Asean Free Trade Area (AFTA): The Impact on the Automotive, Palm Oil and Banking Industries in Malaysia

The primary objective of this work is to determine the possible effects of ASEAN Free Trade Area (AFTA) on selected industries in Malaysia i.e. the automotive, palm oil and banking Industries. The descriptive statistic is used to analyze the insights of the industry’s background. The reliability test is used to measure the reliability of scale in part B, C, and D of the questionnaire. Next, the Chi-Square of Independence is used to analyze the data obtained from the sample i.e to examine the perceived impact of AFTA. The findings show that the impact of AFTA strongly depends on the individual industries. It is statistically evident that AFTA could bring direct negative impact on the automotive industry and positive impact on the palm oil and banking Industries in Malaysia. In general, AFTA brings positive impact on all these selected industries.