Factors behind Malysias economic boom

Factors behind Malysias economic boom Malaysia is a country endowed with rich resources, possesses well-developed infrastructure and is socio-politically stable. Malaysia has achieved fairly impressive economic success since 1970. Before 1969, Malaysia underwent poverty, unemployment and inter-ethnic economic imbalances caused by colonialism and then by the laissez-faire policies after Independence (Gomez Jomo 1999). From a poverty-stricken country that relies on agriculture and raw materials(rubber and tin exports) as nations economic source, Malaysia has now advance to an export-oriented industrialisation stimulated by technology intensive, knowledge based and capital intensive industries. Malaysia a multicultural country comprised of the 3 dominant ethnic group, Malay(50.4%), Chinese (23.7%) and Indian(7.1%) with an approximate population of 28 million, she is able to maintain economic advance within social unity (CIA World Factbook, 2010). Hence, in appreciative of Malaysias economic success in a sustained multicult ural unison, this essay will provide an overview on the government efforts in moving Malaysias dependence on low-income agricultural sector to export-oriented industrialisation (EOI) as well as attracting lucrative foreign direct investments (FDI). To address these, this essay will be divided into four sections. The first section will present a short account of indicators on Malaysias real GDP and poverty incidence. The second section, divided into subsections, will illustrates the major factors behind Malaysias economic boom in industrialisation and FDI since 1970, primarily through government intervention. The third section will attempt to evaluate Malaysias future economic challenges of how distributive policies may have hindered Malaysias future economic growth. The last section of the essay suggests recommendations on Malaysias approach in sustaining and improving economic growth. MALAYSIAS REAL GDP AND POVERTY INCIDENCE Graph 1 shows the real GDP growth and inflation in percentage of Malaysias economy. Based on the graph, the real growth rate averaged 7.8 per cent per annum during the 1970s but slowed to 6.9% during 1980 fell negative 1 percent in 1985, with better macroeconomic policies and market-based reforms, the Malaysian economy resumed rapid growth in 1987. Over the nine years to 1997, the average growth of GDP accelerates to over 8 per cent. Overall, Malaysias averaged 6.5 per cent of real GDP from 1971 to 2009 is a considerably impressive figure by developing country standards. The inflation rate although highest in 1974 at 17.4 per cent, the inflation has been kept relatively low after the first oil shock, averaging below 4 per cent from 1975 to 2009. Although unemployment rate was relatively higher for the first 2 decade during the implementation of NEP, it averages below 4 percent during the implementation of New Development Policy (NDP) and National Vision Policy (NVP). Graph 2 illustrates the incidence of poverty in Malaysia from 1970 to 1999. The total poverty of incidence shows a declining pattern up to 1997 but the rate moved up slightly in response to the Asian Financial Crisis. 85,900 households poverty in urban areas was reduced to 57,100 in 1993 whereas rural poverty reduced from 791,800 households to 268,200 in 1993. The large decrease in poverty incidence was a result from the growth in the economy, which created job opportunities in the non-traditional sectors (Zin ). FACTORS BEHIND MALAYSIAS ECONOMIC GROWTH Implementation of NEP (1971-1990) One of the major factors that boost Malaysias economic growth was the implementation of the New Economic Policy (NEP) from 1971-1990. According to Athukurola, at independence, native Malays accounted for 52% of the population and dominated politics but were relatively poor as involved mostly in low-productive agricultural activities(Barlow, 2001). However, the ethnic Chinese comprising 37% of the population enjoyed greater economic strength and dominated the most modern sector activities(Barlow, 2001). Of the 49 per cent of household in peninsular that received an income below the poverty line, 88 percent were found in the rural areas. Farmers made up 48 per cent and 30 per cent were farm or estate labourers. (Cho, 1990 p.68) Hence, the NEP prime objectives were to attain national harmony and inter-racial economic parity by eradicating poverty irrespective of race and to eliminate the association of race with economic role by reforming the society (Gomez Jomo, 1999, p. 24). For the former, the overall development plan was reformulated with emphasis on EOI, and development program on rural and urban areas (Menon 2008). The latters objective called for greater government intervention mainly on ethnic affirmative action, which includes accelerating expansion of the Malay middle class, accumulating Malay ownership of share capital in limited companies and producing Malay entrepreneurs (Gomez). In conjunction with the NEP, the main aim of the First Malaysia Plan (1996-70) was to promote agricultural and industrial activities so as to diversify the economy and create employment. Accordingly, the focus was on labour-intensive import and export substitution(). Hence, to achieve these goals, part of the NEP aimed at changing the employment patterns in the urban areas to reflect the racial composition of the country, and increasing Bumiputera equity in corporate ownerships from 2% in 1970 to 30% by 1990 (Menon). In order to achieve the restructuring objective, th e government established a large number of public enterprises such as Petronas(National Oil Corporation), Malaysian Airline System (MAS), and the Heavy Industries Corporation of Malaysia(HICOM) as