ECONOMIC INTEGRATION

BY # MUHAMMAD NUR ARIF, NUR AMIRUL DAN SHAHRUL BAKERY

ASEAN Free Trade Area gave a lot of advantages to Malaysia such as the elimination of tariff through AFTA could result in product price reductions. Secondly, it could contribute in encouraging higher market competition. Thirdly, it also could help ASEAN countries’ products gain access to regional market that incorporate many substantial advantages. Fourthly, producers will benefit from cheaper price of raw materials and affects consumers to get cheaper prices of goods. Fifthly, consumers will benefit from cheaper prices of goods given lower tariffs on a host of raw materials used by the region’s producers. Sixthly, ASEAN will be integrated into a single market which is an important point because the market will be stronger and larger with a high population. Lastly, the export and investment sectors will generate higher potential in the long term.