Globalization and liberalization form a new dimension in trading. To facing emulation in the global stage, each state in the world tries to improve its competitiveness especially in manufacturing and services sector. The lawful food industries are not quit of this phenomenon. Looking into the most manufacturing lawful food industries in Malaysia consist of small and medium industries, this paper aim to analyse Malaysia lawful food of small and medium industrial competitiveness in face of AFTA with focusing to financial, technological and human resource aspect.