well as trust agencies such as National Equity Corporation(PNB) and Amanah Saham Nasional (ASN) (Toh, 1989). Emphasis on EOI Industrialisation appears to be the key sector that led to economic growth in Malaysia. The export coefficient (total merchandise exports as a percentage of GDP) of around 50% in 1965 1880 increased modestly during the 1970s slowed in the first half of the 1980s and rose sharply from about 1987( Athukurola). The ratio was 96% in the mid-1990s. Malaysias export coefficient was the third largest in the developing world in the decade up to the late 1990s coming after the 170 percent of Singapore and 140 percent of Hong Kong. During the 1970s increasing commodities prices were a major determinant of high growth rates. (Africa). The fast-growing manufacturing industry became known as the engine of growth to the country (rasiah rajah). Based on table above, manufacturing sector contributed constant growth rates to the GDP throughout the years and during the NEP period, the percentage rose from a mere 13.9 percent to a substantial share of 27 percent. The Second Malaysia Plan (1971-75) paid much attention to EOI, in addition to increased direct government participation in commercial and industrial activities which signalled a drastic departure from the earlier practice. Structural changes in the Malaysian economy are also reflected in the changing pattern of sectoral employment, with the contribution of agriculture to employment declining from 53.5 per cent in 1970 to 15.2 per cent in 1997 and that of manufacturing rising from 8.7 per cent to 27.5 per cent over the same period (Table 2). Under the Third Malaysia Plan (1976-80), resource-based industries were given a boost, thanks primarily to the discovery of oil and gas. Education and training in the field of industrial engineering were given much emphasis, to relieve shortage of skilled manpower.Among some of the efforts that drove EOI was the opening of Free Trade Zones and licensed manufacturing warehouses in 1972(Jomo,p. 119) The main task of the Fourth Malaysia Plan (1981-85) was to boost productivity, expand the industrial base and modernise the services sector. In addition, small-scale industries were promoted through the provision of training and financing facilities. The Malaysian government had a heavy hand in the launching of the ambitious heavy industrialisation programme in the early 1980s. The establishment of Heavy Industries Corporation of Malaysia (HICOM) was a strong manifestation of direct government involvement in the countrys industrial development. To both deepen the industrial structure and extend the into high value industries, formed HICOM, a series of heavy and chemical firms in sectors such as steel, cement, automobiles,chemicals, and paper and pulp(Ritchie p.749) Apparently, the policy decision in favour of heavy industrialisation was inspired by the Korean model of industrial development based on the practice of picking winners. In fact, the First Industrial Master Plan (1985-95) had Korean fingerprints all over. The Malaysian heavy industries have been in trouble, saddled with high production costs, heavy debts, market glut and excess capacity. They are simply uncompetitive. They could not have survived, had it not been for state patronage and strong protection. Contribution of FDI to Malaysias Economy Foreign direct investment(FDI) also contributed largely to Malaysias economy. A large number of empirical studies on the role of FDI in host countries suggest that FDI is an important source of capital, complements domestic private investment, is usually associated with new job opportunities and enhancement of technology transfer, and boosts overall economic growth in host countries(Karimi Yusop). To attract a larger inflow of FDI, the government introduced more liberal incentives including allowing a larger percentage of foreign equity ownership in enterprise under the Promotion of Investment Act (PIA), 1986. This effort resulted in a large inflow of FDI after 1987(the inflow of FDI grew at an annual average rate of 38.7 percent between 1986 and 1996). The major areas of investment by foreign companies are in sectors such as electronics and electrical products, chemicals and chemical products, basic metal products, non-metallic mineral products, food manufacturing, plastic products , and scientific and measuring equipment.(Ministry of Finance, 2001). Apart from these policy factors, it is generally believed that sound macroeconomic management, sustained economic growth, and the presence of a well functioning financial system have made Malaysia an attractive prospect for FDI. (Ministry of Finance, 2001). Foreign direct investment (FDI) has been seen as a key driver underlying the strong growth performance experienced by the Malaysian economy. Policy reforms, including the introduction of the Investment Incentives Act 1968, the establishment of FTZs in the early 1970s, and the provision of export incentives alongside the acceleration of open policy in the 1980s, led to a surge of FDI in the late 1980s. WHERE FROM HERE? In determining the future of Malaysia, the government has implemented the National Vision Policy (NVP) First we need to be independent. Local market too protected by the government. Proton. CamPro CONCLUSION To sum up, the economic growth was mainly a result of government outward-oriented policy stance government redistributive policies The profile of the Malaysian economy has changed radically since 1970. It is no longer dependent on a few primary commodities. Its production base has broadened, with manufacturing accounting for a growing share of national output and employment. The Malaysian economy has become more open and outward looking over the years.

