Answer Scheme Malaysian Economy Sem July 2005 FE

Topics: Economy of Malaysia, Macroeconomics, Economics Pages: 7 (2653 words) Published: June 11, 2015
Answer Scheme BEB2013 - Malaysian Economy
Final Exam Semester July 2005

PART A:SHORT ANSWER QUESTION(30 M)
1.
a. differentiate between ‘dualism withnin sector’ and ‘dualism between sector’
When comparing between the two sector : example sector manufacturing – automobile industry which is cleary a mdern sector and fisher where the fishermen normally use small boats, home made nets, rely on experience to detect areas with good catch instead of using radar and income that varies with season, we are referring to dualism withnin sector

However, in the fishery industry, there are also morden methods being used like radar for deep sea fishing. When both the traditional and modern characteristic are present in one sector, then is dualism withnin sector. b. explain any two reason for economic globalization

Globalization it refers to the increasing integration of economies around the world, particularly through trade and financial flows. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. There are also broader cultural, political and environmental dimensions.

First, improvements in the technology of transportation and communication have reduced the costs of transporting goods, services, and factors of production and of communicating economically useful knowledge and technology

Second, countries with lesser financial resources can also participate and benefit from international trade. Malaysia’s manufacturing sector for example developed mainly through foreign direct investment(FDI. An individual investor from Malaysia can invest in NYSE just as an American investor can buy shares of public listed Malaysian company.

2.
a. explain the relationship between goverment budget and the increase in Malaysia population’s median age as recorded in year 2000’s Housing and Population Census
Population 65 years and over for Malaysia in Census 2000 was recorded at 3.9% compared to 3.7% in 1991. The median age for Malaysia as whole increased from 21.9 years in 1991 to 23.6 years in 2000. All these different age parameters points cleary towards a continuation of the trend of population ageing in Malaysia

This age structure determines goverment’s spending budget in year 2000. 1

Proof read by:
Barbarawati Richard
( Assistant Director of K-Force Program )

Answer Scheme BEB2013 - Malaysian Economy
Final Exam Semester July 2005

i.

developing the human resource in respect of their skills and knowledge.
- to increase the number and quality of skilled workers, a sum of 1.22 billion is located for the year 2000. this amount to build eight National Youth Skills Development Institutes, four Institutes Kemahiran MARA, there Institut Kemahiran Tinggi MARA and five new Pusat Giat MARA, and increase equipment and facilities in existing training institutions. - Budget 2000 using for 14.08 billion ringgit to develop quality infrastructure for education.

ii.

extending social programmes and programmes for the well-being of the people
- to improving the living standards and well being of the people goverment provide budgetary allocation for health facilities, education,environmental presevation and rural development, especially water and electricity supply,as well as rural roads.

b. what is a ‘balance of payment account’? Why did Malaysia record deficit in its balance of payment in the early 1980s?
Balance of payment account - the record of a country’s transactions in goods; services, and assest with the rest of the world; also record of country sources (supply) and uses (demand) of foreign exchange.

Balance of payments Malaysia in 1981 (-1,093 million), 1982(-614 million) and 1983 (-55 million) is negatif. Cause for this situation, Deficit in Current account; including 2 major account trade in goods and services..

i.
deficit in account balance of goods on 1981 and 1982 (-243 and –1758) – recession on world economic – demand for goods from Malaysia...
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