Structure In Malaysia Research Articles

Limited Liability Partnership in Malaysia: A Corporate Governance Perspective

This paper examines corporate governance issues in the Limited Liability Partnership structure in Malaysia. Although comparable to the company in that the LLP has legal personality, it suffers from a distinctive agency problem due to the lack of separation of ownership and control. This paper presents a case for more legislative guidance particularly with respect to creditors’ and minorities’ protection.

Investigation of optimal capital structure in Malaysia: a panel threshold estimation

PurposeThe purpose of this paper is to investigate the effect of leverage on Malaysian listed firms' value and the optimal level of debt at which a firm could maximize its value.Design/methodology/approachThe authors employ an advanced panel threshold regression estimation developed in 1999 by Hansen that will indicate whether there are positive and negative impacts of leverage on firm value. This estimation procedure has the advantage of quantifying the threshold level of debt as compared to the ad hoc classification procedure of splitting the sample.FindingsThe results show that debt is only pertinent to the firm value up to a threshold level of 64.33 per cent. Additional debt beyond the threshold level does not add to a firm's value. The appropriate level of debt should be applied, which would thus maximize the firm and stockholders' value.Originality/valueTo the best of the authors' knowledge, this is the first study to look at this issue for Malaysian listed firms. The findings from this paper may provide a critical analysis of the usage of debt in firms' capital structure. An excessive level of debt could lead to a debt overhang situation and insolvency at the microeconomic firm level; this could eventually could cause vulnerability in financial systems and thus lead to the financial catastrophes.

Environmental management strategy for Shah Alam solid waste transfer station, Malaysia

The corrosion rate in marine environments affects economic interest since the loss of steel in marine structures has impact on structural safety and performance. With emphasis to maintain existing structures in service, there is increasing interest in predicting corrosion rate at a given location for a given period of exposure. Corrosion allowances are prescribed for structural members by standards based on the corrosion protection provided, expected rate of corrosion and service life of structure. There are no studies to determine the appropriate corrosion allowance for marine steel structures in Malaysia. The research objectives are to determine the nature and rate of corrosion and the effect of differences in the immersion depth and microalgae on the corrosion rate. Two sets of corrosion coupons of Type 3 Steel consisting of mild steel were immersed in seawater at Lumut in Malaysia. The corrosion rate of the coupon is estimated based on the material weight loss with time. The corrosion rate is controlled by oxidation in short term and bacterial activity in long term. Corrosion rate in the immersion zone is observed to be more than in the splash zone. The results are also compared with code prescriptions and discussed. (Keywords: rate of corrosion, uniform corrosion, pitting, corrosion coupons, marine structures.)

The Development of Partnership Based Structure In Comparison To the Concept of MushÉrakah (Sharikah) with Special Reference to Malaysia.

In Malaysia, most of the businesses are micro, small and medium. According to the SME Annual Report 2010/2011, the latest statistics indicate that SMEs constitute 99.2% of the total business establishments and contribute about 32% of GDP and 59% of total employment. In carrying out the SMEs, the option of business vehicles which are available in Malaysia is only the conventional business structure, namely, sole proprietorships, partnerships and company. For the micro, small and medium businesses, the company structure is observed not to be appropriate due to its formal and highly regulated business structure. As such, most of the SMEs are carried out in the form of sole proprietorships and partnerships. This can be seen from the statistics published by Companies Commission of Malaysia which provides that there are 4,660,067 sole proprietorships and partnerships registered compared to only 970,396 of companies being registered. The tax scheme is also another discouraging factor which makes the partnership as a better option for SMEs. In certain sectors, particularly the professionals, for example, lawyers and accountants, the business can only be carried out in the form of sole proprietorships or partnerships. This article intends to highlight the development of partnership based structure in Malaysia and compare it with Islamic version of partnerships structure (Sharikah).

A Conceptual Model to Assess the Buildability of Building Structure at Design Stage in Malaysia

Buildability is increasingly becoming a major requirement in building construction practice. The aim of buildability is to improve efficiency of the overall building process by developing construction sensitive designs. The objective of this study is to develop a model to assess the buildability of the buildings within Malaysian construction projects. To achieve the objective of this study, a structured interview with an expert panel, including 30 construction professionals, was conducted to compare the common buildability attributes with common construction systems for building structure in Malaysia using analytical hierarchy process (AHP). The proposed model to assess the buildability of the construction buildings was evaluated and the model was amended to fulfill the requirements of the construction industry in Malaysia. Results of this study are useful to evaluate the design of the buildings within Malaysian construction projects, thus saving time, cost, and enhancing quality.

