...Universiti Malaysia Sarawak 94300 Kota Samarahan Sarawak, Malaysia Modern Economics (SSF 1074) Lecturer’s Name : Dr. Wong Swee Kiong Faculty : Faculty Of Social Science Group Leader : Tan Chia Wee Group Member : Chong Man Hing : Niroshan A/L Somu : Malvindersingh A/L Sarbansingh : Azura Binti Mortadza : Faridah Bt. Jamil Question No : 4 Introduction Poverty is a serious issued not only in Malaysia but the world. Poverty can cause a child starving without food, without education opportunity and a bad living environment. So, to help this people, the important things are to increase their income and they will out of the poverty line. Economic growth is often seen as a means of poverty elimination. There are often have some debate whether poverty really could be eliminating by the strength of economic growth or not. Economic growth means quantitative change or expansion in a country’s economy. Economic growth is conventionally measured as the percentage increase in Gross Domestic Product (GDP) or Gross National Product (GNP) during one year (Soubbotina & Sheram, 2000). Background of Study The important things in this study were to find out whether economic growth can really eliminate the poverty generally in Malaysia or Sarawak specifically. Besides that, some issues or idea would be discuss that should be taken into consideration to ensure that economic growth would contribute to poverty elimination in Malaysia. The study also...
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...Proposal for Effects of Foreign Direct Investment towards Economic Growth, Exchange Rate, and Management Skills in Malaysia Research Method (MKT651) Noor Azyan Syawanie Bt Abdul Ghani Nur Athirah Binti Mohamadzin Nur Aishatul Adila Binti Adnan Effects of Foreign Direct Investment towards Economic Growth in Malaysia Introduction Malaysia is a nation that has been working itself up from the predominantly mining and agricultural based economy towards a more multi-sector economy. To achieve a faster economic growth, Malaysia has accepted an unparalleled opportunities for developing this country through globalization (Athukorala, 2003). An offer of combination of locational advantages by the government is a factor that foreign investors got tempted with (Farhad, Alberto, & Ali, 1999), to invest in Malaysia. Foreign investors has been encouraged by the Government to invests in Malaysia in which has the advantage of having a well-developed infrastructure, industrious workforce, as well as politically stable nation with a good legal system with the additional attractiveness of incentives for the foreign investors. In other words, foreign investors are attracted to invest in Malaysia because of the lower cost of production (Wong, 2005). FDI is a medium for acquiring skills, technology, organizational and managerial practices and access to market, besides being the source of finance and employment (Farhad, Alberto, & Ali, 1999). There are a lists of exports by...
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...resources. Sometimes it is to employ relatively cheap labour, and sometimes to produce goods near to markets. Moreover, foreign direct investment can be a significant driver of development in poor nations. According to Katerina, John and Athanasios (2004), it provides an inflow of foreign capital and funds, in addition to an increase in the transfer of skills, technology, and job opportunities. Furthermore, they said it would be difficult to generate this capital through domestic savings, and even if it were not, it would still be difficult to import the necessary technology from abroad, since the transfer of technology to firms with no previous experience of using it is difficult, risky, and expensive. If FDI has a positive impact on economic growth, then a host country should encourage FDI flows by offering tax incentives, infrastructure subsidies, import duty exemptions and other measures to...
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...the general level of economic activity, others are the result of a failure of the labour market in an economy to work optimally. Among the main types of unemployment, we can consider real wage unemployment, demand deficient unemployment, frictional unemployment, structural unemployment and hidden unemployment (Tutor2u, 2014). Table 2: Unemployment Data of Malaysia (2003 - 2012) Year | Unemployment rate | 2003 | 3.61 | 2004 | 3.54 | 2005 | 3.53 | 2006 | 3.33 | 2007 | 3.20 | 2008 | 3.30 | 2009 | 3.70 | 2010 | 3.40 | 2011 | 3.10 | 2012 | 3.10 | (Source: World Bank, 2014) Figure 2: Unemployment Data of Malaysia (2003 – 2012) (Source: World Bank, 2014) Based on the data table 2 shown above, Malaysia consists of 10 years fluctuation unemployment over the business cycle which starts from the year 2003 until year 2012. In the year 2003, the unemployment rate is 3.61% and contraction up to 3.54% and 3.53% in the year 2004 and 2005 respectively. In the year 2006, the unemployment rate has decrease to 3.33% and continues to drop until 3.2% in the year 2007. In the year 2008, the unemployment rate has slightly raised back to 3.3%. Malaysia encountered a serious unemployment which rises to 3.7% in the year 2009. The improvements begin in the year 2010 and the unemployment rate decrease until 3.4%. The condition continues to improve and unemployment rate has decrease up to 3.1% The average unemployment rate in Malaysia between 2003 and 2012...
