TTh 900-1030 Group 3 Malaysia PDF

Preview

Summary

Download TTh 900-1030 Group 3 Malaysia PDF

Description

UNIVERSITYOF SAN CARLOS P.del Rosario St., Cebu City An Economic Research Project on ASEAN Nations: MALAYSIA ____________________________________ A Research Project Presented to the Faculty of the Department of Accountancy School of Business and Economics University of San Carlos Cebu City, Philippines ____________________________________ In Partial Fulfillment of the Requirements for the course Economic Development (AC 2203) ____________________________________ By GROUP 3 TTh 9:00-10:30 AM Doriquez, Angelie Falcon, Vienna Rose Marie Rivera, Jireh Mae Ruiz, Andreanne Marie

May 4, 2020

i

ACKNOWLEDGEMENT

First of all, we would like to give thanks to the University of San Carlos for giving us this opportunity to showcase our skills and enhance our creative capabilities for the good of the society.

Secondly, to our blockmates, thank you for your undying friendship and support in everything we do. We may have struggles but we faced and conquered it all together. Especially to our groupmates for being so patient and useful in making this research work possible.

To our parents, for being so considerate of our current situation in school. For being so understanding everytime we work home late on our research.

We would also like to give our regards and thanks to our teacher, Miss Jovelyn Q. Yu, for guiding us in every single step in our research, for correcting our errors and affirming our achievements. And every time we miss our deadlines, we would like to thank her for being so patient and understanding of the current situation we are in.

Lastly and especially, we would love to give our highest gratitude to the Almighty God for giving us this life to live, this research to pass and this semester to experience with our friends, teachers, classmates and everyone around us.

ii

PRECIS / ABSTRACT

This research aimed to study Malaysia by seeing through its demographics, economic profile, and determine the pressing problems and economic imbalances. The researchers found out that the country faces issues related to poverty and income inequality, gender groups, the rising cost of living, urbanization, and declining human capital investment. From the findings, the following solutions were recommended to address these economic problems and issues. (1) To eradicate poverty, the government should lift income levels, increase employment opportunities, consider legislative reforms such as loan forgiveness funds, and expand eligibility or benefits to the poor. (2) To reduce racial issues, schools must create inclusive education for underrated women, corporations shall practice diverse hiring, and government must enact laws authorizing women as part of the boards in large corporations. (3) To counter rising cost of living and to improve quality of life, the government shall consider negotiating with private entities and the use of stockpiling mechanism, as well advocating the importance of saving and responsible buying. (4) To solve cases on urbanization, the government shall work on spreading opportunities in both urban and rural areas. (5) With the declining human capital, the Malaysian federation should provide more schools, healthcare, social services, and teach poor children basic corporate practices for their future. Lastly, (6) to protect the environment, there should be policies on sustainable selling and threatened penalty for those businesses that use extensive biofuels, biomass, or carbon.

iii

TABLE OF CONTENTS Cover Page

i

Acknowledgement

ii

Precis / Abstract

iii

List of Tables

vi

List of Figures

vii

CHAPTER I I

II

III

INTRODUCTION / COUNTRY DEMOGRAPHICS

1

Location

1

Land Area

2

Land Division

2

Populatin and Gender Profile

4

National Capital

6

Currency

8

Political / Government System

9

Sector Distribution

12

ECONOMIC PROFILE

13

Gross Domestic Product and Gross National Income

13

Gross National Disposable Income

18

Inflation

19

Unemployment

21

Monetary Authority

25

Fiscal Spending

28

Exports and Imports of Goods and Services

30

Current Account Balance

34

ECONOMIC PROBLEMS AND ISSUES

36

Poverty and Income Inequality

43

Gender Inequality

50

Population Growth and Quality of Life

54

Urbanization

58 iv

Human Capital: Education and Health

67

Environment and Climate Change

73

IV SUMMARY, CONCLUSION, AND RECOMMENDATIONS

79

Summary

79

Conclusion

84

Recommendations

84

BIBLIOGRAPHY

89

v

LIST OF TABLES

Table 3.1

Page Malaysia‟s HDI trends based on consistent time series data and new goalposts

