...Introduction Malaysia economic development strategy, since the introduction of New Economic Policy has hastened the development process in the following years especially 1980s - 90’s decade. Development was further speeded up in 2000s with the nation vision of achieving an industrialized status by year 2020. However, the rapid development process sometimes was carried out without really taking into consideration, that the possibility of such development will impacts on the environment, in this case, impacts towards the rivers. Table 1 below shows the number of polluted river (suspended solids) from year 1998 – 2008. Table [ 1 ]: Number of clean, slighly polluted and polluted basin in Malaysia (Suspended Solids) A) Economic Growth and Water Pollution As the country which moves towards the realization of its vision 2020 to becoming a developed nation through the implementation of its policy agenda for heavy industrialization, infrastructures, and urban-expansions, the water demands increase steeply. There is greater pressure to preserve the current water resources as well as to find alternative course of actions to improve the water quality. In other words, the consistent and rapid growth of urban-industries in Malaysia has undoubtedly resulted in an increase in economic well being of the citizens on the one hand. After all, for the first time in years, the external value of Malaysia’s currency, the ringgit, shrank by nearly 50 per cent while the stock market contracted...
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...Malaysia was formed in 1963 when the former British colonies of Singapore and Sabah and Sarawak on the northern coast of Borneo joined the Federation. Kuala Lumpur is the capital city , while Putrajaya is the hold of the federal government. The population exceeded 27.5 million, with over 20 million living on the Peninsula in 2010. Malaysia is the 67th largest country, with a land area of 329,847 square kilometers (127,355 sq mi). It has land borders with Thailandin West Malaysia, and Indonesia and Brunei in East Malaysia. Malaysia Agricultural sector contributes 12 % to nation’s GDP and employing 16% of total population of Malaysia, various crops such as rubber, palm oil, cocoa, bananas, coconuts, durian, pineapples, rice, rambutan are grown. Malaysia has started organic farming in fruits and vegetables and has come up with logo "Organic Malaysia". When we consider agriculture sector, country like Malaysia is world's main exporter of natural palm oil and rubber, which combine with saw wood and sawn cocoa, timber, pepper,t imber, tobacco and pineapple lead the growth of the sector. The First National Agricultural Policy (1984-1991) was drafted in response to the inability of previous policies to eradicate poverty and sluggish performance of the agriculture sector as the country’s engine of economic growth. The Second National Agricultural Policy (1992-2010) and The Third National Agricultural ...
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...Foreign Direct Assessment: Analyzing the Mobility of FDI Models in Emerging Markets Kyle Himmelwright & Damian Zaccaria, Villanova Business School In this article, the authors will explore foreign direct investment in emerging markets. Applying a two prong investment model, they’ll assess three emerging Southeast Asian marketplaces; Indonesia, Thailand, and Malaysia. Additionally, they’ll explore the impact a variety of explicit and implicit factors have on the outcome. The research will indicate which of the three markets has the most potential for investment. Keywords: Foreign Direct Investment (FDI), emerging markets, investment, economic factors, growth, defense Foreign direct investment (FDI) plays a prominent and growing role in the global marketplace. FDI is defined as an investment made by a company or entity based in another country. The investment provides the firm with an opportunity to access new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing (Goingglobal.com 2015). Accurately assessing marketplace factors is essential when evaluating whether to invest in a foreign market, especially when it comes to making decisions requiring foresight and conviction. “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.” Rupert Murdoch’s quote concisely illustrates the current state of the global marketplace; it simply isn't as big as...
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...Real GDP vs. Nominal GDP Real GDP is GDP adjusted for changes in the price level and Nominal GDP is GDP expressed at current prices and it is often called money GDP (Gwarthney, pg. 732 & 734). Both the Real GDP and Nominal GDP are from the GDP deflator which is measurements of money and power that are the effects of inflation. The Real GDP is the measurements of significant of price changes and Nominal GDP is the measurements of inflation. We need both Real GDP and Nominal GDP because both plays important roles in the economics system and both are use to keep up with the comparison of years, prices, price index, and real GDP with percentage increases between of the area noted. In my first article, Wall Street Journal, it took place in Japan around the 2000 about the fourth quarter concern because instead of the prices rising they are progressively declining among other nations are excelling. I paid attention in the first 2 quarters real and nominal were the same but on the last two it change the nominal gdp became poorer then the real gdp. In which is bad because the products of goods and services determined the inflation and real growth in which is the numbers economics look for to increase because it’s the profit that counts. I suggest that Japan needed to reevaluate a plan to increase their products and sells so the inflation and real gdp and the nominal which is the money would increase in the world trade sells. My 2nd article of reality of today of 2014...
