Malaysia 372- Presentation
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Transcript of 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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-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
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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0
2
4
6
8
10
12
14
16
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!!!!