A Conceptual Model to Assess the Buildability of Building Structure at Design Stage in Malaysia

Buildability is increasingly becoming a major requirement in building construction practice. The aim of buildability is to improve efficiency of the overall building process by developing construction sensitive designs. The objective of this study is to develop a model to assess the buildability of the buildings within Malaysian construction projects. To achieve the objective of this study, a structured interview with an expert panel, including 30 construction professionals, was conducted to compare the common buildability attributes with common construction systems for building structure in Malaysia using analytical hierarchy process (AHP). The proposed model to assess the buildability of the construction buildings was evaluated and the model was amended to fulfill the requirements of the construction industry in Malaysia. Results of this study are useful to evaluate the design of the buildings within Malaysian construction projects, thus saving time, cost, and enhancing quality.

Gauging the Reliability of Structural Design for Buildings and Infrastructures from Malaysian Engineers’ Viewpoint

From a structural design engineer's viewpoint, the focus of design is to ensure that the finished product, i.e. building or infrastructure can perform to the satisfaction of the client, in terms of strength, robustness and rigidity to ensure reliability in strength and serviceability. And if both of these are met, then the designed structure is considered safe and serviceable. But the question would arise on its reliability in structural design and construction. Insofar as the finished structure is concerned, four areas of uncertainty are questionable. They are:•Properties of materials used,•Expected loadings to be exerted, nature and magnitude-wise,•Workmanship or skills in implementation, and•Structural responses due to loading exertedThis paper is aimed at utilizing statistical results obtained from tests undertaken on structural specimens to study the impact on reliability of existing structures in Malaysia. The data used is available from private and certified testing agencies and Government Department of Meteorology. Statistical analysis is carried out to gauge how widespread are the various test results obtained (for example, concrete cube strengths). And from thereon, the authors would attempt to extrapolate the corresponding effect on the four areas of uncertainty as mentioned above. From this study, it is hoped that the reliability of designed structures can be quantified in a manner which can be used to gauge the expected performance of the designed structure.

Getting Malaysia Out of the Middle-Income Trap

The rapid rebound from the Asian Financial Crisis of 1997-1999 helped lead the Malaysian government to predict that the annual GDP growth rate in 2001-2010 would be 7.5 percent, up from the 7.0 percent in the 1991-2000 period. This higher growth rate would be generated by Malaysia’s transformation into a knowledge-based economy where Total Factor Productivity (TFP) would increase its contribution to GDP growth to 3.2 percentage points from 1.8 percentage points in 1991-2000. This optimism in 2001 has proved to be ill-founded even before the arrival of the global financial crisis in 2008. The annual GDP growth rate turned out to be 5 percent in the 2001-2007 period. The fact that, in the same period, economic growth accelerated in the neighboring countries of China, India and Indonesia reveals that Malaysia has descended to a much slower growth path. Malaysia is now caught in the middle-income trap because it is still using the economic growth strategy, the New Economic Policy (NEP), that was formulated in 1970 when the structure of Malaysia’s economy and the international economic conditions were very different from today. By being inconsistent with knowledge-led growth, the NEP has caused private sector investment to collapse from 32.7 percent of GDP in 1995 to 9.3 percent in 2007. By focusing too much on the redistribution of income and not enough on the generation of income, NEP rejects meritocracy and institutionalises racism, thereby preventing full mobilization of human resources (e.g denying top leadership positions to Chinese and Indians amounts to employing less than 60 percent of the national talent pool). Ethnic quotas on ownership structure either discourages successful Chinese Malaysian firms from tapping local stock market to fund expansion or drives Chinese Malaysian firms to move their headquarters to foreign lands. This is why, unlike the Taiwan case, there are very few Malaysian firms that have moved from producing import-substituting (import-competing) goods to become major exporters of these goods. Ethnic quotas on bank loans, business licenses, government contracts, and employment promote corruption throughout society. Side effects of such ethnic quotas include the perpetual infant industry phenomenon, and increasingly frequent rulings by the Malaysian courts on the protection property rights that are at odds with standard practices elsewhere. The NEP undermines high growth by enshrining mediocrity at best and rewarding incompetence in general; provides a social justice justification for corrupt practices; and erodes investor confidence by escalating inter-ethnic tensions.To escape the middle-income trap, the government must implement root-and-branch reform in many areas (most, notably, the civil service, educational and research institutions, the fiscal system, the state procurement system, the judiciary branch, the police force, and government-linked companies), and puts the culture of excellence at the core of its administration. Only then, would Malaysia get the microeconomic incentives right, get the macroeconomic balances right, and get the governance institutions right in order to transition to a knowledge-based economy.

