...------------------------------------------------- Declaration by group leader (This section is to be filled in the student’s own handwriting.) I hereby declare that all group members’ names are correctly included in the above section. I hold a copy of this assignment which I can produce if the original is lost or damaged. I certify that no part of this assignment has been copied from any other student’s work or from any other source except where due acknowledgement is made in the assignment. Group leader’s signature : _____________________________ Group leader’s name : _____________________________ Group leader’s student ID : _____________________________ Date : _____________________________ Question 5 Malaysia inflation jumps as government feels heat over living costs January 22, 2014 KUALA LUMPUR, Jan 22 — Malaysia’s inflation rate jumped in December, exacerbating a political headache for the government over rising living costs and increasing the chances of an early hike in interest rates this year that could further dampen consumer sentiment. The statistics department said today that the consumer price index rose to 3.2 per cent from 2.9 per cent in November, the highest level since November 2011 and up from 1.2 per cent a year earlier. A Reuters poll had forecast it would pick up to 3.1 per cent. Faster price rises are partly a result of a series of subsidy cuts introduced by Prime Minister Najib Razak’s...
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...Inflation Introduction and Definition Inflation is a phenomenon which happens world wide. It causes many problems to countries all over the world. Inflation is the rise in the general level of prices. When inflation occurs, each ringgit of income will buy fewer goods and services than before. Inflation will reduce the "purchasing power" of money. However, not all prices rise during inflation. There are some prices which are relatively constant while some prices are decreasing. There are two types of inflation. The first type is called the demand-pull inflation. This type of inflation usually happens when there are changes in the price level that are caused by an excess of total spending beyond the the economy's capacity to produce. Demand-pull inflation is commonly described as "too much money spent chasing too little goods". The second type of inflation is called cost-push inflation. Cost-push inflation is also called "supply-shock inflation" is caused by rise in the supply or cost. This happens due to natural disasters or increased prices of inputs. The theory of cost-push inflation explains the rising of prices in terms of factors that raise per-unit production costs at each level of spending. Rate of inflation is measured using Consumer Price Index(CPI) which can be calculated using the formula given below: [pic] The normal rate of the inflation is varies from country to country. In Malaysia, the normal rate of inflation...
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...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 a nation’s economy has became gradually vital. Typically, the contribution of MNC to a domestic economy is via fund transfer channel such as foreign direct aids...
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...DATELINE: 7/12/2015 ANALYSIS OF MALAYSIA’S ECONOMIC CRISIS 2015 A Tough Year This year has seen changes across the entire spectrum of the Malaysian body politic and economy. Unlike in earlier years of Prime Minister Dato’ Seri Najib Tun Razak’s six-and-a-half year tenure, Malaysia’s economy is now seen to be in trouble, with contracting growth, rising inflation, continued high levels of capital flight, declining consumer and investor confidence, and a depreciating currency. Malaysia faces an unfavourable global environment. The slowdown of the Chinese economy, Malaysia’s largest trade partner, has contributed to a sharp decline in Malaysia’s GDP growth. While the US economy has begun a recovery, it has not filled the vacuum as a driver of growth left by China’s slowdown. Four regional economies are seen to be under strain – Singapore, Indonesia, Thailand and Malaysia. The broad decline of Southeast Asian currencies to the US dollar and drops in exports has cast a pall over the region. Global drops in oil and gas prices (now at levels less than half of those prevailing a year ago) have had a special impact on Malaysia; Government revenues from petroleum had accounted for almost 40 per cent of total revenue. The fall in other commodity prices, including those of rubber and palm oil, have affected export earnings, all contributing to fewer funds in government coffers. Negative global conditions have been worsened by a extended political crisis surrounding the Prime Minister...
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... 9 1.5 General operations of GST 10 1.5.1 Goods and Services Tax (Zero-rated supply) Order 2014 11 1.5.2 Goods and Services Tax (Exempt supply) Order 2014 132. Content 14 2.1 Effect of implementation of Goods Services Taxes (GST) in Malaysia 14 2.1.1 GST are regressive tax or progressive tax? 14 2.1.2 Effect of implementation of GST on inflation based on CPI 16 2.1.3 Effect of implementation of GST on the household income 19 2.2. Impact of GST on sub regions of Malaysia 24 2.2.1 How GST improve the standard of living 29 2.3. The implementation of GST in other ASEAN Countries 303. Implication Of Implementing GST On Economy...
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...Identification of Malaysia’s Economic System Malaysia is a moderately affluent countries. In the new economic policy, she produced from a raw material in the late 1971-1990 period the country to convert to a new multi-industrial economy. Economic growth is mainly dependent on the export of finished products, especially electronic products. Therefore, especially big blow to the global economic recession and the recession of information technology brought to Malaysia. Malaysian economy developed steadily since 1987. Since then Malaysia's economy an average annual growth rate of 8%, higher than that of other countries in Southeast Asia. Economic growth, mostly from the direct involvement of the national government. In 1987, the Government will action taken to attract foreign investment. Of foreign investment in Malaysia peaked in 1990, a total of 17.6 billion ringgit. The privatization of state assets is also ongoing. The government has proposed the "Vision 2020" plan, the plan has been to determine the basic goal of the industrialization of the country. Kuala Lumpur stable macroeconomic environment, with adequate foreign exchange reserves and a small external debt remained at or below 3% inflation rate and the unemployment rate, the recession similar to the 1997 Asian economic crisis from happening again in Malaysia may resistance becomes very small. Nevertheless, faced with lack of competitiveness and high debt problem of large enterprises have a negative impact on Malaysia's...
