...serta peningkatan pesat inovasi kewangan dalam ekonomi berasaskan kredit boleh mempengaruhi pertumbuhan ekonomi di sesebuah negara. Ini yang menjadikan peranan sektor kewangan terhadap pertumbuhan ekonomi sering menimbulkan perdebatan di kalangan ahli-ahli ekonomi. Misalnya Miller (1998) yang menyatakan bahawa sektor kewangan telah dilebih-nyatakan(over-stressed) terhadap pertumbuhan ekonomi. Manakala, ahli ekonomi lain seperti Schumpeter (1911) dan Mikinnon (1973) yang menggunakan pelbagai kaedah ekonometrik telah memberikan kesimpulan yang sama, iaitu sektor kewangan adalah penting untuk mempengaruhi kegiatan ekonomi di sesebuah negara. Pandangan ini menyokong hipotesis sektor kewangan mendorong pertumbuhan ekonomi (finance leading growth) atau dikenali sebagai hipotesis dorongan penawaran. Ini bererti pembangunan sektor kewangan adalah pra-syarat kepada perkembangan kegiatan ekonomi. Sebaliknya, jika pembangunan...
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...An Emperical Study of Export ,Import And Economic Growth in Malaysia Meloney Antong & Kartini Binti Kapin Department of Economics, Faculty Economics and Business Universiti Malaysia Sarawak ------------------------------------------------- Abstract This paper investigates the relationship between export and import to economic growth. This paper is an attempt to carry out an empirical examination of the hypothesis on export-led growth. It also determines the direction of causality between exports, import and output, and investigates short and long-run dynamic impact of exports, imports on GDP growth in case of Malaysia. ------------------------------------------------- Keywords : Economic Growth, GDP, Export and Import. 1. Introduction Development is the main aim of any economy. The basic of economic development is economic growth. In order to promote economic growth, export-led growth is considered as the key to accelerate the rewards of all factors of production. Economic growth can related to many various factor. The main aim for any economy is development and economic growth is the basic of economic development. Export can be define as the goods and services that produce in the country and sold to the other countries. While, import is the goods and services that bought into other country for trade purpose. But, its depend to the import quotas, tariffs and agreement between the country. Export will represent the important sources of foreign exchange...
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...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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...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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...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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...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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...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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...Chapter 2: Analysis: 2.1 The comparison of Gross Domestic Product (GDP) between Ireland and Malaysia and its reasons. (Real Growth Rate) Year | Real GDP Growth of Ireland (%) | Real GDP Growth of Malaysia (%) | 2006 | 5.3 | 5.9 | 2007 | 5.6 | 6.5 | 2008 | -3.0 | 4.8 | 2009 | -7.0 | -1.6 | 2010 | -0.4 | 7.2 | 2011 | 0.7 | 5.1 | The visuals above indicated the GDP (Gross Domestic Product) of two countries which were Ireland and Malaysia. During the year 2006, the GDP of Ireland recorded 5.3% because Ireland’s economic prospects remain good and growth looks set to strengthen further during 2006 with consumer spending is expected to be the main engine of economic growth. Economic growth remains firm in year 2007, employment has grown significantly, full employment, the public finances are in excellent shape and inflation remains relatively low, so the GDP growth rate increase to 5.6%. In September 2008, Ireland became the first euro zone country to officially enter recession. The recession was confirmed by figures from the Central Statistics Office showing the bursting of the property bubble and a collapse in consumer spending that terminated the boom that was the Celtic Tiger. The figures -3.0% shown the GDP growth rate fell. Next was followed by GDP -7.0% in year 2009, Ireland’s government debt had become the riskiest in the euro zone, surpassing Greece’s sovereign bonds, according to credit-default swap prices. The loss of output in the economy in 2009 and...
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...The Economy of the Philippines and Its Neighbors: Indonesia and Malaysia By Larry Gulley In Partial Fulfillment of Requirements for MGMT 220: Individual Project 3 AIU June 30, 2012 Abstract The economy of the Philippines, as well as that of its neighbors, Indonesia and Malaysia, has weathered some rough patches. This area of the world has not lived up to its potential in spite of its naturally rich resources. But they are showing improvement, especially Malaysia. These countries compete with tourism and the services area. They also have strengths in agriculture and manufacturing. Table of Contents Economy of the Philippines Speaker Notes……………………………………………...1 Introduction………………………………………………………………………………4 Economy of the Philippines…………………………………………………………....4 Economy of the Philippines 2012……………………………………………………..4 Philippines Economic Strengths………………………………………………………4 Economy of Indonesia………………………………………………………………….5 Economy of Indonesia 2012…………………………………………………………...5 Indonesia Economic Strengths………………………………………………………..5 Economy of Malaysia…………………………………………………………………...6 Economy of Malaysia 2012…………………………………………………………….6 Malaysia Economic Strengths…………………………………………………………6 Impacts of Economic Strengths………………………………………………………..7 Investing in the Philippines: Management Issues……………………………………7 Investing in the Philippines: Management Issues……………………………………8 Conclusion……………………………………………………………………………….8 References…………………………………………………………………………………..9 Economy...
