GROUP ASSIGNMENT:

TRADE IN SERVICES
TITLE:
ANALYZING TRADE IN SERVICES PERFORMANCE IN MALAYSIA &
THAILAND

LIM MING GIM (PBS1431887)

MELODY YAP (PBS1431856)
NOR ALFIZA YUSNAINI YUSOF (PBS1431882)
FATAN NABULA WIKRAMA (PBS1431853)
SHEIK AHMAD MUSA BIN SHEIK MOHD FAUZI (PBS1511974)
NUR AMALINA BINTI NASARUDIN (PBS1321278)

INTERNATIONAL TRADE (GSM5123)

DR. IDA BINTI YASIN
PUTRA BUSINESS SCHOOL
12 JULY 2016

TABLE OF CONTENT

NO.
ITEM
1.
ABSTRACT
2.
LIST OF TABLES
3.
PART 1: INTRODUCTION
1.1 Background of Trade in Services
1.2 Definition of Trade in Services
4.
PART 2: PERFORMANCES OFTRADE IN SERVICES
2.1 Malaysia
2.1.1 Introduction of Trade in Services of Malaysia
2.1.2Malaysias Export & Import of Trade in Services
2.2 Thailand
2.2.1 Introduction of Trade in Services of Thailand
2.2.2 Thailands Export & Import of Trade in Services
5.
PART 3: RECOMMENDATION
6.
PART 4: RESULTS OF TRADE IN SERVICES
4.1 Advantages
4.2 Disadvantages
7.
PART 5: HUMAN GOVERNANCE APPLICATION
8.
CONCLUSION
9.
REFERENCES
1

PAGE
1
2
3
4
7

ABSTRACT

The General Agreement on Trade in Services (GATS) distinguished between four modes
of supplying services which are cross-border trade, consumption abroad, commercial
presence, and presence of natural persons. However, trade in services bears both
advantages and disadvantages that are needed to be closely surveillance by countries in
order for them create a win-win situation for parties involved. The trade in services
performance of Malaysia is showing a strong growth of services sector. This is due to a
good economy management in Malaysia despite in the midst of global economy
uncertainty and political stability. While in Thailand, trading of services is not good at

the middle stages but improving by years and bringing a huge impact toward the growth
of the country itself. The trade of services in Malaysia has to proactively improvise in
order for Malaysia to stay competitive in the world stage.

2
1.
2.
3.
3

LIST OF TABLES
Table 1 :Malaysia Trade in Services, by Major Categories
Graph1: Trade in service (% GDP)
Table 2 :Thailand Trade in Services, by Major Categories

10
13
14

PART 1: INTRODUCTION

1.1 Background of Trade in Services

Before the year 1970s, transnational economic transactions in which involve services
element were not mention as international trade, however, they were known as foreign
direct investment and foreign establishment. The biggest innovations in this area of
international economic governance over the years have been the creation of an
international legal regime governing international trade in services (Rose, 1999). In
1995, it marked a greatest milestones where the General Agreement on Trade in
Services (GATS) coming into force at the conclusion of the Uruguay Round of
multilateral trade negotiations. Since then, more than 50 plurilateral and bilateral
agreements have been signed which contain rules on the liberalization of trade in
services.
With the degree of political support, service trade was included into the agenda
of the GATT (General Agreement on Tariffs and Trade). With the impressive statistics
on the significance of services as part of the world exports, and also use to influence to
gain attraction in important venues such as OECD (Organization for Economic
Cooperation and Development), they mention that those transaction in services could be

considered as trade, where the principles and norms for trade in goods might apply with
challenge in the emerging transition was to avoid protectionism.
During the first half of 1980s, there was a period of intense knowledge
production where by analyzing the nature and consequences of services liberalization in
different sectors. The period of time also involved more towards combine and
dissemination of basic conceptual framework for describing international trade in
services; early period of negotiations was a learning process for GATT negotiators for
them to absorb the idea of trade in service experts. As the process continued, the
influence becomes mutual, as the negotiations themselves began to structure and focus
the knowledge-generating activities of trade in services experts. At the mean time the
political dynamics of negotiations shaped the ways in which these processes of
clarification proceeded.

