TRADE REGULATIONS AND INDUSTRIAL POLICIES IN MALAYSIA

BY # LIM ZIAK ZE, MUHAMMAD ADIB, MOHAMMAD AKMAL AND GREGORY

In Malaysia Trade Barrier’s the Government of Malaysia (GOM) operates a system of import licensing for a number of items, including arms and explosives. For examples motor vehicles; heavy construction equipment; certain drugs and chemicals Malaysia also has an export licensing system, along with export duties in some instances, for specific commodity exports such as textiles, rubber, timber, and palm oil. The Government of Malaysia impose the normal trade relations (NTR) tariff to regulate the importation of goods in Malaysia in the rate 8.56%. The Malaysia import and export requirements and documentation includes Invoice, Packing list, Delivery letter, Leaflet, catalogue or other related documents, Insurance certificate, Bill of lading / airway bill, Letter of credit, Permit, licenses/ certificates, Proof of fare payment, declaration form, and complete custom forms. All imported consumer goods must identify the importing agent and must be label indicating the substance and its components. Companies may apply stickers that contain the nutritional information. All import on a limited range of products for protection of local industries or for security reasons. All the import and export goods need to follows the Harmonized Tariff System (HTS) for the classification of goods. The import and goods must follows the WTO’s “Standard Code” and the standard had been determined by SIRIM BHD. There are a few trade between Malaysia and others countries. For examples AFTA, FTA, and TPP.

The industrial policy of a country, sometimes denoted IP, is its official strategic effort to encourage the development and growth of part or all of the manufacturing sector as well as other sectors of the economy. There are major four types of industrial policy in Malaysia, each characterized by the different objectives, there are wealth redistribution industrial policy, export promotion industrial policy, import substitution industrial policy and response to globalization industrial policy. The wealth distribution industrial policy is the policy that aimed at ensuring a fair distribution of wealth amongst the different races in the country. Export promotion industrial policy is aimed at promoting the development of manufacturing industries serving foreign markets. Import substitution industrial policy is aimed and promoting the development of manufacturing industrial serving domestic markets for the examples government impose tariffs to the imported car to protect the local car company “PROTON”. Response to globalization industrial policy is aimed at coping with new competition from large foreign firms in the domestic (primarily services) markets. The main objective was to enhance the competiveness of locally owned financial institutions in anticipation of increased competition from foreign-owned financial institutions.