PART TWO

1. (a) Differentiate between economic growth and economic

development with example.

Eco. Growth – increase total output of goods and service

i. Economic growth is the increase in the amount of
final goods and services produced by an economy
over time.
ii. It is measured as the rate of increase in real gross
domestic product, real GDP. The rate is obtained
after adjusting inflation rate.
Measure – National income
Formula : Real GNP2019-Real GNP2018 x 100%
Real GNP2018
Eco development – increase in std of living, purchasing power
 Economic development is a broad and comprehensive concept.
It involves economic growth.
 It refers to the sustained, concerted actions of policy makers of
a country and societies that promote the standard of living and
economic health of a specified area.

 Indicators – Education, literacy rate, life expectancy, health,

infrastructure. Improvement in per capita GDP, literacy rate,
health, life expectancy, employment opportunities, education, a
rise in productivity

(7 marks)

MALAYSIAN ECONOMY 1/4

 (b) Table 1 shows Malaysia Real GNP from year 2015 to 2018.
Show with calculation Malaysia growth rate from year 2015 to
2016, 2016 to 2017 and 2017 to 2018.
(6 marks)
Table 1
Year Real Growth rate
GNP
(RM
Billion)
2015 247.381 -
2016 260.866 260.866-247.381/247.381 x 100% =
5.45%
2017 274.513 274.513-260866/260.866 x 100% =
5.23%
2018 301.2 9.72%
Source:
Department of Statistic, Malaysia

GROWTH RATE
g= Real GNP this year – Real GNP last year x 100
Real GNP last year

(c) Malaysia National Income in 2017 is RM 346222 million and in

2017, the population in Malaysia is 32.0 million with 28.7
million are citizens and 3.3 million are non-citizens. Compared
to 2016, the population growth rate of citizens and non-
citizens in 2017 decreased by 1.1 per cent and 2.9 per cent
respectively. The population growth rate for overall was 1.3
per cent. Labor forces in Malaysia in 2017 are 15 million.
Based on the statement, calculate Malaysia per capita income
in 2017.
Per capita income = National income / population
346222/32
RM10819.44

(2 marks)

MALAYSIAN ECONOMY 2/4

2. Two major socio-economics issues in Malaysia are poverty and
unequal distribution. Even though some have been successfully
overcome, pockets of poverty still exists. In some cases, the income
gap is getting wider as the growth of Malaysian economy is affected
by the performance of the global economy.
(The Star, 8th August 2017)

(a) Elaborates FIVE (5) factors can be undertaken by the

government in order to eradicate of poverty.
4 – 5 points
i) NEP – NEW ECONOMIC POLICY (1971-1990)
Objective – eradicate poverty n national unity

ii) Education – free text books, study loan, scholarships,

builty IPTA

iii) Housing – rumah setinggan – built low cost flats

iv) Financial – bank giving loans (esp farmers) , expand

farm/business

v) Health -built hosp, vaccination

vi) Invest development projects – KLCC, KLIA – create job

opportunities
(10 marks)

(b) Define poverty. Differentiate the concepts of poverty with

appropriate examples.
Poverty – insufficient basic necc (food/clothes/shel)

Absolute poverty – don’t have basic necc

Relative poverty – Race / Urban-Rural/States

Hard core povery – PLI poverty line index

Half of PLI (RM500)
(10 marks)

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