MALAYSIA'S move to open up its economy through liberalisation of its sub-services sector will ensure a strong flow of foreign investments into the country, said British Trade and Investments Minister Lord Mervyn Davies.

"We draw a parallel to the UK which has been criticised for being too open a market in the past. But because of this we are number one in FDIs and attracted investments and at least 150 major international corporations with the European HQs in the UK," he said at a luncheon roundtable organised by the Asian Strategy & Leadership Institute yesterday.

Malaysia further liberalised its services sector in April to attract more foreign investments, professionals and technology as well as strengthen competitiveness of the sector.

The 27 services sub sectors include health and social services, tourism services, transport services, business services and computer and related services.
Britain also replaced some of its industries such as shipbuilding, mining coal with new industries and today it is considered a leader in mobile telephony, advanced engineering and life sciences and research.

Davies said despite the country having to face the challenges of having to stabilise its banking industry which had been badly affected by the US financial crisis last year, London still remains the number one financial centre in the world.

"In the same way Malaysia's liberalisation move and restructuring during the crisis, in Britain we also realise the need to invest more in education to produce the right skills - more scientists, engineers and apprentices," he said.

He expects the education sector for both countries to set the tone for a major partnership between both Malaysia and the UK.

He was, however, disappointed with the current investment level of Malaysians in Britain, saying it could be better and expressed keenness to help Malaysian companies keen on tapping the halal market.

Responding to an appeal by the Malaysian palm oil industry to the British government to address the scathing attacks by its non-government organisations, Davies said the Roundtable on Sustainable Palm Oil is the fundamental organisation to address the issue.