This essay Malaysian Economic Policy and FDI. has a total of 3597 words and 22 pages.
Malaysian Economic Policy and FDI.
BACKGROUND AND COUNTRY ATTRACTIVENESS.
Malaysia is the second fastest growing economy in the South East Asian region with an average Gross National Product (GNP) growth of eight-plus percent per year in the last seven years. Since independence in 1957, Malaysia has moved from an agriculturally based economy to a more diversified and export oriented one. The Malaysian market is fairly openly oriented, with tariffs only averaging approximately fifteen percent and almost non-existent non-tariff barriers and foreign exchange controls. The open trade based economy is supported by the fact that the total two way trade almost amounts to 120 percent of the GNP (1994). Together with a stable political environment, increasing per capita income, and the potential for regional integration throughout the Association of South East Asian Nations (ASEAN), Malaysia is an attractive prospect for FDI (refer to Tables 1, 2, 3 and Graph 1 for relevant economic indicators).
Until 1993, foreign investment contributed 60% of all investment in Malaysia. FDI grew strongly in the late 1980s to reach a peak of RM17.7 billion in 1992. This was followed by a sharp drop to RM6 billion in 1993 due to the world rececession, but rose again to RM15.2 billion in 1994. Malaysia is among the top five recipients of foreign direct investment in the world and while in recent years it has come mainly from other Asian countries, 1993 saw the US as the biggest inward investor with RM1.7 billion. Japan and Taiwan are clearly the largest overall investors with the US third, followed by France, Singapore and the UK (McLeman 1994, 19).
The rationale of this report is not to promote Malaysia as an attractive destination for multinational entities, but rather to analyze how Malaysia\'s economic policy impacts upon FDI. Malaysia, perhaps, represents one of the most successful developing nations that has been able to effectively incorporate economic policy objectives with foreign funds, knowledge and networking throughout FDI (refer appendix 5). FDI in Malaysia is an important catalytic factor, increasing exports, knowledge and provides an economic vehicle towards the Malaysian 2020 vision.
THE MALAYSIA PLAN AND THE NEW ECONOMIC POLICY FRAMEWORK
The Malaysian government uses economic planning to achieve economic and socio-economic goals in close coherence with the New Economic Policy (NEP) and the National Development Policy (NDP). The Fifth Malaysia plan and the Long-term Industrial Master Plan Malaysia, in particular, indicate specific future objectives and economic trends.
The Malaysian economic policy framework is based upon the NEP, which was launched in 1974. The political and economic objectives of the NEP is to reduce poverty by increasing income levels for all Malaysians and to restructure the Malaysian society in order to erase all racial identification in economic terms. In other words, the NEP calls for a financial redistribution from the minority of wealthy non-Bumiputra (native Malaysians also known as "Princes of the Soil") racial groups to the Bumiputras (Goldsworthy 1991: 51). The goal is to achieve corporate equity of 30 percent Bumiputra, 30 percent foreign and 40 percent other-Malaysians (Onn 1988: 8). This goal can only be facilitated with an expanding economy, so that no racial group should suffer from economic or social deprivation. Other specific economic goals include; maintain high sustainable growth, low unemployment rates and ensure the stability of economic factors such as inflation. Under the NEP, FDI incentives were d!
esigned to achieve social rather than economic objectives (Goldsworthy 1991:53). According to the Malaysian Industrial Development Agency (MIDA), "Malaysia received political stability from the NEP. Racial turmoil attracts neither foreign nor local investments."(Appelbaum et Al: 1993, 180)
The National Development Policy (NDP) replaced the NEP when it expired in 1990. This new policy can be considered an add-on document to the NEP, the objectives of which were not achieved in 1990. Furthermore, it provides a framework towards Dr. Mahathir\'s new vision 2020 plan symbolizing "the way forward" policy towards a "developed" nation in 2020. This will require the nation to maintain a 7-plus percent growth rates for the next 25 years. Prime Minister Mahathir believes raising workforce quality and developing expertise in sophisticated industries are decisive elements in the country\'s road to economic success and development (Brown 1993: 43). In order to facilitate these growth requirements, the NDP has relaxed many
Topics Related to Malaysian Economic Policy and FDI.
Economic history of Malaysia, Malaysian New Economic Policy, Foreign direct investment, Economy of Malaysia, Bumiputera, Economy of Poland, Foreign direct investment in India
Essays Related to Malaysian Economic Policy and FDI.
