Malaysia is among the world's largest trading countries in the world and active participation by both Giant Organizations and Small & Medium Enterprises (SME) contributing to various sectors such as agriculture, manufacturing, electronic and information technology.

Speed and secure movement of goods, minimal documentation, minimal human intervention and predictability of customs processes are essential ingredients for the effectiveness of businesses that provides procurement, supply, distribution and marketing services on a global basis to the manufacturing and trading sector which implements the Just In Time inventory systems .The global trading system is vulnerable to terrorist exploitation that could severely damage and interrupt the supply chain and indirectly affect the entire global economy.

The Authorised Economic Operator or AEO is a concept introduced by the SAFE Framework of Standard referring to operators involved in the movement of goods along the international trade supply chain who have achieved the required security standards and are accredited by the member country. The AEO Scheme developed by Royal Malaysian Customs Department (RMCD) is based on a similar concept.

​The AEO concept encourages electronic transactions for better security management in the supply chain. For smooth and seamless flow of trade, economic operators are encouraged to implement high security features based on international standards in their day-to-day management in all aspects of their business activity, amongst others includes manufacturing activities, movement of raw materials and finished goods, storage and warehousing and also ensuring secure conveyances and handling of goods. Economic Operators with high compliance level and high security management are encouraged to apply for the AEO scheme from RMCD.

Licensed Manufacturing Warehouse (LMW) is an export-oriented company licensed under Section 65A of the Customs Act 1967 to carry out manufacturing activities including warehousing of raw materials and finished goods. Manufacturing activities under this license shall comply with the definition of manufacturing as stated under section 2 (1) of the Customs Act 1967.​
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Apart from being licensed to carry out manufacturing activities, LMW companies are also allowed to carry out value-added activities subject to compliance with the criteria and conditions imposed.​

A Free Trade Agreement (FTA) is a bilateral or multilateral agreement between countries or regions that aims to reduce or eliminate tariffs, trade barriers, and other restrictions on the exchange of goods and services. The primary goal of an FTA is to promote and facilitate international trade by creating a more open and competitive trading environment.

The Major Exporter Scheme (MES) is administered by the Inland Revenue Authority of Singapore (IRAS). This scheme is designed to alleviate the cash flow of companies that re-export a substantial amount of their imports.

Under normal rules, businesses have to pay the Goods and Services Tax (GST) of the goods imported to Singapore Customs, and subsequently obtain a refund from IRAS after the submission of their GST returns. This can hinder cash flow for businesses that export goods substantially as no GST is collected from the zero-rated supplies to off-set their initial cash outflow on their imports.

Companies approved under the MES can enjoy GST suspension for non-dutiable goods imported into Singapore, and on goods removed from a zero-GST warehouse.

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