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...cannot be under estimated. Therefore in today's economic climate, SMEs competitions are greater than ever may in local or global. The quality of goods and services are most important thing for SMEs to continue for grow and survive. We can see that, many SMEs in Malaysia lack the resources and knowledge to practice the quality management in their operations. The immediate goal for any small to medium-sized enterprise (SME) is to survive and maintain in the economic growth. According to the Prime Minister of Malaysia, Small Medium Enterprises (SMEs) has been one of the major engines of growth of Malaysia’s economy. With globalization and the accompanying liberalized trading environment, trade is expected to intensity, the more integrated global market also presents new opportunities and greater market access for Malaysia SMEs. It is acknowledge that small and medium enterprise play a great role in develop the world, unlike in developed where the benefits through high cost such as lost of scale production, inefficiency and appalling employment conditions. In this facet of a country’s economy, labor plays a great role which is for most SMEs are labor intensive in developing the world. 2.1 BACKGROUND OF THE STUDY Productivity is an important aspect of the construction industry that may be used as an index for measuring the efficiency of production. Consequently, it can also serve to measure the status of economic growth and related production from industrial and...
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...MASTER IN HEALTH ECONOMICS PROPOSED MASTER STUDIES MASTER IN ECONOMICS (HEALTHCARE) A Review of Healthcare Financing System in Developed Countries and Malaysia. By: Wong Lim Ping Finance Division Ministry of Health Putrajaya May 2011 MASTER IN HEALTH ECONOMICS TABLE OF CONTENT: 1. 2. 3. 4. 5. 6. 7. 8. Introduction Field of research Objective of study Literature review Scope of research Research Methodology Work Schedule Brief bibliography Wong Lim Ping 790904-13-5151 2 MASTER IN HEALTH ECONOMICS 1.0 INTRODUCTION As Malaysia strikes toward the high income economic through its various initiatives under Government Transformation Programme (GDP) and Economic Transformation Programme (ETP), healthcare has been identify as one of the trust under Mission Cluster Groups (MCG) in driving the nation‟s development path. Healthcare is a very important component of national development and that the creation of a healthy and productive workforce is essential to support and sustain the growth of the nation. In Malaysia, the Government under the Ministry of Health (MOH) is the provider, regulator and funder of the healthcare system, thus, raising the question of dependency of government subsidized healthcare services that serve the inefficiency use of government resources. In year 2009, the government expenditure on healthcare as a percentage of total Gross Domestic products (GDP) is 4.8% of which the 1.8% is from the government expenditure and 3% from...
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...country, so it has access to the shipping routes. * Inadequate infrastructures for logistics and supply chain.Economic * High potential for growth in economy. * Significant Difference in income levels between rich and poor. * Abundance of workforce. * Untapped market. | Relative Importance | With reference to Essential Business Requirement of COSTCO, we evaluated the significance of the four factors: * Culture *** | * Administrative **** | * Geographic **** | * Economic ** | {key: (****-Most significant) - (*- Least Significant)} | Business Challenges | * Culture * Nigeria has local informal retail shopping market. Significant difference in culture (high context). * Variety of people from different cultures, challenge to please each one. * Administrative * It has an inefficient property registration system. * Government has restrictive trade policies. * Geographic * Inadequate infrastructure. Difficult to reach out to rural customers. * Economic * Regional disparity affects target customers. * Presence of a rival (Shoprite) with a developed distribution network. | Business Opportunities | * Culture * Cultural Similarity with other African countries. If successful in Nigeria, company can expand further in Africa’s untapped market. * Live in large families so its beneficial for Costco wholesale model. * Administrative * Government is investing heavily on improving the infrastructure....
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...THE EFFECTS OF BANKING SECTOR AND STOCK MARKET DEVELOPMENT ON THE MALAYSIAN ECONOMIC GROWTH: AN EMPIRICAL INVESTIGATION BY HAFSAH AHMAD A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN ECONOMICS KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA MAY 2005 1 ABSTRACT This study investigates the long-run relationship between financial development (banking sector and stock market development) and economic growth in Malaysia. Six variables based on Malaysian quarterly data from 1978:1 to 2002:4 are employed, namely real GDP per capita, investment rate and ratios of credit, deposit, market capitalization, and value of shares traded to GDP. Two dynamic frameworks are adopted - Vector Auto regression (VAR) with error correction formulation for causality analyses and dynamic OLS (DOLS) procedure for estimation of growthfinance long-run relation. Causality analyses show that there is bi-directional causality between financial development (banking sector and stock market development) and economic growth. Analyses on growth-finance long-run relations indicate that banking sector development and stock market development individually have an independent positive effect on long-run economic growth. They enhance economic growth through both channels – the volume and efficiency of investment, with the latter being the main source of their independent effect. The study also shows that...
