Malaixiya Chengruo En

8/13/2019 Malaixiya Chengruo En

1/24

ASEAN-CHINA AGREEMENT ON TRADE IN SERVICES ANNEX 1/SC1

_________________________________________________________________________

MALAYSIA

Schedule of Specific Commitments

(For the First Package of Commitments)


2/24

AC-TIS/SC1/MAL2

MALAYSIA - SCHEDULE OF SPECIFIC COMMITMENTS

Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitments

II. SECTOR SPECIFICCOMMITMENTS

1

1. BUSINESS SERVICES

A. Professional Services

Architectural services(CPC 8671)

1), 2) None

3) Architectural services may be

supplied only by a natural person4) Unbound except as indicated in

the horizontal section and, inrespect of 2b) only an architectwho is a consultant to a project incollaboration w ith a Malaysianprofessional architect forwholly foreign funded projects

1), 2) Architectural services mustbe authenticated by alicensed professionalarchitectin Malaysia

3) None

4) Unbound except for thecategories of natural personsreferred to under market access

4) The qualifying examination todetermine the competence andability to supply the service forthe purposes of registration withthe professional bodies will beconducted in the Englishlanguage

Engineering services(CPC 8672)

1) None 1) Engineering services must beauthenticated by a registeredprofessional engineer inMalaysia

1 An asterisk against a CPC code number indicates that the corresponding service subsector in this schedule covers only a part or parts of the service

subsector classified under the CPC concordance.


3/24

Modes of supply: 1) Cross-border 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons

Sector or Sub-sector Limitations on Market Access tations on National Treatment Additional Commitments

supply

Limi

2) None

3) a) Engineering services may besupplied only by a naturalperson.

b) For multi -disciplinarypractices (Archi tecture,Engineering and/or QuantitySurveying), foreign equityup to a maximum of 10percent for jo int ventures byprofessionals who areregistered in the country oforigin. Foreign directorshipis not allowed

4) Unbound except as indicated in

the horizontal section and inrespect of 2 (b), subject totemporary registration for aperiod of one year per temporaryregistration

2) None

3) None

4) Engineering services must be

authenticated by a registeredprofessional engineer in Malaysia

4) The qualifying examination to

determine the competence andability to supply the service forthe purposes of registration withthe professional bodies will beconducted in the Englishlanguage. Other requirementsas per in ASEAN EngineerRegistry

Medical speciality servicescovering forensic medicine,nuclear medicine, geriatrics,microvascular surgery,neurosurgery, cardiothorasicsurgery, plastic surgery, clinicalimmunology and oncology,traumatology, anaesthesiology,intensive care specialist, child

1), 2) None

3) Medical speciality services maybe supplied only by a naturalperson

4) Unbound except as indicated in2 (a) in the horizontal section

1), 2) None

3) None

4) None other than:practice only in private hospitalsof at least 70 beds;

4) The qualifying examination todetermine the competence andability to supply the service will

AC-TIS/SC1/MAL3


4/24



psychiatry and physical medicine (CPC 93122)

practice to be only at a specifiedlocation and a change of locationrequires approval; and thesetting up of individual or jointgroup practices is not permitted.

be conducted in the Englishlanguage

B. Computer and Related Services

Consultancy services related tothe installation of computerhardware(CPC 841)

1), 2) None

3) None

4) Unbound except as indicated in1 (a) and (b) and 2 (a) and (c) inthe horizontal section

1), 2) None

3) None


Consultancy services related to

software implementationcovering advisory andimplementation services forcustomised software(CPC 842)

1), 2) None

3) None


1), 2) None

3) None


Data Processing Services

(CPC 843)

1), 2) None

3) None

4) Unbound except as indicatedin 1 (a) and (b) and 2 (a) and(c) in the horizontal section

1), 2) None

3) None

4) Unbound except for thecategories of natural personsreferred to under marketaccess

AC-TIS/SC1/MAL4


5/24



Database services

(CPC 8440)