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...Analysis on M2 & CPI of China, 1990-2014 The chart below demonstrates the broad money (M2) and Consumer Price Index (CPI) of China during the period of 1990 to 2014. The data is picked from the official website of the National Bureau of Statistics of China. (Data source: National Bureau of Statistics of China) According to the graph, both two figures show an uptrend in last three decades, and they shows a positive correlation. The M2 of 1990 was only about 1,500 billion yuan, and it increased gradually in the next decade. The growth rate of the CPI kept raising every year, and after the year of 2008 it witnessed a remarkable rise, reaching at 122,840 billion yuan in 2014, which is 80 times of the figure of 1990. At the same time, the CPI ascended from 216.4 in 1990 to over 600 in 2014. During 1993 and 1996, the increase was apparently more rapid than other years. However, in 2009 the number decreased slightly, and this is the only year in which it goes down. The increase of paper money accelerates the raising speed of M2, and as a result the CPI goes up as well. During 1993 to 1996 the growth rates of CPI were almost 25%, which is incredibly high. Serious inflation was happened around that period, and it turned better between 2000s. In 2010s, however, the bad circumstance seems back again. The amount of M2 rocketed dramatically during the past few years, and it may cause another serious inflation in the near future if the government do not take effective measures...
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... Price of pineapples $10 $10.50 $11 75 85 90 $15,000 $16,000 $15,500 50,000 60,000 45,000 $4 $4.50 $5 a) Using 2009 as base year, calculate nominal and real GDP per capita for 2009, 2010 and 2011. b) Keeping 2009 as base year for prices, compute Utopia’s inflation rates for 2010 and 2011 using both the CPI and the GDP deflator. When calculating the CPI, assume that the representative consumer purchases in any given year 10 T -shirts, 1 car and 100 pineapples. c) Explain why the computed inflation rates are not the same when u sing the two different methods. 2. For this question assume that we are within the short -run goods market framework developed in Chapter 3 in Blanchard. Suppose that the economy is characterized by the following behavioral equations: Note that in this economy investment, I, depends positively on output, Y. This mirrors the fact that firms in the real world will increase their investment expenditure on capital goods when sales are picking up. a) Write down and graph the supply and demand functions for the economy’s goods market. When drawing the goods market diagram, make sure to accurately label the intercepts and slopes of both fu nctions. Econ 301B Winter 2012 b) Solve for the following variables: equilibrium GDP (Y), disposable inco me (YD), consumption spending (C)...
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...How Exports impact GDP Tiffany Cook March 19, 2015 Econ 214 (gwartney, 2015) “Gross domestic import is the market values of all final goods and sales” There are various factors that make up the subcategories of the United States, Gross domestic product. This definition tells us how we ultimately arrive at a calculations of the gross domestic products, but it does not shed light on the economies output and input and the benefits or setbacks each service may have. Some ways that we can look at expenditure approach is to know the wealth of what our goods and services can provide, also how these goods and services can be a come up or a setback dependent upon what we do more of. The expenditure approach allows us to see what our consumers have been benefiting from with the goods and services that have been provided to them by the US. Foreigners make up a portion of the GDP with imports, but in order for us to be on the winning side we would have to provide other countries with more of our products for them to buy or consume. Therefore the greatest impact on GDP is what we export in order to gain a profit from the consumer. If we were the consumer we would be looking to do the same. The economies main goal is to make the money and keep more of it. Exports allow us to do more of that, imports gives us resources to supply the source products for us to export. (Deekay, 2009)States that “export instability stimulates inflation. When inflation rises in a country the products tend...
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...400,000 380,000 Price of 1 Automobile Price of 1 loaf of Bread Price of 1 cup of Coffee Number of Automobiles Produced Number of Cups of Coffee Produced Number of Loaves of Bread Produced 1. Using the year 2007 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the GDP deflator (a Paasche price index) and the CPI (a Laspeyres price index). For the CPI, assume that the representative basket of goods is exactly the one produced in the year 2007 Answer: To calculate nominal GDP for 2007 is $20, 000 ∗ 100 + $1.25 ∗ 400, 000 + $2 ∗ 100, 000 = $2, 000, 000 + $500, 000 + $200, 000 = $2, 700, 000 for 2008 $21, 000 ∗ 120 + $1.50 ∗ 380, 000 + $2.1 ∗ 115, 000 = $2, 520, 000 + $570, 000 + $241, 500 = $3, 331, 500 To calculate real GDP for 2007, since 2007 is the base year real GDP 2007 equals $2,700,000 1 for 2008 just use the 2007 prices $20, 000 ∗ 120 + $1.25 ∗ 380, 000 + $2 ∗ 115, 000 = $2, 400, 000 + $475, 000 + $230, 000 = $3, 105, 000 The amount of stuff produced in 2008, at 2007 prices is the real GDP in 2008 To calculate the GDP deflator in both years simply divide Nominal GDP by Real GDP, so for 2007 GDP def lator 2006 = $2.7 million/$2.7 million = 1 and for 2008 GDP def lator 2007 = $3, 331, 500/$3, 105, 000 = 1.073 For the CPI , just calculate it as a Laspeyres price index so that a0 pat + b0 pbt + c0 pct CP It = a0 pa0 + b0 pb0 + c0 pc0 where a stands for autos and b stands for bread. Since 2007 is the base year the CPI equals one. For 2008,...
