...GST but have not given us any details of the products (that are being taxed). We have to take a look by ourselves on the internet. It is unfair for us actually." the Malaysian government had maintain the basic food items, education, healthcare and medical to be exempted from the GST in order to ensure the citizen quality of life would not be affected by the GST.( zero rated, exempted or standard rate) It is double taxation. Firstly, when income is earned and secondly when the income is spent. This first of which is the polarizing views of the tax itself. 1. The main issues concerning about the implementation of GST is the costs of the goods will increase which will burden the people in the country. GST will increase the price of food, health care, medical product, public transport and other essential Services. It will effect in the low income group. Hence, it may affect social problem. (prices go up, purchasing power lower) 2. Consequently, there might have inflation effect since the GST is applied to the prices of all goods, at every stages which result in inflation as the general products prices may go up and the hyperinflation might occur from the continuously of inflation .There might have continuously effect from the products prices go up. The demand of the market might substantially decrease due to the limited purchasing power of households. Many people argue against the GST is that the people would not have the ability to pay for it as the high cost of living cannot...
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...Inflation and unemployment were not improved by monetary policy Abstract The global financial crisis made a long term negative effect on the economy all over the world as well as New Zealand. GDP and inflation decreased with a high level of unemployment rate. This essay is going to discuss the effect of the actions from reserve bank. According to their response, the IS-LM, AD-AS and Phillips models will be used to analyze the effect of change in OCR on economic activities. Furthermore, some previous literature will be used in this essay which is relative to some problem happened during the recession. Introduction There is a big impact on the economic environment following the 2008 financial crisis. New Zealand faced a negative effect on unemployment rate, income, inflation and output and etc. as an important part of developed country. The main aim of this essay is to investigate what monetary policy has been used in response to the recession and whether it is useful to make a significant recovery. The financial crisis can be seen as a very serious problem in New Zealand. The stock market got hit seriously because the investment, income, confidence, employment rate etc. all fall. During the recession, the unemployment rate rose from a low of 3.5% in December of 2008 to a high level of 7.3% in June of 2012. (TRADING ECONOMICS, 2013) The New Zealand GDP had a negative growth during 2008 and 2010 because many businesses shut down and the unemployment rate increased...
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...IMF Country Report No. 15/58 MALAYSIA March 2015 2014 ARTICLE IV CONSULTATION—STAFF REPORT; PRESS RELEASE; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR MALAYSIA Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. In the context of the 2014 Article IV consultation with Malaysia, the following documents have been released and are included in this package: The Staff Report prepared by a staff team of the IMF for the Executive Board’s consideration on February 13, 2015, following discussions that ended on November 24, 2014, with the officials of Malaysia on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on January 23, 2015. An Informational Annex prepared by the IMF. A Press Release summarizing the views of the Executive Board as expressed during its February 13, 2015 consideration of the staff report that concluded the Article IV consultation with Malaysia. A Statement by the Executive Director for Malaysia. The document listed below has been or will be separately released. Selected Issues Paper The policy of publication of staff reports and other documents allows for the deletion of market-sensitive information. Copies of this report are available to the public from International Monetary Fund Publication Services PO Box 92780 Washington, D.C. 20090 Telephone: (202)...
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...Executive Summary The report is to be presented to board of Hallenstein Glasson Holdings ltd. The report analyses company with respect to its internal and external environment and the strategic direction the company is headed in. The report is based on past statistics and forecasted results, which need to be verified and evaluated intermittently. The report finds that HGL had created a sustainable competitive growth for over 50 years by leveraging its internal resources and capabilities. However, with new international players in market, the sustainable advantage is no longer sufficient to maintain that growth, the results of which are presented in terms of lowered company, brand and profits value. The report makes recommendations to company to take explore further markets, market segments and better leverage their brands. The report also suggests to the board to have a coherent and consistent brand image – all giving the same message. This report forms the basis of strategies to be derived and implemented. Table of Contents Executive Summary 1 1. Background / Introduction 3 2. Company Vision, Mission and Strategy 4 3. Company Analysis (1200) 5 3.1 Macro Environment Analysis 5 3.1.1 Does the industry offer attractive opportunities for growth? 5 3.1.2 What Kind of Competitive forces are industry members facing and how strong is each force? 5 3.1.3 What factors are driving changes in industry and what impact will these changes have...
