The Government has drawn up the framework for the New Economic Model to propel Malaysia from a middle-income to a high-income economy based on innovation, creativity and high value sources of growth. Under this model, efforts will be intensified to target and attract industries in which Malaysia has strong foundations for new growth areas such as:
- Education and training services
- Healthcare travel (health tourism)
- High value tourism activities such as eco-tourism
- Green Technology including renewable energy and energy conservation/efficiency
- Financial services (integrated Islamic finance)
- Creative industries
- ICT such as telecommunication and mobile services
- Waste management (e.g. recycling)
- R&D and design activities
- Regional operations such as operational headquarters (OHQ), international procurement centres (IPC), and regional distribution centres (RDC).
The services sector assumes an increasing share of GDP as the economy matures, as is evident in the case of developed countries. As Malaysia moves towards becoming a developed nation, greater emphasis should be targeted on the development of the services sector to serve as the engine of growth to propel and sustain the economy.
Under the 10th Malaysia Plan (2011 to 2015), the services sector is expected to grow at 7.2% annually until 2015, raising its contribution to GDP to 61% by the end of the Plan period. The estimated new investment of RM44.6 billion is required for the services sector to reach the targeted GDP contribution, with an increasing portion from foreign direct investment.