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Malaysia’s Export Market: Trends, Prospects and Challenges

Author

Listed:
  • Chandran V.G.R

    (MARA University of Technology, Malaysia)

  • Veera Pandiyan

    (MARA University of Technology,Malaysia)

  • Karunagaran Madhavan

    (MARA University of Technology,Malaysia)

Abstract

This study examines the trends, prospects and challenges of Malaysia’s export market growth between 1990-2001 using the dynamic shift-share method. Two prevalent regional issues in the recent years that have been the concern of the policy makers in Malaysia have been investigated. First, realizing that Malaysia is highly dependent on its export as the engine of growth, the study analyzed the growth of each export product and international market access of these products at 2-digit SITC level for four major categories of manufactured exports. The results indicated that overall, Malaysia has a strong net shift in the chemical (SITC 5) and machinery and transport equipments (SITC 7) especially in office machinery (SITC 75) and electrical (SITC 77) products in the major markets. Secondly, due to the growing competition in international trade, the study also assessed the degree of competition between Malaysia, China and ASEAN-4 countries exporting to the major markets. In general the results revealed that China and other ASEAN countries have an impact on the position of Malaysia as an exporter of manufactured products. It was concluded that China poses stiff challenges to Malaysia in the major markets such as EU, US and Japan. However, China also promises opportunities for Malaysia to export certain products to its own market.

Suggested Citation

  • Chandran V.G.R & Veera Pandiyan & Karunagaran Madhavan, 2004. "Malaysia’s Export Market: Trends, Prospects and Challenges," International Trade 0404002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpit:0404002
    Note: Type of Document - doc; pages: 17. 17 pages, postscript, prepared from UiTM - figures available from author
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    References listed on IDEAS

    as
    1. Rasiah, Rajah, 2002. "Systemic Coordination and Human Capital Development: Knowledge Flows in Malaysia's MNC-Driven Electronics Clusters," UNU-INTECH Discussion Paper Series 2002-07, United Nations University - INTECH.
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    More about this item

    Keywords

    Trade; Competitiveness; Net Shift; and Export Structure;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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