1), 2) None

3) None


1), 2) None

3) None

4) Unbound except for the

categories of natural persons

referred to under market access

2. COMMUNICATION SERVICES

C. Telecommunication Services

Basic Telecommunications

Based on domestic regulations,

Malaysia has reclassified i tscommunications service sectoron the basis of provision ofNetwork Facility services (NFP),provision of Network Service(NSP), provision of ApplicationService (ASP)

Basic local, inter-exchange and

international services; suppliedover public telecommunicationstransport networks using anynetwork technology; facilitiesregardless of whether the meansof delivery of services are wiredor wireless are mapped into theaforementioned three categories

1), 2) None

3) With respect to NFP and NSPcomponents of the service,only through an acquisition ofshares of existing li censedNFP(I), NSP(I)

With respect to ASP(I),through a locally incorporatedoint-venture corporation with

1), 2) None

3) None

Pro-competition regulatory principle in

respect of interconnectionarrangement and competition (Referto Annex I)

AC-TIS/SC1/MAL5


6/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional CommitmentsMalaysian individuals orMalaysian-controlledcorporations; or throughacquisitions of shares of anexisting licensed ASP(I)operator/corporations

- For NFP(I) and NSP(I),

foreign shareholding of upto 30 percent in theseservice providers isallowed

- For ASP(I), foreignshareholding of up to 49percent in these serviceproviders is allowed

[The management control ofsuch companies shall be in thehands of Malaysians and in thecase of Telekom Malaysia, theforeign shareholding permittedshall not exceed 30 percentforeign in aggregate with notone single country holdingmore than 5 percent of theequity at any one time]

4) Unbound except as indicated inhorizontal commitments

4) Unbound except as indicated inhorizontal commitments

AC-TIS/SC1/MAL6


7/24



Individual licence1. NFP (I)

2

2. NSP (I)3

3. ASP (I)

Value-Added Services3

Telecommunication

4

services ofwhich enhanced value-addedservices must be provided fromchannels or lines obtained onlyfrom licensed NFP(I) and NSP(I)operators and are alsomapped into the threecategories below

5

1), 2) None

3) With respect to NFP and NSPcomponents of the service,only through acquisition ofshares of exist ing licensedNFP(C), NSP(C). With respectto ASP, through a locallyincorporated joint-venturecorporation w ith Malaysianindividuals or Malaysian-

controlled corporations; orthrough acquisitions ofshares of an existing licensedASP(C) operator /corporations

1), 2) None

3) None

Explanatory note fo r Individual Licence Categories

2Network facilities provider (NFP) individual licence enables the provision of network facilities services such as earth stations, fixed links and cables, publicpayphone facilities, radiocommunications transmitters and links, satellite hubs and towers, poles, ducts and pits used in conjunction with other network

facilities.3Network service provider (NSP) individual licence enables the provision of network services such as bandwidth services, broadcasting transmission services,cellular mobi le services, customer access services and mobi le satellite services.

Applicat ion Service Provider, individual licence enables the provis ion of applications services such as PSTN telephony, publ ic cel lu lar telephone telephonyservices, IP telephony, publ ic payphone service and publ ic switched data service.

Explanatory note for Class Licence Categories

AC-TIS/SC1/MAL7


8/24


Sector or Sub-sector i it Limitations on National Treatment Additional CommitmentsL m ations on Market Access

Class licence

1. NFP (C)5

2. NSP (C)6

3. ASP (C)7

- For NFP(C) and NSP(C),foreign shareholding ofup to 30 percent in theseservice providers isallowed

- With respect to ASP(C),

foreign shareholding ofup to 49 percent in theseservice provider isallowed

4) Unbound except as indicatedin horizontal commitments.