1.2 Definition of Trade in Services

In the layman term, Trade in Services refers to the sale and delivery of intangible
products (service) between a producer and consumer. Services trade are the largest and
most dynamic component of both developed and developing country economies which
ranging from architecture to voice-mail telecommunications and to space transport;
services also serve as an important inputs into the production of most goods. According
to the World Bank (2014), trade in services is the sum of service exports and imports
divided by the value of GDP, in the US Dollars.
The definition of the trade in services is the most important concept on which the
application of the disciplines contained in the GATS. GATSis a complex web of rights,

obligations, exemptions and specific commitments. Under the article I:2 of GATS, the
concept of trade in services is define as the supply of a service within one of four
defined modes of supply. The definition of trade in services through the four
different modes of supply is the fundamental understanding of the scope and operation
of GATS. The four mode of definition are explained as below:
1. Mode 1 describes the cross-border mode of supply. It includes the supply of
service across border from one country into another. For example is the transfer
of fund from one bank in one country into the financial institution of another
country.
2. Mode 2 describes the consumption abroad mode of supply. The situation is
where the consumer of the service travels to the territory of another member in
order to enjoy the services. The examples are such as tourism services and
consumer travel to another country for medical treatment.
3. Mode 3 mention about the commercial presence. The service under this mode is
that the service provider of a member country has established a commercial
presence in the territory of another member. The example is that the provision of
financial or banking services by a branch office of Japanese bank operating
within the territory of United States.
4. Mode 4 describes the movement of natural persons in which where service
provider of one member travel to another country in order to supply the service.
Example is that doctor from one member of country travel to another country to
perform surgery on a patient.
Under GATS, there is also some exception which is not covered in GATS such as the
services supplied in the exercise of governmental authority. This mean that any services

provided by a government-owned and operated state monopoly, for example, healthcare,

education, fire and police protection will be exempt from the scope and application of
GATS. However, there are also some rules such as the supplied is neither on commercial
basis nor in competition with one or more service suppliers, where this requirement
could potentially bring such services within the scope of the GATS in a Member which
has expressly permitted competition in one of these sectors.
As for the cross border supply of services as listed in the Article 1 of GATS,
similar to tradition notion of trade in goods, whereby both supplier and consumer
remain in respective territories when the product is delivered (Sauve& Stern, 2000). In
such, services flow from the territory of one member into the territory of another
member crossing national frontiers. Despite the substantial global benefits from such
trade, it is possible that the adjustment pressures created in importing countries could
provoke a protectionist backlash in which already been visible in procurement and
regulatory restrictions.

PART 2: PERFORMANCES OF TRADE IN SERVICES

5.1

2.1 Malaysia

5.2

2.1.1 Introduction of Trade in Services of Malaysia

After joining World Trade Organization (WTO) in 1995, Malaysia has the advantages in
international trading between member countries, especially in service's sector through
GATS. GATS created a more stable and predictable trading and investment environment

for Malaysia to export or import the trade in services in the trading market. Apart from
that, under GATS, Malaysia can send requests directly between the members to enhance
and improve Malaysias services sector. For example, according to Ministry of
International Trade and Industry (MITI), Malaysia has requested service's improvement
(import) from 45 countries, which covers professional services in architecture,
engineering, accountancy, construction and telecommunications services. However,
Malaysia has also provided the wide range of international trade in services (export) to
the member countries such as advertising, news agency services, telecommunications
and computer-related services.
Knowing of importance of trade in services, which can contribute the growth of
the country GDP, substantial efforts have been done by Malaysia in order to enhance
their international trade in service. To date, Malaysia signed 5 bilateral Free Trade
Agreement (FTA) with Japan (MJEPA), Pakistan (MPCEPA), New Zealand (MNZFTA),
India (MICECA) and Australia (MAFTA) which cover services of business,
communication, construction, communication, distribution, education, environmental,
health, tourism, financial, recreational, cultural & sporting, transports , so on and so
forth. This FTA aimed to provide liberalization and improve market assess between the
parties. Apart from that, Malaysia as an ASEAN member signed 4 FTA trade in services
with China, Korea, New Zealand and Australia for the ease of international trade in
services.

