Geopolitics Quarterly

Geopolitics Quarterly

Free Trade as a Force of Political Stability: The Case of Malaysia

Document Type : Original Article

Authors
Ain Shafikah Mohd Ripin 1
Prajhessh Magendran 1
Syazliyana Syek Daud 1
Nurul Aisyah binti Rosli 1
Muhamad Helmi MD SAID 2
Asaad Ghali Hamzah 3
1 Faculty of Law, Universiti Kebangsaan Malaysia, Malaysia.
2 Faculty of Law, FUU, Universiti Kebangsaan Malaysia, Malaysia.
3 Al-Mustaqbal University, Iraq.
10.22034/igq.2024.475209.1939
Abstract
Free trade can influence political stability by fostering economic growth, reducing poverty, and increasing employment opportunities, leading to a more content and stable society, while also potentially reducing tensions by creating interdependencies with other countries. While free trade offers many benefits, free trade also brings monopolization and corporate Power. It can be seen in favor of large multinational corporations that have the resources to dominate markets. The objective of the article is to examine how Malaysia's free trade agreements work with Pakistan, New Zealand, India, and Australia that have influenced political stability. While free trade is often touted as a mechanism for economic growth and political cooperation, its impact on political stability remains complex. So, this article will analyze whether these trade agreements have effectively contributed to Malaysia's political stability, considering both positive outcomes and potential risks. The methodology employs a mixed-method approach, including a qualitative, doctrinal and socio-legal approach. The results shows that Malaysia's free trade agreements with Pakistan, New Zealand, India, and Australia have impacted economic growth, more foreign investment, and stronger diplomatic relations, created a more stable political environment and making Malaysia more resilient to economic shocks. The article also suggests for strengthening the bilateral agreement between all countries for boosting economic market.
Keywords
Free Trade Agreement (FTA)
Political stability
Foreign investment
Economic Growth
International relations