39

3.2

Country Classifications by Income Level

42

3.3

The Global and Regional Gender Gap Index Rankings of Southeast Asian Countries, 2020

50

Data Required for Measuring Gender Inequality through the MGGI

52

Policy Thrusts for Women and Development in the 9th Malaysian Plan, 2006-2010

53

Cost of Living Index of Selected Southeast Asian Countries in the year 2018

55

Safety Index of Selected Southeast Asian Countries in the year 2018

56

Environmental Performance Index (EPI) and sub-indices of Southeast Asian Countries, 2018

58

Traffic Index of Selected Southeast Asian Countries in 2018

63

3.10

The Number of Squatters in Malaysia by State, 2015

66

3.11

Labor Force by Educational Attainment, Malaysia (2014)

69

3.4

3.5

3.6

3.7

3.8

3.9

vi

LIST OF FIGURES

Figure

Page

1.1

Map of the Malaysian Peninsula

1

1.2

States and Federal Territories of Malaysia

3

1.3

Population of Malaysia by Gender in 2018

4

1.4

Total Population and Annual Population Growth Rate of Malaysia (1960-2018)

5

Percentage of Population according to Age Group of Malaysia (1960-2018)

6

1.6

The Districts of Kuala Lumpur

7

1.7

60-Day Exchange Rate History of Malaysian Ringgit VS US Dollar

9

1.8

Malaysia‟s Sector Distribution based on GDP from 2008-2018

12

2.1

GDP (in current US$) of Southeast Asian Countries in 2018

13

2.2

Top 40 Countries with the highest GDP (in current US$) in the World (2018)

14

GDP per capita (in current US$) of Malaysia and the World (1960-2018)

15

GDP per capita (in current US$) of Southeast Asian Countries in 2018

16

GDP (in current US$) of Malaysia and its Annual Growth Rate from 1960-2018

17

GDP per capita (in current US$) of Malaysia and its Annual Growth Rate from 1960-2018

17

2.7

GNI (in current US$) of Malaysia from 1960-2018

18

2.8

Gross National Disposable Income (in MY Ringgit) of of Malaysia from 2015-2018

19

1.5

2.3

2.4

2.5

2.6

vii

2.9

Annual Consumer Price Inflation Rate (in percent) of Malaysia from 1960-2018

20

Annual Consumer Price Inflation Rate (in percent) of Southeast Asian Countries in 2018

21

Total Unemploymenr Rate (in percent of total labor force) based on national estimate of Malaysia from 1982-2018

22

Comparison of Unemployment Rates for different educational levels in Malaysia (data available: 2009, 2010, 2015, and 2016)

23

Total Unemployment Rates (percent of total labor force) based on modeled International Labor Organization (ILO) estimate for Southeast Asian Countries in 2018

24

Actual Inflation and the 24-month-ahead forecast in Malaysia (1996-2012)

26

Malaysia‟s Statutory Reserve Requirement Ration (1989-2020)

27

General Government Total Expenditure of Malaysia (in billions of MY Ringgit) from 1990-2018

28

2.17

Malaysia‟s 2018 Budget – Spending Allocation

29

2.18

Malaysia‟s 2020 Budget – Spending Allocation

30

2.19

Net Exports of and Imports of Good and Services (Balance of Payments, current US$) of Malaysia from 1974-2018

31

Net Trade in Goods and Services (Balance of Payments, current US$) of Malaysia from 1974-2018

31

Percentage of Exports by Category in Malaysia as of 2017

32

Percentage of Imports by Category in Malaysia as of 2017

33

Current Account Balance (Balance of Payments, current US$) of Malaysia from 1976-2018

34

2.10

2.11

2.12

2.13

2.14

2.15

2.16

2.20

2.21

2.22

2.23

viii

2.24

Current Account Balance (Balance of Payments, current US$) of Selected Southeast Asian Countries from 1976-2018

35

3.1

Key Dimensions of Human Development Index

36

3.2

Human Development Index of Selected Asian Countries in 2018

37

Human Development Index Trend of Malaysia from 1990-2018

38

The 17 Sustainable Development Goals of the UNDP

39

3.5

National SDG and 11th Malaysian Plan Roadmap

41

3.6

2017 Malaysia‟s Voluntary Review Report

42

3.7

Malaysia‟s Poverty Headcount Ratio at National Poverty Libe from 2002-2015

45

Incidence of Poverty and Number of Households earning less than 60% Median Household Income from 1995-2016

