Malaysia’s Gross Domestic Product (GDP) for the first quarter of the year registered a sharp contraction of 6.2%. This was mainly due to a sharp decline in exports and industrial production as well as reduced investment activities. This contraction was in tandem with the weakening of the world’s major economies.

Going forward to the second half of 2009, there are signs indicating that the free-fall of the world economy has halted, thus raising hopes for economic stabilisation to take its root. Given the improving macro-data, earnings revision and expansive Government spending filtering through to the real economy, Malaysia’s economy, barring unforeseen circumstances, may be turning the corner. While it may be too early to talk of “green shoots”, we must still be vigilant of external headwinds beyond our control that can impact our recovery process.

Recent Government announcements had highlighted the need for the services sector to contribute up to 70% of Gross Domestic Product by 2020 (currently at 54%). This significant target and shift is to ensure that Malaysia will benefit from the competitive dynamics that have been shaping the global market place for ideas, talents and funds. An enhanced services sector will plug Malaysia into the new world order that has been fast evolving. It is crucial for Malaysia to remain a competitive FDI destination.

The equity liberalisation in 27 services sub-sector announced by the Government in April 2009 heralds a new wave of business opportunities for Malaysian companies. I encourage members to explore and seize these opportunities as they would equally benefit your investments in the developing countries.

The current world financial crisis is also opening-up investment and business opportunities in many developing economies for Malaysians. MASSA stands ready to assist those interested to utilise our contacts and network.

We bid farewell to Cik Hamidah Tun Ghafar, our Assistant Honorary Secretary and Editor of our Newsletter, who retired at our 18th Annual General Meeting. We thank her for all her contributions to the Association, especially in the production of our newsletters. We welcome Puan Fatimah Sulaiman who was elected in place of Cik Hamidah Tun Ghafar. The retiring Committee for 2007 – 2009 was re-elected to serve for the new term 2009 – 2011. I thank the Committee for its commitment and dedication and look forward to working together in the future.

TAN SRI DATO’ AZMAN HASHIM
President