rental/Leasing services of ships that excludes cabotage and offshore trades
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25.
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Rental of cargo vessels without crew (Bareboat Charter) for international shipping
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Supporting and Auxiliary Transport Services
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26.
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Maritine Agency Services
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27.
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Vessel salvage and refloating services
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The new policies boost up positive response from the market. Based on a recent survey conducted by World Bank in its Doing Business Report issued in September 2009, Malaysia was ranked fourth out of 183 countries in terms of protecting investors. In terms of "getting credit", Malaysia was ranked in pole position.
Nevertheless, most of market analysts also agree for the sake of the longer-term growth of the sector, it also needs to see further liberalisation measures such as a higher foreign shareholding in commercial banks as well as a higher mobility in capital flows and currency trading.
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