Shifting export specialization and the competitiveness of the Malaysian manufacturing: Trends and analysis

This study provides an in-depth analysis of shifting export specialization at the Standard International Trade Classification (SITC) three-digit product category level and links this analysis to Malaysian export potential. The research uses the revealed comparative advantage framework to analyze the extent of export competition between Malaysia and other Association of Southeast Asian Nations (ASEAN) economies. It argues that the degree of competition among ASEAN countries will intensify with the implementation of the ASEAN Free Trade Area (AFTA) and the emergence of other low-cost producers in the region. It aims to explore how AFTA will in uence Malaysian manufacturing. In the presence of growing trade liberalization, competitive pressures, and the changing structure of world demand, this study calls for a reassessment of the factors that in uence Malaysia’s export competitiveness.