Comparing The Jewel in the Crown and Wuthering Heights Essay -- compar

Similarities in The Jewel in the Crown and Wuthering Heights      Ã‚  Ã‚  Ã‚  "He stood a stranger in this breathing world, An erring spirit from another hurl'd... What had he been?   What was he, thus unknown? Who walked their world, his lineage all unknown?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   George Gordon, Lord Bryon (1788-1824)       This except of a poem from the Romantic period could be used to describe two characters from two different works of different time periods.   Heathcliff - the "dark-skinned gypsy" with the "manners of a gentleman"(WH 5) is the villain/hero of Emily Bronte's Wuthering Heights (1847) and Hari - the very English, Hindu-Indian, outcast/hero of Paul Scott's The Jewel in the Crown (1966) share many common characteristics.   Both represent a lower class of dark-skinned people that are disadvantaged by the times and societies that they live in.   Each fights outward prejudices as well as their own inner battles to determine self-worth.   Heathcliff and Hari find themselves in love with white-skinned women who represent the superior class in...

Frito Lay Company Essay

Let’s look at how the potato chip came to be. In 1853 the first potato chip was invented by a chef at the Saratoga Springs New York resort in 1853. It was created because one of the customers at the resort keep sending them back because they were too thick, soggy and had no taste to it. Crum then decided to fry them and sprinkled them with salt for taste. They were soon a regular item on the menu. Later, around the 1920’s they then moved from restaurants to being massed produced. Once they came up with a way to keep them fresh and from breaking up, they were able to put them into mass production 1920‘s. Frito Lay was created in 1938 by Herman Lay. Frito Lay is one of the leading potato chip companies in the United States for many years. They continue to post recording breaking numbers in all of their brands. One of their enduring brands is the Lays potato chips. These potato chips can be found in many different flavors. The currently are barbecue, sour cream and onion, ranch and many others. However, this industry is highly competitive and there are large manufactures that have many types of products and other snacks. Smaller companies have found a way to compete with the larger companies. These small companies have gained footing by introducing the new healthier chips that are now being sold in health food stores. A lot of concern about the Salt content is what enable smaller companies to compete. They focused on these healthier brands and have introduced a product that is totally opposite of the major brands. Lays has also added Dips to their brand. They currently consist of Ranch, French onion and etc. This was created because dip is consistently served with potato chips at events such as birthday parties, foot ball parties, luncheons and etc. Frito Lay Extended Enterprise Supply Chain Farm Manufacturer Warehouse/ Retailer Consumer Distributor When it comes to potato chips, the industries in the extended supply are few. The first industry is the farm where the potato chip comes from. They are currently located in cities like North Dakota, New England, Florida, Michigan, Texas and California and etc. They are also located in Central and South America, Brazil, Europe, in Leicester and Coventry England, Asia, Middle East & Africa and India. These farms have been picked for their potatoes that will be used in the making of the potato chip. Because a potato is something you can grow yourself, it is very easy to make potato chips. However, these potatoes are planted and treated with the utmost of care to produce a high quality product. The potatoes are grown and harvested and then they are shipped to a Frito-Lay plant. When they arrived the first thing they do is wash them. They are then peeled with the utmost care. Next they are then cut into slices and then rinsed again to remove particles produced from the cutting. They are then cooked in oils such as sunflower, canola and corn oil. These are very important because they are considered all-natural oils. They contain 0g trans fat and are considered lower in saturated