Fundamental of Economic Liberalization

Economic liberalization can be defined as the legal right to involved in economic activity either at neither domestic nor foreign country to guarantee public interests at large investment which need a freedom conditional on institutional and policy constraints (Ognivtsev, 2005). Woodward (1992) stated that economic liberalization can be described as government policies that help to develop free trade and deregulation. Those government policies are including to privatization of public services and the reduction or elimination of subsidies, price controls and rationing systems.

One of the issues of economic liberalization is
the impact of liberalization in the services sector. According to Ministry of International Trade and Industry (2008), since Malaysia's is a part of a large organizations that support free trade such as AFAs, WTO and FTAs which effect the most services sector are not fully aware. The steps to be undertaken in enabling the sectors to self-regulate have to face competition. This will affect the unregulated sectors. Besides, liberalization in services sector also effecting the domestic regulation. Many of the regulations and acts governing professional services need to overcome competition in the international prospective. Moreover, services sector is governing ministry and agencies. Therefore, enhancing capacity to export and take advantage of opportunities abroad need the greater coordination of development in services sector.

Trade liberalization is the central part of mainstream policy advice. Most of developing countries and economies in transition have been aggressively picked up in the design of their development strategies. Whereas, the benefits of trade liberalization and its welfare effects towards developing countries and their societies is long term. However, the continuously consensus identified that some ramous such as free trade brings beneficial effects on social life and better standards of living. For example the reducing poverty that increased the government concern on open trade that can contribute substantially and directly to the process of development.

Ognivtsev, V. (2005), Economic liberalization as a driving force of globalization: experiences of countries in North and central Asia. United Nation Conference on Trade and Development. Moscow.

Woodward, D. (1992). Debt, Adjustment, and Poverty in Developing Countries, vol. 1. London, New York: Pinter Publishers in association with Save the Children; Distributed in the U.S. and Canada by St. Martin's Press

Ministry of International Trade and Industry (2008). Trade and transport facilitation: the Malaysia experience and milestones. Paper presented at UNESCEP Trade and Investment Division, Yangzhou, China.