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...Economic growth is the increasing capacity of an economy to satisfy the wants of its people. This is done by increasing the gross domestic product (GDP), which is what economic growth is measured by. However, economic growth is only good if it can be sustained. If growth is too quick, it is bad as it increases inflationary pressure. However, if the economy is growing too slowly or even contracting, then it is also bad as the unemployment rate will go up. This is why the government prefers to keep economic growth steady at around 4% p.a. Price stability is the avoidance of inflation and deflation. Inflation is the persistent and appreciable rise in the general level of prices and is measured by the consumer price index (CPI). Deflation is a general decline in prices. The RBA’s target range for inflation is 2-3% p.a. The objective of the government is to maintain low inflation. This is because high inflation can impact negatively on economic efficiency and the economic well-being of some people in the society. Full employment is when everyone who wants to work as a job. This is virtually impossible so the goal of government is to maintain a low level of unemployment. The unemployment rate is measured as a percentage of the workforce. A low unemployment rate is favourable as it means the economy is working efficiently and maximising its ability to produce while reducing the level of income inequality. The aim of external balance is to balance the external transactions between...
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...ecomonic B. Now decide whether the following would contribute to demand pull or cost push inflation. Try to explain your decision. 1. The Government increases taxes on alcohol by 5%. COST PUSH: The tax has to be paid by the seller, so it increases his costs of production; he will pass this on to the consumer as a higher price. 2. Consumers increase their spending on goods and services by 6%. DEMAND PULL: The biggest part of Aggregate Demand is C [Consumer spending] 3. Factory workers achieve an 8% rise in their wages. COST PUSH: Wages are an income paid to labour, and are a big cost of production. As well, since higher wages will then give the factory workers more disposable income, there will also be DEMAND PULL inflation. 4. The Australian dollar depreciates, increasing the cost of imports and imported raw materials. COST PUSH: when the Australian producer buys these imports, they will cost more in Australian dollars, so the producers’ costs of production will be higher. 5. The Reserve Bank decreases official interest rates by 0.5% DEMAND PULL: lower interest rates mean it is cheaper to borrow money, so both C and I will increase. [Consider what happens if the Reserve Bank increases official interest rates by 0.5%.] 6. The Government requires GST BAS (Business Activity Statements) to be completed by businesses every month. COST PUSH: this requirement means that each business will need more resources [ eg labour,...
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...prior quarter. Similarly, the seasonal adjusted GDP figure recorded a slower 0.7% quarter-on-quarter expansion in 3Q15 as compared to a 1.1% growth earlier. The rapid deceleration in consumption growth has been mainly supported by a strong rebound in gross capital formation growth and net exports growth, resulting in a slight moderation in GDP growth over the quarter. Chart 1: 3Q15 GDP Expenditure Components Breakdown (% YoY) | | Private consumption, which comprises more than 50% of the GDP has seen growth ease considerably from 6.4% to 4.1%, due to weak consumer sentiments post GST implementation. In the near term, high household debt and rising cost of living (due to the recent toll rate and public transportation fare hike and imported inflation from weak Ringgit) are expected to weigh on the domestic consumer sentiments, undermining recovery of the private consumption growth post-GST. On the other hand, public spending growth dropped approximately by half from 6.8% to 3.5% in 3Q15 amid slower growth in both emoluments and supplies and services expenditure. With the absence of immediate catalyst in the near term, the possibility of a recovery in the consumption growth (both private and public) for the upcoming quarter is slim. That said, we expect consumption growth to stabilize in 1H16 as “people friendly” initiatives in Budget 2016 come in place to ease downward pressures to consumption growth. While consumption data in 3Q15 somewhat disappointed, gross fixed capital...
