Question

1.    Explain the meaning of liberations in economics and its relation to developing countries.
2.    Name the SEVEN (7) broad service sectors   that were liberalized by the Malaysian government announced on 7^th October 2011.                                        

       c.   What are the FIVE (5) benefits of liberalization in the service sector?

Answer 1

Economic Liberalisation

Economic liberalisation means liberalising the government restrictions, rules and regulations from the nation's economy. Which means opening up of the economy or loosening the rules.from government to participating the private parties.It is very important and desirable process for emerging and developing countries. By this there will be unrestricted inflow and outflow of capital which boosts the economic growth and efficiency. The stock market performance is also arised and the securities can be traded in real time. Then the political risks are reduced.As the countries lessen the rules and regulations the political risks are reduced.For investors they are being able to invest a portion of their portfolio into a diversifying asset portion.

Service sectors liberlised by the Malaysian Government in October 2011

1. Computer and related services
2. Health and Social Services
3. Tourism Services
4. Transport Services and Supporting and Auxilliary Services
5. Sporting and other Recreational services
6. Business Services
7. Rental/Leasing Services without Operators

Benefits of Liberlisation in sevice sector

• Increases foreign investment
• Increase the efficiency of domestic firms
• Reduced independance on external commercial borrowings
• Check on corruption
• Enchanced market access