Strengthening Services Trade in the Malaysian Economy March 2022
While Malaysia’s economy has had great success, it also faces several challenges including limited services trade. This report seeks to explain the main constraints that are holding back the services sector in the country. The key finding is that M...
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| Format: | Rapport |
| Language: | English |
| Published: |
Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099030205172219428/P174668025a58007c0a9fb0eb0ae59d108f http://hdl.handle.net/10986/37471 |
| Summary: | While Malaysia’s economy has had
great success, it also faces several challenges including
limited services trade. This report seeks to explain the
main constraints that are holding back the services sector
in the country. The key finding is that Malaysia’s
development strategy needs to pivot to better capture new
trade patterns. This will need to address some of the main
constraints facing the development of Malaysia’s services
sector. First, is low labor productivity. Secondly, is
informality. Thirdly, weak educational outcomes in Malaysia
contribute to skills shortages. Finally, limits to
competition and regulatory restrictions in services restrict
Malaysia’s ability to deepen foreign linkages. The key
recommendation of the report is that to fulfill the
potential of its services sector, Malaysia should take an
integrated approach that progressively and gradually
addresses artificial policy distinctions between goods and
services, and between trade and investment in a world
increasingly governed by international production networks. |
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