WORLD TRADE ORGANISATION (WTO)

The WTO is an international organisation which aims to facilitate trade between its member countries and promote trade liberalisation globally. As of 30 April, 2000, the WTO has 136 members. Malaysia is a member of the WTO.

The WTO functions on the premise of agreements negotiated and ratified by its member countries. In the area of financial services, WTO members have successfully negotiated and concluded the General Agreement on Trade in Services (GATS) (which can be obtained at the WTO Document Dissemination Facility) in December, 1997. The GATS consists of a set of commitments which internationally guarantee access of WTO members to participate in the trade in services to the extent committed.

The SC assists the Ministry of Finance and the Ministry of International Trade and Industry in the area of Malaysia's capital market commitments and negotiations. In determining Malaysia's commitments under the GATS, the SC conducts industry-wide consultations on areas of possible liberalisation.

In the capital markets area, Malaysia's main commitments are as
follows:

	Aggregate foreign shareholding in a company carrying out broking activities was increased to 49% with effect from 1 July 2000 (from the previous 30%);
	Aggregate foreign shareholding in a company carrying out fund management activities may be up to 100%; and
	Aggregate foreign shareholding in a company carrying out advisory services is limited to 30%.