TRADE RESTRICTIONS IN MALAYSIA

BY NURUL HAZWAN, MUHAMMAD SYAFIQ DAN MOHD NAZRIN

Global world now has formed a market system that can improve a country's economic interdependence with other countries through the export and import of goods and services. For developing countries like Malaysia of course economy is exposed to foreign trade. Since Malaysia's foreign trade policy is carried out which is to expand, enhance and diversify exports, total foreign trade showed a large percentage in contributing to the country's GDP. Exports and imports play an important role for the marketing of goods and services produced in the country that can generate income in the country. Thus economic growth reflects the growth of the economy such as the increase in total output of industrial goods, infrastructure development, increase in production of capital goods, investment and so on in all countries. But free trade also has a bad effect on the economy of a country such as domestic firms will cut production consequently job opportunities will also be reduced due to foreign goods and services are easy to enter and exit of the country. Trade barriers can prevent the dumping of goods in the country and help protect local firms so that these firms can compete with other firms in the international market.