Asean Framework Agreement on Services Malaysia

The ASEAN Framework Agreement on Services (AFAS) is an agreement between the member states of the Association of Southeast Asian Nations (ASEAN) aimed at promoting regional economic integration by liberalizing trade in services. Malaysia, as one of the founding members of ASEAN, is an active participant in the AFAS negotiations and has made significant contributions to the development of the agreement.

The AFAS was signed in Bali, Indonesia in 1995 and came into effect in 1996. Its main objective is to create a level playing field for all ASEAN members in the services sector. The agreement covers 11 service sectors, including professional services, telecommunications, financial services, and tourism services, among others.

Malaysia has been actively involved in the negotiations of AFAS and has made significant contributions to the development of the agreement. Malaysia is one of the few ASEAN countries that have signed the ASEAN Investment Area (AIA) Agreement, which complements the AFAS by providing a framework for investment in the services sector.

Malaysia has also made significant commitments in the services sector under the ASEAN-China Free Trade Area (ACFTA) and the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA). Under these agreements, Malaysia has committed to liberalizing trade in services with its trading partners, in areas such as telecommunications, financial services, and tourism services.

Malaysia has also been proactive in implementing its commitments under the AFAS. It has liberalized the telecommunications sector by allowing foreign companies to own up to 70% of telecommunications companies in Malaysia. Malaysia has also opened up its financial services sector to foreign companies, allowing up to 100% foreign ownership in some areas.

In the tourism sector, Malaysia has developed a comprehensive tourism plan aimed at promoting Malaysia as a preferred destination for tourists. The plan includes the development of new tourist attractions, the promotion of eco-tourism, and the development of a world-class transportation system to make it easier for tourists to visit different parts of Malaysia.

In conclusion, Malaysia has been an active participant in the AFAS negotiations and has made significant contributions to the development of the agreement. Malaysia has also implemented its commitments under the AFAS, liberalizing trade in services in various sectors. The AFAS is an important agreement that will contribute to the economic integration of the ASEAN region, and Malaysia is playing an important role in its implementation.