46

3.9

Income Gap between Malaysia‟s T20, M40 and B40

48

3.10

Gini Coeffient of Malaysia from 1976-2016

49

3.11

Malaysia‟s Scores and Global Ranking by Indicator (2006 and 2020)

51

Urban Population of Malaysia as a Percentage of Total Population form 2008-2018

59

3.13

Destinations of Internal Migrants in Malaysia (2018)

59

3.14

Crime Index of Selected Southeast Asian Countries in 2018

61

3.15

Crime Statistics of Malaysia in 2018

61

3.16

Average Crime Rate Index per 100,000 of the population, by State from 2010-2017

62

3.3

3.4

3.8

3.12

ix

3.17

Road Traffic Death rate per 100,000 of the population of Southeast Asian Countries in 2016

65

Percentage of High-skilled and Low-skilled Labor in Malaysia, 2007

67

Total Government Expenditure on Education (% of GDP) of Selected Southeast Asian Countries in 2018

68

Median Income (in MY Ringgit) by Educational Attainment in Malaysia (2017 and 2018)

70

Malaysia‟s Healthcare Spending per capita (in current US$) and its Percentage of GDP from 2000-2016

72

CO2 emission per capita (in metric tons) vis-à-vis GDP per capita (in current US$) of Malaysia from 1970-2018

74

CO2 emission per capita (in metric tons) of Southeast Asian Countries in 2018

75

3.24

Tree Cover Loss in Malaysia from 2001-2018

77

3.25

Annual Tree Cover Loss by Dominant Driver in Malaysia from 2001-2018

78

3.18

3.19

3.20

3.21

3.22

3.23

x

CHAPTER 1 COUNTRY DEMOGRAPHICS

Location Malaysia is a country in Southeast Asia that lies just north of the Equator. It is composed of 2 noncontiguous regions: Peninsular Malaysia, also called West Malaysia (Malaysia Barat), which is on the Malay Peninsula, and East Malaysia (Malaysia Timur), which is on the island of Borneo, as seen in Figure 1.1. The Malaysian capital, Kuala Lumpur, lies in the Western part, about 25 miles (40 km) from the coast; the administrative center Putrajaya, is located about 16 miles (25 km) South of the capital.

Figure 1.1. Map of the Malaysian Peninsula

1

Land Area Malaysia is bordered by Thailand in the West, and Indonesia and Brunei in the East. It is composed of 2 districts, Peninsular and East Malaysia, which are separated by the South China Sea. Both Peninsular and East Malaysia feature coastal plains rising to hills and mountains. The whole Malaysian Peninsula has a total land area of 329,613 square kilometers. East Malaysia covers 198,847 square kilometers or 60% of the country‟s land area, while Peninsular Malaysia makes up 132,090 square kilometers or 40% of the country‟s land area.

Land Division The federation of Malaysia is comprised of 13 states and 3 federal territories. These are divided between 2 regions, with 11 states and 2 federal territories on Peninsular Malaysia and the other 2 states and 1 federal territory in East Malaysia.

2

States and Federal Territories Malaysia has 13 states, as seen in Figure 1.2. These are Johor (Johor Bahru), the southernmost state, Kedah (AlorSetar), Kelantan (Kota Bharu), a state that is well-known for traditional Malay handiwork, silverwork, brocade, batik etc., Malacca (Malacca City), Negeri Sembilan (Seremban), an inland state with only 48km of coastline, Pahang (Kuantan), a state that is rich in agricultural and natural resources, Penang (George Town), a state that occupies an island and a part of the mainland, Perak (Ipoh), the 2nd largest state,. Perlis (Kangar), the smallest state in the country, Sabah (Kota Kinabalu), Sarawak (Kuching), the largest Malaysian state, Selangor (Shah Alam), a state that surrounds the Federal Territory of Kuala Lumpur and Putrajaya, and Terengganu (Kuala Terengganu), the state with most Malays. Meanwhile, the 3 free federal territories are the Federal Territory of Kuala Lumpur, Federal Territory of Labuan, and Federal Territory of Putrajaya.1

