More foreign investments expected in services sector

KUALA LUMPUR: More foreign investments are expected to pour into the services sector following the government’s move to further liberalise the Malaysian economy.

Malaysian Industrial Development Authority (Mida) director general Datuk Jalilah Baba said with a more free economy, Malaysian companies will have more opportunities to collaborate with their foreign counterparts and expand their market reach.

Definitely, there will be more foreign investments which could rise by more than five per cent initially, she told reporters after the launching of “The Report Malaysia 2009”, jointly published by the Oxford Business Group and Mida, here yesterday.

Asked on what the risks were with liberalisation, Jalilah said: “There are no such risks.”

She said any risk was just a perception of Malaysian companies that liberalisation will see them having less opportunities.

In actual case this is not true as the idea of liberalisation is to attract more foreign investments and further collaboration, she said.

Yesterday, the government announced further liberalisation measures including the removal of regulations from the Foreign Investment Committee (FIC) covering the acquisition of equity stakes, mergers and takeovers.

The government earlier this year also liberalised 27 services sub-sectors and the financial sector.

The Report Malaysia 2009 is a useful reference material for foreigners intending to do business in Malaysia.

It covers important topics such as the economy, manufacturing, trade, politics, banking and tourism sectors of the country.