Professional Services Liberalisation - RISM Wiki

Professional Services Liberalisation 

1. 4 Modes of Delivery 

-2. Liberalisation Platforms 

-3. CPC Codes 

-4. Liberalisation Status 

-6. Surveying Services Liberalisation 

-7. Malaysia-India CECA 

-8. Domestic Regulations/Registration 

-9. Preparations for Liberalisation 

-10. Mutual Recognition Agreements (MRAs) 

21 October 2010 Kuching 

Sr Kamaruzaman Jamil Frics, 

Fism, Apeps 

1


4 Modes of Delivery for Services 

MODES Criteria Supplier Presence 

Mode 1: 

Cross-border 

Supply 

Mode 2: 

Consumption 

Abroad 

Mode 3: 

Commercial 

presence 

(CP) 

Mode 4: 

Presence of 

natural persons 

(MNP) 

Service delivered within the territory of the 

Member, from the territory of another member. 

e.g. e-trading, internet sales, pipeline for oil and 

gas, architectural/engineering services 

Service delivered outside the territory of the 

Member, in the territory of another Member, to a 

service consumer of the Member. 

e.g. tourism (short visits) and education 


Member, through the commercial presence of the 

supplier. 

e.g. FDIs, set up of Office 


Member, with supplier present as a natural person. 

e.g. expatriates, professionals, foreign workers 

Service supplier not 

present within the territory 

of the Member 

Service supplier present 

within the territory of the 

Member 

21 st October 2010 Kuchng 


Fism, Apeps 

2


Liberalisation Platforms 

WTO/GATS 

(generally 30% equity limit) 

Regional (Asean – 70% by 2015)(2012) 

(Asean-China) (now 8 th Package) (AEC 2015) 

FTAs 

(30% to 51% foreign equity) 

Note: Opening via CPC Codes and under Mode 3 

- only (CP or Equity only, not MNP) 

For MNP, Domestic Regulations must be complied 



Fism, Apeps 

3


CPC Codes (WTO List 1991): 

Services (12 broad sectors / 128 sub-sectors) 

Professional Services under Business services 

- 6 sub-sectors (A to E): 

a. Professional services – CPC 86 & 93 (Legal, 

Accounting/Auditing/Bookkeeping, Taxation, 

Architectural, Engineering, Urban Planning, Medical 

d. Real Estate Services – CPC 821/822 



Fism, Apeps 

4


No CPC code for QS and BS (under CPC 86753) 

Architectural Services (CPC 8671) 

- Surface Surveying Services (CPC 86752) > LS 

- Sub-Surface Surveying (CPC 86753) > LS/QS/BS 

Real Estate Services (CPC 82201 - 06) > PCVS 



Fism, Apeps 

5


Malaysia’s Liberalisation Status 

22 nd April 2009 - 27 sub-sectors fully liberalized (priority 

sectors): computer & related services, health & social 

services, tourism, transport, sporting/recreational services, 

telephone answering (100% foreign equity under Mode 3) 

ASEAN (under AFAS) commitments: 

- 51% by 2010 (this year !!! Not met, Acts not amended) 

- 70% by 2015 (Malaysia brought forward to 2012) 

Note: Domestic Regulations 



Fism, Apeps 

6


Surveying Services Liberalisation 

ISM Position (no MNP) 

- Workshop in December 2009 

- Maximum 49% (no MNP) 

Boards’ Position 

(no MNP) 

- Valuers/Appraisers/Estate Agents = 30% to 49% (max) 

- QS ( Ministry of Works) = 100% 

- GLS (Peninsular) = No equity limits 

- BS = No Board ? 



Fism, Apeps 

7


Valuers/Estate Agents Firms: 

i) Equity - 30% to 49% open 

ii) Board of Directors 

iii) Practice 

QS Firms: 

- 60% registered persons 

i) Equity - 100% open 

ii) Board of Directors 

iii) Practice 

iv) Registration 

- By registered persons only 

- Registered QS only 

- By registered persons only 

- 2-tier registration, one for 

registration and one for 

starting practice 



Fism, Apeps 

8


Malaysia-India CECA (Latest FTA to be signed) 

India Offers (mainly 51% foreign equity): 

- Accounting, Architectural, Engineering, Urban Planning, Medical, 

Dental, etc including Real Estate Services 

- However, MNP limited to and subject to obtaining Contracts for: 

1. Engineering Services (CPC 8672) 

2. Integrated Engineering Services (CPC 8673) 

3. Architectural Services (CPC 8671) 

4. Urban Planning and landscape Architectural Services (CPC 8674) 

5. Computer and Related Services (CPC 84) 

6. Management Consulting Services (excluding all services relating 

to legal consultancy) (CPC 86501, 86502, 86503, 86505, 86506, 

86509) 



Fism, Apeps 

9


Malaysia-India CECA (Latest FTA to be signed) 

Malaysia Offers (30% to 49% foreign equity): 

- Accounting, Architectural, Engineering, Urban Planning, Medical, 

Dental, etc including Real Estate Services 

- Likewise, MNP limited to and subject to obtaining Contracts for: 

1. Engineering Services (CPC 8672) 

2. Integrated Engineering Services (CPC 8673) 

3. Architectural Services (CPC 8671) 

4. Urban Planning and landscape Architectural Services (CPC 8674) 

5. Computer and Related Services (CPC 84) 

6. Management Consulting Services (excluding all services relating 

to legal consultancy) (CPC 86501, 86502, 86503, 86505, 86506, 

86509) 



Fism, Apeps 

10


List of Professionals 

- QS and Property Valuation services included in the list 

- Those included in the list will have the opportunity to 

pursue and agree on MRAs to facilitate MNP 



Fism, Apeps 

11


Domestic Regulations (Acts, Rules & Standards) 

a) Practice should be via firms (sole-proprietor, partnership or body 

corporate) 

b) Services provided by registered persons only 

b) Comply with Rules, Standards and Guidelines (Ethics) 

c) Equity of Firms majority owned by Registered/Licensed persons 

d) Professional Indemnity Insurance requirement 

Registration 

a) Approved qualification 

b) 2/3 years continuous training supervised by registered person 

c) Pass Test of Professional Competence (TPC) 

d) Continuous professional development (CPD) 



Fism, Apeps 

12


Preparations for Liberalization 

(Issues of standards, ethics, public safety / interest) 

a) Equity Limits – Registered persons own 51% 

b) Board of Directors/Partners – Registered persons only? 

c) Operations/Management – Registered persons only? 

d) Practice – Registered persons or natural persons 

e) Amend Acts, Rules, Guidelines 



Fism, Apeps 

13


Mutual Recognition Agreements (MRAs) 

- Facilitate movement of professionals between countries i.e. MNP 

- Boards and professional bodies to review Acts, Rules, Guidelines (MNP) 

- Land Surveyors is signatory to the ASEAN Framework Arrangement for 

the Mutual Recognition of Surveying Qualifications (MRQ) which is 

precursor to a MRA 

Issues/Criteria: 

Qualifications ??? 

Training/Experience ??? 

Practising persons ??? 

Thank You 



Fism, Apeps 

14

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