Another Good News by our new PM Dato Seri Najib

Financial sector liberalisation (Update 3, full statement)

By MAZWIN NIK ANIS and TEH ENG HOCK

PUTRAJAYA: Foreigners will now be allowed to own up to 70% equity in all financial institutions here except commercial banks, up from the current 49%, as the Government announced a list of initiatives to liberalise the financial sector (full statement in Bahasa Malaysia below).

Prime Minister Datuk Seri Najib Tun Razak said the liberalisation package, which comprised six thrusts, was aimed at enhancing Malaysia’s linkages with international economies, bring about greater confidence in the economy, and promote greater economic regional integration.

“Over the past three years, the finance and insurance sector has expanded by 8.8% per annum, outpacing the growth in real gross domestic product(GDP) by about 6%.

“The liberalisation measures announced today will also provide greater access to consumers to a wider ranger of world-class financial products and services and further strengthen our position in Islamc finance to become an international Islamic financial hub,” he told a press conference at his office Monday.

The country’s banking institutions and insurance companies employ about 140,000 workers.

The meat of the liberalisation package is the issuance of new licences for seven banks and two family takaful (Islamic insurance) players from this year until 2011.

Under this, up to two new Islamic banking licences will be issued to foreign players to establish new Islamic banks with a paid up capital of at least US$1bil, and two new commercial banking licences for foreign players that will bring in specialised expertise.

These four licences will be issued this year, together with two new family takaful licences.

In 2011, up to three new commercial banking licences will be issued to “world-class banks that can offer significant value propositions to Malaysi,” he said.

Najib, who is also Finance Minister, said flexibility would be accorded for an increase in foreign equity limits from 49% to 70% of investment banks, Islamic banks, insurance companies and takaful operators.

“Such alliances will strengthen the business potential and enhance the growth prospects of financial institutions through the international expertise and the global networks of foreign shareholders.

“The foreign equity limit for commercial banks will remain at the current 30%,” he added.

Najib said the Goverment would also offer “operational flexibilities” to foreign institutions to improve the outreach of financial products and services by increasing branches, while locally incorporated foreign commercial banks would be allowed to establish four new full-fledged branches with effect in 2010, and 10 microfinance branches starting this year.

Effective June 1, Labuan Holding Companies incorporated under the Offshore Companies Act 1990 will be given the flexibility to establish an operational and management office in Kuala Lumpur to enhance efficiency.

Najib added that offshore banking institutions and insurance companies licensed by Labuan Offshore Financial Services Authority that meet the predetermined criteria would be allowed to have a physical presence onshore from 2010 and 2011 respectively.

“Greater flexibility will also be accorded for employment of expatriates in specialist areas that can contribute to the development of the financial sector,” he said.

PM Najib and Tun Mahathir ERA

MY OWN 2 SEN.

What's so wrong with having Mahathirism in current Administration. Malaysia had been under Tun's administration for more than 20years. Tell me, Malaysia did not developed. Tell me, the Americans still think of Malaysian's as people who live on trees. Tell me, we did not have KLCC Tower. Tell me, we did not have Penang Bridge. Tell me, we did not host The Commonwealth Games.

To me, a good Govt is the Govt that can bring growth and advancement to the country. No matter how he does it. As long as, we the public do not see it. It's still fine with me.

Our new PM Dato Seri Najib, is willing to change for the betterment of the people. As shown lately, in some of the changes of policies. Like the abolishment of the 30% Bumiputera quota to attract more FDIs. Hope for more to come.

He is stern and direct in his decisions and is not afraid to CHANGE. Dare to meet the enemy in the eye and suppress it. This shows charisma and leadership. That's what is needed to be a good leader. I am not an expert to judge but I can express what I personally think of Dato Seri.

I had always thought that he is the better choice than any other candidate.

I know I am going against the tide here, but what tide are we in. Can the opposition with in-experienced and no resources do any better. They may have the voice but are they capable of running the whole country. Are they well equip to run the country. 1 cant run a whole nation without a team of experienced subordinates. 1 cant shake the hand of 22 million people.

Penang once Pearl of The Orient.

Now its CAT.

My own encounter with 1 new candidate, cant even get a Thaipusam pass for the resident who lives there. Went to the so called YB's office, didn't even come out from his office room to see me or even try to listen. What kind of people's representative we elected.

Go rakyat Malaysia. Go DATO SERI NAJIB.

Our new PM is really turning things around...go PM.

Govt lifts 30% bumi rule for 27 services sub-sectors (Update)

By JANE RITIKOS

PUTRAJAYA: The government has removed the 30% bumiputra equity condition in 27 services sub-sectors, with immediate effect.

Prime Minister Datuk Seri Najib Tun Razak said the sub-sectors, which involved health and social services, tourism services, transport services, business services and computer and related services, would have no equity conditions imposed.