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...5 Abstract This paper investigates the impact of real interest rate on national saving in five Association of Southeast Asian Nations (ASEAN) of Indonesia, Malaysia, the Philippines, Singapore and Thailand. We analyze impact real interest rate to nation saving for ASEAN starting 1991-2013. Through an analysis from Excel, real interest rate is found to have significant impact on national saving during different stage of economic. Extensions using a graph reveal the impact of real interest rate in ASEAN-5 and thus mainly reflect heightened concerns to national savings amid the Asian financial crisis and the global financial crisis. Keywords: real interest rate, national saving, financial crisis 1.0 Introduction The world’s average saving rate has been declining since the first oil shock and through the early 1990s. However this trend conceals a large and increasing dispersion of saving rates, particularly among developing countries. The large heterogeneity in saving behavior is associated to country and time differences in levels of development, growth performance, and fiscal and financial policies. The level of real interest rates has once again become the focus of policy makers' concerned. To understanding the response of national saving to changes in interest rates is central to many issues in economic policy. For example, a reduction in the budget deficit would probably cause interest rates to decline. If personal saving declined as a result, the overall increase...
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...FIN 382 COMPANY ANALYSIS GROUP ASSIGNMENT PREPARED FOR : PUAN NORSALIZA BINTI ABU BAKAR PREPARED BY : KHAIRIL AZMAN BIN RADZALI 2010459076 DHARWIS BIN HASNIM 2010699142 MUHAMMAD FAIDI BIN SAFARRUDIN 2010408132 ELMIRUSHUDA BINTI AMERUDIN 2010248112 FAZLIAH NOOR BINTI MOHD FOUZI 2010834506 GROUP : JBM114 6A DUE DATE : 21st DECEMBER 2012 ECONOMY ANALYSIS 1.0 WORLD ECONOMY The world economy can be evaluated in various ways, depending on the model used, and this valuation can then be represented in various ways. It is inseparable from the geography and ecology of Earth, and is therefore somewhat of a misnomer, since, while definitions and representations of the "world economy" vary widely, they must at a minimum exclude any consideration of resources or value based outside of the Earth. For example, while attempts could be made to calculate the value of currently unexploited mining opportunities in unclaimed territory in Antarctica, the same opportunities on Mars would not be considered a part of the world economy – even if currently exploited in some way – and could be considered of latent value only in the same way as uncreated intellectual property, such as a previously unconceived invention. It is common to limit questions of the world economy exclusively to human economic activity, and the world economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods or services,...
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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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...the study of macroeconomics is important in making business decisions. Macroeconomics is the study of the economy as a whole. It is the study of the aggregate demand and aggregate supply which reflect the demand and supply of everybody in the whole country. It examines the activities and trends in economy’s wide phenomena, such as unemployment, inflation, economic growth, money supply, budget deficits, and exchange rates. The knowledge from this study will indicate the ‘health’ condition of economy in the country. As a business owner, the study of the macroeconomics is very important to make everyday business decisions as they have to focus beyond what is happening in the firm and look into aggregate demand and aggregate supply in economy. Managers always need information or knowledge to make decisions. Example is demand theory. If people get low income, they tend to spend less than when they are getting higher income. As the managers are forecasting the demand for their products and services, anticipation of how consumers’ incomes will grow should be learned. To make decisions, business owner should also know about the current interest rates for loans if they are about to borrow money from the financial institution. They should also be aware about where they stand in the business cycle. Cost of labour is another important reason to study of macroeconomic in order to make better decision. For example, during tight labour supply, the price or salary of the labour will shooting...
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...INTRODUCTION The objective of this mini project is the study the structure and performance of national economies and the policies that governments use to try to affect economic performance. Important topics in this mini project include the determinants of long-run economic growth, unemployment, inflation, and macroeconomic policy. In addition, this mini project are also able us to know the measurement of the standard living of a country in term of productivity, efficiency and effectiveness. Besides that, we are also able to determine what is measured by Gross Domestic Product, Inflation and etc as well as know how the government policy could contribute to improved productivity of the country. The picture below shows the brief idea how does Indonesia looks like. Picture 1: Tourism in Indonesia’s island Picture 2: Place to travel in Indonesia Picture 3: City in Indonesia Picture 4: Map of Indonesia Choose one country of the world The chosen country was Indonesia. The reason of Indonesia been chosen because Indonesia is given public an image that Indonesia is a lag behind country than other since there was a tragic event happened in Indonesia in the middle of 1997 all along. This causing Indonesian suffered a great deal and many of them have experienced a very large decline in their living standard. It was irony in Indonesia’s case seen a country...