5.3

2.1.2 Malaysias Export and Import of Trade in Services

Table 1: Malaysia Trade in Services, by Major Categories

Table 1 illustrated Malaysias export and import of trade in services from 2010 until
2014 by major categories. In terms of export trade in services, travel was the highest.
The figure increased 27% from US$ 17,705.6 million in 2010 into US$ 22,551.6 million
in 2014. This figure has justified Malaysia is ranked 11 in the world, and 2nd is SouthEast Asia for the tourist arrival. In our group opinion, travel trade in services perhaps
occurred under consumption abroad in which foreign tourist visited and paid for
services in Malaysia such as hospitality, transport, educational and so forth. The lowest
trade in services of export found in Malaysia in 2010 until 2014 was government goods
and services, which only accounted US$85.3 million in 2010 and increased 3.5% to US$

88.3 million. In General, Malaysia's trade in export services increased from 2010 into
2014 for approximately 24%.
For trade in services of import, transport and travel occupied the most from 2010
into 2014. Import trade in services of transport increased 28% from 2010 US$ 9972.1
million into US$12724.6 million whereas travel service's imports increased significantly
52% from 2010 until 2014. Malaysia did not import a lot of manufacturing services with
which only accounted US$ 24.3 million in 2010, but the number kept increased to US$
45 million in 2014. The low import of manufacturing services indicated Malaysia
proceeds from mere agricultural sector into industrialization. Overall, the trend of
Malaysia's import trade of services was in increasing trend with which 42% from 2010
until 2014.
According to Deputy Finance Minister of Malaysia, Malaysia GDP of service's
sector contributed 6.4% in the second quarter GDP in 2014, which had beaten most
ASEAN countries such as Singapore (2.1%). This figure also surpassing that of South
Korea (3.6%), the United States (2.4%), the United Kingdom (3.1%) and Russia (1.2%).
The minister also pointed out strong growth of services sector was the results of good
economy management in Malaysia despite in the midst of global economy uncertainty
and political stability. Construction service was the main contributor to the GDP growth
at 9.9%, followed by manufacturing (7.3%), agriculture (7.1%), private consumption
(6.5%) and petroleum and mining (2.1%).

6
6.1

2.2 Thailand
2.2.1 Introduction of Trade in Services of Thailand

As we can see in each industrializing economy, the economy of Thailand is mixed. The
production of products and services are made in both the private and public sectors.
From the mid-1970s to the mid-1990s, Thailand experienced critical monetary
development or economic growth. Somewhere around 1980 and 1990, the normal
development of gross domestic product (GDP) was about 7.6%, and the growth of
exports was around 14%. Somewhere around 1990 and 1995, average development in
GDP achieved 8.4%, and average export was 14.2% (Salvatore 2011). Since
2000, Thailand has had an average GDP growth of just around 4%. While Thailand is
generally saw as a financially developing nation drove by agriculture trading, the larger
part of the nation's income is driven by the manufacturing and the service segments.
Since 1993, the agriculture segment has contributed just 300400 billion baht (B) every
year to Thailand's GDP while in 2009, the service sectors created about B2 trillion or
right around half of GDP for the most part from private sectors service. It can be seen
that the Thai economy is in the principal period of economic development.
After the resources of the nation shift from agriculture to manufacturing, there
will be a last move to tertiary stage that is product or services (Fisher 1939, Clark
1940).The National Economic and Social Development Board of Thailand defines the
service sector as all economic activities except for those in the agriculture,
manufacturing, and mining and quarrying sectors. So as a based concept, Thailand
defines its service sector as comprising no fewer than a dozen economic activities.