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...Business and Society, Vol. 11 No. 2, 2010, 35 - 50 THE EFFECTS OF MACROECONOMIC EVILS ON PROPERTY AND VIOLENT CRIMES IN MALAYSIA Chor Foon Tang♣ University of Malaya ABSTRACT The main objective of this study is to investigate the effects of macroeconomic evils – unemployment and inflation on different categories of crime rates – property and violent crimes in Malaysia via the multivariate Johansen-Juselius and Granger causality techniques. This study used annual data from 1970 to 2006. Johansen-Juselius cointegration tests revealed that property and violent crimes are cointegrated with unemployment and inflation. Furthermore, the empirical evidence exhibit that unemployment and inflation are the driving factors for crimes in Malaysia. Therefore, supply-side economy may be an ideal choice of policy to reduce crime rates in Malaysia. Keywords: Crime, Inflation, Unemployment, Malaysia 1. INTRODUCTION Recent deliberation on whether “Malaysia is a safe haven for travel and investment?” was frequently asked by the international tourists and foreign investors owing to the increasing trend of crime rates in Malaysia. From the visual inspection in Figure 1, both property and violent crime rates in Malaysia has increased quite significantly between 1970 and 2006. Over a decade from 1970 to 1980, both property and violent crime rates in Malaysia increased more than two folds. The property crime rate increased drastically from 25 thousand cases in 1970 to 66 thousand ...
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...Chapter 1: Introduction Introduction Over a decade, the consensus of economics growth remains the key focus for every nation notably in least development countries (LDC). Poverty eradication, income distribution and welfare enhancement often discussed widely by these nations. Economic growth is often seen as the 'holy grail' of economic policy. This simplistic emphasis on economic growth is often criticized because of the limitations of economic growth in improving living standards. Another question arise is does economic growth promote sustainable improvement on country development? Malaysia economy has been transformed from a protected low income supplier of raw materials to a middle income emerging multi-sector market economy in the past 20 years. This is driven by the export of manufacturing goods, particularly electronics and semiconductors, which constitute about 90% of exports. In this paper, the primary objective is to investigate what is the relationship between openness, inflation and FDI with economic growth. Export and import often plays pivotal role in determine the gross domestic product (GDP) in a nation. In particular, the research question to be outlined is how does openness, inflation and FDI affect economic growth. Multinational corporations (MNCs) are those organizations that own or controls productions of goods or services in one or more countries other than its home country. MNC plays major role in foreign aids recipient countries, it contribution to...
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...Introduction Malaysia, an upper-middle income country, is a federal constitutional monarchy which consists of 13 states and 3 federal territories located in Southeast Asia. Besides, Malaysia has a newly industrialised market economy which is relatively open state-oriented. It was ranked 3rd largest economy in Southeast Asia and 29th largest economy in the world by purchasing power parity in year 2007. In recent years, Malaysia has successfully transformed itself from being the world’s largest producer of raw material such as tin and rubber to being a diversified economy to reduce the dependence of exported goods. As a result, Malaysia GDP is now driven mainly by the services and manufacturing sectors (Malaysia Factbook 2014). 2.0 Malaysia Economic Growth Rate Table of Malaysia GDP Growth (Annual %) from year 2003-2012 Year | GDP Growth (Annual %) | 2003 | 6 | 2004 | 7 | 2005 | 5 | 2006 | 6 | 2007 | 6 | 2008 | 5 | 2009 | -2 | 2010 | 7 | 2011 | 5 | 2012 | 6 | Sources: The World Bank Group 2014a Line chart of Malaysia GDP Growth (Annual %) from year 2003-2012 Sources: The World Bank Group 2014a The x-axis of the line chart above represents years from 2003 to 2012 while y-axis represents Malaysia’s GDP Annual Growth Rate. GDP Growth (Annual %) can be defined as annual percentage growth rate of GDP at market prices based on constant local currency (Index Mundi 2014a). According to the line chart, GDP Annual Growth Rate in Malaysia is at average...
