KUALA LUMPUR: The government is cutting its dependence on the oil and gas (O&G) sector to focus on promoting services, said Minister in the Prime Minister’s Department Datuk Seri Idris Jala.
Revenue from the O&G sector is expected to constitute 29 per cent of the country’s gross domestic product (GDP) this year, down from the 40 per cent in 2009, he told the Invest Malaysia 2014 conference here yesterday.
The government plans to grow the services sector’s GDP contribution to 65 per cent by 2020.
Japan’s services sector is at 70 per cent of GDP, and Singapore’s at 72 per cent, with that of the United States being 62 per cent, according to Idris.
He also said Government-Linked Companies (GLCs) are being urged to set their sights on the vast overseas markets to showcase Malaysia’s capability, as the country is on track to become a high-income nation by 2020.
“I am worried about post-2020 after Malaysia becomes a high-income nation. To maintain that status, there must be high net trade. That goal is achievable with GLCs expanding overseas,” he added.
He said GLCs should make way for smaller enterprises to develop their foothold locally, while they seek greater expansion outside.
Idris, who is also the Performance Management and Delivery Unit (Pemandu) chief executive officer, cited South Korean companies as an example of successful overseas forays.
“South Korean companies focus on the home market as the starting point, before turning to the global market,” he said. — Bernama