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SERVICES are an important contributor to economic development and employment. In developed and more mature economies, for example, services account for about 70 per cent of the gross domestic product (GDP). In Malaysia, the contribution of services to GDP last year was 55 per cent and the sector accounted for 57 per cent of the total employment.
In terms of exports, the services sector contributed RM102.1 billion last year, while imports amounted to RM99.8 billion.
In 2007, for the first time, Malaysia recorded a surplus in its services trade and likewise last year. According to the World Trade Organisation (WTO), Malaysia is among the 30 leading global exporters of services.
There is still upside potential for the sector to grow. And the government is targeting to tap the full potential in the services sector and raise its contribution to 60 per cent of the GDP. This target was first set under the Third Industrial Master Plan.
To attract greater interest and increased foreign investment in the services sector, the government recently liberalised 27 services sub-sectors, with no equity conditions imposed. These sub-sectors are in health and social services, tourism, transport, business and computer and related services.
Within the tourism sector, there are numerous opportunities. Among them is "Mice": Meetings, Incentives, Conventions and Exhibitions.
Adele Ladkin, in a study, says: "Within the Mice industry, conference tourism is one of the main sectors, and it refers to all those activities associated with planning, travel to and participation in conferences and meetings, both domestic and international.
"It has the additional benefit of also including an element of leisure tourism, in the form of delegates extending their stay after the event for leisure purposes, in social programmes, and in persons accompanying delegates, blurring the distinction between business and leisure tourism and contributing to the benefits of conference tourism to destinations."
Malaysia , with its many natural attractions and tradition of open houses, hospitality and different cultures, is an ideal place for meetings, conventions and, indeed, post-conference tours and holidays.
Malaysia, with its world-class convention facilities, has played host to many high-level conferences and meetings. Malaysia ranks among the top 10 destinations for Mice in Asia.
Not only does this sector generate employment, but those who come for Mice spend twice as much as regular tourists.
In Thailand, it is estimated that delegates to international conferences spend about three times more.
Other benefits include value-added and employment multipliers to the economy. Mice activities provide a platform to showcase Malaysian products and the country. Networking at Mice activities are one of the key ways to generate and sustain business success.
Thailand, a popular tourist destination with some 14.5 million visitors a year, is also targeting Mice activities. It expects revenue from this sector to account for some 10 per cent of total annual tourism revenue. In Malaysia, the Mice contribution to tourism revenue is about seven per cent.
Other countries in the region are also seeking ways to boost their economies and reduce the impact of the global downturn, and Mice tourism services are being targeted to stimulate domestic demand.
This week the Federation of Malaysian Manufacturers (FMM) hosted the 6th World Chambers Congress -- the first time the meeting is being held in Kuala Lumpur. It was attended by more than 1,000 chamber leaders and senior executives from more than 100 countries from around the world, some of them leaders in their respective business segments and industries; others heads of successful family businesses.
Many are in a position to influence their peers and companies in decision-making -- including on where to invest.
Their experience of well-organised conferences in pleasant surroundings could help tip them into making that critical decision on where to invest or where to go for their next family holiday.
It is a challenge to the tourism and hospitality trade to pull up their socks, take advantage of the benefits offered, and attract more Mice activities to Malaysia and help contribute to economic development and diversification.
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