International Policies and Malaysian Trade: An Analysis

This essay critically examines the impact of international policies on Malaysian trade. It delves into the relationship between Multinational Corporations (MNCs) and Malaysia, highlighting how domestic policies influence international marketing activities. The essay analyzes Malaysia's trade policies, aligning them with industrial and investment strategies, and explores the potential benefits of agreements like the Comprehensive and Progressive Transpacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). It discusses key issues, including concerns over CPTPP ratification, the complementary roles of TPPA and RCEP, and the impact of Free Trade Agreements (FTAs) on Malaysian bilateral trade. The essay considers factors such as population, GDP, inflation, and trade barriers, offering insights into how these elements affect Malaysia's export performance and overall trade openness.

Running head: International policies and its impact of Malaysian trade policies.
International policies and its impact of Malaysian trade policies.
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International policies and its impact of Malaysian trade policies.
Introduction
The relationship between the Multinational Corporations and the home country share
an interactive and dynamic relationship. The policies and the strategies of the MNCs are
affected by the localised socio-cultural context. The marketing strategies remains same
overall however, the international marketing strategies differ from place to place. Marketing
concerns like input cost, price, advertising and distribution remains dramatically different for
various places with the other elements like control of mangers both at home and abroad. The
success of the international marketing depend on its ability to adapt, coordinate and manage
both the demands and supply of home and the host country effectively. Theses policies or
strategies are very important because they have the potential of accelerating the social
dividend. Since market or marketing activities are socially embedded, they affect the lives of
the people in a holistic fashion thus; it becomes very essential for the international companies
to strategies their marketing plan. In doing so, the home country needs to be studied
systematically while acknowledging to the facts of preserving the local specific context. This
essay is going to show how the domestic policies of the Malaysian government affect the
international marketing activities.
Critical Analysis
The trade policies of Malaysia are aligned with its industrial and investment policies.
The industrial policies are driven by the need to expand the supply of both goods and
services, whereas the trade policies aimed to enhance the trade facilitation, reduction of the
regulatory burden and plan strategies for the supportive and innovative initiatives. According
to the trade policies and their respective strategies, Malaysia is seen to be a business friendly
region both for the foreign and domestic marketing relations. The Comprehensive and
Progressive Transpacific Partnership (CPTPP) has the potential to benefit the Malaysian
government by giving it access to the interaction with other global trade developments.

International policies and its impact of Malaysian trade policies.
CPTPP is an revised version of the Trans-Pacific Partnership following the withdrawal of
United states of America. According to this pact, 11 economies belonging from the sides
pacific region have signed this treaty for international trade and business corporation.
However only seven nations have agreed to the sign the deal. Malaysian government is facing
a vocal lobby against the CPTPP thus Malaysian government is holding its take on this trade
pact. Another pact, Regional Comprehensive Economic Partnership (RCEP), was launched
during the 21st ASEAN Summit in Phnom Penh, Cambodia in November 2012. This pact
takes forth an initiative to economically integrate their business activities and prosper
judiciously. Both the CPTPP and RCEP can serve as a building block towards a more open
and fair trade and investment regime in the Asia pacific region (Ching, 2016). According to
the Moody’s investor, the gains from the CPTPP will be more than RCEP and the details will
be discussed in following paragraph. Since the domestic market is quite small, it is important
for Malaysia to engage in the international market and explore on more opportunity trans-
borders. The Free Trade Agreements (FTA), where Malaysia has signed will enable the
country to enhance the competitive advantage and strengthen he investor’s confidence. This
kind of opportunity will assist in bringing the economic sustainability of the Malaysian
government.
Issue one
There has been growing discontent regarding the ratification of the CPTPP policy in
Malaysia, one of the vocal group has advocated strongly about the repercussion that this
policy can bring in. Mr. Mohd Effuan Aswadi Abdul Wahab, the coordinator for the Bantah
(TPPA/CPTPP) has posthumously claimed that if Malaysia ratifies the CPTPP agreement it
will be detrimental to the policy flexibility (Rohim and Ng 2019). Malaysia represents the
population with diverse socio-political economic structures. This state of multi-ethnic nature
of the society incorporates massive amount of inequalities between different ethnicity and

International policies and its impact of Malaysian trade policies.
other linguistic groups. Thus, policy ratification should be mindful about the consequences
ratification can bring in. Nevertheless, on the economic front if ratification is done carefully
owing to the nuances of the population diversity Malaysia is going to gain from this kind of
international pact.
Issue two
TPPA and RCEP shares a complimentary position in supporting the trade
liberalization and economic integration. Both these trade pacts refers to the largest FTAs in
which Malaysia is planning to participate (CNA 2019). However arriving at an consent on the
tariff plan needs to be studies, analysed and composed systematically so that all the parties
involved in it can gain judiciously. However there are certain discrepancies in the world
largest trading ad hoc because China supported RCEP and does not include US, whereas US-
led TPPA has yet to be participated by China (Jafari & Othman 2013). Thus it is very
important to understand the impact of Regional Comprehensive Economic Partnership
(RCEP) because it has the potential to bring enhance the participation in the international
market.
Issue three
The bilateral FTA had an positive but an insignificant impact on the Malaysian
bilateral trade but the regional FTA had a positive and an significant impact on the Malaysian
bilateral trade. Thus if the policies and the strategies of FTA bilateral polices are
implemented in keeping with geographical and the cultural nuances Malaysia can gain a huge
increases and in a way it can enhance the trade performance. Moreover, Malaysia will be able
to enjoy the benefits if it sign on the Regional Trade Agreement with the partner countries.
The population and GDP of the host country will be quiet beneficial in affecting the bilateral
trade practices in Malaysia. Furthermore, with the higher inflationary rate of the host
countries will likely to reduce the export from Malaysia. Since border and language was

International policies and its impact of Malaysian trade policies.
proved to be insignificant strategies implementation of the RCEP and the relatively high
inflation of china should a concern for Malaysia (Tan et la., 2017). Thus, the tariff plan
should be executed in such a level that can increased export from the indigenous and the
commercial market of Malaysia. The trade openness in Malaysia can perform well if the
barriers of trade decreases. However, the population level of Malaysia should also be revised
because with a high level of population the potential exports tend to decrease due to the
domestic market and domestic demands. In addition, it must be noted that inflation of
Malaysia is having insignificant impart on Malaysia export.

International policies and its impact of Malaysian trade policies.
References
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