...International Review of Business Research Papers Vol.2. No.1 August 2006 pp.1-14 An Evaluation of SME Development in Malaysia Ali Salman Saleh∗ and Nelson Oly Ndubisi∗∗ Small and medium enterprises (SMEs) in play a vital role in the Malaysian economy and are considered to be the backbone of industrial development in the country. However, few studies examined their development, challenges and future prospects. Therefore, the aim of this paper is to examine and analyse the role of SMEs in different sectors as well as their major contribution to the economy. The paper goes further to review the existing literature as well as the empirical studies in order to identify the major challenges (domestically and globally) that face this sector. The key messages from the studies examined in this paper are that Malaysian SMEs still face many domestic and global challenges in achieving economies of scale and competing internationally. Among the challenges are the low level of technological capabilities and limited skilled human capital resources, a low level of technology and ICT penetration, low levels of research and development (R&D), a substantial orientation towards domestic markets, a high level of international competition (for example, from China and India), a high level of bureaucracy in government agencies, and internal sourcing of funds. These characteristics suggest that government programs and incentives are either insufficient or not delivered effectively enough to overcome...
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...Reflective Essay: Labour and migration According to O’Brien and Williams (2013), the concept of division of labour has long been practiced since before the 1800s. Nevertheless, division of labour may vary according to different variables like region, ethnicity and even gender. However, despite the existence and growth of massive inequalities around the world, people still seek to increase living standards and influence the division of labour in their organizations. Hence, the more advanced a society, the greater the division of labour. In my opinion, Malaysia faces the challenges of labour as a developing country. The two major issues is the gendered or racial and ethnic division of labour. This situation can be observed in the administration of the Malaysian government where a woman as a leader is not unheard of, but definitely scarce. The same case applies to a non-Malay government servant who are only minorities in a Malay dominated administration. The racial division is used to justify legal status and economic exploitation of these groups of workers (Persaud, 2001). Even since the pre-independent days, the Malays were focused mainly on agricultural activities, while the Chinese dominated Malaysian commerce. The Indians however were divided into two groups, the professional role or the plantation industry depending on their educational background. As a result, people tend to migrate to explore their options and opportunities. Migration is an urban phenomenon...
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...International Review of Business Research Papers Vol.2. No.1 August 2006 pp.1-14 An Evaluation of SME Development in Malaysia Ali Salman Saleh∗ and Nelson Oly Ndubisi∗∗ Small and medium enterprises (SMEs) in play a vital role in the Malaysian economy and are considered to be the backbone of industrial development in the country. However, few studies examined their development, challenges and future prospects. Therefore, the aim of this paper is to examine and analyse the role of SMEs in different sectors as well as their major contribution to the economy. The paper goes further to review the existing literature as well as the empirical studies in order to identify the major challenges (domestically and globally) that face this sector. The key messages from the studies examined in this paper are that Malaysian SMEs still face many domestic and global challenges in achieving economies of scale and competing internationally. Among the challenges are the low level of technological capabilities and limited skilled human capital resources, a low level of technology and ICT penetration, low levels of research and development (R&D), a substantial orientation towards domestic markets, a high level of international competition (for example, from China and India), a high level of bureaucracy in government agencies, and internal sourcing of funds. These characteristics suggest that government programs and incentives are either insufficient or not delivered effectively...
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...interpretations according to their own perspective. Some view it from the political angle, other, social or economic and many more, until the concept of development takes many forms. The citizens of Malaysia being different race, religion and descent, must be clear about this issue. This matter is all the more important because the people themselves took over the rule from the colonialists. Focus is given to the country’s main developmental policies before 13 May 1969, the New Economic Policy (NEP)that became the first long term plan known as Outline Perspective Plan 1 (OPP1), followed by the second long term plan (OPP2) and the third long term plan (OPP3). These philosophies and principles underlying development will hopefully enable all Malaysians to appreciate the direction or objective of the country’s development that has as its aim, national unity and racial integration. Besides that, the objective is also to raise the status of the citizens of Malaysia as a nation that is developed, progressive and harmonious as envisaged in Vision 2020. National Development Objective The general objective of development is mentioned that to provide a peaceful life to the citizens of various races. To achieve this objective, the role of government authorities as the ruling body becomes very wide. Among them would be the preparation of education facilities by constructing primary school, secondary schools, colleges and universities; communication and transportation facilities by...