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...The current rate of Singapore’s dollar against the United States’ dollar is 1USD=1.39SGD The Singapore dollar has depreciate slightly since recent months, with rates going to as high as 1USD=1.43SGD on 5th October. The exchange rate between the Sing dollar and the US dollar has been relatively stable since last year, May 2014 to Aug 2014. However, the exchange rate has been rising consistently since Aug 2014. The appreciation of the USD, or the depreciation of the Singdollar was due to a weaker Singdollar. The Monetary Authority of Singapore (MAS), which uses the exchange rate as its main monetary policy tool made a statement in January 28, mentioning that the Singdollar will be seeking a slower pace of appreciation against a basket of currencies. Given that US is likely to be a large trade partner of Singapore, the exchange rate between Singapore and US is thus likely to be affected. The strengthening of the USD due to signs of economy recovery, and a slower rate of appreciation of the Singdollar, has translated to a depreciation of the Singdollar since August last year. However, there was a reversal in trend in April this year, where the Singdollar strengthened and appreciated against the dollar. This reversal in trend could be due to the MAS decision in April to refrain from easing monetary policy further, which is likely to have increase investors’ confidence, and putting a stop on investors’ expectation of a weakening Singdollar. It is highly likely that the economic...
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...THE PERCEPTION OF TAXPAYERS TOWARD GOODS AND SERVICES TAX (GST) IMPLEMENTATION IN MALAYSIA CHAPTER ONE - INTRODUCTION 1.1 Backgroud of Study Malaysian taxation system is generally divided into two, which are direct taxes and indirect taxes. Indirect taxes are controlled by the Royal Malaysian Custom Department (RMCD) and it consists of four components such as excise duties, customs duty, sales tax and service tax. Direct taxes are under the control of the Inland Revenue Board of Malaysia (IRBM). The IRBM is responsible for all policies relating to direct taxes such as income tax of individual and business, petroleum income tax, real property expansions tax, and stamp duty. From the government perception, taxation is a vital economic tool because it can be employed to regulate the economy, to invigorate economic growth through the granting of fiscal incentives as a principal aim of implementing tax policies and to provide funds for development projects (JeyapalanKasipillai, 2005). The contribution of direct taxes and indirect taxes to government revenue in 2009 amounted to RM78.375 billion (49.4%) and RM28.129 billion (1 7.73%), respectively. This shows that taxation contributes more than 60% to the Malaysian government revenue. Recently, the Malaysian government established the implementation of goods and services tax (GST) to replace Sales Tax and Services Tax (SST). The GST plan was first raised in 1988 but at the time it was considered unnecessary because the sales...
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...Introduction The idea of introducing a flat consumption based Goods and Services Tax (GST) in Malaysia has been floated since 1989. It now seems as though this may become a reality in the 2014 Budget, with implementation beginning within 18 to 24 months at an initial rate of 4 % on the supply chain. The plan to overhaul the tax system has begun to gain momentum as the government deals with an increasingly weak economic outlook, combined with global uncertainty. While not at the emergency levels of many advanced Western European economies, Malaysia has not run a structural budget surplus since the Asian Financial Crisis hit in 1997. Federal government debt as a percentage of Gross Domestic Product (GDP) currently sits at 55.4 %.1 For the time being, this is manageable, but it is the government’s ability to reign this spending in, as well as lack of budgetary reform that has led ratings agency Fitch to downgrade Malaysia’s credit outlook to negative this year. The government’s recent 20 sen cut to the fuel subsidy and increasing speculation of a GST framework to be included in the upcoming budget can be seen as evidence that they are trying to remedy both structural and cyclical economic challenges. Furthermore, for far too long there has been an overdependence on the revenue generated from oil and gas dividends, which currently account for over a third of total government revenues. 2 A GST offers a single unified system where the tax burden is equally shared between the services...
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...ISSN: 2146-4553 www.econjournals.com Effects of Oil Price Shocks on the Economic Sectors in Malaysia Mohd Shahidan Shaari School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Malaysia. Email: shahidanshaari@unimap.edu.my Tan Lee Pei School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Malaysia. Email: pui_tlp@yahoo.com Hafizah Abdul Rahim School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, Malaysia. Email: hafizahrahim@unimap.edu.my ABSTRACT: This paper aims to examine the effects of oil price shocks on economic sectors in Malaysia. A unit root test was conducted, in which data were shown to be non-stationary in all levels, and stationary in the first difference for all variables. The co-integration model was applied, and the results indicated that one co-integrating equation exists, suggesting the long-term effects of oil prices on the agriculture, construction, manufacturing, and transportation sectors. Finally, Grange causality test was performed, and the results implied that in Malaysia, oil price shocks can affect agriculture, similar to Hanson et al. (2010). Oil price instability also influences the performance of the agriculture sector, contrary to the results of Alper and Torul (2009). In addition, the construction sector was found to be dependent on oil prices. Therefore, the current study has an important implication for the Malaysian government in formulating policies on oil...
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