Malaysia relaxes policies to attract investors

KUALA LUMPUR: Malaysia said Wednesday it will liberalize parts of the services sector, removing ownership rules linked to a controversial affirmative action policy for majority Muslim Malays.

Prime Minister Najib Razak, who was sworn in earlier this month, said that 27 sub-sectors would be liberalized “to attract more investments, bring in more professionals and technology as well as strengthen competitiveness.”

The areas targeted for liberalization are in the areas of health and social services, tourism, transport, business services and computer and related services.

Businesses in those service industries will no longer have to be 30-percent owned by “bumi­putera”—a term that means “son of the soil” and takes in Malays and indigenous tribes.

The rule is part of the New Economic Policy (NEP), launched after 1969 racial riots, in an effort to narrow the wealth gap between ethnic Chinese—who control the business sector—and Malays, who dominate government.

”The liberalization of the services sector is pursued with the view of creating a conducive business environment to attract investments, technology and to create higher value employment opportunities,” Najib said.

”These efforts are expected to enhance the level of competitiveness of the services sector in the country,” he said in a statement.
— AFP