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...Foreign direct investment (FDI) occurs when a firm invests funds in business activities out of its country of origin. In order for a firm to become involved in FDI, three conditions of Dunning’s Eclectic Theory (1993); (1) ownership, that is a company possessing an advantage which gives them a competitive edge in the international market as compared to its domestic market, (2) location, where the country a company intends to invest in must have the right pull factors which will be in favour of the investing company, and (3) internalisation, that is transferring the company’s ownership advantage is more beneficial than selling it off, must be satisfied. Emerging countries focus and rely heavily on FDI as it is a vital element which assists in boosting the country’s development and economic growth. Like other developing countries, Malaysia too depended on FDI and benefitted greatly from the strong inflow (Shahrudin, Yusof, & Satar, 2010) and transformed from an agriculture-based economy to an industrial economy (Wong, 2005). Despite being an attractive FDI destination, as well as an eminent host country to foreign investors, Malaysia has seen an 11% decline in FDI inflow (U.N. Conference on Trade and Development, 2015). A country’s rise or fall in FDI is affected by several determinants such as the market factor, trade barriers, costs, and investment climate (Hill, Cronk, & Wickramasekera, 2014). This essay will serve to discuss both domestic and global factors influencing...
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...| COLLABORATION PROGRAM WITH | PERAK COLLEGE OF TECHNOLOGY DEGREE IN MANAGEMENT (TECHNOLOGY) SUBJECT: ULAB3162 ENGLISH FOR PROFESSIONAL PURPOSES TOPIC: ANALYSIS OF MALAYSIA’S ECONOMIC CRISIS 2015 PREPARED BY: TUN MUHAMMAD FALIQ AIZAT 900711-08-6343 PREPARED FOR: MISS YASOTHA 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...
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...International Review of Business Research Papers Vol.2. No.1 August 2006 pp.1-14 An Evaluation of SME Development in Malaysia Ali Salman Saleh∗ and Nelson Oly Ndubisi∗∗ Small and medium enterprises (SMEs) in play a vital role in the Malaysian economy and are considered to be the backbone of industrial development in the country. However, few studies examined their development, challenges and future prospects. Therefore, the aim of this paper is to examine and analyse the role of SMEs in different sectors as well as their major contribution to the economy. The paper goes further to review the existing literature as well as the empirical studies in order to identify the major challenges (domestically and globally) that face this sector. The key messages from the studies examined in this paper are that Malaysian SMEs still face many domestic and global challenges in achieving economies of scale and competing internationally. Among the challenges are the low level of technological capabilities and limited skilled human capital resources, a low level of technology and ICT penetration, low levels of research and development (R&D), a substantial orientation towards domestic markets, a high level of international competition (for example, from China and India), a high level of bureaucracy in government agencies, and internal sourcing of funds. These characteristics suggest that government programs and incentives are either insufficient or not delivered effectively...
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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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...Studying locally and studying overseas The advantages and disadvantages of studying locally and studying overseas have long been discussed especially among high school graduates. The options available to pursue further in studies and the choices made will contribute to how a particular individual’s future is shaped. Both studying locally and studying overseas have their ups and downs that could benefit students or causes challenges for them. Studying locally and studying overseas can be compared in terms of cost of living, academic benefits, language and more. First and foremost, the cost of living of studying overseas is higher especially in well-developed countries. With a present low Ringgit Malaysia currency value, it should be tougher for students to meet the basic needs in countries like the United States and Australia. The fees for college itself is already expensive and this does not yet include the expenditure for accommodation, food and transportation. Contradictory, studying locally is much cheaper. Moreover, the presence of government universities help student to pay cheaper college fees. Even if the students don’t study in a government college or university, there are quite a high number of financial aids being provided as loans or scholarships. The expenditure for accommodation, transportation, and basic needs are also cheaper. Furthermore, studying overseas allows the opportunity to travel providing students with new and more experiences. Students get to see...
