The fastest-growing economies of Malaysia in the developing world is start from year 1970s. Malaysia transformed from a major exporter of palm oil, rubber, tin, tropical timber and other primary commodities to the exporter of manufactured goods and this cause the country Per capita income become doubled in less than a generation. From year around 1970 until year 1980, economic growth was raise around 7.7% and it also raise to 5.8% in year 1980 to year 1990. In year 1990 to year 2005, the economic growth about 6.5%. During year 2008, crisis of financial appear and it caused the economic growth reduce.
Since they are at the bottom of the equator, Malaysia produces a lot of agricultural products from palm oil, rubber, cocoa, rice, subsistence crops, timber, and pepper. Despite that Malaysias economy was driven before mostly by the agricultural and export sectors, through the years, it had become one of the most vibrant economies in South-East Asia. This started when the tin market collapsed during the early 1980s, the Malaysian government was forced to diversify and modernize the economy. Since then, the government has played an active role in industrialization and economic development. This continues as of the present and now that Malaysia has a developing economy which, in recent years, has successfully transformed from an exporter of raw materials into a diversified
Therefore, this study attempts to test for the previous studies using other countries which have different result compared to Malaysia. Hence, this study will focus only on FDI at Malaysia. 1.2 Problem statement In Budget 2013, the Prime Minister announced from the first focus the boosting investment activity stated to transform Malaysia from producer to a global integrated trading hub 3 for oil and gas industry. The existence of valuable mineral resources, such as oil and natural gas make blessed Malaysia to get more revenue from oil and gas. Therefore, the government have to undertake several strategic measures to enhance the nation’s capability, particularly in providing an ecosystem to support the development of the chain of refining, storage and trading.
(Trade, Investment & Economic Cooperation Between China and Southeast Asia: The Case of MALAYSIA, 2004) All in all, the trade relations between Malaysia and China took place very rapidly, which can be seen the two countries are mutually need each other to meet their needs. It turns out trade relations between Malaysia and China is mutually beneficial to each other. Export and import activities between the two countries is increasing every year. Through rapid trade relations will further strengthen ties
The policy maker or government should be careful when attempt to influence the economy through changes in macroeconomic variables such as money supply, interest rates, or the exchange rate. They may unintentionally suppress the stock market and reduce capital formation which itself would lead to further slowdown of the economy (Syaheera & Shaari, 2011). This paper evaluates the dynamic interactions among four variables such as MS, ER, IR and COP and stock market return whether have significant impact or not. If there has significant relationship, it can conclude that the fluctuation of Malaysia stock market is strongly associated with the economic activities. On the contrary, if there has no significant relationship, it shows and proves that the volatility of Malaysia stock market is not correlated with the economic activities.
However, the privatization in Malaysia has resulted in both success and failure. The progress of Malaysian economy is highly influenced by three critical factors namely public delivery system, foreign direct investments and financial markets (Mun, 2007). It is believed that the poor public delivery system has caused the slowdowns of the Malaysian’s economy progress. As a result, Prime Minister, Abdullah Badawi, in year 2007, has instructed the public services and government-link companies to increase their efficiency level (Mun, 2007). In addition, foreign direct investments are important as they can contribute both financial and human capitals to the economy in Malaysia.
Malaysia is a country surrounding by the ocean and it is no surprise that most of the international trade is done through the maritime transportation. International maritime transportation is the main platform to export and import good and cargo as well as the mobility through the ocean or waterway internationally. According to the statistics, there are 95% of the Malaysia international trade is being carried through the international sea transportation. It is important and has contributing a lot of benefit toward Malaysia, not only in term of economic but also contribute knowledge, investments as well as job opportunity. International maritime transportation has generate tremendous economic benefit to the country.
These poverty is a most deep in many specific areas around the development in lack of economic insufficient natural resource, incompetence of innovation and other major factors. There are three main serious issues about poverty that, according to the statistic because of the undeveloped nations government is unable to create job and side by side increased the market price so people will pay more tax because of less number of jobs people are not able to fulfill their basic needs so they are not being able to spent money on their
On the other hand inequality also rises, so that the benefit from growth for the poor people can’t be obtained as great as if there is a stable distribution. The interrelationship between growth and inequality is greater in urban area rather than in rural areas. Rural areas has higher elasticity of poverty to growth as a result rural areas have to reduce their poverty rate more than urban areas, to some extent to reduce the poverty gap. This study also shows that rapid growth can not reduce poverty rate more than baseline growth since high savings rate are still required for increasing growth. Growth has chance to approach larger advantage for boosting poverty reduction (if the consumption as a part of Gross Domestic Product increases
According to the news I read, government envisage a forest in three years from now and allocated RM 40 million to enhance the quality of our lives. Forest Research Institute of Malaysia was committed to share a right way on creating urban forest and their knowledge to public to let them have a better understand on ecosystem. This project will step towards helping Majlis Perbandaran Subang Jaya fulfill its Green City Action Plan at year 2030. Nowadays, environmental pollution is the big issue happen in Malaysia. For the better of the future development, Malaysia must improve their politics, social and economic, but besides this, environment change is another way to develop our country.