Subjects

  1. Abuseridze, G. (2020). Political Stability and Trade Agreements. Bulletin of the Georgian National Academy of Sciences, 14(4), 139-145.
  2. Adamu Aliyu, M; Adamu Aliyu, N. (2021). Divergent Opinions Regarding Appointment of Academics to Judicial Offices in Nigeria: A Socio-Legal Approach. Jurnal Undang-Undang Dan Masyarakat, 29, 69–74. https://doi.org/10.17576/juum-2021-29-07
  3. Ades, A.F; Glaeser, E. L (1999). ‘Evidence on Growth, Increasing Returns and the Extent of the Market.’ Quarterly Journal of Economics, 114, 3, 1025–1045.
  4. Adil Kashef Al-Ghetaa, A; Bow Pei, S; Jia Hui, C. (2023). A Jurisprudential Perspective of Self-Defence. Geopolitics Quarterly, 19(Special Issue), 59-78.
  5. Althabhawi, N.M; Wei Zhe, C; Zainal Abidin, N.S.B; Al Imari, M.H.O. (2023). Personal Media Restrictions on Freedom of Speech: A Social Contract Theory Behind It. Geopolitics Quarterly, 19(Special Issue), 119-144.
  6. Aman, Z. A. 2020. Malaysia, Pakistan to Enhance Trade, Investment. https://www.nst.com.my/business/2020/12/650274/malaysia-pakistan-enhance-trade-investment.
  7. Amir, S.S; Tariq, R. (2020). Second review of the Malaysia — Pakistan Closer Economic Partnership Agreement (MPCEPA). The Pakistan Business Council.
  8. Angrist, J.D; Pischke, J.S (2015). Mastering ‘Metrics: The Path from Cause to Effect. Princeton: Princeton University Press.
  9. ASEAN Economic Community Blueprint 2025 – ASEAN Data Science Explorer. (2015). Retrieved from aseandse.org website: https:// aseandse.org/ asean-economic-community-blueprint-2025.
  10. Australia’s Southeast Asia Economic Strategy: 4 potential growth sectors with Malaysia. (2023). Retrieved June 1, 2024, from MIDA | Malaysian Investment Development Authority website: https://www.mida.gov.my/mida-news /australias-southeast-asia-economic-strategy-4-potential-growth-sectors-with-malaysia/#:~: text=Australiapercentage20ispercentage20 Malaysia.
  11. Azmi, R; Azmy, A.S; Mohd Zahir, M.Z; Al-Dulaimi, A.H.A. (2023). Veto Power: A Legal Debate in the United Nations Security Council. Geopolitics Quarterly, 19(Special Issue), 37-58.
  12. Badinger, H. (2007). ‘Has the EU’s Single Market Programme Fostered Competition? Testing for a Decrease in Mark-Up Ratios in EU Industries.’ Oxford Bulletin of Economics and Statistics 69 (4): 497–519.
  13. Baldwin, R; Freund, C. (2011). Preferential trade agreements and multilateral liberalization. In Preferential Trade Agreement Policies for Development: A Handbook, edited by J.-P. Chauffour & J.-C. Maur, 121–141. Washington, DC: World Bank.
  14. (2023). PM Anwar Receives a Call from Pakistan PM. https://www. pmo.gov.my/2023/01/pm-anwar-receives-call-from-pakistan-pm/.
  15. Bhagwati, J. (1995). US Trade Policy: The Infatuation with FT As. Retrieved from https://core.ac.uk/download/pdf/161436448.pdf.
  16. Briefing, I. (2024). India-Malaysia Economic Ties: Challenges and Prospects. Retrieved from India Briefing News website: https://www.india-briefing. com/news/india-malaysia-economic-partnership-challenges-prospects-and-strategic-collaborations-30687.html/.
  17. Bussmann, M. (2010). Foreign direct investment and militarized international conflict. Journal of Peace Research, 47(2), 143–153. https://doi.org/10. 1177/0022343309354143.
  18. Choong, P.W; Khalifah, N.A; Md Noor, A.H.S; Ismail, M.A. (2018). Free Trade Agreements and Production Sharing in Malaysian Manufacturing Industries. Jurnal Ekonomi Malaysia, 52(3), p. 91 - 106. https://www. ukm. my/jem/article/ free-trade-agreements-and-production-sharing-in-Malaysian-manufacturing-industries/.
  19. Dazulhisham, R.S.S.B; Jelani, N.R.B; Kamaruddin, H; Mohammed Al -Karaawi, N.J. (2023). Balancing Free Market Value and Social Justice in Employment Contract. Geopolitics Quarterly, 19(Special Issue), 100-118.
  20. Eaton, J; Kortum, S; Kramarz, F (2004). ‘Dissecting Trade: Firms, Industries, and Export Destinations.’ American Economic Review, 94, 2, 150–154.
  21. Esmaeili Ardakani, A. (2024). A Critical Geopolitical Analysis of the Representation of Africa in International Relations: Andrew Linklater’s Approach. Geopolitics Quarterly, 20(2), 231-254. Doi: 10.22034/ igq.2024. 183277.
  22. Golkarian, G; Işıksal, H. (2024). Is Iran's Approach to Missile Technology a Deterrent Mechanism or a Severe Threat to Regional and Supra-Regional Security?. Geopolitics Quarterly, 20(2), 1-19. Doi: 10.22034/igq. 2024. 411389.1794
  23. Hasbullah, A. (2023). MITI FTA. Retrieved from fta.miti.gov.my website: https://fta.miti.gov.my/index.php/pages/view/4.
  24. Hussain, H. (2019). Looking East: The Evolution of Pakistan-Malaysia Economic Ties. https://thediplomat.com/2019/03/looking-east-the-evolution-of-pakistan-malaysia-economic-ties/.
