PM: 30% Bumi quota for 27 sub-sectors scrapped

Tan Sri Abdul Rahman Mamat, (Miti) Secretary general said Malaysia's liberalisation plan may boost exports by 10 per cent by removing the 30% Bumiputera quota. He also said ' small- and medium-sized enterprises will benefit from the liberalisation as they can leverage on international companies in their areas of strength such as ICT, logistics, and tourism. ' Removed quota, stimulate domestic demand and compete with international. Move Forward Malaysia!

Written by Chan Kok Leong

Wednesday, 22 April 2009 16:46

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. --- The Edge

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

YTL in RM3b broadband push

YTL e-Solutions Bhd (YTLE) (0009), a subsidiary of YTL Corp Bhd, plans to pump in almost RM3 billion to set up a wireless broadband network in Peninsular Malaysia over the next five years.

It will spend one-third of that in the next 12 months as it seeks to play catch-up. Out of the four firms licensed to provide high-speed wireless Internet access, it is the only one that has yet to launch its service commercially in a big way.

YTLE, which will spend RM2.5 billion on the network, is tying up with South Korean electronics giant Samsung Electronics Co.

The company will use its own money for the investment, managing director Tan Sri Francis Yeoh said in Kuala Lumpur yesterday.

"We will start rolling out (the wireless infrastructure) immediately. We have identified 2,000 sites. We have mapped it. We know where we are going to put all the base stations already," he added.
Unlike its rivals which have launched their wireless services in geographical stages, YTL will commercially launch its wireless services, comprising voice and data, only when it has nationwide coverage.

"If you do it in stages, it won't work and it's not fair. This kind of technology doesn't work like that. It just won't work. Not enough equipment maker is going to support you. Not enough network people are going to support.

"And then you are killing yourself. How many people are going to have this experience? For example, I go out of Kuala Lumpur. I cannot use (the service) already. Who are you kidding? Just KL for KL? It's not right to me," Yeoh said.

When the government awarded the WiMAX licences, the four companies were expected to expand their network to cover 25 per cent of the population by end-March this year.

However, it is unclear if any of them met the target.

"At the end of the day, it's about achieving the national broadband objectives. Actually, our programme is ahead of the government's programme in terms of nationwide coverage," Yeoh said.

In 14 months, YTLE will launch its wireless broadband services nationwide covering 70 per cent of the population.

Yeoh was speaking to the media after the signing ceremony between YTLE and Samsung Electronics. Samsung has agreed to supply network equipment and handsets to YTLE.

YTLE is one of the four companies awarded the licence to offer wireless broadband services using WiMAX technology. The others are Packet One Networks (M) Sdn Bhd (a unit of Green Packet), REDtone International Bhd and Asiaspace Sdn Bhd.

WiMAX, short for worldwide interoperability for microwave access, is a telecommunications technology that provides transmission of data. It works like the current popular WiFi technology.

A WiFi hotspot can cover a radius of tens of metres. In contrast, a WiMAX base station can cover several kilometres. The technology also promises the ability to surf the Internet from laptops while in a park, on a bus during a traffic jam, or anywhere in a residential neighbourhood. --- Business Times

Britains Got Talent 2009 - Susan Bolye

' Yes ' definitely to Susan Boyle , 47 of age. The latest star born from a village in Britain.

The phenomenal popularity of Susan Boyle has led to dozens of websites being set up by fans and cybersquatters looking to cash in on the global interest in the Britain's Got Talent star.

Since Boyle appeared on the launch show of the ITV1 talent search series on 11 April more than 30 websites have sprung up that use her name to try attract web users looking for the video of her performance and more information about her.

Boyle, an unemployed 47-year-old Scottish charity worker, has become an unlikely star after her rendition of I Dreamed a Dream from the musical Les Misérables became a global YouTube hit and attracted the attention of broadcasters, websites and newspapers around the world.

While Boyle does not have an official web presence herself, according to research conducted by web domain company Sedo, fans and cybersquatters have registered websites in her name across Europe and the US and in seemingly unlikely countries such as Turkey.

The domain name SusanBoyle.co.uk was registered on 10 April and put together quickly as a fan site.

"Every time a new star like Susan Boyle is born there is always a huge surge in new registration activity," said Nora Nanayakkara, the director of business development at Sedo.

"While the new domains offer overwhelming support for the new star ... fan sites should be careful not to overstep the lines between a fan site and a money-making site."

An unlikely beneficiary of the global interest in the Britain's Got Talent star has been Texas-based artist Susan K Boyle, owner of the SusanBoyle.com domain, who has seen a huge increase in visits in the past couple of weeks.

"I can only hope there are one or two art lovers/buyers among them," Boyle said in an email to a tech website late last week. -- guardian.co.uk

Susan Boyle - Britains Got Talent 2009 Episode 1 - Saturday 11th April >>Watch in Youtube<<