fats. Once dried, they are then sprinkled with salt for taste. Because creating these potato chips is so simple they can be created in less than a day. Once they are packaged, they are then sent out to distributions centers worldwide. This is where the products are stored and then loaded on to trucks and then taken out to stores, gas stations, vending machines and etc. Frito lay currently markets to a wide variety of consumers. One consumer is high school teens and college age students. They have many different places where they consume the product. One of the ways in which they consume the product is in sports and entertainment areas such as movie theaters or sports stadiums. Another place it is being consumed is in the home. Frito Lay has focused on the snack side for many years. These are the type of people who would eat these snacks and did not care about their weight or being healthy. But recently, Frito Lay has changed to targeting more healthy consumers also. With the way the world is changing constantly, Frito-lay is always trying to keep up by targeting with the ever changing times. Because so many people are becoming health conscious, Frito-lay as also targeted this audience. They have come up with some products that allow the consumer to also focus on their health and physical appearance. In order for Frito-lay to stay competitive, it is apparent that they have to target this demographic also because in the recent years some of their snacks have been losing sales. Another of their target audience is the Hispanic market. Hispanic market are targeted because the chips can sometime be the meal or a side dish to the meal. Also this demographic is constantly growing in numbers and have become an important and influential part of society. Frito-Lay’s wholesale and distribution consumers are also a major business. They are the resellers such as retailers and wholesaler who buy Frito-Lay’s finished goods and resell them for a profit. Frito Lay also sells directly to large retailers and retail chains and through wholesalers to smaller retail units. Frito- Lays itself also targets big business customers of other companies. Lay’s identify prospective buyers, monitor current customers’ needs and levels of satisfactions, and personally attend to existing customers. Essentially, Frito lay’s target consumer consists of everyone. It consists of Frito-Lay constantly changing their product to keep up with the changing taste of the consumer. In getting the product to the consumer, Frito-Lay has experienced bottlenecks. This is usually seen with the individuals who deliver the product to the shelves. They are the individuals who places the product on the shelves for the consumer to buy. Obviously this is a very important part of getting the product to the consumer. Frito-lay found that the sales portions was hindering the driver getting the product to the stores on time. Therefore, they separated the two which helped tremendously. Conclusion: Frito-Lay’s new product development, advertising, and marketing efforts continues to help them to grow in the salty snack market. Frito-Lay’s measures economic activity which aids them in improving their organization. Their industrial production and manufacturing production had made them the leading snack food organization in the world. Frito-Lay continues to try and have an enormous amount of knowledge at its fingertips. It continues to ascertain seasonal local demand of each of its products and exactly how much inventory each store has at any time. By keeping track of this information, it helps to better plan seasonal and local promotions. By knowing specific inventory at each store, Frito-Lay could better plan and improve its routing and inventory systems. References: Çetinkaya, S., ÃÅ"ster, H., Easwaran, G., & Keskin, B. (2009). An Integrated Outbound Logistics Model for Frito-Lay: Coordinating Aggregate-Level Production and Distribution Decisions. Interfaces, 39(5), 460-475. Feld, C. S. (1990). Directed decentralization: the Frito Lay story. Financial Executive, 6(6), 22-25. â€Å"Frito-Lay History†. Frito-Lay North America, Inc.. Retrieved 4 January 2013 @ www.fritolay.com Jacobson, G. (1989). How Frito-Lay Stays in the Chips. Management Review, 78(12), 11.

