Tan Sri Mohd Sidek Hassan

At Your Serviceor improved technology. Competition, in turn, leads to further efficiency as itprompts innovation and creativity among other players in the market. Efficientproducers who are competitive can create more jobs for a nation, which in turnwill stimulate economic growth.Why have restrictions?It must be recognised that a free reign of market forces may not be effective inserving the various goals of development. Hence, some restrictions are necessary.Usually, these restrictions are in place to promote certain development objectives,such as protecting infant or strategic industries, creating job opportunities forlocals or attainment of certain development goals. Although these objectives arevalid, governments all over the world are faced with the difficult choice of puttingscarce resources to the most efficient and effective use.With adequate preparation, liberalisationneed not be a disaster. Domesticindustries must be assisted and preparedfor competition from more establishedcompetitors.However, this protection and assistance cannot be open-ended as it will breedcomplacency. Some form of competition has to be introduced so that industriescan be competitive and consumers can have better choices. Malaysia believes in anorderly form of liberalisation with progressive liberalisation as the key.Malaysia’s measuresMalaysia has benefited from liberalisation measures undertaken in the past. Itsliberal and open-market policies in the manufacturing sector have contributed toMalaysia being one of the most attractive destinations for FDIs in the region. Overthe past 20 years Malaysia has attracted US$91bil in foreign investments in themanufacturing sector. However, the situation has changed as other countries inthe region are also opening up their markets, and with low labour costs, they posesevere competition for Malaysia. It is noted that the trend in global FDI flows is30