World Trade Organization RESTRICTED TN/S/W/17S/FIN/W/28 30 July 2003 (03-4050) Council for Trade in Services Special Session Committee on Trade in Financial Services Original: English COMMUNICATION FROM malaysia Challenges in the Financial Services Sector The attached communication has been received from the delegation of Malaysia with the request that it be circulated to the Council for Trade in Services in Special Session and the Committee on Trade in Financial Services. __________ Introduction Malaysia’s financial system has evolved over several decades against the backdrop of rapid changes in the economy and the international financial environment. Policies have been modified according to changing circumstances, to focus on developing an efficient and sophisticated financial system that can meet the financing needs of the economy as well as support national policy objectives. In this context, while Malaysia recognises that the openi