FINAL EXAMINATION

Faculty of Business

Course :
BBCE3013
MALAYSIAN ECONOMY

Date : 7 August 2020 – 14 August 2020

Time : 9pm (7 August) – 9pm (14 August)

Duration :

Module Lecturer : AIN FARHA BINTI SALAHUDDIN

Total marks : 100 marks (worth 40%)

Instructions to candidates:

1. Please read the instructions properly.

2. Rewrite YOUR FULL NAME _STUDENT ID_SUBJECT CODE on the folder.

(Example: Nabilah_2019000200_ BBCE3013)

3. All answers must be in HANDWRITTEN. No typing is allowed.

4. IMPORTANT: Please PUT PAGE NUMBER and YOUR NAME/STUDENT ID on

every page.

5. The time for you to answer the questions is from 7 August 2020 at 9pm until 14
August 2020 at 9pm.

6. Please submit latest by 14 AUGUST 2020 via LMS ONLY

DO NOT COPY AND PASTE. NO PLAGIARISM IS ALLOWED.

Student ID : ___________________________________________________

Name : ___________________________________________________

Program : ___________________________________________________

Lecturer : ___________________________________________________
Date: Course: BBCE3013 Malaysian Economy

ESSAY QUESTIONS [TOTAL = 100 MARKS]

ANSWER ALL QUESTIONS

QUESTION 1 (60 MARKS)

Malaysia’s Poverty line goes up to RM2208.

KUALA LUMPUR: Malaysia’s poverty line has been revised to RM2,208 from RM980, the
Department of Statistics Malaysia (DoSM) said.

The poverty line, based on the basic requirements for a household to live healthily and
actively, is according to 2019 methodology, the department said.

Previously, it was calculated according to the 2005 methodology, which benchmarked poverty
at RM980.

Chief statistician Mohd Uzir Mahidin said the revision was in accordance with current needs
that emphasise optimal food intake and quality non-food basic requirements.

In the department’s Household Income and Basic Amenities Survey Report and Household
Expenditure Survey Report 2019 released today, it said the incidence of absolute poverty
improved from 7.6% in 2016 to 5.6% in 2019, and hardcore poverty was at 0.4% in 2019
compared to 0.6% in 2016.

The Gini coefficient, which measures income inequality or wealth inequality within a nation,
increased by 0.008 index points from 0.399 in 2016 to 0.407 in 2019, which showed that the
household income gap is widening, it said.

Uzir said median income grew moderately at 3.9% per year to RM5,873 in 2019, while mean
income increased by 4.2% per year to RM7,901.

Seven states had median income above the national level, while three states recorded mean
income higher than the national level of RM7,901. Mean household expenditure expanded by
3.9% in 2019.

Source: Adapted from Free Malaysia Today New, 2020

1. Based on the passage above, answer the questions below.

a. Elaborate THREE (3) reasons why it is important to revised the poverty line
income (PLI) periodically.

(10 marks)

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Date: Course: BBCE3013 Malaysian Economy

b. Explain FIVE (5) impact of the announcement above towards Malaysian

Economy.

(20 marks)

c. Propose and elaborate FIVE (5) alternatives and the most effective solution
using supportive evidence in helping Malaysian government to narrow the
household income gap.

(20 marks)

d. In your opinion, do you think that measuring poverty using Gini coefficient is
still a reliable measure?

(10 marks)

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Date: Course: BBCE3013 Malaysian Economy

QUESTION 2 (40 MARKS)

Cancellation of Visit Malaysia Campaign 2020 (VM2020)

Following the recent Movement Control Order (MCO) in the wake of the COVID-19 pandemic,
the Ministry of Tourism, Arts and Culture (MOTAC) has decided to take the following pre-
emptive actions:

 Cancellation of Visit Malaysia Campaign 2020 (VM2020)

 A freeze on all over-the-counter and online services for new application, license
renewal of travel operating business and travel, tourist guide, tourism training institute
and registration of rated tourist accommodation premises as well as spa and foot
massage centre.

The cancellation of Visit Malaysia 2020 (VM2020) with immediate effect is in line with the
impact of COVID-19 outbreak which has profoundly affected the tourism sector in Malaysia
and the whole world.

A freeze on all over-the-counter and online services at Tourism Licensing Division and
MOTAC state offices concerning tourism licensing including business travel operator, tourist
guide, tourism training institute and registration of rated tourist accommodation premises, spa
centre and foot massage centre is also effective immediately until 31 March 2020.

Pursuant to the media statement issued by the National Security Council on the MCO, all
tourist accommodation premises are allowed to operate at minimum level. Their services are
to be rendered to guests who have already checked-in into the hotels before 18 March 2020,
whilst food and beverages are restricted to room service only. On that note, the guests are to
remain in their rooms throughout the quarantine period.

Check-ins at the tourist accommodation premises during the Movement Control Order are
allowed but on a limited scale. For guests who have to extend their stay due to the
implementation of MCO, they may book and/or check-in with the tourist accommodation
premises according to their budget. However, new check-ins for domestic tourists are not
allowed.

Source: Adapted from Minister Office Tourism, Arts and Culture Malaysia, 2020.

Based on the passage above, answer the question below.

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Date: Course: BBCE3013 Malaysian Economy

a. Identify and explain FIVE (5) pros and cons on current situations towards
Malaysian Economy.

(20 marks)

b. Suggest FIVE (5) effective measures in helping Malaysian government to

increase the domestic tourism as Movement Control Order (MCO) has ended.

(20 marks)

-END OF QUESTIONS-

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