Published on: Wednesday, May 10, 2023
By: FMT
PETALING JAYA: Malaysia has ranked 45th out of 88 countries in the International Trade Barrier Index (TBI) 2023, according to the Washington DC think tank Tholos Foundation in partnership with Malaysia’s Center for Market Education (CME).The index rates countries on a scale of 1 to 10 in four areas: tariffs, non-tariff barriers, services restrictions, and behind-the-border measures enabling trade. Lower scores indicate fewer trade barriers.The three countries that achieved the scores for lowest trade barriers are Singapore, New Zealand and Japan.Malaysia recorded an overall score of 3.88, a better score than the global and East Asia and Pacific averages of 3.95 and 4.0, respectively. Singapore recorded a score of 2.57.
“At a regional level, Malaysia comes in second after Singapore (though) the distance between the two countries is still very big,” said CME CEO Carmelo Ferlito.According to the index, Malaysia’s tariff score worsened in 2023 by 2% and it improved in facilitation by 2.5%.“Malaysia’s facilitation score at 4.5 is slightly worse than its regional group average, which is 4.42, but much better than the world average which is 5.48,” Ferlito said in a statement.He said the main barrier was logistics performance, which is 5.12, or 39% higher than the regional average.“When logistics performance remains weak, Malaysia is vulnerable to exploitation from international criminal syndicates taking advantage of the customs environment and also access to other large markets in the region.“This highly correlates with illicit trade. If Malaysia can improve its customs monitoring and trade enforcement to achieve an efficient port system, it will go a long way in curbing illegal trade,” he said.However, Ferlito said Malaysia had a comparative advantage in the production of electronic circuits and semiconductor chips. It was also a prominent player in the global supply chain for telecommunication equipment production.The 88 countries included in the 2023 TBI represent 76% of the world’s population and 96% of the global gross domestic product.
Reference: https://www.dailyexpress.com.my/news/212558/malaysia-ranks-45th-out-of-88-in-global-trade-barrier-index/