4) Unbound except as indicatedin horizontal commitments

5Network facilities provider class licence enables the provision o f niched or l imited purpose network faciliti es such as radio communications transmitters forpublic mob ile radio network services, radio communications transmitters for publi c radio paging network services, radio communications transmitters and linksfor publ ic wireless data network services, for sole purpose of end users in bu ildings or a single clustered building complex.

6Network service provider class licence enables the provision of niched customer access or niched connection services such as public mobile radio networkservice, one or two way radio paging network services, terrestrial wireless fixed/mobile data network services for the specific purposes of messaging,surveillance, ticketing or inventory management, offered for the sole purpose of connecting end users in a building or a single clustered building complex.

7 Applications service provider class licence enables the provision of applications services such as audiotext hosting services provided on an opt-in basis,directory services, messaging services.

AC-TIS/SC1/MAL8


9/24


Sector or Sub-sector Additional CommitmentsLimitations on Market Access Limitations on National TreatmentExplanatory Note

1) This sector is governed by the Communications and Multimedia Act 1998 and it subs idiary rules and regulations.2) Definitions as per Communications and Mult imedia Act 1998

a. Network facilities mean any element or combination of elements of physical infrastructure used principally for, or in connection w ith,the provision of network services, but does not include customer equipment.Network faciliti es provider means a person who is an owner of any network facilities.

b. Network services means a service for carrying communications by means guided and/unguided electromagnetic radiation.Network service provider means a person who provides network services.

c. Application service means a service provided by means of, but not solely by means of, one or more network services.Appl ication service provider means a person who provide an applications service.

3) Definitions as per Communications and Multimedia (Licensing) (Amendment) Regulations 2001a. Network facilities provider class licensee means a person who is registered with the Commission to provide a network facility in

accordance with the povisions of the Act and these Regulations.Network facilities provider individual licensee means an individual licence granted to a network facilit ies provider in accordance withthe provisions of the Act and these Regulations.

b. Network service provider class li censee means a person who is registered with the Commission to p rovide a network service inaccordance with the provisions of the Act and these Regulations.Network service provider indiv idual licensee means an individual l icence granted to a network service provider in accordance with theprovisions of the Act and these Regulations.

c. Application service provider class licensee means a person who is registered with the Commission to provide an application service inaccordance with the provisions of the Act and these Regulations.Appl ication service provider individual l icensee means an individual licence granted to an appl ications service provider in accordancewith the provisions of the Act and these Regulations.

AC-TIS/SC1/MAL9


10/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitments3.CONSTRUCTION AND RELATED

ENGINEERING SERVICES

Construction work(CPC 511, 512, 513, 514, 515,516, 517)

1) Unbound due to lack of technicalfeasibility

2) None

3) (a) Only through a representativeoffice, regional office, orlocally incorporated joint-venture corporation withMalaysian individuals orMalaysian-controlledcorporations or both andaggregate foreignshareholding in the joint-

venture corporation shall notexceed 30 percent

(b) Foreign constructioncompanies that are notlocally incorporated maycarry out the followingconstruction projectsjo intly w ith local

contractors, on project-by-project basis:

1) Unbound due to lack of technicalfeasibility

2) None

3) (a) None for representativeoffice, regional office, orlocally incorporated joint-venture corporations

(b) Unbound for foreignconstruction companiesthat are not locallyincorporated

i. Construction projects

wholly financed by

foreign investment

and/or grants

ii. Construction projects

financed by loans of

AC-TIS/SC1/MAL10


11/24

Modes of supply: 1) Cross-border supply abroad 3) Commercial presence 4) Presence of natural persons

Sector or Sub-sector Limitat ions on National Treatment Addit ional Commitments

2) Consumption

Limitations on Market Accessinternational tendering

according to the terms

of loans

iii. Projects with foreign

investment equal to or

more than 50 percent

where local expertise is

not availableiv. 100 percent Malaysian

funded construction

projects where local

expertise is not

available

Subject to compulsory sub-

contracting to local sub-

contractors

4) Unbound except as indicated inthe horizontal section


4. EDUCATIONAL SERVICES

C. Higher Education

Other Higher Education Servicesprovided by privately fundedhigher education institutionsexcluding private highereducation institutions w ithgovernment equity or thatreceive government assistance(CPC 92390)

