Malaysia International Trade Policy since 1960 until 2000 by Alaudin and Anthony

Malaysia International Trade Policy since 1960 until 2000
by Alaudin and Anthony

The style and approaches in enunciating Malaysia international policy may differ in keeping with the personality of each past and present prime minister of Malaysia. A critical examination of Malaysia international policy since 1957 would shows its steady evolution in Malaysia political stewardship. Our international policy was markedly anti communist and pro western in posture with close link to the commonwealth. We also posture towards regional cooperation begin to take root with birth of ASA (1960). The Advertising Standards Authority (ASA) is the UK independent regulator of advertising across all media. The applied advertising code were written by the committees of Advertising Practice. Malaysia join MAPHILINDO in 1963. Country that join MAPHLINDO is Malaya, Philippines and Indonesia. The original plan was to unite state based on the concept of malay race.

In 1967 Malaysia join ASEAN. It is an alliance promoting economic and political cooperation by fostering dialogue among its ten members which is Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. In 1969, Malaysia became a member of Organization of Islamic Conference (OIC). Through that Malaysia began to identify itself as a Muslim nation. In 1971, ASEAN issued its neutralist and anti nuclear Zone of Peace, Freedom and Neutrality (ZOPFAN) Declaration. In the same year Malaysia joined the Non-Aligned Movement. Consistent with policy Malaysia established diplomatic relation with the people Republic of China in 1974. When Tun Dr. Mahathir became the fourth prime minister, Malaysia international policy stance began to take a much greater economic of orientation than ever before. In 1982, Tun Dr. Mahathir introduced The Look East Policy (LEP) during 5th Joint Annual Conference of MAJECA/JAMECA. The policy sought to learn from Japan and South Korea, regarded as superpowers of the east, the work ethics, practices and policies that help the two nation advance in various industry and economics sector at times much more than western counterparts. Tun also establish an East Asian Economic Group as an alternative to APEC. AFTA agreement was signed on 1992 in Singapore by ASEAN first six member Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam, Laos, Myanmar and Cambodia join later on. AFTA now comprises the ten countries.

The objectives of AFTA was to create single market and international production base, attract foreign direct investment and also to expand intra-ASEAN trade and investments. Effectively on 1st January 2010, Malaysia, Brunei, Indonesia, Philipines, Singapore and Thailand have formed a free trade area. The formation of free trade area between Malaysia and five other ASEAN member states have eliminated import duties on 99% of the products in the Inclusion List. In the ATIGA tariff schedule for 2015, Malaysia has eliminated its duties on 98.74% of its tariff lines and only left 73 tariff lines that have duties ranging from 5% to 20% mostly consists of tropical fruits, tobaccos and high sensitive products such as rice. With the reduction and elimination of the import duties, manufacturers from Malaysia and other members of ASEAN can afford to buy raw materials at a cheaper price from ASEAN countries. Thus, Malaysia are able to compete in their international trade with other countries.

Besides that, Malaysia has join several other trade agreements to enhance their trade policies. Starting with the General Agreement on Tariffs and Trade or also known as GATT. Malaysia have joined GATT as a member since the participation in the Uruguay Round. In 1995, GATT has transformed into the World Trade Organization (WTO) starting from 1st January. The World Trade Organization (WTO) promotes borderless trade through open market with less trade barriers. This is to improve the standard of living of the people in the member countries. Malaysia have received benefits by joining WTO as a member. The low trade barriers between members of WTO as well as the non-discriminatory treatment to the exports of goods and services have increased the market opportunity to Malaysia allowing Malaysia’s trade to grow thus contributing to the economic growth and development in Malaysia.

Malaysia also plays an important role in the Asia-Pacific Economic Cooperation (APEC) which was established in 1989. Among the goals of joining APEC is to enhance its trade further by having a close relationship between members of APEC. Besides that, it is also to encourage free trade with lower import tax. One of the reason Malaysia joined APEC was to push for the liberalization of trade between Malaysia and other members of APEC.