GDP In Malaysia Research Articles

HOW TENURE OF SUKUK ISSUANCES IMPACTS THE ECONOMIC GROWTH IN MALAYSIA?

The present paper analyses the impact of Sukuk issuances on the economic growth of Malaysia over a period of 10 years from 2008 to 2017 on a yearly basis. There are six different types of Sukuk issuances which includes the long-term government/treasury/central bank (LGTC), long-term corporate (LCTE), long-term agency (LAGY), short-term government/treasury/central bank (SGTC), short-term corporate (SCTE) and short-term agency (SAGY) with the presences of the moderating variable which is the exchange rate (ER). The 10 years’ time-series data were analyzed by using the diagnostic test, unit root test and multiple regression analysis. The outcome of the study indicates that the presence of the ER, LCTE, SGTC, SCTE, and SAGY found to have a significant and positive relationship with the economic growth (GDP) of Malaysia. However, LGTC found not to be significant but shows a positive relationship with the GDP in Malaysia, whilst LAGY is found to be significant but shows a negative relationship with the GDP in Malaysia. Therefore, the Sukuk issuances give an impact on the economic growth of Malaysia, whereby with the presences of the moderating variable, the long-term and short-term Sukuk issuances can spur the economic growth of Malaysia.

Analyzing the Direct and Indirect Impact of Budget Deficit and other Factors on GDP in Malaysia

Analyzing the Direct and Indirect Impact of Budget Deficit and other Factors on GDP in Malaysia

Factors Determining Gold Prices in Malaysia

Gold is a valuable asset to a country because of its liquidity. Gold reserve can stabilize the currency in a country. The objective of this paper is to identify the factors contributing to the volatility of gold prices, such as Real Malaysia GDP, inflation rates, crude oil prices and exchange rates. The data was analysed using Autoregressive Distributed Lag (ARDL) approach with time series data, with 30-year coverage from 1987 to 2016. Findings showed that only Real Malaysia GDP and crude oil prices were significantly related to gold prices. As a conclusion, this study can be used as reference by other investors. The author suggests to other researchers to further improve upon this study by adding more variables or diversifying the variables that relate to volatility of gold prices.

Empirical Investigation on Attitude towards Personal Loans Borrowing

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Macroeconomic Instability Index and Malaysia Economic Performance

The economic performance of Malaysia was affected by a series of financial crises that had induced macroeconomic instability in the country, which in turn had immensely dampened the nation’s economic growth rate. No doubt Malaysia needs an indicator to monitor the nation’s economic performance from time to time. This study attempts to construct such indicator known as Macroeconomic Instability Index (MII). The constructed MII shows two significant spikes at 1998 and 2008, which correspond to the Asian Financial Crisis and US Subprime Mortgage respectively, that had resulted in negative growth rate for GDP of Malaysia in 1999 and 2010. Results obtained from further analysis by the ARDL technique show that MII has negative and significance effects on economic performance. Moreover, MII has predictive power against economic performance as early as two periods in advance. The constructed MII could serve as end-product for policy purposes or intermediate-product for other economic and finance studies.

Employer branding and employee engagement of furniture retailer in Klang Valley

The paper discussed on the relationship between employer branding and employee engagement among employees in selected furniture retailers in Malaysia. This study also looks into the state of employees’ engagement and gender differences in their engagement towards their organization. Furniture retailing falls under the retail trade industry that contributed about RM35.7 billion to Malaysia GDP in 2017 with expected growth of 8.7 percent. However, the industry suffers an average yearly employee turnover rate of 13 percent. Amid this high turnover, the raising question is can popularity of employers’ branding can result in employee engagement leading to their retention in the organisation. 350 respondents were chosen randomly and 120 (30%) respondents had given feedback on the personally administered questionnaires. The result revealed that there is significant relationship between employer branding and employee engagement. The study also indicated that work challenging is the most important variable which led to drive the employee engagement. Consequently, there is significant difference between male and female in terms of engagement. Organisation, hence may consider leveraging employee engagement which may lead to retaining their employees. Future research may consider researchers to pursue a longitudinal method of research design across a variety of firm-sizes and industries that would be more significant in making generalizations.

PLUNGING OIL PRICES IMPACT MALAYSIA’S AND INDONESIA’S ECONOMY

Oil has a profound impact on the world economy. This study examines the impact of changes (falling) in oil prices on the two oil producing ASEAN countries – Malaysia and Indonesia using quarterly data from 2005:Q1 to 2014:Q4. A cointegration analysis using an autoregressive distributed lag equation (ARDL) is conducted between oil and the Malaysian and Indonesian economy. Next, single equations are estimated on the impact of oil price changes on macroeconomic variables, followed by a VAR formulation to trace the impact of oil price using impulse response function and variance decomposition. The single equation estimates indicate that real oil prices have a significant positive impact on Malaysia/Indonesia GDP, while it is insignificant on inflation rate and real exchange rate. Using an unrestricted VAR model, real oil price growth shocks have positive and negative response on the growth of Malaysia GDP, Indonesia GDP and US GDP. However, the negative response is found more significant for the growth of Indonesia GDP, while the growth of US GDP has a larger influence on Malaysia GDP as compared to Indonesia GDP. Changes in real oil price are less impactful on Malaysia government expenditure and Malaysian Ringgit, compared to inflation rate and net exports.

