...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 2010 is likely to result in a broadly similar...
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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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...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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...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. Natural...
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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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...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 only its cheap labor and relatively abundant resources as the government also has a role to play in it. For example,...
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...Executive Summary Overnight rate is the target rate for the daily liquidity operations of the central banks and a signaling device to point out monetary policy position. The main purpose of this report is to discussion the history overnight rate in Malaysia and predicts the coming overnight rate this year. From 2004 until 2010, Malaysia’ overnight rate reaching an historical high of 3.50 percent in April of 2006 because the Bank Negara Malaysia need to stem the outflow of money and cool inflation pressures to ensure that Malaysia continues to have sustainable economic growth in an environment of price stability. Moreover, a record low of 2.00 percent in February of 2009 because a worldwide economic meltdown due the European sovereign debt crisis. Besides, the coming overnight rates that we predict will remain at 3.0 percent this year because the inflation had continued to increase mainly due to higher food and fuel prices 1.0 Introduction Overnight rate is the target rate for the daily liquidity operations of the central banks and a signaling device to point out monetary policy position. It is also the main tool for evaluating and examining liquidity conditions since it is very sensitive to illiquid conditions. And overnight rate is the interest rate that banks charge to another bank for lending immediately available funds overnight. At the end of a business day, banks usually end up with a deficit or surplus funds and based on the funds on hand, banks will determine...
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...The newly formed government of the Federation of Malaysia recognize the core role and the importance of agriculture in the nation’s economy. Agriculture has become the foundation of economics growth and are main contributor to Malaysia in mid 60’s . Before 1960s, policy of crop diversification due to narrow based economy. Rubber production face stiff competition from synthetic rubber. The rubber price went down and which was cheaper, had negatively affected the development of Malaysian rubber. The ready supply of this cheaper substitute led to the fall of rubber prices resulting in drastic reductions in incomes of those involved in rubber. Malaysia's foreign exchange and the general economy also suffered. The need to diversify the country's agricultural base was pressing and a crop diversification policy was inevitable to find better economic alternatives to rubber. RISDA in the meanwhile, sought to overcome the deficiencies of rubber smallholdings by organizing clusters to reap the benefits of economies of scale in rubber production. These programs invariably, improved the productivity of these commodities , its share declined to about 65 percent of total agricultural output (Lim, 1973). As a share of total national output, rubber fell from 38 percent to 15 percent. Although the successful diversification strategy consisted of a number of elements, the decision to increase the cultivation of oil palm in the 1960s was a very significant policy change...
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...The fastest-growing economies of Malaysia in the developing world is start from year 1970s. Malaysia transformed from a major exporter of palm oil, rubber, tin, tropical timber and other primary commodities to the exporter of manufactured goods and this cause the country Per capita income become doubled in less than a generation. From year around 1970 until year 1980, economic growth was raise around 7.7% and it also raise to 5.8% in year 1980 to year 1990. In year 1990 to year 2005, the economic growth about 6.5%. During year 2008, crisis of financial appear and it caused the economic growth reduce. At the same time, Malaysia having a transformation from primary sector (agriculture based economy) to secondary sector (industrial based). The...
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...on the price competitiveness, availability of substitution, type of business and the management’s ability to minimise the impact (Malaysia Chronicle, 2015). 1. Export The slowdown in China’s economy will ultimately impact Malaysia’s exports demand. China is Malaysia’s second largest export market, accounting for 15 percent of its export economy (Springfield, n.d.), Malaysia-China two-way trade topped $100 billion in 2014 (Kurlantzick, 2015). Both goods and services industries are affected in line with slowdown in China’s domestic demand, namely key export products such as electronic component, transport equipment and palm oil, manufacturing sector; and services industries including trading, shipping and tourism which are externally oriented (Singapore Business Review, 2013). Slowdown in China’s economic growth also weakened its currency, thus consumers will consumed more locally-produced goods as imported goods becomes more expensive (Kok, 2015). 2. Import 1% drop in China’s growth rate is due to 4% appreciation in RMB as an act of shifting demand from export to consumption and 1% increase in wage. As labour cost and RMB becomes more expensive, China exports price rises, thus Malaysia import price increases, contributing to capital outflow and increased CPI (Bokyeong, n.d.). 3. Growth The fall in exports also caused slowdown in growth when loans are harder to get, and cost of borrowing money increases. Malaysia’s fiscal deficits has reached RM14.9 billion, while...
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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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...Paňales Moderator April 26, 2014 I. Introduction A. MALAYSIA Malaysia’s economic freedom score is 69.6, making its economy the 37th freest in the 2014 Index. Its score is 3.5 points higher than last year, with impressive improvements in seven of the 10 economic freedoms including financial freedom, investment freedom, labor freedom, and business freedom. Malaysia is ranked 9th out of 42 countries in the Asia–Pacific region, and its overall score is above the world and regional averages. Over the 20-year history of the Index, Malaysia’s economic freedom score has declined by 2.3 points. Declines have been recorded in five of the 10 economic freedoms, including property rights, freedom from corruption, and investment freedom. Most notably, freedom from corruption has declined by over 25 points, undermining the rule of law. Over the past two decades, Malaysia’s economy has mostly been rated “moderately free.” Registering one of the 10 best score improvements in the 2014 Index, Malaysia has charted an upward trajectory of economic freedom for the past five years. It has undertaken wide-ranging reforms to address various structural weaknesses and improve competitiveness. Recent reforms have put greater emphasis on improving regulatory efficiency, enhancing regional competitiveness, and modernizing the financial sector. a. BACKGROUND The ethnically and religiously diverse constitutional monarchy of Malaysia has been ruled by the United Malays National Organization since...
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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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...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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...An Overview of the Malaysian Banking Sector FINA0501 ASIAN FINANCIAL INSTITUTIONS TERM PAPER LEE JUNHONG, JEREMY 2010540826 I. Introduction Malaysia has been an important player in the Asian economy since the early days of independence, and even before that, as a British protectorate. It is currently the third largest economy in Southeast Asia, and is the 28th largest economy in the world in terms of purchasing power parity according to the World Bank. Malaysia has also successfully diversified its role by focusing her economy on both the traditional sphere of primary agricultural produce as well as being a hub for light manufacturing in consumer durables and electronics. Strong economic planning and farsighted vision by both the government and central bank has been instrumental in maintaining a strong growth rate of her economy; her combined year on year growth since independence in 1957 has averaged 6.6%, which is no doubt a stellar record and one of the highest in Asia. The financial institutions and their functions have been instrumental in this success, and this paper will strive to highlight the strengths and weaknesses, as well as a general overview of the Malaysian banking sector. I. Historical background The earliest beginnings of the banking sector in Malaysia dates back to the early 19th Century under British influence and the expatriate (mainly British) merchant communities. The Straits Settlements comprising of Singapore, Malacca and Penang were administered...
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