UN Member essays

UN Member essays As a UN member, I must make choices that will be beneficial to not only one nation, but also the entire world. Many of the decisions made will impact the future of the world. The topics being discussed are Torture, AIDS, Death Penalty, and extreme poverty. These topics have been top national concerns for many nations, they affect many aspects of the way their people live their lives. Everything from the food they eat to the economy they bare, these topics have will affect everyones lives. Torture has become recent news in Iraq. Many Iraqis have been put into jails, where only until recently has it become uncovered that they were beaten and abused. Lawyers from the Bush administration have said that the Geneva Convention did not protect the Iraqi Prisoners because they were yet to be declared prisoners of war (rediff.com). So far the Iraqi prisoners have been labeled detainees, therefore they are incapable of using the Geneva Convention, which protects prisoners of war. As of now, the only prisoner of war is Saddam Hussein. According to the same lawyers, they are not even protected under any international treaties, or rules of war (msnbc.com). Al Queda and the Taliban have gained the title of outlaws, since they have employed methods that contradict the rules of war and they have no care for international borders. Therefore they are not protected by any laws, which defend the rights of the people. Yet at the same time, an UN expert of Human Rights has declared the freedom from torture and cruel, inhuman, or degrading treatment or punishment as non-derogable rights. Since the prisoners are still covered under the protection of the Fourth Geneva Convention, they had the right to the protection guaranteed by the law. In a Justice Department memo, written for the CIA late in the fall of 2001, put an extremely narrow interpretation on the international anti-torture convention, allowing the agency to use a whol...

Ten top spelling tips - Emphasis

Ten top spelling tips Ten top spelling tips English can be a confusing language. Swapping one word for another that sounds exactly the same (a homophone) can alter the meaning completely. Picking the right one gives your business writing credibility. Here are some commonly confused words clarified, to help you make the right choice every time. 1. Practice and Practise Practice with a c is the noun so it can mean a rehearsal, a run-through or an office belonging to certain professionals. For example, a doctors practice, a lawyers practice or the dreaded dentists practice. Practise with an s is the verb (in UK English) and means to do or to carry out. So you could say, Tracey practised singing Madonnas Like a Virgin on several occasions. But it didnt help her get into the Pop Idol final or, Plan B, the convent. Note that US English uses practice for both noun and verb. 2. Desert and Dessert A desert is a wasteland or a wilderness that quite often features sand and a few camels. A dessert is a big fat pudding! Think ss for sugary sweet. 3. Your and Youre Use your when talking about your pen, your file, your desk. Use youre when you mean you are. For example, Youre going to work today. Because your boss will give you the heave-ho if you take another sick day. 4. There, Theyre and Their Arranging a night out at a swanky bar with your friends? You can say, Great, Ill see you there! Theyre sure to wear their finest cocktail attire. 5. Affect and Effect A person can be affected by an incident whereas an effect is the result of an incident. For example, Jim was deeply affected by his wife running off with the Australian travel rep. The effects of this were: he had a funny turn whenever Skippy the Bush Kangaroo was on TV, and he decided to holiday in Skegness, not Sydney, in future. 6. Horde and Hoard Horde can be used to describe a crowd. For example, hordes of people attended the rugby match. Whereas a hoard is a stash of treasure. 7. Stationary and Stationery Confused about when to use stationery or stationary? When you are writing about paper products or similar, think e for exercise book and use stationery. Or you could think of a stationary car, which rhymes with ar. 8. Canvass and Canvas A slimy politician will canvass votes. But canvas is a type of material favoured by artists – or boy scouts pitching their tents. 9. Bare and Bear When the sun comes out, Britons strip off and bare all in their swimming costumes! But can you bear the sight of all that exposed flesh? 10. Compliment and Complement To compliment someone is to make an encouraging remark. Complementing them, however, may be more welcome, as it means to support or help.

