merged

Malaysia Digital Free Trade Zone: The Formulation of the Policy in Trading
System among Malaysian Trade Counterparts
Zuraida binti Zainal
Madzli bin Harun
Bachelor of Management (Maritime)
School of Maritime Business and Management
The Digital Free Trade Zone (DFTZ) is set up to facilitate seamless cross-border trade
as globally and consists of three main components that combine both physical and
virtual zones. The issue is no specific regulation in DFTZ to protect consumers and
traders as well and identify the potential implication of DFTZ to Malaysia’s economy.
The objective this paper are i) to define the DFTZ on the perspective of the business
group; ii) to formulate the regulation in the policy of quotas term in the DFTZ to control
the trading system in Malaysia; iii) to identify the potential implications of the DFTZ
on Malaysia’s economy. The methodology for this paper is the qualitative method
which is using Principle Agent Theory and National Regulatory Authority. The result
from this paper will effect on Malaysia business segmentations, limitation of import
products and beneficial to consumers and traders. Meanwhile, the contribution of this
policy is the safety regulation and to clarify about the safety transaction between thirdparty,
increase the efficiency of the online business and to harmonize the trading
among counterparts. This regulation is to protect all parties while doing transaction
and operation in order to ensure all customers’ data private and confidential and next
to boost Malaysia economy.
1613 | UMT UNDERGRADUATE RESEARCH DAY 2018