The Relationship between Hedging Through Forwards, Futures & Swaps and Corporate Capital Structure in Malaysia

This research focuses on the simualtaneity relationship between hedging through forward, futures, seaps and capital structure for none financial Malaysian firms. The determinants of hedging and capital structure are ascertained and a two-stage regression analysis through the use of pooled data on firms listed on Malaysian stock exchange, Bursa Malaysia from 2001 till 2005 is performed. From our analysis it is found that simultaneity relationship between hedging and capital structure exist. Hedging reduces financial distress cost and increases firm's debt capacity. Since there are tax incentives in debt financig, firms willbe induced to borrow more to take advantage of potential tax benefits.

Ethnic and Regional Politics after the Asian Economic Crisis: A Comparison of Malaysia and South Korea

This article explores the impact of the Asian economic crisis on the Malay-Chinese and Kyongsang-Cholla regional political cleavage structures in Malaysia and Korea respectively. The weakening of previously intractable cleavages and the rise of cross-cutting cleavages have the potential to contribute to democratic consolidation, by enhancing democratic uncertainty or 'organised uncertainty'. The analysis of post-crisis election results shows that Malaysia's traditional ethnic linkages between political elites and voters became more flexible after the crisis and created a strong cross-cutting dimension to the political cleavage structure. In contrast South Korea's regional cleavages remained fundamentally undisturbed and may even have been reinforced by the crisis, notwithstanding evidence of defections from regionally dominant parties.

Capital Structure and Investment Behaviour of Malaysian Firms in the 1990s: a study of corporate governance before the crisis

This is an empirical study analysing the corporate finance and governance structure in Malaysia before and after the financial crisis of 1997, utilising the agency cost approach. The contribution of this paper is to link the corporate governance mechanism with the role of banks and corporate ownership structure peculiar to Malaysia, taking into account the institutional framework and historical background of the Malaysian financial system, such as government protection for the banking sector and the social dispersion of corporate ownership related to the Malay First policy.Based on data for 375 non–financial KLSE (Kuala Lumpur Stock Exchange) listed companies during fiscal years 1995–99, our analysis is organised into three parts. Characteristics of corporate finance in Malaysia in the 1990s using aggregated time–series data are outlined, followed by an examination of the determinants of capital structure via cross–sectional regressions in terms of dependency on banks and ethnic ownership structure, controlling ownership concentration, availability of internal funds, corporate size, industry effects, etc. We then estimate simple investment functions with panel data in order to examine the effects of debt financing on corporate investments before the crisis.Empirical results show the following. Firstly, the commitment of banks to finance corporate debt as well as lending obviously increased debt ratios. Secondly, increasing ownership by native Malays, both the direct and indirect holding of corporate shares, played no significant role in disciplining corporate management. However, ownership concentration mitigated conflict between managers and owners. Foreign ownership also contributed to a reduction in the agency cost of equity financing in financial liberalisation. Finally, high dependency on debt led to excessive corporate investment before the crisis. These results imply that the concentration of risks on the banking sector and social policy advocating the dispersion of corporate ownership weakened the corporate governance mechanism, thereby exacerbating the distress of Malaysia's corporate sector during the financial crisis.

Interhousehold Transfers and Household Structure in Malaysia

This paper analyzes survey data on informal transfers of money goods and help among Malaysian households in 1976-1977. The annual combined value of these transfers amounts to 86 percent of annual income for households earning less than...1500 [Malaysian dollars] and declines to only 1 percent for households earning more than...30000 [Malaysian dollars]. Blockmodeling is used to group household members who are similar to each other in their transfer behavior. Both the quantity of transfers and the nature of these participant groupings are then compared across families with nuclear laterally extended and vertically extended structures and across rural and urban households. (EXCERPT)

The influence of landscape design on urban form and structure in Malaysia and Singapore

The influence of landscape design on urban form and structure in Malaysia and Singapore

Voluntary Associational Structure in Malaysia: Some Implications for Political Participation

Voluntary Associational Structure in Malaysia: Some Implications for Political Participation