A Preliminary Investigation on Trade Negotiation Competency in Malaysia: Challenges and Recommendations

Abstract

Malaysia’s trade policies emphasize the negotiation of Free Trade Agreements (FTAs), creating a critical need for competent trade negotiators to secure trade deals. However, despite the well-documented economic effects of FTAs, little attention has been given to competency governance. This study examined the challenges affecting TNC in Malaysia’s public sector and the relevant recommendations. By conducting elite interviews with five key government officials who are central to the TNC agenda at the national level, this study obtained high-level institutional views from stakeholders directly involved in TNC. A thematic analysis using NVivo found three issues affecting TNC in Malaysia: (1) institutional fragmentation that has weakened the strategic alignment for the trade negotiation agenda across the government agencies; (2) weak talent retention approach that has caused the loss of trade negotiators’ institutional knowledge; and (3) competency gaps that affect trade negotiators’ capacity. The study suggests the instigation of a governance framework that can realign TNC strategies across government agencies, the establishment of a talent retention initiative for trade negotiation as a specialized competency, and the creation of a structured competency development programme for trade negotiators. The study fills the literature gaps on TNC governance in developing countries and provides policy guidance for strengthening the country’s trade negotiation capacity.