PUTRAJAYA: The government has removed the 30% bumiputera equity requirement for the 27 services sub-sectors with immediate effect in line with the Asean trade liberalisation and efforts to boost the services sector.Datuk Seri Najib Razak said on April 22 the sub-sectors covered health and social services, tourism services, transport services, business services and computer and related services.
“There will be no more 30% bumiputera equity requirement for these sub-sectors,” he said at a press conference at the Prime Minister’s office.
The move to liberalise the services sector, which was first announced during the presentation of the Second Stimulus Package on March 10, was also expected to attract more investments, bring in more professionals and technology and strengthen the competitiveness of the sector.
Najib, who is also Finance Minister, said the government was intensifying its efforts, with the hope that the services sector will increase its contribution to the GDP to 60%.
The services sector contributed 55% to the gross domestic product in 2008, of which 47.6% came from non-government services. The sector also accounts for 57% of the total employment in Malaysia.
“Recognising the growth potential in the services sector, the government has decided to immediately liberalise 27 services sub-sectors, with no equity conditions imposed,” said Najib.
Prior to this, companies in the services sector must offer 30% of its equity to Bumiputera.
However, Najib did not include the financial services. When asked, he explained that the financial services liberation plan will be announced next week.
The government was confident these initiatives would not adversely affect the domestic services industry.
To help support the industry in capacity building and opening up of the export markets, a development fund of RM100 million was established under the First Economic Stimulus Package.
The fund will be run by Malaysian Industrial Development Authority (Mida). To facilitate investments in the services sector, a national committee for approval of investments has been created under Mida.
“This committee will act as a focal point to receive and process applications of investments in the services sector excluding financial services, air travel, utilities, economic development corridors, multimedia super corridor and Bionexus status companies and distributive trade,” said Najib.
According to him RM50.1 billion of investments in the services sector was approved in 2008, with foreign investments totaling 11%. For exports in 2008, RM102.1 billion was recorded while imported services amounted to RM99.8 billion.
“Malaysia recorded its first surplus in this sector in 2007. And according to WTO, Malaysia is among the 30 leading global exporters of services,” said Najib.
“The Malaysia External Trade Development Corporation (Matrade) has also been tasked to coordinate and spearhead all export promotion initiatives.”
To help develop Malaysia as an international Islamic finance hub, said Najib, the legal profession will be liberalised to allow up to five top international law firms with expertise in international Islamic finance to practise in Malaysia.
However, these firms will only be allowed to offer legal services in international Islamic finance.
SERVICES SUB-SECTORS FOR LIBERALISATION
Computer and relater services
1. Consultancy services related to installation of computer hardware
2. Software implementation services – systems and software consulting services; systems analysis services; systems design services; programming services and systems maintenance services
3. Data processing services – input preparation servies; data processing and tabulation services; time sharing servies and other data processing services
4. Database services
5. Maintenance and repair services of computers
6. Other services – data preparation services; training services; data recovery services; and development of creative content
Health and social services
1. All veterinary services
2. Welfare services delivered through residential institutions to old person and the handicapped
3. Welfare services delivered through residential institutions to children
4. Child day-care services including day-care services for the handicapped
5. Vocational rehabilitation services for the handicapped
Tourism services
1. Theme park
2. Convention and exhibition centre
3. Travel agencies and tour operators services (for inbound travel only)
4. Hotel and restaurant services (for 4 and 5 star hotels only)
5. Food serving services (for 4 and 5 star hotels only)
6. Beverage serving services for consumption on the services (for 4 and 5 star hotels only)
Transport services
1. Class C freight transportation (Private carrier license – to transport own goods)
Sporting and other recreational services
1. Sporting services (promotion and organization services)
Business services
1. Regional distribution centre
2. International procurement centre
3. 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
4. Management consulting services – general, financial (excluding business tax), marketing, human resources production and public relations services
Rental/Leasing services without operators
1. Rental/leasing services of ships that excludes cabotage and offshore trades
2. Rental of cargo vessels without crew (Bareboat Charter) for international shipping
Supporting and Auxiliary Transport Services
1. Maritime agency services
2. Vessel salvage and refloating services
tunku : i understand that many malays are upset with this decision to scrapped the 30% quota of bumis equity in these 27 SUB SECTORS. let's be rationale. these are only SUB SECTORS and if you really look into the sectors there are not many genuine bumi players in those industry.if there is , they can own their own company and there are many bumis owning it. it is to boost up the economy and also in line with the asean trade liberalisation and efforts to boost the services sector.if the economy boost up, it benefits all. by doing this we will get more FDI's in.let me say it again, it is only for the SUB SECTORS.
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9 comments:
1. computer services is where malays are very competitive.
2. Once MIDA holds up the 100mil, chances are chinese will offer bribes to get their hands on the 100mil.
3. malays will not be able to compete since now bribes / money are more important than competitiveness.
4. najib (as tun M said) should focus on malays as their main voters rather than non-bumis as giving (assumptions) more income-tax.
