Impact of globalization to Malaysian firms.

Recent developments in the world economy show market integration to have strengthened international trade among nations. Market integration is an important element of globalization which is also predicted as an important phenomenon in business activities around the globe in the twenty first century. This paper discusses the impact of globalization to firms in the Malaysian economy. It highlights Malaysia’s industrial development in the light of globalization. The process of industrialization and globalization have had a positive impact on Malaysian firms through the development of manufacturing capability, strengthened linkages and by way of attracting increasingly more multinational firms to relocate part of their operations in the country. However, challenges remain in maintaining the nation’s competitiveness in the face of fierce competition from emerging markets not only in the region but also globally.