BMCC - Professional Services Sector Report 2017/2018

BRITISH MALAYSIAN CHAMBER OF COMMERCE Malaysian Industry Report 2018 / 2019

PROFESSIONAL SERVICES

ABOUT THE BRITISH MALAYSIAN CHAMBER OF COMMERCE

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stablished in 1963, the British Malaysian Chamber of Commerce (BMCC) has been driven by the sole ordinance of advancing bilateral trade relations between the United Kingdom and Malaysia. Over the past five decades, the BMCC has been a catalyst in providing Malaysian-based businesses with networking and exposure, knowledge exchange and bilateral trading support services. Today, the BMCC has firmly rooted itself as one of Southeast Asia’s most prolific Chambers.

The BMCC is appointed by the UK’s Department for International Trade (DIT) to become their service delivery partner for British SME’s seeking to export or establish a presence in Malaysia. Embodied by dedicated sector specialists, the BMCC TRADE TEAM provide a range of customised services from market intellligence, business matching and event management to sourcing assistance of UK goods and services.

The BMCC TRADE TEAM works with UK exporters focusing primarily on SMEs in offering bilateral trade assistance, serving principally as a one-stop platform providing a soft landing for UK firms in Malaysia through market research and knowledge exchange, legal and regulatory systems guidance, connecting clients or distributors, and risk management.

In Partnership With

This report serves as a preliminary introduction that highlights key features and factors relevant to the Professional Services sector in Malaysia.

Information included in this report is the original work and property of the British Malaysian Chamber of Commerce (BMCC) and its department the Trade Team and is subject to copyright. No illustrations, photographs, graphics or text included in this report should be copied, reproduced or shared without prior written consent of its owner.

Whereas every effort has been made to ensure that the information given in this document is accurate, the British Malaysian Chamber of Commerce nor its Departments (Trade Team) accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. © British Malaysian Chamber of Commerce Berhad 2018

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UNDERSTANDING MALAYSIA’S PROFESSIONAL SERVICES SECTOR

Located in Southeast Asia, Malaysia is a federal constitutional monarchy consisting of two regions, Peninsular and East (Borneo) Malaysia, seperated by the South China Sea. Malaysia is known to be one of the most diversely congenial polyethnic and mutlti-cultural countries in the world.

Population: 32 Million Ethnicities: Malay, Chinese, Indian Currency: Malaysian Ringgit (MYR) Ease of Doing Business: Rank 24 Average GDP Growth: 5 - 5.5% Business Services Sector 2017: MYR 25.6 billion in exports

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he professional services sector is a key proponent of Malaysia’s economic aspirations. As Malaysia transitions into a service based economy (away from commodity and manufacturing), the sector is expected to be the main economic driver – solidifying its status as a developed nation.

Professional services in Malaysia support local and international businesses of all sizes over a wide range of industries by providing assistance such as consultation, project and service management as well as operational services.

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LEGAL SERVICES IN MALAYSIA

The Malaysian Bar Council The Malaysian Bar is a professional body created under the Legal Profession Act 1976 which regulates the profession of lawyers in peninsular Malaysia. In Malaysia, there is no distinction between a barrister and a solicitor, in that, it is a fused profession. Membership into the Bar is automatic and mandatory.

Like other bar associations around the world, it has a wide range of functions, including, to protect the reputation of the legal profession, to uphold the cause of justice, to express its views on matters relating to legislations, and others.

Liberalisation of Legal Services In 2014 amendments made to the Legal Profession Act which allowed foreign participation.

The provision was classified under “Licensing Of International Partnerships And Qualified Foreign Law Firms And Registration Of Foreign Lawyers.�

Foreign law firms and foreign lawyers will now be permitted to practise in Peninsular Malaysia in the manner set out in the legislation.

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2 Types of Licenses Offered to Foreign Law Firms:

International Partnership with a Malaysian Law Firm An International Partnership will be a partnership between a foreign law firm and a Malaysian law firm. Approval shall be given for the name of the International Partnership to be a combination of the names of the foreign law firm and the Malaysian law firm The Malaysian law firm should not have less than 60%, and the foreign law firm no more than 40%, of the equity and voting rights and of the total number of lawyers in the International Partnership.

Qualified Foreign Law Firm (QFLF) A foreign law firm licensed as a QFLF will not require a Malaysian law firm as a partner.

QFLF licences will be granted, as this avenue has been created to support the Malaysian Government’s Malaysian International Islamic Finance Centre (MIFC).

QFLF licences will therefore only be granted to international law firms that have proven expertise in international Islamic finance, and which would be able to support and contribute to the MIFC. The number of Malaysian lawyers in a QFLF shall not be less than 30% of the total number of lawyers in that firm.

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FINANCIAL SERVICES INDUSTRY

Bank Negara Malaysia Established in 1959, the Central Bank of Malaysia (Bank Negara Malaysia), serves as both banker and adviser to the Government of Malaysia. It’s main purpose is to issue currency, regulate the country’s financial institutions, credit system and monetary policy.

