International Marketing: Policies Impacting Global Business Operations

This essay examines the impact of government policies and regulations on international marketing activities, using the meat industry in Malaysia and its potential export to China as a case study. The introduction highlights the significance of the Malaysian meat industry and its reliance on imports, setting the stage for an analysis of relevant government policies. The literature review emphasizes the cultural context of meat consumption in Malaysia, the importance of food standards, and the role of government agencies like JAKIM. The essay then provides a critical analysis of the government policies in Malaysia, including the Food Regulation Act of 1985, the role of MIDA, and initiatives like the ETP and TN50. The analysis contrasts these policies with the more restrictive regulations in China, particularly regarding meat imports. The conclusion summarizes the challenges faced by Bangi Agro in exporting to China due to the intense regulatory framework and the absence of a bilateral agreement, ultimately concluding that market expansion in China is currently unfeasible. The essay also references the importance of halal certification and the role of government bodies in regulating the meat industry, providing a comprehensive overview of the factors influencing international marketing in this sector.

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Introduction
The meat industry of Malaysia is belonged to the food and agricultural industry which is
well established in the country with a worth of RM14.1 billion in 203. Apart from the general
livestock manufacturing, the industry is also popularise with the prospect of producing 76% of
poultry meat. As per the research of Wahab (2017) it can be argued that the development of
commodity beef like mutton was slower than poultry since 1960 to 2010. Therefore, the food
stock is primarily depended on the import of beef and mutton from various countries like
Australia, New Zealand, India and Thailand. Moreover, there are different government policies
regarding the production and manufacturing of beef and mutton production within the country in
the form of National Agricultural Policy and the National Agro Food Policy (export.gov, 2018).
Therefore, Bangi Agro, one of the leading Meat and beef manufacturing company in Malaysia is
willing to export beef and meat in the Chinese market. Based on this understanding, this essay
aims to focus on the government policies and establishment that leave a huge impact on the
import and manufacture of meat and beef in Malaysia. Moreover the essay also compares the
policies of Malaysia and China and figures out the scope to enter into the Chinese market
effectively.
Literature review
As a Muslim dominated country, the practice of eating beef and meat is within the culture
of the people of Malaysia (ap.fftc.agnet.org., 2015). The basic food standards and regulation puts
emphasis on the labelling of both the imported and domestically produced food items. It contains
a clear description of the product with a list of ingredients in descending order of proportion by
weight. For the meat or animal products it is essential to mention the animal. The labelling must

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be in English or Bahasa Malaysia (fao.org, 2019). Besides this, the Halal certification is also
required in Malaysia. The research of Ngumbang (2017) attributed that the Malaysian
government treats the policy in the agricultural sector as the third engine of development.
According to Sahar and Chamhuri (2016) the products originate from the slaughterhouse have
been inspected by the Malaysian veterinary and religious authorities. In this regard, the
Malaysian Islamic Development Department (JAKIM) is the governing body to monitor and
supervise the slaughter and processing of the meats and poultry (Ngumbang (2017)). Therefore,
the vision and motive of the government clearly reflect in the Third National Agricultural Policy
(NAP3) (Fsis.usda.gov, 2016). As a matter of fact, the Malaysian government is willing to
establish an international market of halal certified products within the country. Therefore, foreign
direct investment, R&D support for the multi-national companies are also developed inside the
country.
However, the Chinese government puts a restricted policy on the export of meat and beef.
The government tie up with the export country is necessary in case of doing business in China.
According to Leonidou et al. (2015) China is popular for its exports and limited products are
imported in the country. Therefore, it is highly restricted and important for the business
organisations to understand the importance of the export and the scope to earn profit highly.
Besides this, Heinrich and Pleines (2015) articulated that draconian government policies are also
left huge impact on the export of product in China. The magnanimity of the Chinese market with
world’s largest population makes China a lucrative space to do business but the intense
interference of the Chinese government de facto makes it uncomfortable for both important and
export.
Critical analysis of the government policies

