Malaysia liberalises 6 more services sub-sectors

Prime Minister Datuk Seri Najib Tun Razak yesterday further liberalised the services sector with the opening up of six more sub-sectors, which are expected to draw more foreign investments.

The six services sub-sectors are legal, medical specialist, dental specialist, international schools, private universities and telecommunications- network facilities providers (NFP) and network services providers (NSP).

With the opening up of the six sub-sectors, Malaysia has liberalised 15 out of 17 sub-sectors that were identified for liberalisation during the 2012 Budget, Datuk Seri Najib said.

The two remaining sub-sectors - engineering and architectural services, and a new sub-sector, quantity surveying - will be liberalised once the required amended legislation is passed, he added.

The latest move allows Network Facilities Provider, NFP and Network Services Provider, NSP class and individual license holders with up to 70% foreign equity to operate in the country.

In the legal services sub-sector, foreign lawyers, law firms or international partnerships, which comply with the required qualifications and entry requirements, will be allowed to enter the country.

Foreign medical and dental specialists with recognised qualifications by the Malaysian Medical Council are also permitted to practice in private hospitals, as well as set up standalone medical specialist clinics.

International schools and private universities with up to 100 % foreign equity can now operate in the country.

To-date, Malaysia has 80 international schools, of which 70 are homegrown and the government expects to have 87 international schools by 2020.

Pemandu in a recent survey noted that there will be an additional investment of RM777.8 million to expand existing international schools as well as setting up new schools over the next three years from 2013.

Source: Adapted from NST Business Times and StarBiz Week