1) Unbound except for franchiseand twinning arrangementsbetween foreign based insti tutionsand Malaysian based educationalinstitutions

2) Unbound except for students

1) Unbound

2) Unbound

AC-TIS/SC1/MAL11


12/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitmentsmoving abroad including studentsunder franchise and twinningarrangements

3) Only through a joint venturewith foreign equity not exceeding49 percent and subject to aneconomic needs test

4) Unbound except as indicated

in the horizontal section

3) Unbound



3) More than 49 percent foreignequity will be consideredsubject to an additionaleconomic needs test which

includes among others

(a) Courses offered are criticalto Malaysia e.g. Medicine,Dentistry, Engineering,Business, Science andTechnology

(b) Research- based

programmes

(c) Collaborativeresearch with localinstitutions

(d) share of foreign students

AC-TIS/SC1/MAL12


13/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitments5. FINANCIAL SERVICES,

INCLUDING INSURANCE

ALL FINANCIAL SERVICES

3. Direct insurance companies. 1), 2) Unboundexcept asotherwise specified in thisschedule.

3) Branches of foreign insurancecompanies are required to belocally incorporated by 30 June1998 and foreign shareholdingnot exceeding 51 percent ispermitted.

1), 2) Unbound* except asotherwise specified in thisschedule.

3) None except as indicated in thefinance sector horizontal sectionand in the respective activitylisted below.

Foreign shareholding not

exceeding 51 percent is alsopermitted for the existing foreignshareholders of locallyincorporated insurancecompanies which were theoriginal owners of thesecompanies. Provided aggregateforeign shareholding in suchcompanies does not exceed 51

percent.

New entry is limited to equityparticipation by foreign insurancecompanies in locallyincorporated insurancecompanies and aggregate

Due to lack of technical feasibility

AC-TIS/SC1/MAL13


14/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitmentsforeign shareholding in suchcompany shall not exceed 30percent.

Unbound for new licenses.

Acquisition by a foreigninsurance company of an

aggregate of more than 5percent shareholding in a locallyincorporated insurance companymust meet at least one of thefollowing criteria:(a) The foreign insurancecompany has the ability tofacilitate trade and contribute tofinancial and economic

development of Malaysia;

(b) The country of the foreigninsurance company hassignificant trade and investmentinterests in Malaysia;

(c) The country of the foreigninsurance company does not

have a significant representationin the Malaysian insuranceindustry; or

(d) The foreign insurancecompany has the ability toprovide technical expertise andknow-how to contribute to thefinancial and economic

AC-TIS/SC1/MAL14


15/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitmentsdevelopment of Malaysia.

An insurance company is notallowed to acquire more than 5percent share:

(a) In another insurancecompany in Malaysia that carries

on the same class of insurancebusiness as that carried on by it;or

(b) In an insurance brokingcompany.

Other persons holding more than5 percent shareholding in an

insurance company are notpermitted to acquire more than 5percent shareholding in:

(a) Another insurance companycarrying on the same class ofinsurance business as thatcarried on by the insurancecompany in which the person is

a shareholder; or

(b) An insurance brokingcompany.

4) Unbound except the following:

(a) Unless otherwise specified,temporary presence of

4) Unbound except for thecategories of natural personsreferred to under market access.

AC-TIS/SC1/MAL15


16/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitmentsnatural persons is offeredonly in respect of supplythrough the mode ofcommercial presence.

(b) Two (2) senior manager forbranches of foreigninsurance companies and

locally incorporatedinsurance companies withan aggregate foreignshareholding of 50percent ormore.

A senior manager is an individualpossessing proprietaryknowledge and authority

essential to the establishment,control and operation of theservices of the financial servicesupplier.