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...Introduction Singapore is an economically well-developed country; it enjoys a remarkably open and corruption free environment, stable price and a GDP per capita that is higher than most developed countries. Singapore depends heavily on exports, particularly in technology and biomedical, and services provide the main source of revenue for its economy. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue to establish itself as Southeast Asia’s financial and high tech hub. A Production Output Performance Analysis, Labour Market Analysis and Price Level Analysis will be provided from the viewpoint of Singapore’s economy to assess the performance trends over the past 10 years and what measures Singapore government has taken to achieve such performance. Production Output Performance Analysis The graph above shows Singapore GPD at constant prices The graph above shows Singapore GDP annual growth rate The graph above shows Singapore GDP per capita based on PPP Singapore has strong economic growth since 2004 after adapting to several shocks which include the global economic slowdown in 2001, the outbreak of SARS and the Iraq war in 2003, which affect tourism badly Singapore has a GDP growth of average 8.6% from 2004-2007. The economy contracted 0.6% in 2009 due to financial crisis, but rebounded 15.2% in 2010 on the strength of renewed exports, before slowing to 6.0% in 2011, 2.5% in 2013 and 3.8% in 2013, largely due...
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...The Indian Rupee Crisis Economics Essay-1 In this paper we are going to examine the cause and the impact of rupee depreciation on the Indian economy. Since last few months Indian rupee came under great stress as overseas investors are paring their exposure to Asia’s third-largest economy amid international uncertainty and mounting worries over the domestic economy. In 2009 – 2010 the exchange rate was hovering around the 43 – 45 rupees per US Dollar level. And now it is around 55 – 56 levels, the main reasons to examine are increase in import bill, higher inflation, fiscal mismanagement and all resulting in higher cost of borrowing. The rupee has lost more than 15% of its value this year, making it one of the worst performing currencies in Asia. This paper reviews the probable reasons for this depreciation of the rupee and the outlook for the same. It also reflects on the policy options to help prevent the depreciation of the Rupee. This paper will firstly discuss about the economy of currency to give an overview of the problem and the factors related to it. Afterwards it will be examining the causes of the Indian rupee depreciation with respect to the Indian economy and the global economy. And after that it will analyse the impact of the same on trade and business. Finally, recommending the policy actions in response of the falling currency. II. LITERATURE REVIEW: These papers include the work which have been used as a basis or reference for formulating the policies regarding...
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...The inflation rate in Singapore was rose to 4.9 percent in February 2013. According to CNBC.Com, the rise was mainly because of more significant increase in private road transport costs as well as food and services inflation were also stronger during the month of February. However, the outlook for 2013 inflation was unchanged at 3.5 to 4.5 percent according to Ministry of Trade and Industry (MTI) and MAS. Both MTI & MAS also reiterated core inflation is likely to average 2 to 3 percent for the whole year. In addition, Nuno Fontes from Trading Economics has said this temporary pick up had been anticipated in the January inflation report due to private road transport cost has climbed by 17.4 percent in February, up from 10.5 percent a month earlier. Discussion A. GDP There are 3 GDP related indicators to study the performance of economy. GDP counts the value of goods and services at the time they are produced. There are two methods of measuring GDP. i. Income Approach: adding up households income i.e. wages, rent, interest and profit ii. Expenditure Approach: GDP = C + I + G + (X-M) The nominal GDP measures the GDP using the value of all the goods and services produced in current prices. Real GDP measures the value of all the goods and services produced in the prices from year to year. • Real GDP = Nominal GDP x 100 GDP Deflator GDP Deflator = (Nominal GDP / Real GDP) x 100 B. Business Cycle Business cycles are dated according to when the...
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...|Acknowledgements | | | |2 |Introduction | | | |3 |Effects of inflation | | | |4 |Causes of inflation | | | |5 |Controlling inflation | | | |6 |Current situation of inflation in India | | | |7 |Extracts of the Reserve Bank of India’s document released on | | | | |July 28, 2008 | | | |8 |Measures to control inflation | | | |9 |Future inflation | | | |10 |10 nations with...