The bank is active in developing financial inclusion policies and is an important member of the Alliance for Financial Inclusion. Its headquarters is located in Kuala Lumpur, the federal capital of Malaysia.

The MSB Act 2011 (Money Services Business Act 2011) Announced by Bank Negara Malaysia, this Act provides for the licensing, regulation and supervision of money services business and to provide for related matters.

Uniformity: Greater business flexibilities and opportunities including the ability to carry on multiple business activities within a single entity for qualified entities, thus promoting greater synergies between these activities and economies of scale.

Types of licenses: Money-changing (Class C), Remittance (Class B), Money-changing & Remittance (Class A), Money-changing & Wholesale Currency (Class C &D), Money-changing, Remittance & Wholesale Currency (Class A & D).

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Acquiring License Consideration for a new MSB licence will be based on the requirements under Section 6 of MSBA and the assessment of the value propositions proposed by the applicant including the ability to fill industry gaps, meeting demand of underserved market and contribution towards modernisation of the industry whether the granting of the licence would be beneficial to the national economic interest of Malaysia.

Remittance Service A licensee who carries on remittance business shall maintain a designated account at a licensed bank for the purpose of remittance business with its customers.

No licensee who carries on remittance business shall utilise a remittance system (software), whether its own system or a system of a third party, without the prior written approval of the Central Bank – The remittance system shall meet the minimum requirements as the Central Bank may prescribe.

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MAIN ACTORS Organisation

Contact

Malaysia International Islamic Financial Centre

Malaysia’s first Islamic Finance market place.

+60(0)3 2692 3481 www.mifc.com

The Securities Industry Development Corporation (SIDC)

Learning and development solutions provider for industry participants in Malaysia and the growth and emerging markets that include market professionals, company directors and regulators

+60(0)3 6204 8667 www.sidc.com.my

The Central Bank of Malaysia - issues currency, acts as banker and adviser to the Government of Malaysia and regulates the country’s financial institutions, credit system and monetary policies

1-300-88-5465 www.bnm.gov.my

The bar was created under the Legal Profession Act 1976 to fulfil various functions, from protecting the reputation of legal professions, upholding the cause of justice, and expressing its views on matters relating to legislations among others

+60(0)3 2050 2050 www.malaysianbar. org.my

Self-funding statutory body with investigative and enforcement powers within Malaysian’s financial markets

+60(0)3 6204 8777 www.sc.com.my

To facilitate the registration of Engineers, Engineering Technologists, Inspectors of Works, Sole Proprietorships, Partnerships and Bodies Corporate by providing professional engineering services, and the regulation of professional conduct and practices of a registered person in order to safeguard the safety and interest of the public

+60(0)3 2698 2413 www.bem.org.my

Malaysian Accounting Standards Board (MASB)

An independent authority to develop and issue accounting and financial reporting standards in Malaysia

+60(0) 3 2240 9200 www.masb.org.my

Malaysian Institute of Accountants (MIA)

Statutory accountancy body that regulates, develops, supports and enhances the integrity and status of the profession while upholding the public interest

+60(0) 3 2722 9000 www.mia.org.my

Bank Negara Malaysia

The Malaysian Bar

Securities Commission

Board of Engineers Malaysia

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Overview

USEFUL CONTACTS The Malaysian Bar Tel: +60(0)3 2050 2171 Email: roobalavaniah@malaysianbar.org.my Website: www.malaysianbar.org.my Malaysia International Islamic Financial Centre (MIFC) Tel: +603(0) 2692 3481 Email: themarketplace@mifc.com Website: www.mifc.com Malaysian External Trade Development Corporation (MATRADE) Tel: +60(0)3 6207 7077 Email: info@matrade.gov.my Website: www.matrade.gov.my Malaysian Investment Development Authority (MIDA) Tel: +60(0)3 2267 3633 Email: investmalaysia@mida.gov.my Website: www.mida.gov.my Malaysian Financial Planning Council Tel: +60(0)3 6203 5899 Email: mfpc@mfpc.org.my Website: www.mfpc.org.my Capital Markets Malaysia Tel: +60(0)3 2091 0667 Email: cmpc@seccom.com.my Website: www.capitalmarketsmalaysia.com Ministry of Finance Malaysia Tel: +60(0)3 8882 3893 Email: pro@treasury.gov.my Website: www.treasury.gov.my Performance Management and Delivery Unit (PEMANDU) Tel: +60(0)3 8872 7237 Email: enquiry@pemandu.gov.my Website: www.pemandu.gov.my

CONTACT US For any inquiries please contact the BMCC Trade Team: Tel: +60(0)3 2163 1784 / 1786 Email: info@bmcc.org.my Web: www.bmcc.org.my E04C0, 4th Floor East Block Wisma Selangor Dredging 142-B Jalan Ampang 50450 Kuala Lumpur

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