The economic systems is one of the branch of economics, the economics is studies about the institutions and the methods by the societies to determine the ownership, direction and allocation of the economic resources. Economic system is the mechanism that deals with the distribution, production and the consumption of services and goods in a particular society. There are three basic and general economic systems, which are free market economy, centrally planned economy and mixed economy. The mixed economy is when there is some level of the government policies and central planning and it also can allow the market to provide for the needs of the consumer. Malaysia is a mixed economy, our government allows that our market can do our own thing, but there also have a few of the policies in place to control over the certain thing. There is not every single product or industry need government to control, but some of the product should be under government control. For an example of one product that under Malaysia government control is gun. In Malaysia you cannot have a gun without the license. In Malaysia, the government has tight control over the gun. There are many reason why Malaysia government have this control, the reason are for the national security, our government wants to prevent shootings, robbery and gun violence minimize fear in our country.

There are many advantages of a mixed economy in different characteristics. About the resource allocation in mixed economic, the government will decides on the resource allocation about the commodities which are scarce. About the wealth ownership in mixed economy, there is a mixture of the government and the private ownership. For an example, some of the land are belongs to government and some of the land are belongs to private. About the solution of economic problems in mixed economic, the government will intervene about it, especially to implement development policies. About the economic efficiency in mixed economy, the economy efficiency will depends on the government and private sector efficiency. Next, about consumer freedom in mixed economy, while the consumers have some say, their voices are not strong. For an example, if the petrol rise 50 sen in one liter, the people will complain about the price of petro, the government maybe will deal with this case or maybe not. About the distribution of income in mixed economy, the incomes of workers in some of the sectors are managed by our government.