GUN CONTROL LAWS Research Paper Example | Topics and Well Written Essays - 2500 words

GUN CONTROL LAWS - Research Paper Example Evolution of gun control laws in the United States Although gun battles and issues related to it are getting higher in various parts of America, gun control in general is encouraged by a few Americans. They support handgun control in particular. The gun laws in United States are mentioned in the Second Amendment of the United States Constitution. The gun control in the United States may be Federal, State or even local gun control. Congress in 1934 commenced the first major gun control in 1934 which emphasized on the regulation of the firearms like machine guns. This was followed by a new federal law in 1938 which imposed license on the gun sellers. This also put restriction on aggressive individuals from purchasing guns. An additional ‘Gun Control Act’ passed in 1968 stressed on the regulation of imported guns and expanded the regulations passed in the previous law. An obligatory penalty for the utilization of gun was established by the federal legislation in 1986 follow ed by prohibiting the manufacturing and importation of semi-automatic assault weapons. The gun control law passed by congress in 1994 has proved out to be the most prominent attempt at the national gun control. Ban on certain assault weapons also accompanied the 1aw passed in 1994 which expire in 2004. Along with the federal gun control, state and local legislation play their role in gun control. Leaving a loaded weapon with easy access of a minor has been regarded as a crime by the legislation passed by the state. As part of gun control, some states forbid concealed weapons while some others highlight on putting forward the requirement former to the obtaining of license to bear the concealed weapons. â€Å"States also regulate private sales to minors and all secondary market sales.† (Gun control policy issues, n.d.). California imposed ban on certain automatic weapons in 1989 followed by its extension by some other states. Most of the states have ‘preemption’ la ws forbidding the gun control ordinances from local authorities. Few states use additional state data for background study before the issue of handgun authority (Gun control policy issues). Multiple responses to regulations Gun control laws in the United States are believed to have brought significant reduction in the access of guns by immoral and illegal individuals. There exist controversies in the implementation efficiency of the federal laws. Some advocates claim that federal laws have indeed proved to be a milestone in the gun control efforts. They assert that state laws cannot be as effective as federal laws in restricting the states with few state laws from being the sources of guns for the immoral flow of guns to the restrictive states. The proponents of the federal laws have suggested for slight variations in the federal law components which would add to the effectiveness of laws and ensure the public safety. At the same time, there is equal denial on this claim from the op ponents. â€Å"They argue that controls often create burdens for law-abiding citizens and infringe upon constitutional rights provided by the Second Amendment† (Gun Control). The opponents show little satisfaction on the

Produce a written technical report on one of these topics (please see Essay

Produce a written technical report on one of these topics (please see description) - Essay Example Turbine gas engines have almost replaced the piston engines in the aviation industry for aircraft power generation. Categorized as turbojet, turbofan, turboprop, or turboshaft engine, the gas turbine engines are the most significant breakthrough in the history of aviation. Constant (1980) highlights that specific to their purpose, different types of engines are employed in the industry. Design characteristics including number of spools, principle of compression, distribution of airflow within the engine, utilization of the exhaust gas are the main deciding factors for this purpose. Basically, four types of turbine engines are used in aviation industry, these include In Turbojet and turbofan engines, reaction of exhaust gases leaving the exhaust nozzle is used ro produce thrust. Turbofan engines are further classified as as high-bypass or low-bypass-ratio engines based on requirements of mass flow. A typical schematic diagram of turbofan and turbojet engines is shown below for reference study. In third type of gas engines, turboprop, propeller is driven a turbine rotated by hot gases. Major portion of the exhaust gases is absorbed by turbine to produce mechanical work with a very small portion to produce thrust. Below is a schematic diagram of the turboprop engine. Air intake is the most important part of a subsonic and a supersonic aircraft as it ensure optimum supply of air to engine for producing required thrust. The design of intakes depends on engine requirements and aircraft design speeds. since the primary task of air intakes is to supply air for engine, then the ultimate responsibility for air intake design is attributed to aircraft airframe designer rather than engine designer. Therefore, it is important that both designers work in coordination with each other to reach optimum design (Mattingly 2005). The intake design such that it ensures that required amount of air