Since the global herbal market is huge, Malaysia should expand its export of herbal products to other countries especially those of the Pharmaceutical Inspection Co-operation Scheme (PICS) member countries such as European Union, Australia and Canada. Malaysia’s traditional markets for export have been Latin America, Asia Pacific, the Middle East and Africa. Since it has been accepted as a member of PISC, Malaysia can use this advantage to penetrate the herbal market of the .member countries.
Increased trade in medicinal plants and spices implies that a series of linkages need to be addressed by the industry. These linkages take the form of scale and enhancement product (technology, structural and direct effects). Scale effects in trading leads to expanded levels of economic activity which in turn provide new and more environment-friendly technology, control on increased scale of production and use of natural resources.4 The structural effects concern trade which cause changes to composition of an economy in terms of producing more of the goods it makes well or less of those it does not. Product effect usually includes further investment in newer, more efficient and cleaner technology. Direct effects are those environmental effects caused by the existing trade for example, increased transportation caused more pollution.