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The Malaysia government strictly puts focus on the quality and labelling of the food
products that are manufactured domestically or imported from the international market. The
Food Regulation Act of 1985 is highly effective in this regard that created an effective
infrastructure for the food market of Malaysia. There are two specific sections of the Food
regulation Act that aim to deliver healthy food products that are free from infection and
processed properly. The regulation 11(7) encourages the use of modern biotechnology in course
of the manufacturing a processing food products (austrade.gov.au, 2019). The legislation clearly
mentions the definition of genetically modified Organisms (GMO) as food products that the
changed through modern biotechnology and any substance and material is intentionally used in
the processing of raw materials, foods or its ingredients. However, the Ministry of Health
(MOA) of the Malaysian government restricts the use of GMO less than 3% (Fsis.usda.gov,
2016). The standardisation is highly related to all the organisations both domestic and
international (Tang & Tan, 2014). As a matter of fact, international organisation that are
manufacturing and producing their meat and poultry products in the soil of Malaysia are also
under the coverage of this legal standardisation. For the meat and meat products the Department
of Veterinary Services (DVS) played a significant role with the responsibility to check the
hygiene of the animal and the suitable for consumption (fao.org., 2019). Under the Control of
Slaughter Rules 1975, all the meat and meat products have to be halal certified and inspected
before distributing in the market.
Besides this, for the international companies one of the major concern is associated with
the Malaysian Investment Development Authority (MIDA). It is the responsibility of MIDA to
promote the manufacturing and services sectors in Malaysia. In this regard, the Performance
Management and Delivery Unit (PEMANDU) was established in 2009 (export.gov., 2018). In

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association to this, the Malaysian government initiates the Government’s Economic
Transformation Program (ETP) and the National Transformation Program in order to facilitate
better infrastructure and policies for the foreign companies. The National Transformation 2050
plan (TN50) is highly resembled with the government policy making to render opportunity and
flexibility for the business organisations while doing their business and invest huge amount of
money for the development of the Malaysian economy. Mohamed et al. (2017) opined that the
legal system of Malaysia creates huge scope for the business organisations to visit and invest in
the country. There are some key features that create the Malaysian legislation an instrumental to
increase the coming of FDI. The government statistics recorded a 350% increase in the FDI
within the first nine months of 2018 (En.portal.santandertrade.com, 2019). As per the World
Bank report, the country ranks 24th position in terms of ease of doing business. It is within the
government policy to initiate a high cost competitiveness, attractive investment incentives and
developed infrastructure that lure the foreign business companies. Therefore, it is highly
advantageous and profitable enough for the foreign business organisations to invest in different
business sectors of Malaysia.
On the contrary, there are huge pressure in the Chinese market where most of the
exporters have to register in AQSIQ. The Chinese government has a number of restriction in
terms of banning beef offal and edible tallow (Ccilc.pt., 2017). Moreover, to some extent
restriction is also imposed on the poultry meat due to the fear of influenza. Accompanied with
the People’s government has an extensive legal procedure for the foreign companies that are
belonged to the food and meat production. inspection.gc.ca.(2019) mentioned that this extensive
regulatory framework of the Chinese government is good in terms of concerning the health
safety of the citizen but it poses great threat for the foreign business organisation to do business

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because the registration procurement is highly detailed and time strenuous. There are some
important policies that the Chinese government follows. The Food Safety Law was adopted in
2009 after a series of food scandals (english.aqsiq.gov.cn, 2019). Henceforth, new food
regulatory bodies are implemented with the purpose to procure a transparent business
environment in China and standardize food safety effectively.
Article 62-68 of the Food Safety Law states that all the meat products have to go through
Administrative Measures for Inspection and Quarantine of Inbound Meat products. This policy
was effective from 2011 with the protocol of bilateral agreements between two countries. As a
matter of fact, most of the government policies that Bangi Agro has to deal with in China and
Malaysia are similar in terms of the role of the different administrative bodies and an in-depth
focus on the health safety issues. However, there is a sharp distinction between Malaysia and
China. In china, the foreign business companies has to make an agreement with the government
directly in order to get the registration to do business. Moreover, the People’s government of
China puts more focus on the bilateral agreements which is not signed yet with the Malaysian
government on export of meat and beef.
Conclusion
From the above discussion, it can be derived that for Bangi Agro, there are some
challenges that the organisation will face in order to expand its business in China. The regulatory
framework of China is highly intense and the regular intervention of the government creates
huge obstacle for doing independent business. Moreover, absence of any agreement between
Malaysia and China on beef and Meat export it is impossible for Bangi Agro to enter into the

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Chinese market. Therefore, it can be concluded that Bangi Agro is not able to expand its market
in China for exporting meat and beef products.

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Reference
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