malaysia 372- presentation

8/2/2019 Malaysia 372- Presentation

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MalaysiaDone by Group 2

MGT 372


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At a glance!

COUNTRY- The Federation of Malaysia

GEOGRAPHICAL LOCATION- Situated in the central part of SE Asia Peninsular Malaysia isseparated from the states of Sabah and Sarawak by the South China Sea.

Malaysia is a multiracial country with a population of about 27 million. Malays, Chinese,

Indians and the indigenous people of Sabah and Sarawak form the majority of the

population.

LANGUAGE-Bahasa Malaysia (Malay) is the national and official language of the country.

RELIGION- Islam is the official religion of Malaysia. GOVERNMENT- Parliamentary democracy with a bicameral legislative system. The Head of

State is the Yang Di-Pertuan Agong (King) and the Head of Government is the Prime Minister.

CAPITAL- Kuala Lumpur.

NATIONAL FLOWER- Bunga Raya (Hibiscus Rosa Sinensis).

ECONOMIC PROFILE- Manufacturing constitutes the largest single component of Malaysia's

economy. Tourism and primary commodities such as petroleum, palm oil, natural rubber andtimber are major contributors to the economy


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The GeographyThe Climate:

Located near the equator, tropical rain forest climate i.e. hot and humid

Less rainfall in the dry season

Climate change affects significantly

Coastal areas have sunny climate

The lowlands have distinctive rainfall and are very humid

The highlands are wetter and cooler

The Land The total land area is 329,847 square kilometers

66th largest country in the world

only country to contain land on both mainland Asia and the Malay Archipelago

Peninsular Malaysia makes up 132,090 square kilometers while East Malaysiacovers 198,847 square kilometers

Has the 29th largest coastline in the world

The two distinct parts of Malaysia, separated from each other by the South Chinasea


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The GeographyWater Bodies

South China sea is the largest body of water around Malaysia

There is Straits of Malacca around the south

There is Andaman sea around the north

A small part in the north lies within the Gulf of Thailand

The Bera Lake in Pahang is one of the largest natural lakes in Malaysia

Natural Disasters Floods

Earthquakes


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The EnvironmentEcological aspect

Is a mega diverse nation with a bio diverse range of flora and fauna found invarious eco regions throughout

Human intervention poses a significant threat to the natural environment

Ecosystems and landscapes are dramatically altered by human development,

including but not limited to the construction of roads and damming of rivers

Subtle climate change occurs as a direct result of air pollution and

the greenhouse effect

The environment is the subject of the Ministry of Natural Resources and

Environment at the federal level

Several environmental organizations have been established to raise awareness


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Environmental Issues Deforestation and Pollution

Deforestation rate is the highest among tropical nations

Government uses Air Pollution index for the level of pollution in air

Fine dust is the dominant polluter

Water pollution

Periodic fires

The Environment


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Under the Federal Constitutional monarchy Yang di-Pertuan Agong is head of state i.e. the monarch, The King of Malaysia

Prime minister- Dato Najib bin Tun Haji Abdul Razak

Malaysia has a multi-party system

13 states and 3 federal territories

predominant political party, the United Malays National Organization (UMNO), has held

power in coalition known as the Barisan Nasional (formerly the Alliance) with other partiessince Malaya's independence in 1957

The national media are largely controlled by the government and by political parties

Opposition has little control over the media

Executive power is vested in the cabinet led by the prime minister

In recent years the opposition has been campaigning for free and fairer elections within

Malaysia

Parliamentary are held at least once every five years, with the last general election being in

March 2008

Politics of Malaysia


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GDP Malaysian GDP rate was average 6.5% up to 2005.

But after that GDP is not in balance.

From 2008 it is in decreasing mode, 2008- 6.3% 2009- 4.6%.

