Statement by the Press Secretary/Director-General for Press and Public Relations, Ministry of Foreign Affairs, on the Liberalization of the Services Sector by Malaysian Prime Minister Dato' Seri Haji Mohd Najib bin Tun Haji Abdul Razak

April 24, 2009

1. The Government of Japan welcomes the statement by Malaysian Prime Minister Najib Razak on April 22 (Wednesday) that the Government of Malaysia will abolish limitations on the participation of foreign capital, and promote further liberalization in 27 service sectors amidst the recent global economic crisis.

2. The Government of Japan highly commends this decision by the Government of Malaysia as one which takes a stand against moves towards protectionism that have been occurring throughout the world, and hopes that these measures by the Government of Malaysia will be implemented swiftly and smoothly.

(Reference)

(1) On April 22, Malaysian Prime Minister Najib issued a press statement stipulating that the Government of Malaysia would abolish limitations on foreign capital (based on Malaysia’s Bumiputera policies, see note below ) and undertake liberalization in relation to 27 service sectors, including services related to healthcare/social services, tourism, transportation and computer as an economic stimulation measure.

(Note) Policies to protect Bumiputera (ethnic Malays and other indigenous ethnic groups in Malaysia), require Bumiputra own at least 30% of total capital.

(2) In particular, in relation to some individual service sectors, such as tourism services, this liberalization is over and above the commitments under the Japan-Malaysia Economic Partnership Agreement (JMEPA) which came into effect in 2006.

(3) Japan held the first meeting of the sub-committee on trade in services under the JMEPA on April 14, 2009, in Malaysia, and urged the Malaysian government to promote policies to liberalize the service sector.

(END)

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