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...Purina Petcare Company is a leading company in the pet products industry. Purina Petcare Company is truly dedicated to improving the lives of cats and dogs through quality nutrition and care. Core philosophies include promoting responsible pet care, humane education, community involvement, and the positive bond between people and their pets. PURINA Petcare Company was formed when Friskies PetCare Company and Ralston Purina merged in December 2001. The new organization combines their rich histories, diverse resources and complementary strengths, offering pets and their owners a wide variety of innovative, high-quality and nutritious products. Competitors of the Company: * Iams Proactive Original ( www.iams.com ) * Hills Pet ( www.hillspet.com ) * Whiskas ( www.Whiskas.com ) Suppliers: * Shouguang Xincheng Food Co., Ltd. (supplies raw materials for manufacturing) * Qingdao Odenry Pet Product Co., Ltd (supplies raw materials for manufacturing) * Pet Center Inc. China Co., Ltd. (supplies raw materials for manufacturing) Intermediaries: * Hileytech Sdn Bhd (reseller of pet food and other services) * Pet Lovers Centre (retailer of certain cat food products and vet services) * Qian Hu The Pet Family Sdn Bhd (seller of certain cat food products and services) Customers: * Pet-specific customers (those who only look for specialty store that caters their own specific pet. For example, cat enthusiasts only visit stores that only specializes in...
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...1Malaysia - Concept and Values By Ir. Dr Hasnul Mohamad Salleh Abstracts Upon ascending to Malaysia’s highest public office on April 2009, the Prime Minister of Malaysia, YAB Dato’ Sri Najib Tun Razak has made waves to all corners of the nation with the introduction of 1Malaysia concept. The concept evolves around culture of excellence, perseverance, acceptance, education, integrity, meritocracy, humility and loyalty. It also encompases NKRAs on six major issues. Since independent, national unity has been made top priority – unity in education, culture, socio-economy, political, regional, etc. 1Malaysia seeks to improve the relations of all Malaysians, regardless of racial, religious or cultural backgrounds. There are certain major concerns that need to be addressed in order to seriously engage in 1Malaysia concept. Without correcting them, all efforts will be in vain. 1Malaysia concept caters the needs of all sector of the plural society and to ensure equal distribution of wealth between racial groups, between states and federal. Integrity on the part of the government and the public sector is one matter. The introduction of NKRAs and KPIs is a laudable move. The managing of all spectrums of unity (not just racial) is to be given proper thinking. In order to move Malaysia towards a better society, identity and future hence unity and integration should promote co-operation between race, beliefs and region as one Malaysia, not as Sarawakian or Sabahan. The trust and aspiration...
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...SWOT Pointers STRENGTHS 1. Kopitiam offers a conceptualized diner that sells a wide variety of Asian Cuisines 2. Flexibility in layout and operations enables Kopitiam to adapt to consumers’ ever-changing needs. i.e. adding a stall for a new variety of food if it is in demand 3. Strong marketing team ▪ Kopitiam has successfully penetrated into Shanghai, China market in December 2003, with a second outlet set up within a month’s time 4. Competent in managing diverse portfolios ▪ With their existing portfolio that ranges from cafes, food courts, food shops to a food mall, it shows Kopitiam’s capability in marketing to different market segments 5. High investor/partnership confidence due to successful track records WEAKNESSES 1. Lack of resources to penetrate the US market ▪ Kopitiam may experience difficulties in attracting skilled vendors from the Queens’ community 2. Potentially slow product diffusion in New York City (NYC) due to the locals’ unfamiliarity with this dining concept. OPPORTUNITIES 1. The Asian population in Queens, NYC makes up to approximately 511,787, representing 22.9% of the entire borough’s population; and 49.3% of the entire NYC’s Asian population (U.S. Census Bureau, 2010) ▪ This figure signifies a potential market need for Asian food. ▪ The large population of Asians can contribute to the role of innovators and early adopters in the product...
