Press Coverage from CSI's Mission to Kuala Lumpur, Malaysia
April 12-13, 2006


Malaysia Needs To Further Liberalise Its Services Sector
Bernama.com
Malaysian National News Agency
Business
April 12, 2006 20:32 PM

KUALA LUMPUR, April 12 (Bernama) -- Malaysia needs to further liberalise its services sector, says the U.S Coalition of Services Industries (CSI) president, Robert Vastine.

Currently, he said Malaysia has made only 30 percent of possible commitment in the General Agreement on Tariffs and Trade (GATT) compared with the European Union (EU) and the U.S which is about 65 percent.

"We believe Malaysia can do more to liberalise its trade services and make offers in the Doha Round," he said at a media briefing here today.

"Malaysia has a tremendous influence among the developing countries. The government through its minister, Datuk Seri Rafidah Aziz who is well-known for her outspoken personality has the capacity to seriously negotiate at the Doha Development Agenda (DDA)," he said.

Vastine said the association would like to see Malaysia improve its offer in the areas of financial services, information technology (IT) and food.

The association also wants more foreign investors to invest in the services sector in Malaysia.

Malaysia is interesting to a large number of U.S companies because of its good infrastructure especially with the setting up of the Multimedia Super Corridor Malaysia, he said.

Vastine is heading a business delegation of major U.S services companies to Kuala Lumpur to meet with officials from the Ministry of International Trade and Industry, Ministry of Finance, Bank Negara Malaysia, the Ministry of Energy, Water and Communications and the National Economic Action Council (NEAC).

The visiting delegation consists of executives from leading companies in the financial services industry and other key services sectors.

CSI, a Washington-based organisation, is a leading business association and plays a major role in the development of the U.S services policies.

PDF Version of Bernama Article

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Malaysia should open up its procurement sector
Sin Chew Daily
News
April 13, 2006

President of the Coalition of Service Industries (CSI) J. Robert Vastine said that Malaysia should open up its government procurement sector to foreign investors before the signing of the U.S.-Malaysia FTA.

He said that Malaysia has yet to open up its procurement sector to foreign investors so that foreign firms can have the equal opportunity as the locals to tender government projects—currently, the local market is deprived of computers, softwares and other IT products at reasonable competitive rates.

Robert Vastine was speaking to reporters after meeting with officials from the International Trade and Industry Ministry and the Ministry of Finance. He arrived here today with a U.S. trade delegation.

According to Robert, the feedback gathered from U.S. investors showed that the main reason they were reluctant to throw in more funds was mainly due to the above factor.

Asked about the benefits Malaysia would reap by opening up its procurement sector, he said that the U.S. would also in return open up its procurement sector to Malaysian investors. According to U.S. Annual Budget, the government procurement sector would be allotted approximately USD1 trillion per year.

Regarding the monopoly of the U.S. investment market and the tender on government projects, he said that he has no facts and figures about the issue because it is the U.S. administration matter.

He said that U.S. investors were greatly alarmed to find out that the local authorities intervened in the internal affairs of foreign investing firms. For instance, British and American firms were truly disappointed because their insurance companies were informed to reduce their investments in Malaysia.

The U.S. - Malaysia FTA negotiations will be officially carried out during the mid-year and is expected to be completed by 2007.

Photo Caption: Robert Vastine (right) said that Malaysia should open up its procurement sector in order to secure the U.S.-Malaysia FTA. At left is CompTIA Asia Pacific Public Policy Director Michael.

PDF Version of Sin Chew Daily Article

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U.S. urge Malaysia to open up Islamic (hala) market, finance and procurement sector
Utusan Malaysia
April 13, 2006

Malaysia should open up its services industries sector as soon as possible so as to attract foreign investments.

President of the Coalition of Service Industries (CSI) J. Robert Vastine said that among the sectors needed to be open up instantly are the financial and banking sector, the government procurement sector and the Islamic (halal) market.

“Foreign investments are unsteady and declining since the last five to six years. While foreign investors are awaiting, the said sectors should be open up quickly,” said Vastine.

He said that India and Brazil had earlier been invited to open up its services industries sector just before the scheduled global trade negotiations set by the World Trade Organization (WTO), which is expiring in less than a year.

Vastine said that, although Malaysia is committed to open up local markets, foreign investors are still encountering problems in embarking in the Islamic (halal) food industries and the financial sectors. They were not permitted to tender government projects.

He said: “We want to see more liberal measures given to foreign investors.”

The Malaysian government had said earlier that foreign banks would be given bigger access to the local market and further emphasized that the liberalization process should be carried out in stages.

PDF Version of Utusan Malaysia Article

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