Communication Services

 

The WTO classification for this sector are :

  • Postal services & Courier services(including express delivery )

This is a rapidly growing area which is assuming a key role in the  supply chain management and logistics. This sub - sector has undergone market-oriented reforms in most countries including Malaysia where public postal operators have been corporatised and/or privatised.

  • Telecommunication services

Telecommunications services are a global market worth over US$ 1.5 trillion in revenue.  Mobile services account for approximately 40% of this, while mobile subscribers worldwide currently outnumber the use of fixed telephone lines by more than two to one.

The telecommunication industry contributed 23.8 billion or 4.9% to the GDP in 2010.

  • Audio visual services

Audiovisual services covers motion picture and video tape production and distribution services, motion picture projection services, radio and television services, radio and television transmission services, and sound recording.

What a service provider needs to know

As a service provider of this sector, you may be interested in the following :

  • The relevant  Acts;
  • The Regulatory agency/agencies;
  • The liberalisation initiatives and specific service sector commitments that Malaysia has entered into.

Postal  & Courier services

The  Acts

  • The Postal Services Act 1991 (Act 465); and
  • The Postal Services ( Successor Company) Act 1991 (Act 466)        

Postal services are currently supplied by Pos Malaysia Bhd (PMB) while there are 113 courier service companies. Pos Laju is PMB's  courier service arm and they control around 27% of the market share for domestic courier services.

Approximately 70% of the courier domestic market is dominated by foreign courier service providers.

Telecommunications

A service provider of this sub sector must possess one of three (3) following types of licences , each of which can either have an individual or class licence.

  • Network Facilities Provider Licence ( NFP);

Owners of facilities such as satellite earth stations, broadband fibre optic cables, telecommunications lines and exchanges, radio communications transmission equipment, mobile communications base stations, and broadcasting transmission towers and equipment require the NFP licence.

  • The Network Service Provider Licence (NSP);

With this licence you can

- provide the basic connectivity and bandwidth to support a variety of applications;

- have Network services enabling connectivity or transport between different networks; and

- be the owner of the network facilities. Connectivity service may also be provided by a person using  network facilities owned by another.

  • The Application Service Provide Licence (ASP).

Applications services are essentially the functions or capabilities, which are delivered to end-users.

The ASP licence allows you to provide particular functions such as voice services, data services, content-based services, electronic commerce and other transmission services.

Individual Licence

This licence cannot be applied for by:

  • a foreign company;
  • an individual or a sole proprietorship;
  • a partnership; and
  • any such other persons or classes of persons as may be decided by Minister from time to time.

Class Licence

This licence cannot be applied for by:

  • a foreign individual who is not a permanent resident; and
  • a foreign company as defined under the Companies Act 1965.

The Acts

  • The Telecommunication Services (Successor Company) Act 1985 (Act 322);
  • The Malaysian Communications and Multimedia Commission Act 1998 (Act 589);
  • The Communications and Multimedia Act 1998 (Act 588);
  • The Electronic Commerce Act;
  • The Electronic Government Activities Act; and
  • The Personal Data Protection Act.

The Regulatory Body

The Ministry of Information, Communication and Culture (MICC) is the custodian while the Malaysian Communications and Multimedia Commission (CMC ) is  the regulatory body whose  key role it is to implement and promote the Government's national policy objectives for the communications and multimedia sector.

The CMC is also responsible for  overseeing the new regulatory framework for the converging telecommunications and broadcasting industries and on-line activities. In 2001, the CMC's role was expanded to include overseeing the postal service sector pursuant to the Postal Services Act 1991 and licensing of the Certification Authorities under the Digital Signature Act 1997.

Liberalisation Initiatives

In  2011, the PM announced the autonomous liberalisation of the telecommunications and courier services with maximum foreign equity according to the category of services as follows :

 

Sub sector/License category

Maximum Foreign Equity

NSP

70 per cent 

NFP

70 per cent 

ASP

100 per cent 

Perkhidmatan Kurier

100 per cent 

 

Specific service commitments

Under GATS and AFAS, for telecommunications and audio visual services, in terms of market access, commercial presence is only through a locally incorporated Joint Venture corporation with Malaysian individuals or Malaysian – controlled corporations or only through acquisition of shares of an existing licensed operator. Foreign companies  are entitled to acquire only up to a 30% equity stake.

Malaysia has not made any commitments for postal and courier services.

 

For further information, please contact:

  • Tuan Hj. Mohamad Akbar Bin Hj. Mahbat
    Policy Division (Communication Sector)
    Phone No : 03-2612 4703
    Fax No: 03-2697 6101
    Email : akbar@kpkk.gov.my
  •  
  • Mr. Mazmalek Mohamed
    Facility Division (Comunication Sector)
    Phone No : 03-2612 4715 (DL)
    Fax aks No: 03-2697 3141
    Email : mazmalek@kpkk.gov.my