6.2

2.2.2 Thailands Export and Import of Trade in Services

Trade in services (% of GDP) in Thailand was last measured at 29.02 in 2014, according
to the World Bank. Trade in services is the sum of service exports and imports divided
by the value of GDP, all in current us. Dollars.

Graph1: Trade in service (% GDP)

Based on the Graph above we can see that the trends of GDP in trade service in Thailand
is fluctuated. From 2006 to 2007 it constant then it declining in 2008.From the year
2009 to 2010 the GDP declining until it slowly increasing in 2011 until 2014. Based on
the data above the GDP for Thailand in trading of services is not good at the middle
stages but improving by years and bring huge impact toward the growth of the country
itself.

Table 2: Thailand Trade in Services, by Major Categories

Table 2 illustrated Thailands export and import of trade in services from 2005 until
2013 by major categories. In terms of export trade in services, travel was the highest.
The figure increased almost 4times from US$ 9578.2 million in 2005 to US$ 42080.2
million in 2013. This figure has shown that Thailand is ranked 35 in the world. The
reason is, travel trade in services is occurred due to the foreign tourist visited and paid
for services in Malaysia such as hospitality, transport or education. The lowest trade in
services of export found in Thailand in 205 until 2013 was personal, cultural, and
recreational services which only accounted US$58.2 million in 2010 and increased 32%
to US$ 76.9 million. In General, Malaysia's trade in export services increased from 2005
to 2013.

PART 3: RECOMMENDATIONS

Based on analysis on part 2, several recommendations were suggested to apply for

Malaysia. The recommendations are might applicable and to increase Malaysia trade in
services.
7.1

3.1. Integrated Travel and Tourism services

As we can see in Part 2, both Malaysia and Thailands travel and tourism contribute the
most valuable in the trade services. Malaysian export in travel services contribute for
around 50% annually. Meanwhile, Thailand import in travel services is the contribute
10% for total trade services. However, Thailand export in travel services more valuable
than Malaysian export in travel services. It can be assumed than Thailand export of
travel services has more demand compare to Malaysia. The high demand of travel
services were due to since both Thailand and Malaysia are well known as the best
tourism spot in Southeast Asia. Since Thailand has more demand than Malaysia, it
seems difficult for Malaysia to take competitive advantages in travel services.
Thailand and Malaysia travel services has the highest contribution in trade services.
Both Thailand and Malaysia are recommended to strengthen its relationship in travel
and tourism industry. Since its hard to take competitive advantage toward Thailand, it
was better for Malaysia and Thailand to work together and build integrated travel and
tourism services. This cooperative may gain competitive advantage in Southeast Asia, or
it might be in Asia. Integrated travel and tourism may improve travel service in both
Malaysia and Thailand. Besides, Thailand is geographically close to Malaysia and its
ease both governments to control.

Malaysian government may offer travel agreement with Thailand government. The
agreement allowed travel agents from both countries to arrange travel package that
include tourism spot from both Malaysia and Thailand.

Through this agreement,

hopefully both Malaysia and Thailand will gain competitive advantages compare other
countries in Southeast Asia.
7.2

3.2. Improvement on Transports Quality

The second highest contribution for both Malaysia and Thailand is transport services.
Thailand import value of transport services in average is $20 billion in the last 5 years
and export around $6 to $8 billion annually. Compare to Malaysia, transport services
spent average $11 billion to import in the last 5 years while the export value average
$4,5 billion every year. It can be assumed that Thailand needs of transport service is
high and Malaysia own its opportunity to increase transport services for Thailand.
Thailand needs of transport services due their position as favourite place for tourism in
Asia. High demand of Thailand transport services is good opportunity for Malaysia to
gain competitive advantage in transport services.
Thailand is geographically close to Malaysia, which its borders are in the North
Malaysia. Both Thailand and Malaysia has good transport quality to attract tourist.
However, Malaysia may improve its transport quality in order to gain competitive
advantage toward Thailand transport industry. Besides, Malaysia as geographically
between Singapore and Thailand, may offer transport or logistic services to Thailand.
Singapore is well known as logistic hub in Asia pacific. Through this opportunity,
Malaysia may provide logistic, from Singapore to Thailand. To improve transport

