HOW TO MAINTAIN EXPORT COMPETITIVENESS

To Remove the Restriction on Import and Reducing the Tariff Implementing different initiatives on industrialization and entrepreneurship seemed a successful method to super economics accomplishments. Asian Newly Industrialized Countrys (NICs) such as Korea and Taiwan was able to push their industries into competitive market by lifting import protection. In principle they has allowed by the economy to operate under strictly forced market. In addition, the intervention from the Government through tariff and import restrictions has worsened the situation and always results to inefficiency that lead to cost increments. Policy interventions only create productive capacity that fail to achieve genuine competitiveness in the market. Malaysia, even the initial move to liberalization economics has just begun, it still have to implement a difficult but practical undertaking to their industries by enforcing not only a long-term protection but also a higher tariff. Therefore, to enable Malaysia to enhancing economic competitiveness it is appropriate for the country which has been previously protected are exposed to international competition and further removed all restrictions, tariff increments and the existing import duty which is considered as a barrier.

Enhancing Productivity and Meet Product and Quality Improvements Manufacturing costs in Malaysia are increasing unexpectedly. These cost involved the cost of labor, raw materials and overhead which determine the costs. This increase if not aligned with the quality of production will cause the loss of competitiveness over Malaysia manufacturing exports. Therefore, it is the time for the Government to formulate a comprehensive program on industry performance which aimed for product achievement and quality improvement which in-turn focusing on quality control and technological upgrading. By this mean, the needs for industry related and technology related problem can be solved through technology transfer or allocating more science and technological infrastructure. The Government, on the same time needs to allocate more budget to Research & Development (R&D) institute through sponsorship to industries due to disability of the existing industry to develop their own R&D. Furthermore, involvement from private sector is highly desirable in assisting in the areas of R&D to carried-out a point of quality improvement of the product which will be the impetus for sustainable competitiveness.