In recent year, 2010, Malaysia is having a negative GDP which is -1.7%

One of the reasons for negative GDP, The central bank maintains a conservative

regulatory environment, having prohibited some of the riskier assets in vogueelsewhere. However, decreasing demand in the U.S. and elsewhere is taking a toll on

Malaysian exports, resulting in negative GDP growth for 2009. During 2009 the countrys

gross import exceeded gross export that lead to negative GDP. Malaysian Government is

saying, they will come back with positive GDP with in 2010.

The GNI in 2005 - $12,478, 2006 - $13,449, 2007 - $14,149, 2008 - $13,800 and

2009 - $14,603 . GNI of Malaysia is increasing.

Economy of Malaysia


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2005 2006 2007 2008 2009

GDP-RealGrowthrate

GDP


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FDI Malaysia has been one of the most successful Southeast Asian countries in

attracting Foreign Direct Investment (FDI)

FDI inflow was good enough up 2008 in Malaysia but in 2009 there was huge

decline. In 2009 FDI inflow was $1.609 billion whereas in 2008 was $7.368 billion.

This mass decline was happened due to global financial and economic crisis Malaysia's FDI outflows had experienced a significant jump and that outflows had

actually been rising steadily over the last few years

From the year 2005 Outflow was in increasing mode except 2009. In 2009, FDI

outflow was $8.04 billion which was 43% less than previous year. This decreasing

was due to global financial and economic crisis

Economy of Malaysia


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2005 2006 2007 2008 2009

$Amount(Billio

n)

FDI (Inflow & Outflow)

FDI Inflow

FDI Outflow


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World Economic Forum (WEF) measure and rank the countries overall attractiveness based

on Benefit, Cost and Risk. Malaysia is ranked at 24th position, out of 133 countries with an

index score of 4.87, in the recently released Global Competitiveness Report 2009-2010.

Previous year the rank was 21th position. This decline is essentially the result of unfavorable

assessment of institutional framework.

Bank Negara Malaysia is the central bank of Malaysia

Bursa Malaysia is the leading stock exchange in Malaysia. It executes stock, bond, futures,

options, currency trading

The bond market in Malaysia has developed significantly in terms of market size, range of

instruments and efficiency. The development of the bond market centers on the need to

establish a well-diversified financial base to meet the changing needs of the Malaysian

economy

The only legal tender in Malaysia is the Malaysian Ringgit

Malaysias HDI score is on average .76. This means Malaysia is having a medium humandevelopment. The recent year, 2010, HDI score is .74 and world rank is 57.

Economy of Malaysia


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Language: Malay, In Malaysia, the language is officially known as Bahasa Malaysia

Culture and Society

Multi cultural

Ethnic groups are the native Malays as well as large populations of Chinese, and

Indians

most important festivals of each group are public holidays

The family is considered the centre of the social structure. As a result there is a

great emphasis on unity, loyalty and respect for the elderly

Malaysian Society


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Traits Malay women may not shake hands with men

Within the business context most Malaysian businesspeople are culturally-savvy and

internationally exposes

Foreign men should always wait for a Malaysian woman to extend her hand. Foreign women

should also wait for a Malaysian man to extend his hand.

It is important that professional titles (professor, doctor, engineer) and honorific titles are

used in business.

If you will be meeting government officials, have one side of your card translated into Bahasa

Malaysia

The respect you show someone's business card is indicative of the respect you will show the

individual in business

Malaysians rely on non-verbal communication (i.e. facial expressions, tone of voice, body

language, etc).

Malaysian Society


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Science policies in Malaysia are regulated by the Ministry of Science, Technology, and

Innovation

The country is one of the world's largest exporters of semiconductor devices, electrical

goods, and information and communication technology products

In 2002, the Malaysian National Space Agency (Angkasa) was formed to deal with all of

Malaysia's activities in space, and to promote space education and space experiments

In an effort to create a self-reliant defensive ability and support national development,

Malaysia privatized some of its military facilities

Technology in Malaysia


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Factor Endowments

Land ( covered previously)

Labor Malaysias rapid economic expansion has created a great demand for additional labor for the

manufacturing, construction, and service sectors.

