Preview

What are the current business Threats facing the Malaysian economy?

Good Essays
Open Document
Open Document
840 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
What are the current business Threats facing the Malaysian economy?
THREATS FACING MALAYSIA

Malaysia, being a trading nation that highly dependent on international trade, our economic performance is very vulnerable to the performance of our major international trading partners. For decades, our economic growth has been overly reliant on external sector developments, foreign direct investment (FDI) and international trade. Domestic investment decisions are not base on economic fundamentals but rather these decisions are very much influenced by the market behavior of foreign investors.

In view of the challenges arise from the globalization effects, it is important for the Government to sustain growth and strengthen the macro-economic fundamentals within the country. This is done by focusing on domestic business and industrial activities and increasing the purchasing power of our population. The government's fiscal policies and corporate reforms have to be continued to create a condition suitable for a speedy recovery and sustainable growth. It is also important to ensure that the restructured loans remain performing. Emphasis must be placed on continuing improvements on corporate governance, transparency, accountability and strict enforcement of powers by the market regulators. There is also a need for the country to maintain its peaceful environment and security in order to secure the investors' confidence.

Currently, the final destination for most of Malaysian exports is the United States. Therefore, the successful recovery of the US economy is pivotal to Malaysia's continuing recovery. The current stagnation in the US economy, especially in the electronic chip industry, is a damper on economic recovery in Malaysia where electronics related exports make up more than 30% of the gross domestic product. With the American demand looking weak, we must look for alternative areas of growth and demand to increase the economic resilience.

The emergence of China

With China rising at such rapid rate, this means that the mid-sized

You May Also Find These Documents Helpful

  • Powerful Essays

    PEST Analysis on Shell

    • 2254 Words
    • 10 Pages

    Malaysia is a dynamic country as it is constantly evolving. With the export rate of the country was RM513.59 billion between Jan-Sept 2011, shows that there’s no problem with the economy here. Considering the rapid growth of development in…

    • 2254 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Malaysia ranks second in terms of Australian investment in the ASEAN countries (MITI 1993). During the 1980s both countries began to strengthen joint economic, trade and social ties. This process of bridge-building had its successes and failures. Most of the problems were caused by the meeting of two cultures with quite different historical, political and social origins. Some clashes were inevitable. The management and resolution of these conflicts has taken time, patience, sensitivity and respect from both nations (Woolcott 1991).…

    • 1110 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    This raises further concerns when viewed from the perspective of global economy given that globalization of the world economy is perhaps the most important trend that affects the current environment for economic development. It offers great opportunities for poor countries to accelerate their economic development. But, it also poses new and substantial challenges for economic management. (Aryeetey E. et al 2005)…

    • 2254 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Contents - Introduction: P 3 - Macro Environmental Factors: P 4 - Political and Legal Factors: P 4 1) Malaysian Sale Tax and Tariffs for Mobile Phones P 4 2) Labour Law P 4 3) Trade Restriction P 7 4) Consumer Law P 8 - Economic Factors: P 8 1) Economic Growth P 8 2) Inflation Rate P 10 3) Interest Rate P 11 - Social Factors: P 12 1) Custom P 12 2) Life Style P 13 3) Values P 14 - Environmental Factors: P 15 1) Wasted Material P 16 2)…

    • 3620 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Doing-Business-in-Malaysia

    • 23067 Words
    • 93 Pages

    Doing business in Malaysia Contents Foreword 5 Chapter 1 - Introduction 6 • • • • • • • • • • • • • Geography & population Advantages of investing in Malaysia Language Political environment Economy Major exports and imports Import controls Regulatory environment Financial services Currency denomination Exchange controls Government policy on foreign investment Communications Chapter 2 - Intellectual property protection • • • • • Patents Trade Marks Industrial Design Layout Design of Integrated Circuits Geographical Indications PKF – Doing business in Malaysia 19 2 Chapter 3 - Business Structure 24 Chapter 4 - Business Finance 28 Chapter 5 - Investment Incentives 35 Chapter 6 - Accounting 60 Chapter 7 - Taxation 63 • • • • • • • • • • • • • • • • • • • • • • • • • Types of business structures Companies limited by shares Companies limited by guarantee Foreign companies and foreign investments Sole proprietorship and partnerships Trusts Equity financing Loan Funding Grants & soft loans Manufacturing…

