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Me Assignment 1 Bbce3013
Me Assignment 1 Bbce3013
Me Assignment 1 Bbce3013
MALAYSIAN ECONOMY
BBCE3013 – Assignment 1
Chapter 1
1. Explain the differences between economic growth and economic development from
the conventional perspective.
(6 marks)
Economic growth is the increase in a country’s national income or per capita income, or
the increase in the amount of goods and services produced by an economy from one
period to another. It can be measured as the percentage rate of increase in real gross
domestic product (real GDP). Economic growth is usually calculated in real terms, e.g.
inflation-adjusted terms, in order to obviate the distorting effect of inflation on the price of
goods produced. It typically refers to growth of potential output, e.g. production at full
employment, and shows the ability of an economy to produce a greater output of goods
and services annually. Economic growth is shown by the outward shift of the production
possibility curve; the outward shift indicating the level of a country’s economic growth.
2. List FIVE (5) contributing factors to the rapid growth of the Malaysian economy
since independence.
(5 marks)
i. Availability of vast resources, such as oil palm, rubber, pepper and petroleum
ii. Skilled and productive human capital
iii. Political and social stability
iv. Efficient economic organization underpinned by a progressive financial system,
well developed infrastructure and quality education system
v. Growth of the industrial sector and positive flow of foreign direct investment (FDI).
3. Briefly explain the THREE (3) sectors of the economic structure of Malaysia. Provide
an example of the economic activities for each sector.
(6 marks)
a) Primary sector: Activities that produced raw materials, e.g. agriculture and forestry.
b) Secondary sector: Activities that produced intermediate or final products, e.g. electrical
industry, manufacturing, construction, clothing and textile manufacturing.
c) Tertiary sector: Activities that produce services, e.g. education, health and financial
services
Chapter 2
1. Briefly explain the overriding objectives of the New Economic Policy (NEP) and its
two-pronged strategies.
(5 marks)
New Economic Policy (NEP) was formulated with the overriding objective of attaining
national unity and fostering nation-building through the two-pronged strategy of
eradicating poverty and restructuring society.
The first prong was to eradicate poverty, irrespective of race, while the second sought
to restructure society by eliminating the identification of race with economic function.
a) Job creation
b) Increase economic growth
c) New industries
d) Transform labour market,
e) Accelerate innovations.
Chapter 3
Chapter 4
1. What types of crops were planted during the pre-independence period of the British
colonization in Malaya?
(5 marks)
i. Rubber
ii. oil palm
iii. tea
iv. coffee
v. cocoa
Chapter 5
Chapter 6
Budget surplus:
5. Discuss FIVE (5) ways in which the tourism industry can contribute to the Malaysian
economy.
a) Driving the tourism ecosystem. According to Tourism Malaysia official website,
they aim to promote malaysia to become an outstanding tourist destination by
presenting Malaysia’s unique wonders, attractions and cultures
e) A leading travel and shopping destination. The fact that Malaysia had won
several leading tourism awards and leads in international shopping destination
rankings should not be taken lightly.
(10 marks)
6. Describe FIVE (5) strategies to promote tourism in Malaysia.
(10 arks)
a) Consider what makes your town or city unique. One way to do this is to make a
list of all the activities and attractions currently available in the town.
b) Conduct a survey of the members of the community. A survey is a valuable tool
during tourism planning as it helps you collect information on the town and
ensures the community can agree on the branding and marketing for the town.
Do face to face interviews or phone surveys
c) Do a survey of visitors to the town. You can conduct face to face interviews at the
local shopping mall. You can also ask visitors to sign up to a mailing list and
email them a survey
d) Create a marketing plan. A good way to do this is to determine target marketing
segments. Define market areas that will draw the most visitors, like a well known
hiking trail, an important historical site, or a museum.
e) Create a unique slogan. If you come up with a slogan, but its possible to remove
your town’s name and plug in another town’s name, it is not a unique slogan
7. Briefly discuss the shortcomings of tourism in Malaysia.
(6 marks)
Tourism involves huge expenditure on part of the tourists. Travelling costs included vehicle
hire charges, hotel and resort rent, food cost, etc. This increases the overall spending of the
person. We need to take out few days out of your busy schedule to visit tourist places. Hence,
tourism is often time-consuming. Leisure trips are good for health, mind and body. However,
hectic trips may cause stress and effect health. It may also lead to environmental hazards such
as environmental pollution due to use of cigars, plastic bags. In order to attract more tourists and
earn more profits sprawling resorts are built cutting down thousands of casuarinas trees beside
sea beaches. These resorts destroy both scenic beauty of the place by paying no attention to
local architecture and ecology.
Chapter 7
4. What are FIVE (5) possible measures that may be taken by Malaysia to meet the
challenges of globalization? Discuss.
(10 marks)
a) Sound macroeconomic management to maintain macroeconomic stability
b) Banking reforms to maintain financial stability
c) Strengthening the human resource base and implement training reforms to
enhance productivity through a knowledge-based economy
d) Developing small- and medium-sized industries/Diversification of the
economy/Increasing the range of goods and services exported
e) Development of science and technology (S&T)
Chapter 8
1. State FIVE (5) problems associated with rapid population growth rate?
(10 marks)
a) Problem of food supply
b) Land pressure
c) Problem of providing enough health facilities
d) Social problem/Increased need for social services
e) Problem of providing adequate infrastructure and public utilities
2. Explain TWO (2) factors that influence the population growth rate in Malaysia.
(4 marks)
a) Birth rate (fertility rate) and infant mortality rate
b) Socio-economic factors: E.g. female education level increases, population decreases,
health facilities