You are on page 1of 27

5.1 World Economy 5.1.

1 Developed Country

CHINA China , officially the People's Republic of China (PRC), is the most populous state in the world, with over 1.3 billion citizens. It was located in East Asia. Furthermore, the country covers approximately 9.6 million square. It is the world's second-largest country by land area and the third- or fourth-largest in total area and depending on the definition of total area. The People's Republic of China is a single-party state governed by the Communist Party of China. It exercises jurisdiction over 22 provinces, fiveautonomous regions, four directly

controlled municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two mostly selfgoverning special administrative regions (SARs), Hong Kong and Macau. Its capital city is Beijing. The PRC also claims the island of Taiwan, which is controlled by the government of the Republic of China, as its 23rd province, a claim controversial due to the complex political status of Taiwan and the unresolved Chinese Civil War.

Gross domestic product(GDP) of China increasingly by the year. This shows that China in a good economic condition. Besides, it also indicates that its Gross Nasional Product(GNP), increasing. Based on the figure below, China GDP for 2008 is only 3 000 billions of U.S dollars. The China GDP increased by 4 500 billions of U.S dollars at the year of 2009. When it comes to 2010, the GDP continues to increase. During the year of 2010, the GDP is at 500 billions of U.S dollars. The highest GDP is at the year of 2011 where it has recorded an amount of 5 800 billions of U.S dollars. Therefore, it can be conclude as the country has produce a lot of production. The more numbers of production produced, the higher the amount of the GDP can be recorded.

Figure 1 : China GDP

On the other hand, China inflation rate is fluctuate every year. Sometimes it can be increased, and sometimes it can be decreased. During the 2007 the inflation rate is low and being increased in the middle of January 2008. Then, when it comes to 2009, the inflation rate turns lowest. At this time, the stock price of China company become more expensive. People get more profit during the inflation rate is low. Early 2010, the inflation rate is continuesly increased untill at the end of 2011. After that, the rates changed. It decrease in the early of 2012. China's annual inflation rate hit 4.5 per cent in January, the highest level in three months, official data showed on Thursday, as the Chinese Lunar New Year holiday boosted consumer prices.The country's consumer price index had slowed to 4.1 per cent in December as government efforts to curb bank lending and surging property prices took effect. Besides, the Chinese New Year holiday, also known as the Spring Festival, was unusually early this year and had significantly distorted the monthly data. Retail spending typically soars during the festival, the most important celebration in the Chinese calendar, as consumers splash out on food, wine and gifts for family and friends. As before January, inflation had eased for five straight months after hitting a more than three-year high of 6.5 per cent in July and analysts said the downward trend would likely resume in February as the economy slowedThe rebound in inflation was driven by food prices, which soared 10.5 per cent year on year in January compared with 9.1 per cent in December.The producer price index, which measures the cost of goods at the farm and factory gate, rose 0.7 per cent in January compared with 1.7 per cent in December. There is mounting evidence that China's growth is slowing as the continuing

crisis in Europe and weakness in the United States hurts demand for Chinese exports, a key driver of the world's second largest economy.

Figure 2 : China Inflation Rate

5.1.2 Developing Country

MALAYSIA Malaysia is a federal constitutional monarchy in Southest Asia. It consists of thirteen states and three federal territories and has a total landmass of 329,847 square kilometres separated by the South China Sea into two similarly sized regions, Peninsualr Malaysia and Malaysia Borneo. Land borders are shared with Thailand, Indonesia and Brunei. While, the maritime borders exist with Singapore, Vietnam and the Philippines. The capital city is Kuala Lumpur while the Putrajaya is the seat of the federal government. In 2010, the population exceeded 27.5 millions with over 20 millions living on the Peninsular. On 2008, the GDP of Malaysia is 186.642 billions of U.S dollars. It was a very small amount. This is because of the economic crisis during the year. Furthermore, the is only a little production produce as the country cannot bear the worst economic crisis. During the year, the
3