5. pushing malay voters in a higher income bracket by NOT liberalize these sub sectors will
benefit najib not only in malays spending power as income-tax payer but also as part of voters satisfaction.
The govt should slowly dismantle all these Bumi quotas and at the same time the private and business sector should also dismantle the anti bumi policy they quietly implement. I believe the bumis are beter off without this policy. They can compete much better without govt interference.
I am not sure why there are Malays who is making noise about the liberation in sub-sectors. When MECD was dismantled, they complained and now this. We should not forever be cocooned in our nest and on crutches. Najib is slowly "training and teaching" the Bumiputras (Malays) to be independent and not rely on the govt. The fact that he dared to do it means he has the confidence the Bumis can and able to compete with others. Common, Najib is preparing for a very very strong and competitive Malay (Bumiputra) for the FUTURE. Most of us, if not all, were products of MARA (Govt) assistance, one way or another. That is/was our generation and it is high time we return the help by helping our children be independent of govt help.
The other races faced similar situation and they have become resilient, so high time we build Malays to be one. We should imagine that we are in a foreign land and there is no assistance or policy to help us except us giving the best of what we are offering.
Time to fly out of the nest and cari makan like the others. Many may dislike Najib but in the long run, I believe many more will appreciate what he is trying to do. So let us give full support to him and look into the tersirat .
P.S. I voted Opposition the last time, but comes next GE, next one goes to BN
"Almost retiring Old Man"
A small leak will sink a big ship.
This is another act of the mouse is fixing the pumpkin. There are many other pressing issues that most important in actually helping the economy. For sure these sub sectors are not.
bn will lose many malay votes because of this.
Bumi businessmen will not lose: Najib
JAKARTA: Bumiputra businesses will not become “extinct” or lose in competition just because the government has removed the 30% bumiputra equity requirement.
Prime Minister Datuk Seri Najib Tun Razak said bumiputra could still take part in business in a more “open and competitive manner.”
“I can see that bumiputra have the ability to compete with the rest. I am not worried that they will become ‘extinct’ or lose out in competition because of this decision,” he told the Malaysian media at the end of his one-day official visit here Thursday.
This is his first trip to Indonesia after taking over as Prime Minister on April 3. The Prime Minister on Wednesday announced that the Government had removed the 30% bumiputra equity requirement for 27 services sub-sectors under a liberalisation of the services sector.
The sub-sectors - which included the health and social sercvices, tourism, transport, business and computer related services - would have no equity conditions imposed.
The move was aimed at creating a conducive business environment to attractmore investments, bring in more professionals and technology, encourage competitiveness and create higher value employment opportunities.
The Prime Minister said the decision to lift the requirement was made after the International Trade and Industry Ministry had a series of discussions with the concerned groups.
He reiterated that the decision was Malaysia’s commitment towards the Asean agreement to liberalise the services sector, of which Malaysia was lagging behind compared to other countries, including Thailand and Indonesia which had “opened up 100%”.
He said the consideration to remove the requirement was not a unilateral one but a multilateral decision.
“Other Asean countries have opened their services sector and we are way behind in this. You mean to say our people can’t compete? What’s wrong with our people?,” he said.
Meanwhile, International Trade and Industry Minister Datuk Mustapa Mohamed said that this was not “an overnight decision” made by the government and the decision-making process had taken more than three years, with aggressive consultation made with concerned parties as well as relevant ministries.
He said it was not as if the bumiputra businesses and entrepreneurs were caught unawares over this decision, adding that on Monday, a meeting had been held to inform concerned parties that the Prime Minister would be making the announcement on Wednesday.
“They accepted the decision but made several requests, including in the area of capacity building, better support from financial institutions and the setting up of a one-stop information centre,” he said
I had attended thousands of meetings and many PLCs small and medium are always disturbed by the fact of letter from MITI, seeking year after year for re-issuance of Bumi shares. Everyone knew, no one dare to challenge publicly. at the end of the day, they just sink the company, by NOT doing any thing to the company. So the company being bashed to the ground without profitand without money for further expansion.
Worst still those who had made $ are those who are in control.
.....long stories
100% agreed with melayuglokal...
We, as Malays of young generation, should look forward and not hiding behind to protect those little 'priviledges' that government had given to benefit actually only 'certain groups of Malays people'!
I'm glad and welcome PM's policy to open those sub-sectors. Come on, We're NOT cowards, and we're READY to make take challenges!
Actually, me, as well as my group of friends here, are kinda 'shame' of Malaysian government's achievement so far... tengoklah negara Indo and Thai, and also negara China yang actually past-komunis...when their governments opened those sectors, until now nearly 100%, why their bumiputera not complaining at all?
I believe majority of youth Malays have the same thinking, like us here. When we look and concern more worldwide economy, this policy is actually bringing benefits to ALL Malays, and not only sekumpulan melayu or certain companies.
We're not politician, nor any base supporters of any sides, biarkan BN or PKR. But, we support good policy and we hate isu perkauman, for that is actually a dirty play by certain politicians for their own selfish benefits!
We support 'One Malaysia' jadi Bangkitlah Orang Malaysia!
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