quality, Malaysia must developed and strengthen its services or facilities. Transportation
through land or sea must be well developed as well to deliver logistic to Thailand.
This transport service is considered in mode 3 which describes that Malaysian has to
expand commercial presence. The service that has been established domestically
provides similar services in other countries. Currently, transportation dominated by
airlines and railway. Malaysian airlines (MAS or Air Asia) provide air transportation for
tourism in Thailand while Malaysian train service provides logistic to Thailand. Airlines
may improve their services or develop new flight, especially low cost airlines to
dominate airline services in Thailand. For logistics, represented by KTM Berhad, may
raise number of train schedule. Currently KTM Berhad provides services by deliver
logistics or passenger, but only to several cities. KTM Berhad may improve additional
schedule to another cities in Thailand.

PART 4: RESULTS OF TRADE IN SERVICES

4.1 Advantages
The service sector is the most important sector for most developing economies.
It is the largest contributor to gross domestic product, production and
employment.
4.1.1

Services in the information age

Services promise a quantum leap in world prosperity through the "information

revolution." Modern, state-of-the-art information technology services are critical to
improving productivity and maintaining the competitiveness of industries and
economies throughout the world. Importantly, these capabilities are not geographically
constrained by endowments of many of the traditional factors of production, but depend
upon human resources, education, intellectual capital and electronic infrastructure.
Hence, it is vital to build up skilled human resources and electronic infrastructure in
developing countries in order to enable them to partake in the benefits of the knowledge
economy.

4.1.2

Spread the benefit of globalization

ICC's support for services trade liberalization is consistent with its long-standing
support for open trade and investment. Freer trade in services enables countries to better
enjoy the benefits of globalization and improves economic efficiency just as freer trade

in goods does. It contributes to job creation, higher incomes, more consumer choice,
downward pressure on inflation, and a better quality of life. Imports of services and
foreign investment in services production stimulate the competition that improves the
efficiency of domestic service industries. They add to the overall availability of services
and to the variety from which individual and corporate consumers can choose. And they
contribute to technological advancement. In short, freer trade leads to more, better and
lower-cost services.

4.1.3

As essential economic enablers

More, better and lower cost services are important because services are the "enablers"
that permit economies to function and prosper. Some form essential infrastructure transport, communications, finance, information. Capital markets, for example, cannot
function efficiently without abundant, high- quality information that can be quickly and
frequently communicated. Other services are critical to the success of manufacturing
and agriculture.
For some manufacturers, services provide a large second source of revenues and
contribute significantly to company growth and job creation. For all manufacturers,
services are essential to their success. For example, while manufacturing is at the core of
the automobile industry, it is clear that this manufa cturing centre must be surrounded by
highly developed service functions if the industry is to be successful. These include: an
extensive dealership network for distribution; highly developed financial services to
finance dealer inventory and sales; readily available maintenance and repair services to
protect the consumer's investment.

Moreover, the manufacturing process and the business of running manufacturing

industries are infused with services functions from beginning to end: research and
development, inventory management and control, transport, marketing, advertising,
insurance, and "backroom" functions, such as accounting and legal services. Similar
observations can be made of agriculture, where success also depends upon research and
development, finance, insurance, storage, transport, distribution, marketing, and a host
of technical services. The point is that modern and efficient services play an essential
role in improving the performance of other sectors and of the economy as a whole.

