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Liberalization of the Services Sector in Malaysia

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On April 22, 2009, the government opened up the service sector to attract more foreign investment, bring in more professionals and technology, and improve the competitiveness of the industry.
Realizing the growth potential of the services sector, the government has decided to immediately open up 27 service sub-sectors without imposing equity conditions. These sub-sectors fall under health and social services, tourism services, transport services, business services and computer-related services.

Computer and related services

  1. Consultancy services related to computer hardware installation (CPC 841)

  2. Software implementation services - systems and software consulting services; systems analysis services; systems design services; programming services and systems maintenance services (CPC 842)

  3. Data processing services - input preparation services; data processing and tabulation services; time-sharing services and other data processing services (CPC 843)

  4. Database services (CPC 844)

  5. Computer maintenance and repair services (CPC 843)

  6. Other services - data preparation services; training services; data recovery services; creative content development (CPC 849)

Health and Social Services

  1. All veterinary services (CPC 9320)

  2. Welfare services provided to the elderly and disabled through nursing homes (CPC 93311)

  3. Welfare services provided to children through residential institutions (CPC 93312)

  4. Child day care services, including day care services for persons with disabilities (CPC 93321)

  5. Vocational rehabilitation services for persons with disabilities (CPC 93324)

Travel services

  1. Theme Parks (CPC 96194)

  2. Conference and exhibition centres (with more than 5,000 seats) (CPC 87909)

  3. Travel agency and tour operator services (inbound tourism only) (CPC 7471)

  4. Hotel and restaurant services (four-star and five-star hotels only) (CPC 64110 and CPC 64199)

  5. Catering services (only those provided by four-star and five-star hotels) (CPC 642)

  6. Serving of beverages for consumption on the premises (limited to services provided in four-star and five-star hotels) (CPC 643)

Shipment service

  1. Category C cargo transportation (private carrier license - transporting own cargo) (CPC7123)

  2. Sports and other recreational services

  3. Sports services (CPC 9641). (Sports event promotion and organization services)

Business Services

  1. Regional Distribution Center (CPC 87909)

  2. International Purchasing Center (CPC 87909)

  3. Technical testing and analysis services - composition and purity testing and analysis services, physical property testing and analysis services, integrated mechanical and electrical systems testing and analysis services, and technical inspection services (CPC 8676

  4. Management consulting services - general, financial (excluding business tax), marketing, human resources, production and public relations services (CPC 8650)

Rental/leasing services without an operator

  1. Ship leasing/chartering services, excluding coastal and offshore trade (CPC 83103)

  2. Chartering of uncrewed cargo vessels for international shipping (bareboat charter) (CPC 83103)

Support and assisted transportation services

  1. Maritime agency services (CPC 7454)

  2. Ship salvage and refloating services (CPC 7454)

To promote investment in the services sector, the Malaysian Investment Development Authority (MIDA) has established the National Committee for Investment Approval in the Services Sector. The committee is the central point for receiving and processing investment applications in the services sector, excluding investments in financial services, aviation tourism, utilities, economic development corridors, Multimedia Super Corridor (MSC), Biotech Core (Bionexus) status companies and distribution trade.
In 2011, the government further opened up another 7 service sectors, including 18 sub-sectors, to allow foreigners to hold up to 100% of the shares in phases. These sub-sectors are:

Telecommunications

  1. Telecommunications Services (Internet Service Provider and Internet Facility Provider Licenses)

  2. Telecommunications Services (Application Service Provider License)

Health care

  1. Private hospital services

  2. Specialist medical services

  3. Dental Services

professional service

  1. Accounting and Taxation

  2. Construction Services

  3. engineering service

  4. legal service

  5. Quantity Surveying Services

Environmental Services

  1. Incineration Services

Distribution trade services

  1. Department stores and specialty stores

Education Services

  1. Private higher education with university status

  2. international School

  3. Technical and vocational secondary education services

  4. Technical and vocational secondary education services for students with special needs

  5. Skills Training Center

Delivery Service

To support the growth and development of the manufacturing industry, the government is working hard to promote and develop the service industry and will gradually open up other service sub-sectors.

(Source: Malaysian Investment Development Authority)

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