Figure 1.2. States and Federal Territories of Malaysia

1

Federal Territories and State Governments, The Malaysia Government's Official Portal, 2014, https://web .archive.org/web/20140222231636 /http:/ /mygov.malaysia.gov.my/EN/Main/MsianGov/State GovAndFederalTerritories/Pages/StateGovAndFederalTerritories.aspx (accessed 20 March, 2020)

3

Population and Gender Profile As of 2018, the total population of Malaysia is 31,528,525. This is an increase of 423,497 people compared to the population of 31,105,028, as is the year before. Figure 1.3 shows that there is a population of 16,212,465 for the male and 15,316,120 for the female. The sex ratio of the total population is 1.059 (1,059 males per 1,000 females) which is lower than global sex ratio of 1,106 males to 1,000 females.2

Figure 1.3. Population of Malaysia by Gender in 2018 Source: The World Bank

Figure 1.4 shows that Malaysia‟s population has been increasing from the year 1960 up to the year 2018. However, the graph also shows that the population growth rate of Malaysia has been decreasing since the year 1990, and remained constant at 1.51% from 2016 to 2018.

2

Malaysia Population, worldmeter, 2020, www.worldmeters.info/world-population/malaysia-population/ (accessed 20 March, 2020).

4

Figure 1.4. Total Population and Annual Population Growth Rate of Malaysia (19602018) Source: The World Bank

As shown in Figure 1.5, the population can be further distributed according to age groups, as follows: 0-14 years (children), 15-64 years (working age), 65 years and over (elderly). The proportion of the population of Malaysia below the age of 15 years old decreased to 23.9951% in 2018 compared to 33.3562% in 2000. In contrast, the proportion of the working age population increased to 69.3331% from 62.7287%. For the population aged 65 years old and over, there is an increase to 6.6718% as compared to 3.9150% in 2000.

5

Figure 1.5. Percentage of Population according to Age Group of Malaysia (1960-2018) Source: The World Bank

National Capital The Federal Territory of Kuala Lumpur is the capital and the largest city of Malaysia. It is located West-Central Peninsular Malaysia, midway along the West Coast and rubber belt, and about 25 miles (40 km) east of its ocean port, Port Kelang, on the Strait of Malacca. Kuala Lumpur literally means “Muddy Influence‟. It was named such because the city is located near the intersection of Gombak and Klang River. In 1972, Kuala Lumpur was designated as a municipality, and in 1974 this entity and the adjacent portions surrounding Selangor became a federal territory. Figure 1.6 shows the 11 districts of Kuala Lumpur.

6

Figure 1.6. The Districts of Kuala Lumpur

Kuala Lumpur is considered as the cultural, financial and economic center of Malaysia. The city is known for its colorful culture and rich reserves. It is also recognized as one of the fastest growing metropolitan regions in Southeast Asia, in both population and economic development. The city serves as the home of the Parliament of Malaysia and it is also where the Istana Negara (official residence of the Malaysian King) is located. Kuala Lumpur once held the headquarters of the Executive and Judicial Branches of the federal government, but these were relocated to Putrajaya in early 1999. At present, some sections of the political bodies still remain in Kuala Lumpur.

7

Currency Ringgit, also known as Malaysian Dollar, is the monetary unit of Malaysia. Bank Negara Malaysia (Central Bank of Malaysia) is authorized as the sole issuer of Ringgit banknotes and coins in the country. The coins of Malaysia‟s currency in circulation have denominations of 1, 5, 20, and 50 sen (cents). Meanwhile, the 6 different banknotes have values ranging from 1 to 100 Rin ggit. The obverse of these banknotes contain a portrait of Tuanku Abdul Rahman, Malaysia‟s 1st Prime Minister, and a small image of the country‟s national flower which is the hibiscus rosa-sinensis. The back portion of the bills features Malaysia‟s natural wonders, culture, flora and fauna, and technological and economic achievements. The rhinoceros hornbill, nati...