4.1.4

Encourage foreign direct investment

Liberalization of trade in services is an important means to encourage the continued

rapid expansion of foreign direct investment, to integrate national economies more
effectively and to reduce income and other disparities among countries. Because
services production and consumption normally are proximate and simultaneous, services
trade usually entails a significant transfer of technology and know-how from country to
country. This is critical, especially for developing and emerging markets, which can
acquire state-of-the-art skills relatively quickly and inexpensively through trade - at least
in comparison with the time and expense that would be required to develop them de
novo.
These state-of-the-art skills are essential, in turn, to building and maintaining the
international competitiveness of other sectors. But services trade is not one-way, only
from developed to developing nations. In fact, industrialized countries realize important
economic welfare gains from the import of services such as data processing, software

design and implementation from developing countries. Developing economies have

significant hard currency earnings from exporting tourism and labour, as well. And there
is substantial scope for expanding services flows in both directions.

4.2 Disadvantages
Despite the benefits of trade in services, it can also bring some disadvantages to
the business communities and citizens of the respective countries. The
disadvantages of trade in services are listed as per follows:

4.2.1

Over-specialisation Leads Future Unemployment

Over-specialisation is when the world demand fall or when services for domestic
consumption can be accessed or obtained more cheaply and better abroad. With the
trade in services between countries, the workers will be at risk of losing their jobs. Jobs
lost through such changes cause severe structural unemployment. According to Table 1:
Malaysia Trade in Services, by Major Categories, it shows that Malaysia with worth of
US$45, 270.7 million of importing services from major categories which are
manufacturing services on physical inputs owned by others, maintenance and repair
services, transport, travel, construction, insurance and pension services, financial
services, and others.Local service providers, who may supply a unique service tailored
to meet the needs of the domestic market, may suffer because the services imported
from outside of the country may destroy their market. Over time, the diversity of output
in an economy may diminish as local service providers leave the market.
4.2.2

Intense Competition

Certain business community or industries involved in trading of services do not get a

chance to grow because they face competition from more established foreign firms. The
new infant industries will find it difficult to establish themselves as the established
foreign has owned major market share in those particular countries. Hence, the local

firms may not be able to penetrate well. For example in Malaysia, we have a lot of
international insurance providers for instances American International AssuranceBhd
(AIA), ING Insurance Berhad,

Zurich Insurance Malaysia Berhad, Allianz Life

Insurance Malaysia Berhad, Great Eastern Life Assurance (Malaysia) Berhad, and
others. Meanwhile, local insurance firms such as Etiqa Insurance Berhad, AmMetLife
Insurance Berhad, CIMB Aviva Assurance Berhad are couple of those that are
competing with the international insurance providers.
4.2.3 Demand Cutback
Meanwhile, for business community during the difficult economic times, the consumers
usually cut back on services as they commonly see it as extras. In order for them to
survive and prosper they will depend and focus more on the specified products instead
of committing to any services. For example, a person who has been paying for oil
changes in auto care outlets might decide to do his own oil changes to save money. An
individual who has been hiring a domestic helper may decide that she can to the job
herself and save money. The business community should evaluate their service to see
how they can make it more valuable to their customers so they see their service as a
necessity.

4.2.4 Mistrust
Potential clients or users are more likely to develop mistrust towards service providers
compared to physical products producers. Trading a service meaning the firms are
selling the skills, knowledge, and the most important is they are selling themselves to
the clients directly. In most clich cases, if a consumer bought a product that he is not

satisfied it, he can simply return it to the seller or get a refund. Meanwhile, in the case of
services, the damage is already done as most of the services are bound with contracts
making it harder to get money back for a service poorly performed. For example bad
haircut, poorly tailored dress, or a below par buffet dishes, that cannot be easily undone.
This occurrence will give a bad image to the firms and will require extensive effort from
the firms to rebuild their tarnished image.

4.2.5 Time
Involving in trade of services, it require a massive of time to execute and time to trade.
Trading a service is not just set it on a shelf in a convenience store and wait for an
impulse buyer to make a purchase but the service provider or trader have to spend a lot
of time convincing another parties that they are in need for the services. Thus for the
business communities especially those who were involved in services businesses have to
endure extensive research and data in order to make sure the services are on the right
track and demanded by the consumers in that countries.

