MALAYSIA SAYS INSURANCE SECTOR WILL BE OPENED UP

Malaysia is to open up its insurance and banking sectors, allowing foreign players to own stakes in local companies, the government said in its ninth Malaysia plan, released on Friday. The five-year-plan, covering 2006 to 2010, will entail the “gradual” introduction of new foreign competition. “Existing regulatory framework will be reviewed with the objective of achieving a balance between promoting innovation and market development, and safeguarding financial stability through prudential requirements”, the plan said, adding that “the regulatory burden will be reduced to achieve competitive equity within the financial sector.” In the insurance sector, the government said that it would issue more licences, allowing “internationally reputed” insurers to buy stakes or form strategic alliances with domestic members in the primary and reinsurance sectors.