GEORGE TOWN (Oct 17): Malaysian Investment Development Authority (Mida) aims to increase the services sector’s contribution to the country’s gross domestic product (GDP) by another 9 percentage point to 65% by 2020.

Mida deputy chief executive officer Datuk Phang Ah Tong said for the first half this year, the services sector saw an approval of investments worth RM57 billion from a total of 2,342 projects. Of the total, domestic investments amounted to RM49.2 billion, while foreign investments came in at RM7.8 billion.

In his keynote speech at the seminar, `Investment Opportunities in the Services Sector in Penang’, organised by Mida, Phang said Mida’s aim to increase the services sector’s contribution to the GDP is in line with Malaysia’s aim to achieve high-income or developed nation status in six years.

He said Mida was focusing on services in areas such as regional establishments like operational headquarters and centres for international procurement, regional distribution, logistics and global hubs for multinational corporations.

In addition, “Mida is also promoting the services sector in shared-serviced outsourcing (SSO), Business Processing Outsourcing (BPO), hospitality, medical tourism and education,” he said.

“The services sector is expected to expand its contribution through the manufacturing sector and to add a new dimension to the economy.

“We hope to increase its contribution to 65% by 2020. It is an important sector to promote, along with the manufacturing sector which contributes 25% to the GDP because the services sector supports the former,” he said.