The Cyber-Attacks and Digital Economy in Malaysia during 1997-2016

This article focuses on the study of the cyber-attacks and digital economy in Malaysia during 1997-2016, by using data from Malaysia Computer Emergency Response Team (MyCERT), in order to (1) to find out the types and patterns of all cyber-attacks in Malaysia during 1997-2016, (2) to compare the cyber-attacks in Malaysia during 1997-2016 according to tourist seasons of Malaysia, and (3) to investigate the relationship between GDP of Malaysia and the cyber-attacks in Malaysia during 1997-2016. Frequency, percentage, mean, standard deviation, One Way ANOVA with LSD, and Pearson's Product-Moment Correlation are the statistics employed for data analysis. The level of significance was set at.05. The results are as follows: (1) there are 103,423 attacks, or 477 attacks per months during 1997 to 2016 in Malaysia. In each year, there are 6 months (August, September, July, June, October, and November) for high volume attacks due to many top events in Malaysia, (2) the big four in Malaysia during 1997-2016 are Fraud, Abusive content, Intrusions, and Malicious code with three patterns of attacks, (3) tourist seasons of Malaysia affected the cyber-attacks at the.05 level of significance, both overall and categorical level (Abusive content and Fraud). The amount of cyber-attacks in high season is always less than shoulder season and low season, and (4) there are high positive relationships between GDP of Malaysia and the cyberattacks in the overall level, and categorical level (Availability, Intrusion Attempts, and Intrusions) at the.01 level of significance.

Growth Slowdowns and Role of Government Linked Companies (GLCs) in Malaysia

Growth slowdown is a period of stagnation or recession that represents the substantial deviation of a country due its previous norm in term of interest.It will bring interest to policy makers and usually these slowdowns will bring anxiety to middle income countries.The purpose of this study is to examine growth slowdowns and the role of GLCs in contributing to Malaysia GDP. The structure of the reporting will be based on three main topics, growth slowdowns, GLCs efficiency and relationship existence among technical efficiency and GDP growth.The analysis will firstly look into the growth slowdowns and structural break. Secondly, data envelopment analysis will be used to measure the efficiency and finally Granger causality test were conducted to ensure the relationship among the variables on GDP especially technical efficiency of GLCs.

Business Cycle and The Macroeconomics Performance: Evidence of Malaysia and Indonesia

Stable economic growth is the major macroeconomic goal which is all nations seek. Economist and policy makers have been tried to find the ways to sustain and maintain stable economic growth. This paper examines the macroeconomic fluctuations and economic growth in Malaysia and Indonesia and its determinant by using multiple regression models. Five variables were chosen for the model namely variables are Money supply (MS), Industrial production (IP), Interest rate (IR), exchange rate (ER), Consumer price Index (CPI) and stock prices. The study shows that Money supply (MS), Interest rate (IR), exchange rate (ER), and stock prices are among others, the determinant factors of macroeconomic fluctuations in both countries. Specifically, the empirical results reveal that Interest rate (IR), exchange rate (ER), and stock prices has significant contribution to the performance of real GDP in Malaysia while Money supply (MS) and exchange rate (ER) are the main cause of macroeconomic fluctuations in Indonesia. This may be due to the different monetary policies pursued by the two countries. The two countries might have different monetary policy strategies; Malaysia pursues interest rate targeting policy, whereas Indonesia applies inflation rate targeting policy.The study recommends for both countries government policies play an important role in economic performance. Therefore, a careful policy should be the foremost important factor for economic in these nations and the every country in general.

An Econometric Analysis of Food Security and Related Macroeconomic Variables in Malaysia: A Vector Autoregressive Approach (VAR)

Food security is a concept originated in the mid-1970s. According to the definition of the Food and Agriculture Organization (FAO), food security is a situation that exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life. At the national level, food security is a situation whereby a country is able to cover the food requirements of its population on a continuous and stable basis. Malaysia, although a middle income country, has been a net food importer in the last four decades. In fact, the country has grown to depend more on imports for most important food especially rice. With these trends lurking, understanding the determinants of food security is important because it will help the policy makers keep abreast of the main variables for food security in Malaysia. This paper thus analyse the dynamic relationship between selected macroeconomic variables (biodiesel production, exchange rate, government expenditure on rural development, Malaysia's GDP, food price index and Malaysia's population) and food security in Malaysia using VAR approach. The variance decomposition also shows that biodiesel production, exchange rate and government expenditure on rural development variables will give the highest shock to food security in year ten. Whereas exchange rate and population in year five and finally GDP in year six. This model is a useful tool and reacts as an effort to better understand how food security reacts and is affected by the integration of domestic and global markets. It could also provide a more quantitative means of assessing food security, and in particular to pinpoint specific variables that explain the highest shock to food security at the national level. It would also benefit to consumers and policy makers.