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...Econ201 Macro-economy Spring 2013 Wesam Almadani LAG140 Table of Content Overall state of Economy in Saudi Arabia Demographic profile of Saudi Arabia GDP in Saudi Arabia CPI and Inflation Rate in Saudi Arabia Unemployment Rate in Saudi Arabia Economic problems in Saudi Arabia Economy in Saudi Arabia Saudi Arabia is the largest Arabian Country which is located in southwest Asia. It clenches the largest free market economy in the Middle East and North Africa. The geographic setting of Saudi Arabia provides an easy entrée to export the markets of Europe, Asia, and Africa. Saudi Arabia is an oil-based economy with a robust government control over the main economic activities; it approximately holds 17% of the worlds established petroleum assets. Saudi Arabia grades the largest exporter of petroleum, and plays a primary role in OPEC. The petroleum sector alone interprets for roughly 45% of GDP, 80% of budget revenues, and 90% of export earnings. The following shows the demographic profile of Saudi Arabia: Population | 26,939,583 includes 5,576,076 non-nationals | Dependency Ratio | total dependency ratio: 46.9 % youth dependency ratio: 42.6 % elderly dependency ratio: 4.2 % potential support ratio: 23.6 | Population Growth Rate | 1.51% | Net Migration Rate | -0.62 migrant(s) / 1,000 population | Urbanization | urban population: 82.3% of total population (2011) rate of urbanization: 2.38% annual rate of change...
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... | |Learning Outcomes |Tasks/Means |Criteria & Allocated Marks |Assessed | | | | |Marks | | | |STRUCTURE (10%) | |Successful students are able to: |Conduct a secondary research and write a report on | | | |Malaysia Economic Growth (increase or decrease in GDP). | | |Describe in detail the recent | | | |economic conditions...
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...The global financial crisis in 2008-2009 made a severe change to the world economy with include United States. The problem begins in the US Financial system, arising from the deteriorating quality of subprime assets that started in 2007, that caused into a major horrible global financial crisis in the last half of 2008. From a housing crisis, it quickly grew into a banking crisis with the investment and merchant banks first absorbing the impact before it spread to the commercial banks. The main reason of this crisis was Lax Regulation and Low Lending Rates. Moreover the greed of top management people of the financial institutions was another reason of this crisis. Especially, several failing of many large U.S and global financial institutions in September 2008 generated widespread fear of a systemic disruption across global financial markets which in turn had led to the “freezing” of the interbank and credit markets in many financial centres around the world. Despite the unprecedented large and aggressive financial measures taken by the authorities, the crisis intensified as prices of a large number of classes of financial assets collapsed resulting in a huge negative income and wealth effect. With the United States’ economy contracting sharply, it sent ripples across export-dependent Asian economies, which began to face a contraction as a consequence. Although the Malaysian economy was insulated from the direct effects of financial exposure because the new derivatives were not...
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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 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 bearing debt of 53 percent of GDP being Asia’s highest household debt country (Ar...
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...financial crisis that gripped much of Asia which beginning in July 1997 and raised fears of worldwide economic meltdown due to financial contagion.1 Several countries such as Malaysia, Thailand, Indonesia, the republic of Korea and the Philippines were hit directly while others such as Taiwan province of China, Singapore and especially Hong Kong, China were badly affected. What began as a speculative attack on the Thai baht in July 1997 quickly spread as ‘contagion’ to the other countries. Over a three-month period between July and October 1997, the baht fell nearly 40 per cent, the Malaysian ringgit and Philippine peso by about 27 per cent, the Indonesian rupiah by about 40 per cent and the Korean won approximately 35 per cent against the United States dollar. For countries that had been dubbed “miracle economies” this was a serious blow with wide-ranging economic, social and political ramifications.2 In this paper we would try to undertake an empirical analysis of the factors leading to the crisis by analysing on two major points: 1) How have these countries performed in the years leading to the crisis? 2) What was the policy response to the currency crisis and what similarities/differences were there in policy responses across countries? We try to do this by analysing the macroeconomic data of three countries, Malaysia, Thailand and the Republic of Korea, over a 13-year period, from 1990 to 2002. The 13-year period is divided into three time segments. The period 1990-1996 is the pre-crisis...
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...stable is the political environment? 2. 2.Will government policy influence laws that regulate or tax your business? 3. 3.What is the government's position on marketing ethics? 4. What is the government's policy on the economy? 5. Does the government have a view on culture and religion? 6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others? 7. Economic Factors. Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at: 1. Interest rates. 2. The level of inflation Employment level per capita. 3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on. Sociocultural Factors. The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include: 1. 1.What is the dominant religion? 2. 2.What are...
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