He said the liberalisation was aimed at creating a conducive business environment to attract more investments, bring in more professionals and technology, encourage competitiveness and create higher value employment opportunities.

“We will be progressively undertaking liberalisation of the other services sub-sectors,” he told a press conference at his office on Wednesday.

Saying that the services sector would become a new growth sector of the economy, Najib said it contributed 55% to the GDP in 2008, and accounted for 57% of total employment in Malaysia.

The Government wanted to tap the sector’s full potential and raise its contribution to 60% of the GDP, he said.

However, he assured that the liberalisation would not adversely affect the domestic services industry, which would continue to be supported.

He said a RM100mil services sector capacity development fund was established under the first economic stimulus package, managed by the Malaysian Industrial Development Authority (Mida) to assist the industry to face the more liberalised services environment.

To facilitate investments into the sector, a National Committee for Approval of Investments in the Services Sector had been established under Mida which would receive and process applications of investment in the services sector, excluding investments in financial services, air travel, utilities, Economic Development Corridors, Multimedia Super Corridor and Bionexus status companies and distributive trade.

In a bid to develop Malaysia as an international Islamic financial hub, the legal profession would be liberalised to allow up to five international law firms with expertise in international Islamic finance to practise in Malaysia, Najib said.

Najib also said the liberalisation was in line with Malaysia’s commitment to Asean.

However, some of the measures were better than those undertaken by other Asean countries, he said, adding that they would also make Malaysia more equipped to compete internationally.

“Consultations were carried out and the decision was made based on the reception and acceptance by the sub-sectors,” he said on the selection of the sub-sectors.

Najib said that in 2008, approved investments in the services sector totalled RM50.1bil, exceeding the target of RM45.8bil per annum under the Third Industrial Master Plan.

The share of foreign investments was 11% of the total investments.

“With the liberalisation of the services sector, we expect greater inflow of investments,” he said.

Najib also said he would announce next week the liberalisation of the financial sector.

He declined to give details.

“I want it to be full of surprises” and “It is good for the market to digest (the announcement for the services sector) first.”

PM Najib turun padang.

PM Najib visits Chinatown, Kerinchi and Brickfields
KUALA LUMPUR: Less than 24 hours into the new job, the country’s sixth Prime Minister Datuk Seri Najib Tun Razak went down to the ground into the heartlands of Kuala Lumpur to meet the people.
He paid a visit to the street hawkers in Jalan Petaling and Vista Angkasa apartments in Kg Kerinchi and Jalan Tun Sambanthan storekeepers and restaurant operators in Brickfields.
Najib arrived at Jalan Petaling’s main gate in the PM’s silver Proton Perdana with plate number WRP 11. He was accompanied by Federal Territories Minister Datuk Seri Zulhasnan Rafique and Kuala Lumpur mayor Datuk Ahmad Fuad Ismail.
Datuk Seri Najib Tun Abdul Razak visiting 'Chinatown' in Petaling Street. - AZMAN GHANI / The Star
As soon as he stepped out of the car, he was surrounded by a mass of photographers and police officers holding back the crowd to give him room to walk.
Dressed in a casual short-sleeve light green shirt, khaki pants and loafers, he strolled the popular tourist spot with the Kuala Lumpur Hawkers and Petty Traders Association deputy chairman Datuk Ang Say Tee and Bukit Bintang MP Fong Kui Lun.
He spoke to watch dealers and bag sellers and was met with supportive applause from onlookers from both sides of the street.
Locals and tourists alike whipped out their handphones to take pictures of Malaysia’s new PM.
Prime Minister Datuk Seri Najib Tun Razak visiting Vista Angkasa, Kerinchi. - AZMAN GHANI / The Star
At about 4pm, he made a short stop in Kg Kerinchi and spoke to hawkers there.
Seemingly a divine blessing, it began to drizzle in Brickfields just minutes after Najib arrived for his final stop.
Parents Chadaramohan Kanapathi, 40, and Ravita Pakrisamy, 38, from Segambut felt very happy and hoped the country will be “good, peaceful and without any racial problems” under Najib’s leadership.
Ramesh Kumar, 35, from Penang said it was a good sign for Indians that it rained during Najib’s visit.
“I can hardly believe that our sixth prime minister is visiting the rakyat on the second day of his premiership.
Datuk Seri Najib Tun Razak visiting one of the shops along Jalan Tun Sambanthan during his walkabout in Brickfields on his second day of his official duty as newly-elected Prime Minister. - GLENN GUAN/The Star
“This is my first time seeing a PM on the ground. I have high hopes for him. I hope he will be fair to all Malaysians,” Ramesh said.
Restaurant owner S. Paramasivam said he served the Prime Minister and his entourage putu mayam pudina, dosai, vadae, teh ‘o’ ais limau, teh tarik (kurang manis), apples, oranges and grapes.
Just before 5pm and without speaking to the gathered press, Najib ended his first "turun padang" visit as PM and returned to his official residence in Putrajaya.