OPENING OF FINANCIAL SECTOR WELCOMED BY EUROPEAN BANKS

KUALA LUMPUR, March 15 (Bernama) -- More European banks may come to the Malaysian shore with the liberalisation of its financial sector, says European Union Trade Commissioner Karel De Gucht.
Malaysia has a strong regional presence in the services sector and the EU's upcoming free trade agreement (FTA) with Malaysia, the first in the Asean region, would open up further opportunities, including in the financial sector,he said.
"For example, HSBC is a European bank that has an impressive growth and record here. It has also created employment for many.
"The partial opening of the financial services sector is welcomed by many European banks. This will certainly result in European banks' interest in activities in Malaysia," he told reporters here Monday.
He said the further relaxing of equity ownership restrictions in several services sectors would likely open doors into Malaysia.
This is inline with EU's aim to open up markets for goods and services sector, one of the potential benefits of a trade deal.
De Gucht said the future FTA will also send a strong signal of confidence to investors.
"FTA adds up to a secured legal system which will contribute towards less fear in the European market, as the backlash from the financial and economic crisis had weakened our economic image throughout the world," he explained.
Last year, the EU ranked Malaysia's fourth largest trading partner with a total trade of RM122.9 billion (US$1=RM3.03).