(c) Five (5) specialists orexperts for each institution forareas relating to:

(i) underwriting ofspecialized classes ofgeneral business;

(ii) information technology;and

(iii) actuarial functions.

(d) Entry shall be limited to amaximum period of five years.

AC-TIS/SC1/MAL16


17/24



A. BANKING AND OTHERFINANCIAL SERVICES,EXCLUDING INSURANCE

Advisory, intermediationand other auxiliary financialservices, including credit

reference and analysis,investment advice onacquisitions, corporaterestructuring and strategy.

1) Provision of investment andportfolio advice requirescommercial presence.

Services other than investmentand portfolio advice to residentsmust be undertaken jointly withcommercial banks or merchantbanks in Malaysia.

1) None

2) Services other than investmentand portfolio advice to residents

must be undertaken jointly withcommercial banks or merchantbanks in Malaysia.

2) None

3) Entry as a non-bank is limited to: (a) Establishment of a locally

incorporated joint-venturecompany and aggregateforeign shareholding in such

company shall not exceed 30percent; or

(b) A representative office.

3) None

Representative offices(including those ofcommercial banks, merchantbanks and securities

AC-TIS/SC1/MAL17


18/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitmentscompanies) are permitted toundertake research,information and liaisonservices only.

Representative offices ofsecurities companies are notpermitted to publish and

circulate research work inMalaysia.

Offshore banks, offshoreinvestment banks and offshorecompanies in Labuan can onlyprovide services to non-residentcustomers.

4) For banks, one (1) specialist orexpert.

4) For banks, unbound except as

indicated in the finance sectorhorizontal section.

AC-TIS/SC1/MAL18


19/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional CommitmentsFor non-banks, one (1) seniormanager and one specialist orexpert.

For representative offices, three(3) foreign nationals subject toonly one (1) foreign national forthe two (2) top posts and the

other two (2) for manageriallevel posts. Entry shall belimited to a maximum period offive years.

For non-banks, unbound exceptas indicated in the all-sectorhorizontal section.

Operational headquarters(OHQ) for financial sector(Provides services tocommercial and investment

banking institutions inactivities relating to workcarried out in Malaysia forits offices and relatedcompanies outsideMalaysia, pertaining togeneral management andadministration, businessplanning, technicalsupport, marketing controland sales promotionplanning, training andpersonnel management,provision of treasury andfund management servicesand research and

1), 2) Unbound

3) Only through a locallyincorporated wholly foreign-

owned company.

A foreign-owned company, aregional office of a foreign-owned company which transfersits OHQ services to Malaysia, aregional office of a foreign-owned company established inMalaysia, and a foreign- ownedcompany which is alreadyincorporated in Malaysia, mayseek to qualify as an OHQ.

An OHQ must operate inMalaysia and fulfil the followingcriteria:

1), 2) Unbound*

3) None

Due to lack of technical feasibility.

AC-TIS/SC1/MAL19


20/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitmentsdevelopment).

(a) Carry out at least three of theOHQ service activities;

(b) Have a sizeable network ofcompanies outside Malaysiawhich includes the parentcompany or its head office and

related companies;

(c) Have a well establishedforeign-owned company which issizeable in terms of assets andemployees;

(d) Have a network ofcompanies with a substantial

number of qualified executives,professionals, technical andother supporting personnel;

(e) Be able to make decisionsindependently withoutconsultation with its head officeor parent company locatedoutside Malaysia;

(f) Be able to contribute to theMalaysian economy by:

(i) Using services such aslegal, accountingetc. provided byMalaysians;

(ii) Creating jobOpportunities for

AC-TIS/SC1/MAL20


21/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional CommitmentsMalaysians;

(iii) Enabling greater inflowof foreign funds.