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...Economic growth is sought after by every country because it promises to build and strengthen a country’s foundation in several ways. Primarily, it seeks to reduce poverty which means to improve the people’s access to basic amenities. Governments will be able to expend on public goods like healthcare, education and infrastructure because of the added tax revenues earned from higher income earners. This consequently leads to improved standards of living for all classes of people. Economic growth also injects investments into the economy as savings become capital for business ventures. It brings twin benefits by boosting productivity and raising income levels for those working in the industrial and service sectors. Thus, an increase in gross domestic product (GDP) is not the only determinant of economic development. It is directly correlated with human welfare factors. Hence, the economic growth models that we study examine the varying degrees of this correlation across different economies and highlight the underlying importance of savings. Out of the three emerging countries given, I have chosen Malaysia to discuss in my essay. Malaysia is a steadily developing economy that has been constantly growing since 2001 as can be seen from the chart below. And it has experienced a 7.2% real GDP growth rate in 2010, highest so far since the 8.6% growth in 2000. Chart 1: GDP Real Growth Rate Chart by Year (Source: http://www.indexmundi.com/g/g.aspx?c=my&v=66) As identified by the...
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...Trends and Calendar effects in Malaysia Stock Market Mahmoud Khalid Almsafir Nur Hanis Hazwani Binti Husni Ayman Abdalmajeed Ahmad Al-smadi Graduate Business School, College Of Graduate Studies, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, 43000 Kajang, Selangor, Malaysia. mahmoud@uniten.edu.my, hanis.husni@gmail.com, smadi370@yahoo.com ABSTRACT Investing can help a person's wealth to generate more, and investing in stock is proven as one of the most profitable forms of available investment. The benefits gained in stock broking are immediate Buy/Sell which investor can sell part of their investment any time and at low transaction cost. However, investing in stock will require investor to observe the market, as market can be a volatile place and investor need to acquire knowledge of what they actually are doing. This study will discuss the price trends over the year, and how it will get affected by the seasonality in Malaysia, which also known as the calendar effects. The factor to be investigated in this study is the price on holiday’s season, the January effect or any other monthly seasonality. The daily price of KPJ Healthcare Berhad for the year 2011 is the sample was chosen in this study. Further this study, data used is derived from the weak-form efficient markets hypothesis, which is the price history and case study. Regression method is used in this study in order to help achieving the findings. This should be a continuous study, and adding on more other...
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...the individual’s skill or the geographical reason. While a cyclical unemployment is caused by a business cycle recession, when there is lack of aggregate demand for labor. The replacement of workers to machineries or advanced technologies is called technological unemployment. Last but not least, the seasonal unemployment occurs when a particular job is not in demand at certain seasons. Unemployment is a crucial issue for every country in the world, especially those developing countries with a remarkable population. High unemployment rate indicates that labor resources are not being used efficiently. Fortunately, the unemployment rate in Malaysia (3.2%) is not as high as in United State, which is 6.7% in March 2014. The Malaysian Labour Force Statistics monthly release for March 2014 which mentioned that the unemployment rate in Malaysia was 3.0 per cent in March 2014, which reduced 0.2 per cent from the 3.2 per cent in the previous month. All sectors have working hard in order to maintain Malaysia’s job market stability quoted by Yang Amat Berhormat Mohammad Najib Tun Abdul Razak,...
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...ECONOMIC BACKGROUND OF MALAYSIA Malaysia is a small and open state-oriented and newly industrialized market economy. The code for the Malaysia currency is MYR. The currency of Malaysia is Ringgit Malaysia (RM) and is unofficially identified as the Malaysian dollar. Ringgit comes into notes and coins. A Ringgit can be divided into 100 cents. The currency is denominated into RM1, RM2, RM5, RM10, RM50 and RM100 while the Ringgit is denominate into 5 cents, 10 cents, 20 cents and 50 cents. The currency of Malaysia is currently pegged at RM3.80 to US$1.00. Malaysia centre bank is Bank Negara Malaysia. Malaysia main trading partner is U.S, Japan and Singapore. Through the background economic of Malaysia, the largest deposits of tin in the 1840s led to Malaysia is being responsible for nearly half of the world’s tin output. Started in the early 20th century, the booming of the country’s agricultural sector is being seen that the rubber is replacing tin as Malaysia main export product. Today, Malaysia is one of the largest exporters of semiconductors and electronic goods. The factories devote about 30% Malaysia’s total manufacturing sector output and there are 40 semiconductor companies operating in Malaysia. By the time, the International multi-national companies have set up assembly and testing units in Malaysia. The important reserves of oil and gas are founded. The oil production occurs near Peninsular Malaysia as well as the regions of Sabah in east Malaysia ad Sarawak....
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