LIBERALISATION WILL HELP MALAYSIA'S PLAN AS AN ISLAMIC FINANCIAL HUB

JOHOR BAHARU (Malaysia), April 28 (Bernama) -- The liberalisation of the
financial services sector is important not only for the economic development of
the country but will also help Malaysia's efforts to become an Islamic financial
hub, Deputy Prime Minister Muhyiddin Yassin said.

"We are ready...more so if Malaysia wants to become an Islamic financial hub
where the potential value runs into trillions of dollars," he said.

He said Bank Negara (Malaysia's Central Bank) had carried out detailed study
on the liberalisation move and the government which had been briefed during the
National Economic Council meetings did not see any problems arising in the
sector.

Muhyiddin said this when asked to comment on the liberal measures announced
for the financial services sector by Prime Minister Najib Razak in Putrajaya
Monday.

He was speaking to reporters after a ground breaking ceremony for a housing
project near this southern city Monday.

Muhyiddin said without the liberalisation of its financial and services
sector, Malaysia may continue to remain behind other Asean member countries.

It is currently in the eighth place among 10 Asean members in this area.

The services sector contributes 52 percent to Malaysia's gross domestic
product (GDP) while other countries are recording 60-76 percent contribution
from their services sector, he said.

He also dismissed fears that the entry of foreign companies with the
liberalisation will drown local companies, especially Bumiputera companies.

Local companies and Bumiputera companies are prepared and capable of
competing and they should not be underestimated as many of them are more
advanced than foreign companies and have made their presence in countries like
Dubai, Kuwait, India, China and Pakistan, he said.

"Liberalisation will give the capable local and Bumiputera companies
the opportunity to work together with foreign companies," he said.

He also called on the parties still in doubt of the market liberalisation
plan to expand their thinking and see from the context of a larger economic pie
that could bring greater benefits to the country and entrepreneurs.

Muhyiddin also said the development of housing projects will continue to be
in the country's agenda of property development without leaving out any single
segment of the society.
-- BERNAMA