    • 23067 Words
    • 93 Pages
    Powerful Essays
  • Good Essays

    Top 10 Company in Malaysia

    • 1080 Words
    • 5 Pages

    In 2011 many countries have been hit by challenges brought about by natural disasters, financial crises and political upheavals. Malaysia, as an emerging market, is expected to be still attractive to many investors, be they local or foreign. The start of 2012 has brought with it a myriad of new aspirations and resolve for companies in Malaysia.…

    • 1080 Words
    • 5 Pages
    Good Essays
  • Good Essays

    A perpetual challenge faced by all the economies of the world, regardless of their level of economic development, is achieving economic growth, higher living standards and financial stability. The paths taken for achieving these objectives for every country will be different depending upon the political systems and the nature of the economies.…

    • 914 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Swot Analysis Asia

    • 36152 Words
    • 292 Pages

    Emerging Asia S.W.O.T. Report August 2011 Economic dynamics 10 8 Systemic risks 6 Infrastructure 4 2 China India Indonesia 0Malaysia External political risks Social instability risks Philippines Thailand…

    • 36152 Words
    • 292 Pages
    Good Essays
  • Powerful Essays

    Business is greatly influenced by the economy of the country. Its operational success depends upon an adjustment and…

    • 1831 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Hoihoihoi

    • 373 Words
    • 2 Pages

    Malaysia is developing rapidly and striving towards becoming a developed country by the Year 2020. In the process of doing so, the need to hire foreign workers is inevitable. Consequently, their arrival will have effects on the Malaysian’s economy. Some of the major effects are the transferring of technology, skills and knowledge to our country, growth of economic activities and competition of jobs opening to the locals too.…

    • 373 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Thomsen, Stephen, Southeast Asia : The Role of Foreign Direct Investment Policies in Development. Working paper of OECD. 1999.…

    • 4550 Words
    • 19 Pages
    Best Essays
  • Powerful Essays

    Ielts

    • 5433 Words
    • 22 Pages

    The manufacturing sector has been the engine of the growth of the Malaysian economy for the past 30 decades. This is seen by the steady growth of new investments and re-investments by multinational corporations (MNC) particularly in the electrical and electronic sector as well as local…

    • 5433 Words
    • 22 Pages
    Powerful Essays
  • Powerful Essays

    Wto Trade Policy Review

    • 4799 Words
    • 20 Pages

    Page I. II. ECONOMIC DEVELOPMENT TRADE POLICY DEVELOPMENTS 1. Overview 2. ASEAN 3. Tariffs 4. Standards 5. Sanitary and Phytosanitary 6. Copyright Act 7. Layout-Designs of Integrated Circuits 8. Industrial Designs 9. Patent 10. Trademarks 11. Geographical Indications SECTORAL POLICIES 1. Productivity Performance of Malaysia 2. Financial Services Sector 3. The Financial Sector Masterplan (FSMP) 4. Capital Market Sector 5. Exchange Control Rule 6. Measures on investment 7. Communications and Multimedia Services 8. Agricultural Sector FUTURE DIRECTION AND STRATEGY 5 6 6 7 8 8 9 9 9 9 9 9 9 10 10 10 11 11 11 12 13 13 13…

    • 4799 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst to development. Yet, the benefits of FDI do not accrue automatically and evenly across countries, sectors and local communities. National policies and the international investment architecture matter for attracting FDI to a larger number of developing countries and for reaping the full benefits of FDI for development. This essay has the purpose to know about The costs and benefits of FDI for indonesia as the home country. This essay has three sections. Firstly introductiory which will focus on mean of FDI and describe condition FDI in Indonesia . Secondly the description of The costs and benefits of FDI for indonesia. Thirdly the summary of condition The costs and benefits of FDI for indonesia so will be conclude this essay.…

    • 1322 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Foreign Direct Investment (FDI) broadly encompasses any long-term investments by an entity that is not a resident of the host country. The investment is over a long duration of time. FDI to developing countries in the 1990s was the leading source of external financing. It is one of the most important component of national development strategies for most of the countries in the world and an important source of non-debt inflows for attaining competitive efficiency by creating a meaningful network of global…

    • 4088 Words
    • 17 Pages
    Powerful Essays