US pushes foreign equity in Malaysia trade talks

Kuala Lumpur, Jun 12: The United States wants Malaysia to raise foreign-ownership restrictions in its financial-services sector, a U.S. trade negotiator said on Monday, the first day of bilateral free-trade talks.

Speaking from the northern town of Penang, Assistant U.S. Trade Representative Barbara Weisel said Washington wanted to put foreign ownership rules on the agenda for the talks, which both sides hope to conclude by year-end.

''Lifting foreign ownership restrictions, obviously that's our goal,'' Weisel told reporters in a conference call. ''That would be one of the issues we would like to discuss,'' she added.

Malaysia limits foreign ownership to 30 percent of local banks and 30 percent of local insurers, though long-standing foreign owners can go to 51 percent in the case of insurers.

Malaysia is the United States' 10th largest trading partner. The two countries amassed billion in two-way trade last year.

REUTERS