4) One (1) specialist or expert perorganisation subject to thefollowing conditions:(a) Such persons must

possess knowledge at anadvanced level ofcontinued expertise andwho possess proprietaryknowledge of theorganisations new serviceproducts and technology,research equipment andtechniques or management

(b) Entry shall be limited to amaximum of five years andrenewable

4) None

6. HEALTH RELATED ANDSOCIAL SERVICES

Hospital Services

Private hospital services(CPC 93110*)

1), 2) None

3) Economic needs test;

Only through a locallyincorporated joint-venturecorporation with Malaysianindividuals or Malaysian-controlled corporations or both

1), 2) None

3) Establishment of feederoutpatient clinics is not permitted

AC-TIS/SC1/MAL21


22/24


Sector or Sub-sector Limitations on Market Access Limitations on National Treatment Additional Commitmentsand aggregate foreignshareholding in the joint-venturecorporation shall not exceed 40percent; and

The joint-venture corporationshall operate a hospital with aminimum of 100 beds

4) Unbound except as indicated inthe horizontal section


7. TOURISM AND TRAVELRELATED SERVICES

Convention Centre (over 3,000

participants)(The development of abuilding that consists ofExhibition Halls, MeetingRooms, a conference hall w ithmore than 3,000 seatingcapacity, a banquet and abusiness centre equippedwith state of the art

telecommunication andteleconferencing facilities tocater for the needs of theconvention industry. Thecentre will also provideadequate carparks, shops andrestaurants/cafes toexhibitors, participants andvisitors)

1) Unbound due to lack of

technical feasibili ty

2) Unbound

3) On joint-venture basis withforeign investors allowed upto 30 percent equity

4) Unbound

1) Unbound due to lack of

technical feasibili ty

2) Unbound

3) None



AC-TIS/SC1/MAL22


23/24


Sector or Sub-sector Limitations on Market Access Additional CommitmentsLimitations on National Treatment

Theme Parks(A family based recreationalarea/amusement centre whichmay consist of rides,mechanical and/or high-techsimulation equipment withvarious kinds of amusement

facilities built around a themeor several themes. Activitiesto be offered will containelements of entertainment,edutainment, adventure andexcitement. The concept ofthe park can either be outdooror indoor or a combination ofboth)

1) Unbound due to lack oftechnical feasibili ty

2) Unbound

3)i) Requirement of local

incorporationii) Foreign equity allowed up

to 100 percent for the firstfive years (computed fromthe date of incorporation)

iii ) After 5 years, aggregateforeign equity is limited to51 percent so that at least49 percent are held by

Malaysians

4) Unbound

1) Unbound due to lack oftechnical feasibili ty

2) Unbound

3) None

4) Unbound

8. TRANSPORT SERVICES

Maritime Freight ForwardingServices

(The activity consis ting oforganising and monitoringshipment operations onbehalf of shippers, throughthe procurement of transportand related services,reparation of documentationand provision of businessinformation)

1), 2) None

3) Only through a representative

office, regional offi ce or joint-venture corporation withMalaysian individuals orMalaysian-controlledcorporations or both. Foreignequity allowable up to amaximum of 49 percent


1), 2) None

3) None

4) Unbound except for the

AC-TIS/SC1/MAL23


24/24

AC-TIS/SC1/MAL24



in the horizontal section categories of natural personsreferred to under marketaccess

Air TransportSelling and marketing of airtransport services

1) None

2) None

1) None

2) None

(Opportunit ies for the air carrierconcerned to sell and marketfreely its air transport servicesincluding all aspects ofmarketing such as marketresearch, advertising anddistribu tion. The activities donot include the pricing of air

transport services nor theapplicable conditions)

3) Unbound

4) Unbound

3) Unbound

4) Unbound

Computer reservation systemservices

(Services provided bycomputerised sytems thatcontain information about air

carriers schedules availability,fares and fare rules, throughwhich reservations can bemade or tickets may be issued)

1) None

2) None

3) Unbound

4) Unbound

1) None

2) None

3) Unbound

4) Unbound

Malaixiya Chengruo En

Documents