The Malaysian Economy: Booming
The Economy:
Following a period of severe and prolonged recession, the Malaysian economy has returned to growth aided by a relaxation of monetary and fiscal policies and by increased export demand, particularly in the electronics sector. While the world economic slowdown was more severe than expected and the unprecedented September 11 events in the United States had widespread implications for all economies, Malaysia was able to steer away from a major economic contraction and GDP growth for the year remained in positive territory. However, given the openness of its economy with trade accounting for about 200 percent of GDP, Malaysia was not spared from the negative effects of the United States economic slowdown. These effects came in the form of declining manufacturing production and negative export growth, particularly of electronics. Nevertheless, the government’s initiation of strong monetary and fiscal policies to stimulate economic growth through accelerating domestic economic activities and reducing the over-dependence on exports helped the nation to sustain a positive real GDP growth.
Since 1998 the Government has relaxed the equity guidelines for investment in the manufacturing sector. Foreigners can now own 100% equity regardless of the level of exports and several incentives have also been introduced recently to promote the manufacturing-related services sector. Foreign Direct Investment has been the key to the country's remarkable success in recent years. Hundreds of international companies have so far established themselves in the country, attracted by the favorable investment environment has made Malaysia one of the world’s top locations for offshore manufacturing operations. Manufacturing is now the largest export sector of the economy (contributing around 34% of GDP and employing nearly 28% of the labor force in 2000). The electronics sector (radios and television) is the main export earner followed by processed foods, rubber, chemicals, timber, petroleum-refining and automobile manufacturing.
In 2001, the impact of the slowdown in economic activity was also felt by the labor market, particularly in terms of unemployed workers in the manufacturing sector. However, given the flexibility accorded by the labor market, alternative measures that were adopted by employers (such as pay cuts and temporary layoffs) helped contain the number of workers unemployed.
The Malaysian exchange rate remained pegged to the US dollar at the rate of RM3.80 per US dollar in 2001 (an arrangement that has been effective since 2 September 1998). The ‘Ringgit’ appreciated against all major currencies, including regional currencies in tandem with the strong U.
First, I will discuss the time period between 1973-1974. Because the unemployment and inflation rates are higher than normal, we can assume that the aggregate-demand curve is downward-sloping. When the aggregate-demand curve is downward-sloping, we know that the economy’s demand has slowed down. When the economy’s demand has slowed down, businesses have to choice but to raise prices and lay off workers in order to preserve profits. When employers throughout the country respond to their decrease in demand the same way, unemployment increases.
During the Great Depression many people lost their jobs and were unemployed. The Depression was a huge part of unemployment: “When the Great Depression reached its nadir, some
For this assignment I decided I would first describe to you what a typical day on the Medical Surgical floor at Decatur County Hospital looks like. As I was observing our day I was able to see a variety of nursing models all incorporated into how we provide care for our patients. Each shift has a CNL (Clinical Nurse Lead) how will be the charge nurse for the day. This person makes the assignments and is the “go to person” for any questions or concerns on the unit. Staffing for the unit typically consist of one or two R.N’s depending on our census, one CNA and one Ward Clerk. While the nurses are in report, the CNA takes vital signs and makes sure people are ready for breakfast. When breakfast arrives she delivers and sets up the trays. If the nurses are done with report they help too. In general the CNA has certain tasks that
In this periscope, Moses is encouraging the people and Joshua as they begin to enter the promised land. Moses is aware of his departure as leader and Joshua becoming his successor (Deut. 31:1-3). According to William Bridges transition process, Moses is preparing the people for transition in leadership. Moses words solidifies the need to let go of the way they did things under his leadership and embrace the leadership of Joshua (Deut. 31:7). The 40 years that the Israelites spent in the wilderness reflects what Bridges calls the “neutral zone”. The time in which they were in between letting go of the way things used to be under Moses leadership and beginning again towards the promise land under Joshua leadership. Once the Israelites entered the promised land the process of a “new beginning” under Joshua’s leadership is underway. The transition from Moses leadership to Joshua reflects Bridges transition process. In addition, it provides a valuable and biblical reference for pastoral
people need to be able to see what beds are available and what types of patients are
During the time of economic crisis starting around 2010 different rationalities have been taken to try and continue economic growth while maintaining a stable government system that is helping and not hurting. When examining government spending and how it affects the growth of the Gross Domestic Product (GDP) there seems to be disagreements on if it was helping or damaging the prospective growth that could be made. By using the Multiplier Effect the government can estimate how to adjust their government spending and how it effects the spending of the consumer, investments and spending of country’s exports.
I believe that this society, at least the economic aspect of it, would be possible to attain. However, I believe it cannot happen with our entire world. More made a point by putting Utopia on an island in the middle of the "real world": there is no way to apply Utopia to the "real word". In order to create a Utopia like this today, we must take very young children and raise them apart from society. If we do this and teach them about the society we are trying to create, I believe their reason will make the Utopia a lasting one. But if we try to create this Utopia over the whole Earth, we will fail miserably. The world is filled with billions of people who have been raised in our current society, and it is human nature to resist change. The economic situation of More's Utopia is possible, but only in a situation very close to the one in his book.
In order to assess the current state of the economy, the examination of important economic indicators or variables has always played a vital role in the understanding of the complex economic systems we live in. The analysis of these economic variables studied by many, not only has served as a tool to evaluate the current economic performance of a country, but also has allowed experts to envisage and continue the pavement of an economy's road. Currently, some economic variables have had favorable improvements indicating a general good outlook for the economy for the following months, requiring a further individual analysis and comparisons in order to foresee crisis or successes.
In addition, Malaysia is having a fiscal deficit and is already tracking above 5% of GDP. This means that Malaysia is having a reflationary fiscal stance and the government may implement a higher interests rates and higher taxes to decrease the budget deficit. This means that our company needs to pay more taxes and this will decrease the profits of our company.
In 1970, Malaysian government promoted the “Local Content Policy” due to improve the development of local and component industry in Malaysia. The government has played a vital role in establishing the contour of the Malaysian Automobile Industry in order to perform the National Economic Policy (NEP) in 1971. In early 1980, another phase in NEP was created by government to develop the car project (Proton) and steel plant (Perwaja). The investment tends to increased in these projects due to the higher import duties that imposed on both automobile and steel. In orde...
The leading model, Monetary Model links exchange rate movements to the balance of payment, which is used for medium to long term analysis. The following assumptions cons...
Mouhammed, A. H. (2011). Important theories of unemployment and public policies. Journal of Applied Business and Economics, 12(5), 100-110.
time. As time progresses, countries seem to be able to grow at a much more rapid
Perhaps the assignment uses an opportunity to address the case of Malaysian particularly on the aspect of international relations in order to analyze the behavior pattern of the characteristics of international politics, utility diverse historical junctures in which shifting bases of state power, paths of growth, and official manipulation of social identities join in the regulation of social order that facilitates capital accrual while maintaining state legitimacy in a multi-ethnic context. Therefore the term international relations can be describe in various dimensions such as political economy that basically looking into way of discovering how politics generates power over economics as well as associate. On the other hand international political economy is resource, which demonstrates the ability of national authority.
The main reason of job opportunities increasing is manufacturing, investment activities, financial market and economy situation of Malaysia is attracted to the foreigners. This will increase the wages and compensation of workers.