Liberalizing is defined as making economics free to enter in the market and establish their venture in the country. On 19th January 2009, the Malaysian government has announced that the new mini budget will include comprehensive measures to liberalize the service sectors which include quantity surveying with the main objective to increase contribution of the service sector to the GAP up to 70%. In 2012 budget speech on October 7, the Prime Minister announced liberalizing of several service sectors to spur further private investment and accelerated growth.
The budget specifies up to one hundred percent foreign equity will be allowed in key sectors such as healthcare, education and professional services. The aim of implementing the trade liberalizing is to create conducive investment climate for both foreign and domestic market which in turn, is positively correlated with economic growth (Ihram, 2004). For example investors feel more opportunistic and secured financially in an open and free from all barriers markets when certain trade barriers that previously might restrict their business are removed.
It is only rodent for any country to court investors, regardless locally or foreign as they bring intellectual capital and technology (Brontosaurs, 2006). In furtherance, Malaysia must stipulate the expected timeline for the liberalizing of identified sectors or sub-sectors in a process called “scheduling”. Malaysia also must indicate any limitations on market access and national treatment. Since 2005 till to date, more than thirty countries have requested Malaysia (Amazement, 2002) to liberalize or further liberalize for a wide range of professional services placed under he current commitments.
Malaysia continues to relax some of the policies in regard to professional services (MIT, 2009). For example, foreign quantity surveying firm can now offer their quantity surveying service in Malaysia. However they must work together with the locals through Joint ventures or partnerships. Their equity in the company should not exceed thirty percent. The current technology of achieving almost real time business transaction between parties in any part of the world and the global mobility of professionals has made liberalizing of trade in services inevitable.
Malaysia, together with other SEAN country are involved in free trade or economic cooperation talks with Australia, China, Chile, European Union, India, Japan, New Zealand, Pakistan, United Kingdom, ASSAI, South Africa and South Korea. The pressure to liberalize are mounting as there were request for the I-J Chamber of Commerce and EX. Chamber of Commerce for us to allow foreign professional service providers to “sign off’ documents prepared by them (Swan, 2012). The liberalizing of the surveying profession is generally good for the public.
However it must be done with caution. With the removal of thirty percent equity, any surveyors could now generally work in Malaysia and compete with the local. The market would d become saturated turner especially I t there is no curtail on who can actually practice locally. For example, in absence of clear guideline or regulations either from the responsible ministry or surveying board, any one with economic and financial capabilities inclusive business man and non-professional surveyor could also operate a surveying firm locally (Nor Asking, 2012).