LIBERALISATION TO FACILITATE US-MALAYSIA FTA TALKS

KUALA LUMPUR, May 7 (Bernama) -- Liberalisation of the financial sector will
facilitate the free trade agreement (FTA) negotiations between Malaysia and the
United States, International Trade and Industry Minister Mustapa Mohamed
said Thursday.

He is hopeful that some progress in the services sector will further
facilitate the negotiations between the two countries.

Last month, Prime Minister Najib Tun Razak announced a package
for the financial sector liberalisation, which included the issuance of new
licences for seven banks and two takaful players from this year till 2011.

Also included is flexibility in foreign equity limits, rising from 49
percent to 70 percent, to be accorded for investment banks, Islamic banks,
insurance companies and takaful operators.

"Hopefully, later in the year, we will be in a position to resume
negotiations. But it depends on both sides," Mustapa said after the opening
ceremony of the 6th International Halal Showcase 2009 here.

Since March 2006, several rounds of negotiations alternating between
Washington and Kuala Lumpur had been held.

Mustapa, who is new to the ministry, said he was taking "stock" of the
negotiation.

"I am new in this, I need to touch base with my counterpart," he said.

"A number of domestic challenges that we got to address, chief among which
the government procurement. We got to do some stock-taking and updating our
stand on this issue," he added.

-- BERNAMA