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...Maxwell Road Hawker Centre Experience an authentically Singaporean dining experience by having a meal at a food centre here. Located in the heart of Chinatown, Maxwell Road Hawker Centre has over 100 stalls, providing one of the biggest varieties of local food in Singapore. Even with the influx of vendors, the stalls’ offerings are very varied and you will easily spoilt for choice here. Some must-try items here at Maxwell Road Hawker Market include the famous Tian Tian Chicken Rice, the traditional congee with pork and century egg from Zhen Zhen Porridge stall and the popular char kway teow from the Marina South Delicious Food stall. 2am Dessert Bar Sitting in one of Singapore’s most popular hang-out spots, Holland Village, 2am Dessert Bar is the perfect setting for a romantic late-night dessert or intimate conversations with best friends. If you appreciate aesthetics, you’ll definitely enjoy your experience here. Creatively-styled concoctions like the Amedei Chilli Chocolate and the English Sticky Toffee Pudding are two of the more appreciated items on the menu, while anyone who’s visited would recommend the Araguani H2O, a 72 percent Valrhona chocolate cake infused with Evian mineral water and with a surprising caramel mousse centre. Sink back into the plush daybeds, or sit by the contoured bar to watch your dessert as it’s prepared. Wherever you choose to seat, 2am Dessert Bar’s cosy ambience ensures that you’ll have a great time. And if you’re curious about what’s behind...
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...everyone’s mind. The other question that is being asked is should the Malaysia ringgit be pegged again? It is exactly 10 years since the peg on the ringgit was removed. Then prime minister and finance minister Tun Mahathir Mohamad pegged the ringgit at RM3.80 to US$1. Malaysians started getting worried when the ringgit’s value dropped drastically immediately after global crude oil prices plunged in September 2014, depreciating 16.4 per cent against the US dollar. It is so bad that the Malaysian currency is now Asia’s worst performing exchange rate this year. Malaysia has so many crises right now. One of the main crises is 1MDB. From Singapore point of view, protecting the ringgit from political fallout out may end up costing Malaysia more than any bailout for the debt-ridden 1MDB state fund, given the rate at which the central bank has been using its reserves in recent weeks. Bank Negara Malaysia (BNM) has taken an iron-fisted approach, barely allowing the ringgit to move since early July as investors became increasingly unnerved by the deepening scandal over how 1 Malaysia Development Berhad got into $11 billion of debt. On the same time, Prime Minister Najib Razak sacked his deputy, who had called on him to give Malaysians a better explanation of where 1MDB's money went. Three other ministers were also shunted in the reshuffle. Najib also replaced the attorney-general. That’s show Prime Minister Najib Razak is thinking only for himself. He is doing that because he wants someone that...
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...again pegged to a basket of major currencies in September 1975. Since then to the middle of the 1980s, the exchange rate policy of BNM had focused on the stabilization of the exchange rate against the Singapore dollar. After several speculative attacks, the ringgit was allowed to float more against both the Singapore dollar and the US dollar in the end of 1984. The exchange rate system since then can be classified into a managed floating system. This regime had lasted until July 1997, when BNM gave up to sustain the exchange rate in the wake of the Asian Crisis. Since September 2, 1998, the ringgit has been pegged to the US dollar at US$1.00=RM3.8010. History and development of exchange rate regime in Malaysia Ringgit Malaysia (RM) or Malaysian Dollar is known as the currency using by Malaysia, formally introduced in 12 June 1967. Prior of this date, Malaysia was under controlled and protected by the British, that time Malaysia are called Malaya and used the Malayan dollar as official currency. Malayan dollar also used by Singapore and Brunei on that period. On 12 June 1967, Ringgit Malaysia officially issued by the new central bank, known as Bank Negara Malaysia, replaced the Malaya and British Broneo dollar at...
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