Malaysia's India trade review must tackle structural barriers: Economists
KUALA LUMPUR: Malaysia’s review of its trade framework with India should focus on removing structural barriers and helping Malaysian companies gain greater access to its market, economists said.
KUALA LUMPUR: Malaysian economists are urging the country's review of its trade framework with India to remove structural barriers and expand market access for Malaysian firms, Business Times reports. The trade imbalance between Malaysia and India should not be the sole focus, as it can reflect differences in production structures, investment, and supply chains, according to Universiti Teknologi Mara senior lecturer Dr Mohamad Idham Md Razak.
Idham emphasized the review should identify why Malaysian companies may not fully capitalize on Indian market opportunities and address barriers limiting their participation. A more diverse export base, stronger business-to-business linkages, and integration into India's value chains are essential for a sustainable and balanced bilateral trade over the long term, Idham added.
The review of the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA), set to occur in the next three to six months, should also expand beyond goods to address non-tariff barriers, non-origin rules, and emerging sectors like digital trade, semiconductors, fintech, and renewable energy, as advised by Universiti Kuala Lumpur Business School economic analyst Dr Aimi Zulhazmi Abdul Rashid.
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