Trade, investment and reform: Challenges for malaysia

The purpose of this paper is to argue that malaysia needs to reform some institutional aspects of the economy that impact on its trade policy. this is an important exercise because malaysia is a very open,trade-dependent economy. the manner in which the malaysian economy was impacted by the global financial and economic crisis of 2008 attests to the fact that malaysia should be watchful of its trade policy to remain favourable to foreign investors. since it depends on the developed economies for foreign direct investment there is an urgent need to introduce institutional reform. accordingly,it is now incumbent on malaysia to introduce competition policy; to reform and liberalise its government procurement policy; and,generally,to relax those policies that are perceived as being protectionist.