Beruflich Dokumente
Kultur Dokumente
Introduction to
Malaysian Economy
Definition of Economics
The word economy comes form the Greek
word oikonomos, which means one who
manages a household (Mankiw, 2008).
Key Words
Gross Domestic Product
(GDP)
Inflation
Unemployment
Exchange Rate
Balance of Payments
(BOP)
Demand / Supply
Governments can
sometimes improve market
outcomes
A countrys standard of
living depends on its ability
to produce goods and
services
BASIC QUESTIONS
1.
2.
3.
4.
5.
6.
What to produce?
How to produce?
How much to produce?
Where to produce?
When to produce?
To whom to produce?
ECONOMICS
Production, distribution and
consumption of goods and services
Vs.
ECONOMY
Development of a country in achieving growth,
economic development
Economic
Economic
ECONOMIC
DEVELOPMENT
GDP
ECONOMIC STRUCTURE
Definition:
Every activity that leads to the production of
goods and services is an economic activity
Composition of various economic activities:
Primary sector, secondary sector, tertiary
sector
Early Economic
Development
Present Economy
Economic structure:
Primary sector: agricultural
sector (industrial and food
commodities), mining and
quarrying
Secondary sector:
manufacturing and
construction
Tertiary/services sector:
government administration
and trade services
1896 -Rubber
government sector
plantation being
services sector: wholesale,
commercialized.
retail trade, hotel and
Replacing coffee
with rubber because restaurant, finance,
rubber no longer
insurance, real estate and
important in the
business service, transport,
international trade.
storage, communication
1920 - Tin, rubber
exported
Economic Development
Plans
The
The
The
The
The
Plans
Plans
Plans
Plans
Plans
between
between
between
between
between
1956-1970
1971-1990
1991-2000
2001-2010
2011-2020
(Pre-NEP)
(NEP)
(NDP)
(NVP)
(NVP)
Economic Development
The
The
NEP
The
Economic Development
(Contd)
Malaysias
JAPAN
INDUSTRIALIZING
3.
THE NEWLY
ECONOMIES (NIEs)
FOUR TIGERS
Indonesia
Hong Kong
Malaysia
Singapore
Thailand
South Korea
----------------------------------------The Republic of China
ASEAN
----------------------------------------------------The Peoples Republic of China,
especially the Southern Provinces
2.
ECONOMY
Agricultural products: rubber, palm oil, cocoa, rice,
grain, coconuts and timber
Industrial sectors: semiconductors and electronics
radio and tv equipment
oil refining (East Malaysia)
refrigerating engineering, air
conditioning,
plywood, hardboard
motor
vehicles (Proton andPerodua)
iron and steel
rubber and
latex
industrial gas (worlds 17th
biggest
gas resources)
plastic products
ECONOMY
Export products: electronical equipment, petroleum
and liquefied natural gas, wood and
wood
products, palm oil, rubber,
textiles,
chemicals
Import products:
electronics, machinery,
petroleum products, plastics, vehicles, iron and
steel products, chemicals
Exports: more than RM 500 million (2007)
Imports: more than RM 500 million(2007)
ECONOMY
The most important trade partners:
Exports USA (19.6%), Singapore (15.7%), Japan
(10.7%), China (6.5%), Hong Kong
(6.5%),
Thailand (4.4%) (2003)
Imports Japan (17.3%), USA (15.5%), Singapore
(11.9%), China (8.8%), South Korea
(5.5%), Taiwan (5%), Germany (4.7%),
Thailand (4.6%)
Source: 2003
DEVELOPED
INFRASTRUCTURE
BUSINESS ENVIRONMENT IN
MALAYSIA
PUBLIC SECTOR
slow and bureaucratic
long preparation times
for projects
decisions concerning
offers are sometimes
made in advance
PRIVATE SECTOR
fast and dynamic
controlled by the
Chinese
(family = company)
minimum capital
investments
projects are carried
out quickly
Vision 2020
society
Najibs Development
&Economic Policies
GTP
ETP
NEM
1Malaysia
10th
Malaysia Plan
Budget 2011, 2012, 2013, 2014
Government Transformation
Program
GTP
The
Reducing crime
Fighting corruption
Improving students outcomes
Raising living standards of low
income households
Improving rural basic infrastructure
Improving urban public transport
Addressing cost of living
Economic Transformation
Programme
The
NKEAs
12 National Key Economic Areas (NKEAs), representing sectors where growth
will be focused on.
These sectors were identified based on their potential to contribute to GNI and
create multiplier effects across the economy.
The Government also factored in Malaysia's competitive advantages such as its
skilled workforce, abundance of natural resources, expertise in manufacturing
and its potential to create a niche for itself in the selected sector
Oil, Gas and Energy
Palm Oil & Rubber
Financial Services
Tourism
Business Services
Electronics & Electrical
Wholesale & Retail
Education
Healthcare
Communications Content and Infrastructure
Agriculture
Greater Kuala Lumpur/ Klang Valley
SRIs
The programme also identified six Strategic Reform Initiatives
(SRIs) made up of supportive policies that will drive Malaysias
global competitiveness. The main thrust of the SRIs is to
create an efficient, competitive and business-friendly
environment in Malaysia that will allow world-class, local
champions to thrive and attract valuable foreign investment.
Competition, Standards & Liberalization
Public Finance Reform
Public Service Delivery
Narrowing Disparities
Government's Role in Business
Human Capital Development
NEM
1 Malaysia
1Malaysia