4.2.6 Increment of Immigrants

The domestic firms may be faced with the decision to hire a local immigrant worker
from a particular country or outsourcing that work to foreign workers in that country
and import the finished product. For the international companies, they opted for foreign
workers in order for them to reduce the cost of production and increase their

productivity. In both situations, there will be the process of in and out of foreign citizens
to other foreign countries due to the booming of trade in services. This will indirectly
increase the population of foreigners in the country with or without proper documents as
well as the unstructured residential area made by those irresponsible foreign workers.

PART 5: HUMAN GOVERNANCE

The Human Governance (HG) concept is definitely applicable in the marketing concepts
discussed in this paper. HG is about being human and is manifested by a set of
behaviours that affirms Oneness, Wholeness and Excellence. It realised human spirits
and internal conscience the main thing is to acknowledge that everyone is a human
being and shall be treated as such within their personal and professional capacities (The
Star, 2015).

Oneness is defined as recognising oneself spiritually and / or be peace of oneself. The

integrity is coming from oneness whereby doing the right thing even when no one is
looking. Business activities will still be in good faith though there is an intense
competition from rivals. Trading services portrayed the oneness as the provider with a
full effort taking the time in analysing each opportunities carefully before acting and
once committed, it will develops the best services possible and executes it with the
determination to make it a success and ease the customers that use their services. With
this, business community involved with trading services will be able to present as a
more trustworthy and honest nationwide. For example, Malaysia itself has accumulated
around US$45, 270.7 million imports in trade of services on manufacturing services on
physical inputs owned by others when others are more look up on the physical inputs
booming rather than the services itself. Community that involved in trade of services
will need encourage all of its employees (especially the management / trustees) in order
to bring back the spirituality and faith to the workplace and regards the employees as the
trustees of resources instead of just human resources.

Wholeness (or holism) can be viewed as recognising the interconnectedness between all
personnel and work elements. In trade of services, whereby we cannot see the physical
inputs rather than the skills, knowledge, and the sellers themselves, all of these elements
have to be interconnected to make sure that the services can be seen and reliable enough
to be use by the future customers that wanted to have ease in their daily life. If the
government work along with the firm that provide those remarkable services, thee
citizens will be more clear on the execution of the services made that respective firms.
However, the concept of wholeness is truly employ by service trader only if they always
delivering the value of their services to customers and improve societys well-being
through services innovation and empowerment. The company has to use new
technologies to engage with their consumers, stakeholders and employees through the
use of social media. To encounter the privacy and data protection of consumers issues,
the company itself has to adhere to the global social media policy to prevent any
violations of consumers personal data and privacy.

Excellence is manifested by the continuous effort for improvements. In trade of

services, the firms actually have to make more improvement in their current services.
The clients are different with their own biological tastes and preferences. The company
or firms have to keep up with the trends as the clients moved away from the present. To
be the one that are leading the market, there always come with challenges. With the
continuous effort make by both sides government and companies, a whole new look and
beyond imagination of services can be built for the ease of the citizens present and
future.

The above HG concept may be introduced for Malaysia as one of the progressive
country that involved trade of services via service providers companies (or any other
similar companies) in order to become a more competitive but yet ethical with logical
reasoning worldwide. This may be part of the effort to bring back notion of being
human, not to view a person as resource or just a position in the organisation structure.
It is believed that only with the actualisation of HG, only could the actualisation of good
corporate governance be achieved

10 REFERENCES
a Rose. (1999). Powers of Freedom: Reframing Political Thought. 1st Edition, p. 36.
b Salleh, Arfah & Ahmad, Aziuddin (2008),Human Governance A Paradigm Shift
in Governing Corporations, MPH Publishing.
c

Sauve, P & Stern, R. (2000). GATS 2000: New Directions In Services Trade
Liberalisation. 1st Edition.

The Star / Putra Business School (21st July 2015), Post Graduate Humans
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