Economic Issues In Malaysia

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In this assignment, we will discuss some economic issues which related to inflation, unemployment issue, GDP in Malaysia. We hope we can learn something new and knowledge relating to the economics and ensure that we have better understanding about this subject, as well as apply the knowledge in the future. We will briefly explain each of the economics issues in the following paragraph.
In economics, inflation refer to an increased prices in the general level of goods and services over a period of time. When the price level increases, the fewer goods and services that each currency able to purchase. Inflation may cause many negative impacts on economy growth of a country and the country itself. High inflation rate will increase
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In Malaysia, inflation become very hot issue after implementation of the good and service tax by government. Malaysians feel that the implementation of GST will lead to negative impact on society as our citizen is highly dependable on domestic consumption.
Inflation may cause negative impact on investment in Malaysia also. The competitive advantage of exported goods and services might be lost among investors if the price level has increased. Thus, it will affect the particular industries as income from export will decreases and this will lead to decrease the investment. When the demand is increased and couldn’t meet the equal increase in supply, it will bring about the general price level and this may lead to inflation to be happen in a particular nation. For instance, an increased in price of raw materials and wage rate may lead to the increase in production costs as well.
However, there are many factors that affect inflation of Malaysia throughout the past few years. These factors can be summarized into two aspects which are caused by economically or external factors apart from economy. From the research we knew that, there are main three factors that affecting inflation in Malaysia which are money supply, exchange rate and unemployment
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In my opinion, I agreed with those three factors which affect the inflation in Malaysia as they shown the much impact to the nation. Therefore, government able to implement some financial policy such as decrease the unnecessary expenditure on non-development activities or increase in wages to increase in productivity of labor in order to overcome the problem of high inflation.
Unemployment Among Graduates in Malaysia
Now days all developing countries face the issue of unemployment among graduates. High unemployment rate may lead to slow down the growth of a country.. The unemployment is interrelated economic development that should be addressed in the labour market.
From this study, the researchers identified some of the reasons that cause the high unemployment rate among graduates in Malaysia. The first factor is communication skill. Many companies especially multinational companies and international subsidiaries are recruiting graduates which are fluent in English communication. Companies believe that graduates are fluent in English communication will work more effectively within the organization in order to improve productivity. Moreover, graduates are proficient in English and ability to work in a team, good interpersonal skills will be prior choice for those organization. So, graduates must emphasize and try to improve their English level and communication skills as crucial for graduate employment
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