3. Current Performances and Polices that Enhance Tertiary Sector Growth
In 2003, Malaysia government proposed to focus on developing service industry on National Economic Prospect Conference. Through analyzing experience of developed country, Malaysia realized that she must emphasize development of tertiary sector in order to improve economy.
With series of polices supporting, Malaysia made great progress in service industry export. In this process, MATRADE became the important platform for exporting Malaysia service industry. MATRADE guided and supported with fiscal allowance to the enterprises, also organized series of large international export activities, which made service sector improve its weight in foreign trade. In 2011, total of service industry trade was 65 billion US dollars, and exclusively, value of export was 33 billion US dollars, which was beyond manufacture and agriculture industries. Service industry has become the pillar of the economy and the new icon of foreign trade in Malaysia.
At the same time, polices made service industry become opener in trade and accelerate development that made progress in international. Malaysia government undid foreign investment from sharing holdings. Malaysia government opened 17 service industries that allowed foreign investment to share 100% holdings, including medical service, medical treatment, dentist service, construction, engineering, accounting, legal service, logistics, education, telecommunication and media.
Malaysia GDP from Service Industry Trend:
(TRADING ECONOMICS, 2019)
Approved Foreign Investment with Malaysia Government in Service Industries 2015
| Service Industry | Investment (Unit: Billion MYR) |
| Distinct Development | 3035.9 |
| Operation Center | 2633.3 |
| Supporting Services | 2442.0 |
| Multiple Services Center | 3339.5 |
| Transportation | 12759.0 |
| Estate | 15871.6 |
| Public Industry | 5969.2 |
| Telecommunication | 1272.6 |
| Trade | 2089.8 |
| Hotel and Tourism | 4024.0 |
| Finance | 4263.5 |
| Health Care | 2636.3 |
| Education | 808.4 |
| Others | 539.8 |
From MIDA
(Malaysia Economy, 2015)
In 2016, The Malaysian Foreign Trade Development Agency (MATRADE) pointed out that in order to boost the export performance of the service industry, exporters in this area will get rid of the new foreign exchange control of the National Bank (BNM).
Malaysia ’s Chief Executive Officer of the Foreign Trade Bureau, Datuk Dhujifiri said that in order to encourage more service providers to take part in export business, they will not have to convert 75% of their foreign exchange into ringgits under the restrictions of the new foreign exchange measures of state-owned banks.
"Service industry export quotas account for 20% to 25% of total exports, and the government intends to increase the proportion of service industry exports."
In the first 10 months of this year, exports of services were RM135 billion, accounting for 21.19% of the total export value of RM6375 billion. In 2015, the export value of the service industry was RM195 billion.
Dhujifiri attended the symposium jointly organized by the Malaysian Foreign Trade Bureau and the National Bank today-"Notes on the National Bank's New Foreign Exchange Measures?" You should be aware of the Niagara Bank's New Foreign Exchange Measures, after publishing the above personality. The seminar promoted to help the seminar attracted 490 merchants, the number of participants exceeded the organizers' expectations.
In response to certain exporters 'reports that the Bank of China's measures to restrict exporters' retention of foreign exchange overseas would erode the extent of trade gains, Dhujifiri said that the measure can stimulate domestic demand for the ringgit and lead to a stable ringgit in the long run.
He pointed out that maintaining the stability of the ringgit exchange rate is beneficial to both exporters and importers. The changes brought by the new measures will inevitably be opposed, but I believe that the Bank will maintain an open attitude to resolve the exporters' doubts.
In addition, Dhujifiri pointed out that even more risks impact the local import and export trade, but it is expected that the copyright trade surplus will continue.
In response to the Federal Reserve’s decision to raise interest rates and the withdrawal of foreign exchange from Malaysia, he believed that Malaysia ’s long-term economic growth and sound domestic infrastructure, coupled with ASEAN ’s huge demographic dividend, will continue to be a stronghold for foreign investment.
Support from fiscal policy, Malaysia successfully changed her main industry in tertiary sector in economic structure. And due to the opening and relaxing of foreign investment in Malaysia, service industry had tremendously growth and enhancement from 2003 until now.
Some of the report from
(Malaysia Economy, 2016)
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