Malaysia is a trading nation. Malaysia has been recognized as one of the 25 most active trading nations in the world. The volume of trading (export and import) by Malaysia has reached more than RM1.5 trillion (US$0.357 trillion) level in 2015, and keeps increasing every year. Export of agricultural commodities such as palm oil, rubber and agro-food (fruits, vegetable, fisheries and livestock) contributes more than RM67.00 billion (US$15.95 billion) to Malaysia’s revenue in 2018. The value of agricultural trade by Malaysia is expected to increase due to higher demand by traditional and new markets in the world. Malaysia adopts the free trading regimes and opens its market to international business. At the same time, Malaysia sets policies and initiatives that could facilitate agricultural trade and protect the domestic industries. Among the initiatives that could facilitate international trade are the introduction of the national Policy for Development and implementation of regulation, modernization of Customs Department, the establishment of Malaysian Quarantine Inspection Services (MAQIS) and the implementation of export promotion programs. The openness of Malaysia in international trading will affect the domestic industry. Thus, the Malaysian government balances up between trade liberalization and the protection of its domestic industry. The positive balance of trade will enhance the economy of Malaysia and at the same time secure the domestic industries.
Keywords: International trade, export, import, agricultural products