Mansur Shah of Malacca - Economic Policy

Economic Policy

Mansur Shah reduced taxes on trade items during his reign. This increased the interest of merchants to trade in the port of Malacca. The Preferential Tariff System was introduced. Merchants from the west of Malacca such as Arabia and India were imposed a 6% tax on trade items while merchants from around the Malay archipelago were imposed 3% taxes. However, merchants from China, Japan and Java were not taxed at all. Another economic advantage of Malacca was the easy access to labourers.

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