Company Insights on BPCompany Insights on BP On August 30, we all chose 5 stocks to evaluate before purchasing. At this time I chose BP AMOCO, Microsoft, Western Digital, Toys-R-Us, and Fortune Financial Incorporated. After a few weeks of tracking these stocks, I chose to keep BP AMOCO, Microsoft, and Western Digital, because the stocks were relatively stable and most of them were on the rise at this time. As you are aware, we were given $30,000.00 to invest in our three chosen stocks, which breaks down to $10,000.00
The Future Of CurrencyThe Future Of Currency The Future of Currency In the present day, the world\'s economy is ever-changing and adjusting. Many different reasons control the reasons for this. The future of currency is something that can only be predicted and is not guaranteed. However, there are many determing factors behind the changes that can take place. Asia and North America are two continents that have economies that have recently changed or are in the midst of change. World War 2 drew a hard blow and left a
Science; Rainforests And EarthScience; Rainforests And Earth The Tropical Rainforests of the World In this term paper, I will explain the great importance of the tropical Rainforests around the world and discuss the effects of the tragedy of rainforest destruction and the effect that it is having on the earth. I will talk about the efforts being made to help curb the rate of rainforest destruction and the peoples of the rainforest, and I will explore a new topic in the fight to save the rainforest, habitat fragmentation. Ano
Malaysia Country ReportMalaysia Country Report As the world prepares to move into the twenty-first century, many nations are rapidly developing their agricultural and manufacturing sectors. As these burgeoning industries become a larger part of the nation’s economy, the nation finds its population restructuring and streaming to the areas of growth. Just as the people are trying to compete for their survival, the nation is fighting its way to center stage in the world economy. The development of these countries is tied
VietnamVietnam The Socialist Republic of Vietnam consists of the former Democratic Republic of Vietnam (North Vietnam) and the former Republic of Vietnam (South Vietnam). The division of the country resulted from the defeat of the French by Communist-inspired nationalists in 1954. A prolonged civil war resulted in a victory for the Communist north, and reunification occurred in mid-1976. Physical Setting Vietnam has an area of 127,207 square miles (329,465 square kilometers) and is located in Southeast
Asian CrisisAsian Crisis The financial crisis that erupted in Asia in mid-1997 has led to sharp declines in the currencies, stock markets, and other asset prices of a number of Asian countries. It is hard to understand what these declines will actually do to the world market. This decline is expected to halve the rate of world growth in 1998 from the four percent that was projected pre-crisis to an estimated outcome of about 2 percent. The countries that are included in the East Asian crisis, known as Tiger
AustraliaAustralia Australia- Trade and Immigration Background As Joycelyn has mentioned Australia\'s having greater and greater interaction with its Asian neighbours, through the areas of trade and its active role in the regional trade organization - APEC. Despite its location, Australia can hardly be thought of being an Asian country. Not so long ago, Asian were looked down upon, with a mixture of fear because of the communist aggression, pity because of their poverty, and contempt, as they dumped chea
South East AsiaSouth East Asia Throughout history there have been many different refugee movements in Southeast Asia. It is highly important to understand the difference between a refugee and an immigrant. The Webster’s dictionary defines a refugee as “one who flees to a shelter or place of safety.” A refugee flees the country in which he or she lives in for many different reasons. It can be the fear of persecution, fleeing from things like natural disasters, or even war. On the other hand, immigrants are peop
The Asia turmoilThe Asia turmoil The Asia turmoil begun in the middle of summer of 1997. The problem started in Thailand when Bath(known as Thai\'s curencey) was geting weaker and weaker against US dollars. At that point, the rest of the world started to see that Thai\'s economy was starting to fall apart. Some pople predicted that the problem would not stay longer than a few months. However, it was wrong. As manner of fact, the problem spread amongs some of Asian Countries. Even the mighty Japan was effected b
VietnamVietnam VIETNAM. The Socialist Republic of Vietnam consists of the former Democratic Republic of Vietnam (North Vietnam) and the former Republic of Vietnam (South Vietnam). The division of the country resulted from the defeat of the French by Communist-inspired nationalists in 1954. A prolonged civil war resulted in a victory for the Communist north, and reunification occurred in mid-1976. Physical Setting Vietnam has an area of 127,207 square miles (329,465 square kilometers) and is located in
