GOVT TARGETS HIGH GROWTH IN SERVICES SECTOR

KUALA LUMPUR, Feb 19 (Bernama) -- The government hopes to boost the services
sector so that it can contribute up to 70 percent of the gross domestic product
(GDP) as recorded in developed countries, Deputy Prime Minister Najib Razak said
Wednesday.

In line with this, the government will go through proposals to liberalise
the services sector, which is considered important for higher economic growth,
through the cabinet committee set up for the purpose, Najib said.

"We have made some decisions today (Wednesday) in relation to the policy of
the ministries concerned and the decision for more comprehensive liberalisation
overall will be announced at the coming mini-budget," he told reporters after
chairing the cabinet committee on liberalising the services sector meeting here.

The services sector contributed 54 percent of the GDP in 2007, with 46.7
percent coming from non-government services and 6.9 percent from government
services, he said.

Najib said Wednesday's meeting discussed several matters to boost the
services sector, including business and professional services as well as those
involving distribution, construction, education and training, information and
communications technology, health, tourism and logistics.

"The committee also discussed professional services due to the connection
with efforts to facilitate the import of services from overseas," he said.

Najib said the liberalisation of services was related to efforts taken by
the World Trade Organisation and Asean economic community as decided by Asean
leaders.

Asked why only 70 percent of the first stimulus package of RM7 billion (US$2
billion) had been distributed, he said all the allocations were given to
ministries and agencies, and all projects identified were at the implementation
stage.
-- BERNAMA