  25. Hussain, H. (2020). No Doubts in Pakistan-Malaysia Bilateral Relations. https://news.cgtn.com/news/2020-02-07/No-doubts-in-Pakistan-Malaysia-bilateral-relations-NTerJur1QY/index.html.
  26. Jackson J. (1969) World trade and the law of GATT. Bobbs-Merrill, p.30.
  27. Koolaee, E., Bijan, A; Ejazi, E. (2023). The Role of Iran and Russia as Regional Powers in the Middle East (2011-2020). Geopolitics Quarterly, 19(72), 151-172. Doi: 10.22034/igq.2023.148171.
  28. (2023). H.E. Amna Baloch - Moving Things Forward. Retrieved June 25, 2024, from Voice of ASIA website: https://voiceofasean.com/people/ h-e-amna-baloch-moving-things-forward/.
  29. Lee, S.L, Zaidi Hassim, J; Yaakob, H (2023). Civil Recourse against Food Traders Causing Food Poisoning in Malaysia – Proposals for Reforms, (2023) 33 JUUM 61 – 73, https://ejournal.ukm.my/juum/issue/view/1634, https://doi .org./10.17576/juum-2023-33-06.
  30. Magee, C.S.P; Massoud, T.G. (2010). Openness and internal conflict. Journal of Peace Research, 48(1), 59–72. https://doi.org/10.1177/0022343310388834.
  31. Malaysia-Australia Free Trade Agreement (2012). Adopted March 2012. Entered into force on January 2013.
  32. Malaysia-Australia Free Trade Agreement. (2021). Retrieved from Australian Government Department of Foreign Affairs and Trade website: https://www. dfat.gov.au/trade/agreements/in-force/mafta/Pages/malaysia-australia-fta#:~: text=The%20Malaysia%2DAustralia%20Free%20Trade%20 Agreement%20 (MAFTA)%20is%20a.
  33. Malaysia-India Comprehensive Economic Cooperation Agreement (2011). Adopted February 2011. Entered into force July 2011.
  34. Malaysia-Pakistan Closer Economic Partnership Agreement. (2007). Adopted November 8, 2007. Entered into force January 1, 2008.
  35. Menon, J. (2007). Bilateral trade agreements. Asian-Pacific Economic Literature 21(2): 29–47.
  36. Ministry of Investment, Trade and Industry. (2015). Retrieved June 1, 2024, from www.miti.gov.my website: https://www.miti.gov.my/index.php/ pages/ view/1202.
  37. MITI FTA. (2024). Retrieved from fta.miti.gov.my website: https://fta.miti.gov.my/index.php/pages/view/malaysia-india?mid=44.
  38. Mohd Zin, N; Md Hashim, N; Hak, N.A; Che Soh, R; Ibrahim, K; Md Said, M.H. (2015). A baseline study of the enforcement of nafkah orders in the selangor syariah court. Pertanika Journal of Social Sciences and Humanities, 23(SpecialIssue11), 327-336.
  39. Musni, S. N. B., Sulim, S. N. B., Md. Said, M. H., & Abdel Rahim Ali, F. (2023). Secularism: Freedom of Religion or Freedom from Religion? Geopolitics Quarterly, 19(Special Issue), 145-166.
  40. Nasrul, M.A.B.D; Said, M.H.M; Hak, N.A; Salim, W.N.M. (2019). Family disputes in administration of estates: Analysis on mediation as effective dispute resolution mechanism in Malaysia. Malaysian Journal of Consumer and Family Economics, 23(Special Issue 1), 15-32.
  41. National Interest Analysis [2012] ATNIA 1 (2013).
  42. Okara, A. (2022). Does Foreign Direct Investment Promote Political Stability? Evidence from Developing Economie. Retrieved from https://hal.science/hal-03617085.
  43. Olzak, S. (2010). Does Globalization Breed Ethnic Discontent? Journal of Conflict Resolution, 55(1), 3–32. https://doi.org/10.1177/0022002710383666.
  44. Parliament of Australia. (2012). Chapter 3 the Malaysia-Australia Free Trade Agreement: the issues. Retrieved from www.aph.gov.au website: https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Completed_Inquiries/jsct/14august2012/report/chapter3.
  45. Sorens, J; Ruger, W. (2014). Globalisation and Intrastate Conflict: An Empirical Analysis. Civil Wars, 16(4), 381–401. https://doi.org/1080/ 13698249.2014.980529.
  46. Tektona, R.I; Rachmawati, A.R (2020). The Arrangements of Online Dispute Resolution as an Alternative Resolution of the Electronic Commerce Transactions in Indonesia, (2020) 27 JUUM 76 - 82 https://doi.org./17576/juum-2020-27-08.
  47. The New Zealand - Malaysia Free Trade Agreement. (2009). Adopted October 2009. Entered into force August 2010.
  48. The Star. (2024). India’s External Affairs Minister Jaishankar to visit Malaysia, Singapore and Philippines. Retrieved from the Star website: https: //www.thestar.com.my/aseanplus/aseanplus-news/2024/03/21/india039s-exter nal-affairs-minister-jaishankar-to-visit-malaysia-singapore-and-Philipp Ines.
  49. Van den Bossche, P. (2012). The law and policy of the World Trade Organization, 2nd edition: 667. Cambridge University Press.
Geopolitics Quarterly
Volume 20, Special Issue
Autumn 2024
Pages 61-86

  • Receive Date 02 September 2024
  • Revise Date 18 October 2024
  • Accept Date 02 December 2024