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...contribution came from transport (up 2.5 percent), reflecting higher prices for petrol and diesel. Cigarette and tobacco prices rose 9.4 percent, influenced by a rise of 11.64 percent in excise duty on 1 January 2011. Food prices rose 1.2 percent, with higher prices for grocery food and for meat, poultry, and fish. From the March 2010 quarter to the March 2011 quarter: The CPI increased 4.5 percent, including a 2.3 percent increase in the December 2010 quarter when GST rose from 12.5 to 15 percent. The CPI measures the rate of price change of goods and services purchased by households. Statistics NZ visits 3,000 shops around New Zealand to collect prices for the CPI and check product sizes and features. Geoff Bascand Government Statistician 18 April 2011 ISSN 1178-0452 Commentary Consumers price index quarterly movement The consumers price index (CPI) rose 0.8 percent in the March 2011 quarter. This follows rises of 2.3 percent in the December 2010 quarter (when goods and services tax (GST) rose from 12.5 to 15 percent) and 1.1 percent in the September 2010 quarter, respectively. Seven groups rose in the March 2011 quarter, with transport (up 2.5 percent), alcoholic beverages and tobacco (up 3.5 percent), food (up 1.2 percent), education (up 5.7 percent), and housing and household utilities (up 0.4 percent), being the most significant contributors. Four groups recorded falls with the largest contributions coming from recreation and culture (down 1.7 percent)...
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...Foreign Debt A little bit should be said about foreign debt in Australia at that time as it can help to understand the system in more details rather than saying that as a common thing. Basically the foreign debt it is the necessity of borrowing money to finance imports. Borrowing is not such a bad thing as you might think at first it is good as long as the government needs to help the country during hardships like recession, tax revenues fall, etc. some of these factors were happening in Australia during from 1980’s to 1990’s. As we know from this report that Australia suffered really huge hardships within economy and finance and we know what they actions were taken towards microeconomic reform like labour reform, taxation, financial deregulation, privatization and etc. but most important thing that was found in my opinion is foreign debt. The foreign debt occured in Australia because of the bad time during 1970s-1990s the government was not able to support the country without increasing its foreign debt. Graph 1 shows us that the foreign debt was rapidly increased GRAPH 1 But it is not as bad as it seems to be, as long as the government borrowed this to improve its productivity and manufacture. Then it would excuse such a huge amount of money borrowed by the government. Also what we know at that time the government decided to sell some of their businesses to public sectors, and some business they bought from public sectors. Now let’s look at GDP that was growing up since...
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...Introduction: The Republic of Singapore was known as a thriving British trading port back in 1819. She then merged with Malaysia in 1963, but was expelled from the federation in 1965. Singapore, without natural resources, was doomed to fail in eye of neighbouring nations. But has transformed from third to first world standards in a very short period of time. Singapore also became one of the world’s most affluent nations with important trading links such as one of the busiest ports in the world and best airport infrastructure in the world for years running. Singapore’s GDP per capita is comparable to first world European nation’s counterparts as well. Singapore’s economy is largely dependent on exports, some examples are IT-related, user electronics products, pharmaceuticals, and financial services industries. For instance, the republic has one of highest volume in export refineries around the globe, oil exports accounted about 68.1m tons in 2007. The O&G industry accounted for 5% of Singapore’s GDP as well. (Economic Development Board, n.d). According to Strait Times: Singapore secured position as the second freest economy in the world in 22 straight years, the acceptance to global trade & investment remains to contribute a sturdy support for economic dynamism in Singapore. One of the key events happened past decade in Singapore is the collapse of Lehman Brothers that leads to financial crisis in 2008. The Republic takes the lead among the East-Asian countries...
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...Executive summary In this empirical report, we have analyze the characteristics of several important economics indicators and how they can be use by economist to look out for period of inflation, sharp changes in GDP growth due to GST and oil shock and how to make use of this indicators to do a projection on the economy performance. We also come to understand how different types of economic indicators are used and how they correspond to the movement economy activities. Understanding the characteristic of these economic indicators, allows us to identify the cyclical nature of each individual indicator with economic growth and, thus, help us in choosing a set of economic indicators for forecasting the economic performance. To conclude, we state that by doing an economic indicator analysis through leading, coincident and lagging indexes, we can understand how well the economy performance as a whole. It also tells us the relationship between economy performance and the policy-making of a country. Introduction The measurement and analysis of business cycles has been one of the important research topics in economics and underlying theories of these economics arguments have changed as times goes by. In this empirical report, attention will be focus into the central questions on the causes of fluctuation in the economic activity by constructing a business cycle analysis and composite coincident index, a combination of several time series that one would expect to contain...
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