4. The Issues of Service Sector and the Solution Methods
4.1 Weak Competition to International
Foreign investments bring development and flourish to Malaysia economy, but they also bring large competition to Malaysia local companies. Those foreign enterprises from developed countries America, Germany, Britain, Japan, Korean who have the biggest advantages in service industries, like IT, hygiene, insurance, banking and entertainment occupy the main market share and will control the whole market. For the local company, especially the small and medium enterprises, they are hard to survive in such a vast competition environment.
So the Malaysia government should control the foreign investment from expanding larger and larger, which will entirely beat down the local industry. Malaysia government should put more attention on the small and medium local enterprises development, which is that giving more support to them by reducing taxation and renting. Encourage them innovate and create production for domestic and trade with the international.
4.2 Economic Imbalance in Different Places
In Kuala Lumpur, the capital of Malaysia, the service industry is very advanced. We can use the most fast and comprehensive network in this city. Citizens can buy things and sell goods online. Citizens can enjoy the most advanced and progressive education here. We can acquire what we need conveniently with digital technology and advanced service industry. However, in some places far away from the economic center, there is less of signal, even some time people cannot connect the network. It just likes losing the connection with the out world. In addition, Kuala Lumpur has 19millions population, but around 1/3 population is in the country side in Malaysia. And those country sides have undeveloped infrastructures and underdeveloped service industries. It seems that Malaysia still remains a large space to develop service industry.
In my opinion, Malaysia firstly should build up transportation to connect all the cities and suburbs by cooperating with local and China companies. In this way, logistics can reach different places in the whole country and service industries can extensively develop. Secondly, Malaysia should build up the telecommunication and network transmission covered the whole countries. With the help of transportation and information technology, service industry can develop completely in Malaysia.
4.3 Easy Impact by the Plague
In 2020, the epidemic named COVID-19 attack all over the world. In order to prevent the plague from spreading, government limits people from walking outdoor. The restaurant and the big mall are influenced seriously and facing tremendous loss.
Through the limitation of mobility, I can see that the offline shores influenced by the passengers flow volume and other nature factors cannot earn much more money stably. Those traditional service industries should pay attention on transforming, which combines online and offline to ensure overturn will not be effected so easily by a variety of factors.
4.4 Less Information Security
The most popular electronic shopping platform has tremendous customers’ information. And it is the reason that a lot of hackers attack the data base of e-shopping platform to cheat customers’ private information.
In this case, service sector have to ensure every customer’s information to be safe and secret, which can engage customer’s trust.
4.5 Lack of Innovation
In fact, the tertiary sector in Malaysia is almost depended on the technology invented by foreign countries, which improves cost of management and production.
Thus, service industry in Malaysia need to recruit a plenty of talents graduated from high institution and college to take part into innovation and creation activities, which make the technology is independent research and development and can be exported.
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