Competitive Priorities in Malaysian Service Industry

Despite their significant importance, competitive priorities in the developing world have hardly been studied. Whatever attention has been devoted to competitive priorities has been given with reference to the manufacturing industry. Malaysian service industry stands no exception to this. Once a slowly-growing economy, Malaysia in the last few decades has grown consistently and is now one of the tiger economies'' with impressive growth rate. This growth rate is noticeable both in the manufacturing and services sectors. The services sector represents about 50 percent of the GDP of Malaysia. However, there is hardly a study about competitive priorities of service industries in Malaysia that too despite the important role of service industry in Malaysian economy. Knowing about the Malaysian service industry and the competitive priorities of different industries within it is thus interesting. There is a big gap in the present literature with regard to service industry in Malaysia and it is a big shortcoming given the economic stature of Malaysia in the South-east Asian region. To fill this void in the literature, this study makes a modest attempt to: a. explain the components of competitive priorities of Malaysian service firms; b. find out the competitive priorities of different service industries in Malaysia; and c. find out how competitive priorities change across low performance'' and high performance'' service industries. This paper reports findings based on the data collected from nine diverse service industries in Malaysia: Fast food, Hospital, Retails store, Bank, Private college, Accountant, Hotel, Auto-repair and Architect. Such diverse industries have been surveyed to get a holistic picture of the Malaysian service industry and achieve some degree of cross-industry perspective.

An Empirical Analysis of the Relationship between GDP and Unemployment, Interest Rate and Government Spending

This research work explores the impact of macroeconomic variables such as unemployment rate, interest rate and government spending on GDP of Malaysia in the light of 30 years data, for the period of 1981 to 2010. This research was secondary data based, and multivariate regression analysis was used to analyze the data. Econometric model used for analysis consisted of GDP as dependent variable while the independent variables were unemployment rate, interest rate and government spending. Data was taken for these variables from the website of Central Bank of Malaysia, World Bank and University data stream. The study found that there is significant impact of inflation, interest rate and exchange rate on GDP. As far as the signs of co-efficient are concerned, unemployment rate had negative relation with GDP while interest rate and government spending possessed positive relation with GDP. Based on results and its analysis it is recommended that government adopted tight monetary policy to reduce inflation as the results indicate that inflation has significant but negative impact on GDP. In case of developing countries like Pakistan high value of real exchange rate should be maintained because results show that there is significant and positive impact of exchange rate with GDP. Ceiling of interest rate should be removed in order to boost the economy.

Construction and Economic Development: The Case of Malaysia

The construction sector plays a crucial role in economic development. The causal link between construction activity and economic development in Malaysia is examined. Granger causality methodology was employed to investigate the lead-lag relationships between the construction flow and the GDP of Malaysia on the quarterly time series between 2000Q1 and 2009Q4 and the yearly time series between 1970 and 2009. The quarterly data shows two-way direction of relationship between the construction and the overall economy. The yearly data shows a unidirectional causality running from construction sector to the aggregate economy. It concluded that the construction activity may cause changes in GDP but GDP does not adjust instantaneously to change in construction activity. The result is expected to be useful for policymakers and industrial practitioners in formulating industrial policies and corporate strategies.

Multivariate Granger causality between electricity generation, exports, prices and GDP in Malaysia

This paper employs annual data for Malaysia from 1970 to 2008 to examine the causal relationship between economic growth, electricity generation, exports and prices in a multivariate model. We find that there is unidirectional Granger causality running from economic growth to electricity generation. However, neither the export-led nor handmaiden theories of trade are supported and there is no causal relationship between prices and economic growth. The policy implication of this result is that electricity conservation policies, including efficiency improvement measures and demand management policies, which are designed to reduce the wastage of electricity and curtail generation can be implemented without having an adverse effect on Malaysia’s economic growth.

Foreign Direct Investment, Exports, and Economic Growth in Selected Emerging Countries: Multivariate VAR Analysis

The paper adopts a time series framework of the Vector Error Correction Models (VECM) to study the dynamic relationship between export, FDI and GDP for six emerging countries of Chile, India, Mexico, Malaysia, Pakistan and Thailand. Stationarity of the series with structural breaks is also examined in the model. Given that these countries are at different stages of growth, we will be able to identify the impact of FDI and export on economic growth at different stages of growth. The results suggest that in South Asia, there is evidence of an export led growth hypothesis. However, in the long run, we identify GDP growth as the common factor that drives growth in other variables such as exports in the case of Pakistan and FDI in the case of India. The Latin American countries of Mexico and Chile show a different relationship in the short run but in the long run, exports affect the growth of FDI and output. In the case of East Asian countries, we find bi-directional long run relationship among exports, FDI and GDP in Malaysia, while we find a long run uni-directional relationship from GDP to export in case of Thailand.