NATIONAL COLLEGE OF BUSINESS ADMINSTRATION

AND ECONOMICS (NCBA&E)

M.SC APPLIED ECONOMICS

PROJECT
ON
CASE STUDY OF
MALAYSIA

SUBMITTED TO:
SIR HASEEB BHATTI

SUBMITTED BY:
AMNA FAZAL KHAN
KANZA KHALID
FATIMA PERVEZ
 CASE STUDY OF MALAYSIA:

Malaysia is an upper-middle income, highly open economy. Malaysia was one of 13 countries
identified by the Commission on Growth and Development in its2008 Growth Report to have
recorded average growth of more than 7 percent per year for 25 years or more. Malaysia
achieved this spectacular performance from 1967 to 1997.Malaysia has also succeeded in
reducing poverty: the share of households living below the national poverty line (USD 8.50 per
day in 2012) fell from over 50 percent.

GDP USD 312.5 billion (2013)

GDP per capita USD 10,500 (2013)

Doing Business 2014 Ranking 6th (out of 189 economies)

Poverty Rate (share of households below the national poverty 1.7 percent (2012)
line)

Gini coefficient (income) 0.431 (2012)

Unemployment rate 3.0 percent (December 2013

ROLE OF TRADE UNION IN MALAYSIA:

While the Malaysian constitution guarantees the rights of all Malaysians to form and join a trade
union, there are several restrictions imposed by the laws relating to trade unions, i.e. the Trade
Unions Act 1959 (TUA) and the Industrial Relations Act 1967 (IRA). The TUA protects workers
from being victimized by an Employer for joining a union. However, the same section of an act
states explicitly that an employer may dismiss, demote, transfer or refuse to promote a worker on
other grounds. However it has not stopped employers form dismissing trade union officials for
writing Union circulars (Industrial Court Award Trienekens Sarawak). The IRA allows
employers to prohibit management, executives and those who work in a confidential or security
capacity from joining a union. The definitions of these terms are left to the employers' discretion.
In practice, some employers classify all clerical staff as working in a confidential capacity and
production workers as working in a security capacity since they oversee their machines.
 MAJOR IMPORTS OF MALAYSIA:
Imports in Malaysia increased to 63904.05 MYR Million in October of 2014 from 55194.08
MYR Million in September of 2014. Imports in Malaysia averaged 16679.56 MYR Million from
1970 until 2014, reaching an all time high of 63904.05 MYR Million in October of 2014 and a
record low of 313.60 MYR Million in August of 1970.

Malaysia main imports are: electrical and electronic products (27 percent), chemicals (9 percent)
and machinery, appliances and parts (8 percent). Malaysia's main import partners are: China (16
percent), Singapore (12 percent), Japan (8 percent) and the United States (8 percent).

MAJOR EXPORTS OF MALAYSIA:

Exports in Malaysia increased to 65090 MYR Million in October of 2014 from 64523.90 MYR
Million in September of 2014. Exports in Malaysia averaged 19620.02 MYR Million from 1970
until 2014, reaching an all time high of 67108.20 MYR Million in October of 2013 and a record
low of 328.10 MYR Million in February of 1970.
Exports supported by influx of foreign direct investments have been one of the most important
factors driving Malaysias GDP growth in recent years. The country's main exports are: electrical
and electronics products (33 percent), petroleum products (9 percent), liquefied natural gas (8
percent), chemicals (7 percent) and palm oil (6 percent). Malaysia's main export partners are:
Singapore (14 percent), China (13 percent), Japan (11 percent), the United States (8 percent) and
Thailand (6 percent).

AN OVERVIEW OF MALAYSIAN ECOONOMY:

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of
raw materials into an emerging multi-sector economy. GDP growth is expected to hit 5% this
year or possibly exceed it, according to several analyses. Industrial production rose by 4.9% in
the first nine months of 2012, according to official data. Manufacturing output rose by 5.2%
year-on-year, while the other segments included in industrial production mining and electricity
grew by 5.9%.manufacturing and mining contribute 35% of GDP.

HUMAN DEVELOPMENT INDEX:

Malaysia is ranked 64th out of 187 countries surveyed under the Human Development Index
(HDI) last year, according to the 2013 Human Development Report (HDR) of the United Nations
Development Program (UNDP).