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...this subject which is business report on Overnight rates in Malaysia. The main purpose of this business report is to understand the past year event on the overnight rates in Malaysia from the year 2004 to 2010. Further, we would also like to predict the incoming overnight rates which will be announced by the Bank Negara Malaysia (Central Bank of Malaysia) by the year of 2012. In addition to that, we are agreed to submit our assignment on to the respective tutor through the assignment box located We hope that our assignment on this business report had met the subject requirement based on the marking and grading criteria of Thank you. Yours truly,| Executive Summary The overnight rates in Malaysia creates a long great history in the past seven years from 2004 to 2010, during these years the overnight rates was changeable between increasing at a maximum of 3.5 % in 2006 and decreasing at a minimum of 2% in 2009, further the average overnight rates was recoded at 2.91%. This report will show the history of the overnight rates during this period and reasons that caused the overnight rates to change, for instance decrease in overnight rates caused by an effect of the global financial crisis. Moreover this report will discuss the coming predicted overnight rates for this year depending on proved evidence from past years, most of the sources in the report were conducted directly from the central bank of Malaysia website which is more accurate and proved as well. Table...
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...1) Identify the factors which account for the growth of the manufacturing industry in Malaysia and assess their relative importance. Malaysia is classified as one of Asia’s NICs on the basis of its rapid economic development. Along with its southern and northern neighbours Indonesia and Thailand, Malaysia is classified as a “second wave” Asian Tiger, rather than a first like South Korea and Singapore are. It is more than 30 years since multinational companies, with headquarters in North America, Western Europe and Japan, began relocating and expanding units of production in selected Asian countries to take advantage of lower costs of production. As a result this has accounted for the growth of manufacturing industry in Malaysia. The first factor that explains the economic miracle of industrial growth in any of the Asian countries is cheap labour. During the 1970s, increasing personal prosperity in MEDCs fuelled the growth of the consumer society, which in turn accelerated the demand for a wide range of electrical and other household goods and clothes. These are either assembled in factory production lines, or are made using high inputs of labour. Cheap labour was a vital factor in terms of kick-starting the revolution of Malaysia’s manufacturing industry, it offered many large companies the incentive to locate there in the first place, such companies as; Hewlett Packard, Bosch and Fairchild - delivers energy efficient power semiconductor, analog, discrete & optoelectronic...
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...Malaysia’s economic sphere of influence has been constantly growing on the world market and has attracted a lot of attention in the past years as a rapidly developing country in a very dynamic region. This can be shown with the amount of Foreign Direct Investments (FDI) Malaysia receives and has received throughout the years even within a context of a worldwide recession and a global economic crisis. Firstly, I will explain more in detail what an FDI is, the trend it has been following in Malaysia and the way it has been growing on the time span of 1990 to 2010. Secondly, I will mention the rate of growth in Malaysia’s economy by analyzing its Gross Domestic Product and its economic growth in general and finally I will try to find a link between this trend that FDIs are following in Malaysia and how the Malaysian society is evolving in terms of transfer of technology, employment, income distribution and poverty and environment. A Foreign Direct Investment is an “overseas equity investment by a private multinational corporations” according to Todaro and Smith’s Economic development. Almost every country in the world has been known to emit FDIs as well as receive them. Malaysia is no different, especially being in such a dynamic region, Southeast Asia , it has attracted a lot of foreign businesses and continues to attract them as we will show later on in the paper. The reason Malaysia attracts foreign firms is not...
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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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...KUALA LUMPUR: Lee Soon Seng Plastic Industries Sdn Bhd, which manufactures thermo-formed plastic packaging and extrusion sheets, has seen its new product introduced this year gaining popularity in the Australian, New Zealand and European markets. The product, AIR-TIGHT disposable food containers - ensure that biscuits or cookies remain crunchy for days. It can also store liquids without any spillage. So far, the company has developed over 10 designs of the products which are made of polyenthylene terephthalate, an environmentally-friendly material. Lee Soon Seng's managing director, Datuk Seri Lee Hock Seng, said the company had perfected the thermo press-form technology after a one-year trial and error before going for mass production. "In this technology, the accuracy of moulding is very important to ensure absolute air-tightness. Basically, the containers are tailor-made to suit our clients' needs. "The air-tight property has added value to the products. Although air ventilation is still needed for certain food items such as vegetables and fruits, air-tight containers still have vast uses in the food industry and we foresee a sharp rise in the demand for this new range of products," he told Business Times recently. Lee Soon Seng is wholly owned by SCGM Bhd, a public-listed investment holding firm. For the financial year ended April 30 2013, SCGM posted RM96.9 millions revenue compared with RM82.1 million in 2012. Net profit saw a jump from RM5.9 million to RM7.8 million...
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