KUALA LUMPUR (Mar 16): A total of RM5.33 billion that was allocated under four action plans to spur the services sector, as announced during the 2015 Budget in October last year, can be accessed by industry players from April this year.

Prime Minister Najib Razak said industry players should utilise these schemes to improve their capacity in developing their business and exports.

These action plans are the Credit Guarantee Scheme for Service Sector (RM5 billion), Enhanced Franchise Development Programme (RM20 million), Research Incentive for Enterprises (RM10 million) and Services Export Fund (RM300 million).

"There is still room for improvement for productivity of the services sector, if compared to other countries with a similar economic standing as us.

"To be a high-income developed country, we need to strategically shift to knowledge intensive, high productivity and tradable services to generate more high paying jobs," Najib said during the launch of the Services Sector Blueprint and the Logistics and Facilitation Masterplan in Parliament today.

He said the services sector is the main driver of the nation's economy. In 2014, the sector contributed 55% to gross domestic product (GDP) and created 8 million jobs or 62% of total new jobs last year.

It is projected that by 2020, the sector's contribution to the GDP will increase to 58%, with an average growth of 6.7% annually between 2016 and 2020. Export services will also increase by 6% per annum and contribute 15% to national exports.

Both the services blueprint and logistics masterplan, formulated by the Economic Planning Unit of the Prime Minister's Department, will be included in the 11th Malaysia Plan 2016-2020.

The blueprint outlines four policy levers and 29 action plans which will deal with the challenges faced by the industry.

It also identified four main challenges that need to be addressed to make the sector more competitive, such as lack of talent, limited access to research and development, unfriendly bureaucracy and regulatory environment and non-domestic oriented service providers.

He said there will be special committee for Services Sector to facilitate the sector, to be chaired by him, and will consist of 12 Cabinet ministers and directors-general of government agencies.

Meanwhile, the Logistic and Trade Facilitation Masterplan, which has outlined five strategic directions and 21 action plans to be carried out in three phases, is to improve the economic efficiency and stimulate exports, said Najib.

The five strategic directions are: strengthening institutional and regulatory framework, enhancing trade facilitation mechanism, developing infrastructure and freight demand, strengthening technology and human capital, and internationalising logistic services.

The masterplan is expected to create 146,000 new jobs, mainly high skilled ones, by 2020.

Hence, RM312 million will be allocated under two initiatives to expedite the implementation of the masterplan. A National Logistics Taskforce will also be established under the Ministry of Transport and chaired by the Minister of Transport, to oversee its implementation.

Additionally, Najib said RM300 million will be allocated to improve the last-mile connectivity to Port Klang, and RM12 million will be allocated to upgrade the Padang Besar Railway Terminal.