ISLAMIC FINANCEISLAMIC FINANCE TERM REPORT CAR IJARA MBA 3 (DPO) DATE: 16TH DECEMBER 2002 BUSINESS ADMINISTRATION ACKNOWLEDGEMENTS At the completion of this report, we are very thankful to Mr. Ahmed Ali of Meezan bank for his sharing of valuable information, time and providing us with useful insight into the subject of Islamic car financing.. We are thankful to Mr. Farid Khan, of Meezan Bank for sharing his knowledge of car financing with us. We are also thankful to Mr. Mansoor Ali of Citibank for providing us
OPEN SYSTEM, CHANGE AND TRANSFORMATIONOPEN SYSTEM, CHANGE AND TRANSFORMATION Malaysia Airlines (MAS) does appreciate an open system that offers powerful ways of thinking about strategy and organizational design. MAS adaptation to the environment is high in the sense that different environments favor different species of organizing based on different methods. MAS can be seen as a bureaucratic organization in a way. They tend to work most effectively in environments that are stable or protected in some way. MAS emphasize the need of c
GlobalizationGlobalization Globalization is both an active process of corporate expansion across borders and a structure of cross-border facilities and economic linkages that has been steadily growing and changing as the process gathers steam. “This process sows the seed of its own destruction, as it serves a small global minority, damages the majority, breeds financial instability, and exacerbates the environmental crisis. Its destructive tendencies are likely to produce an explosion if the process is not c
The Economic Emergence of China, Japan and VietnamThe Economic Emergence of China, Japan and Vietnam World War 2 in the mid-90\'s drew a hard blow and left a serious and lasting effect to many Asian countries. This however, did not hamper the growth of countries such as China, Japan and Vietnam as their government were taking serious steps to recover economically. Thus, the global market cannot deny a place for these \'Asian Dragons\', because these countries are growing at a tremendous pace to the extent of being capable in emerging as global
Future Involvement in Foreign AffairsFuture Involvement in Foreign Affairs Since the United States is one of the last remaining super powers of the world, we have the obligation to maintain and support good relations with the smaller and weaker nations throughout the world. We should take full advantage of this authority in several different ways. First the U.S. must focus on investing and trading with those nations who have yet to become economic powers; second, we must implement a consistent foreign policy towards the Middle East
BiodiversityBiodiversity OVERVIEW 2 WHAT IS BIODIVERSITY? 2 THE GLOBAL CRISIS 3 THE CANADIAN CRISIS 4 THE INTERNATIONAL RESPONSE: BACKGROUND TO THE CONVENTION 6 THE CONVENTION 8 THE CANADIAN RESPONSE 10 CANADIAN BIODIVERSITY STRATEGY 11 INTERNATIONAL ACHIEVEMENTS 12 CANADIAN ACHIEVEMENTS 13 FEDERAL INITIATIVES 13 Initiatives Relating to Article 8 of the Convention 13 Initiatives Relating to Other Articles of the Convention 16 INTERNATIONAL/TRANSBOUNDARY 17 CONCLUSIONS 18 APPENDIX I RATIFICATION LIST 21 APPE
MANAGING PEOPLE IN AN ACQUISITIONMANAGING PEOPLE IN AN ACQUISITION MANAGEMENT THEORY & PRACTICE SESSION 1998/99 PROJECT PAPER PREPARED BY: BHUPINDER SINGH NG KENG YII NIKKI LEE SIEW HONG ______________________ ___________________________________________________________________ MANAGING PEOPLE IN AN ACQUISITION CONTENTS 1.0 OBJECTIVE OF THIS PAPER 2.0 INTRODUCTION AND BACKGROUND 2.1 External Environment 2.2 Chronology To Events 2.3 Objectives for Acquisition and Opportunity for RHB 3.0 CORPORATION PROFILE 3.1 RHB Bank Organizati
The History of Phamaceutical CompoundingThe History of Phamaceutical Compounding The profession of pharmacy was founded in the art and science of compounding medications. The beginning of compounding dates back to medieval times with priests, monks, and medicine men. Specialization first occurred in the early 9th century in the civilized world around Baghdad. Over time it gradually spread to Europe as alchemy evolved into chemistry as doctors began to abandon beliefs that were not demonstrable in the physical world. During this time,
Decline of the American EmpireDecline of the American Empire In any era there are different protagonists, playing the same game on a similar board. Like a game of monopoly, there are nations competing to become the foremost leaders of their time. They amass great wealth, powerful armies, and political sway. When the influence and might of these countries transcends the confines of their boundaries, so that they become a presence throughout the world, they become empires. At times, it seems as though one of these empires wins