Degree of openness in trade giving a definition of level of one country and its economy having trade with another country. FDI (foreign direct investment), import, export, repatriation of funds abroad and lending are examples of trading elements.

Openness degree in trade can be measure by trade openness ratio. Trade openness ratio indicated the simple average of total trade (export and import of commodities and services) relative to GDP (Gross Domestic Product). Generally, the higher the trade openness ratio, the larger influence of trade on domestic trade.

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Malaysia economy having high degree of trade openness and financial openness. Financial openness can refer to the total of external assets and liabilities relative to GDP. In 2004, the trade volume has increased twice the size of economy. Moreover, the amount of external assets and liabilities also twice of the size of economy in 2004.

Figure above shown that Malaysia rates high among 28 emerging economies from Asia, Eastern Europe and Latin America. Originally, Malaysia is rating with 58 economies that make up the OECD (Organization for Economic Co-operation and Development) but the graph above only show out 28 emerging economies. Trade openness of Malaysia only lower than Hong Kong and Singapore which is well known of financial centre nature. Besides that, Malaysia also having high ranking in financial openness with more than median score, 2.03. Surprisingly, Malaysia having higher financial openness than United States and Japan with well developed economies. However, comparison in East Asia, Malaysia ranks lower than Singapore, Brunei and Hong Kong.