Although the labor shortage has tended to increase wages companies nevertheless have

found it necessary to recruit foreign labor, primarily from Indonesia, the Philippines,

Bangladesh, and Thailand. T

he presence of foreign workers in large numbers has become a source of social and political

tension within Malaysia.

Moreover, the rural-to-urban migration prompted by industrialization has led to severe laborshortages in the rural economy.


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Energy The Malaysian government is seeking to intensify the development of renewable energy,

particularly biomass, as the 'fifth fuel' resource under the countrys Fuel Diversification

Policy

Traditionally, energy production in Malaysia has been based around oil and natural

gas. Malaysia currently has 13GW of electrical generation capacity.

On the other hand Malaysia only has 33 years of natural gas reserves, and 19 years of oil

reserves, whilst the demand for energy is increasing. Due to this the Malaysian

government is expanding into renewable energy sources.

Transportation Diverse and developed

Extensive road network

Main highway of the country extends over 800 km

Six international Airports

Official airlines: Malaysian airlines, major cities connected by air routes

There is the railway as well, there is the light rail transit

Factor Endowments


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Natural and economic factors are set to offer fast and significant growth potential in

Malaysia.

Over the last 40 years Malaysia has transformed itself, from being dependent on agriculture

and primary commodities, into an export-driven economy based on manufacturing in high-

technology, knowledge-intensive industries and a growing services sector

Worlds leading exporters of semiconductor devices, computer hard disks, audio and video

products and air-conditioning

Fastest developing economies in South East Asia

Though one of the countries affected by the Asian crisis in the 1990s, Malaysia has moved

beyond the problems that fuelled the crisis there are greater regulatory checks on the

banking sector, current account deficits have been turned into surpluses, and foreign

exchange reserves are at record levels

Attractiveness for investors!


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Services

Manufacturing

Information Technology

Infrastructure

Banking & Finance Telecommunication

Logistics and Supply Chain

FMCG & Retail

Tourism & Hospitality Agriculture & Biotechnology

10 top sectors in Malaysia!


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Concluding words

Malaysia's economy, the third largest in South-East Asia behind Indonesia and Thailand, has

grown steadily since recovering from the 1997-98 Asian financial crises. However, due to the

global economic crisis, GDP declined in 2009 by 1.7 per cent. Malaysia's economy has since

begun to recover with growth of 9.5 per cent in the first half of 2010.

Malaysia continues to have a large trade surplus (with 152 consecutive months of surplus, as

of June 2010). Annual inflation grew rapidly in 2008 due to rising global food and fuel prices,

from 2 per cent in 2007 to 5.4 per cent in 2008, but fell to 0.6 per cent in 2009 due to the

impact of the global economic crisis.

Malaysia has run a fiscal deficit since 1998. Following a RM 60 billion ($25 billion) stimulus

package in response to the global economic crisis, Malaysia's budget deficit increased to 7.4

per cent of GDP in 2009. The Malaysian Government projects a budget deficit of 5.6 per centof GDP in 2010.


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Malaysia economic development is one of fastest and steady in global economic scenario.

There is a clear indication of tremendous economic development in Malaysia. Malaysiaeconomy is a middle income country that has developed since 1970s.

The Prime Minister after coming to power in 2003, has tried to develop economy of this

south Asian country by introducing value added production. He took a number of measures

to introduce hi-tech technologies and encouraged investments in high technology industries,

medical technology and pharmaceuticals.

Efforts have been made by government of Malaysia to stop its dependence on exportproducts. However, exports of electronics goods have always been a major factor in Malaysia

economy.

There has been huge profit accrued from export of oil and gas and it has been a major factor

for Malaysia economic development. There have been huge profits from high energy prices,

although there was high cost of gasoline and diesel fuel.

Economic development of Malaysia is largely dependent on various factors

Different sectors contribute individually for Malaysia economic development

Concluding words


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Thank you!!!!

malaysia 372- presentation

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