SMI has contributed alots to the Malaysian economics. While, at the year of 2009, the Malaysia GDP increase very well which is about 221.828 billions of U.S dollars. The GDP has increase almost 84.14 %. Eventhough, the succesfelly is not long. At 2010, the GDP decrease again. This due to change of the leadership. As a great investor, it was a good desicion where not to invest in the country that had changed their leadership. This is because, not all leader of a country can be a good one in taking the opportunity in managing its country. After a few step done by the new leader, means Dato Seri Mohd Najib Tun Razak, the investor can see the benefit gain if they are investing in Malaysia. As a result, Malaysia GDP for the year 2011 has increased to 237.803 billions of U.S dollars. In other words, it has increase to 81.20 % in year. It was a good sign for a new leader to make other profits in the future.

Figure 3 : Malaysia GDP

In spite of that, Malaysia inflation rate is also as an indicator to measure the economic standing of Malaysia. First and foremost, at the end of 2007, the Malaysia inflation rate is low. Means, the demand is lower than supply. But, in the middle of 2008, the inflation rate has recorded the highest inflation rate. This due to an economic crisis. The economic crisis in 2008 is happened because of the global financial crisis. When it comes to 2009, the inflation rate getting lower by time untill it has recorded the lowest inflation rate in the middle
4

of 2009. Then, whenever it was in the year of 2010, the inflation rate of Malaysia increases almost a double price index compare to at the end of 2009. The inflation rate of Malaysia continuesly increasing untill in the middle of 2011. After that, it turns lower back but it is just a little. Untill early of 2012, the annual change of Consumer Price Index is about 2

something.

Figure 4 : Malaysia Inflation Rate

5.1.3 Third World

Indonesia Indonesia is a country in Southeast Asia and Oceania. Indonesia is an archipelago

comprising approximately 17,508 islands. Indonesia is a republic, with an elected legislature and president. The nations capital is Jakarta. The country share land borders with Papua New Guinea, East Timor as well as Malaysia. Other neighbour countries are Singapore, Philippines, Australia and the Indian territory of the Andaman and Nicobar Islands. The Indonesia GDP is increasing by the year. Example, during 2008, the GDP is 432.105 billions of U.S dollars. In addition, year 2008 is the economic crisis. Since, Malaysia as a developing country still having the impact, of couse Indonesia as a third worl would undergo the experience as well. Then, when it comes to the year 2009, the GDP increases to 510.352
5

billions of U.S dollars. This indicates that, Indonesia has recovered from the economic crisis. At the of 2010, the amount increases is just a little. This is because, the amount increase is only 539.352 billions of U.S dollars. It was about 5.71 %. Then, at the year of 2011, the GDP recorded is very high which is 706.558 billions of U.S dollars. Therefore, it shows that the country had manage their production very well. Besides, there are many company that agreed to build their factory in Indinesia as the salary and wages are low. In other words, those company that having their factory in Indonesia can save their budget as they only need to spend a little to pay for the salaries and wages to the workers.

Figure 5 : Indonesia GDP

The Indonesia inflation rate are changing by the year. Firstly, at the end of 2007, the inflation rate is low. During the year 2007, the inflation rate is fluctuated. Then, it stars to increase at the early of 2008 till early of 2009. This duea to the economic crisis that give a big impact to the third world country like Indonesia. While going down to the year 2010, the inflation rate are decreasing as the country has recovered slowly from the crisis. After that, the inflation rate fluctuate as normal rate. Sometimes its can be high ang sometimes its low. When it comes to early of the year 2011, the inflation rate is at a higher standing than the rate at the year 2010. But, the inflation rate getting lower in the early of 2012.

Figure 6 : Indonesia Inflation Rate

5.2 ASEAN Economy 5.2.1 Indonesia

Growth rate (based on Gross Domestic Product) The Gross Domestic Product (GDP) in Indonesia expanded 3.5 percent in the third quarter of 2011 over the previous quarter. Historically, from 2005 until 2011, Indonesia's average quarterly GDP Growth was 1.50 percent reaching an historical high of 3.82 percent in September of 2009 and a record low of -3.57 percent in December of 2008. Indonesia is the largest national economy in Southeast Asia. It has a market-based economy in which the government plays a significant role by owning more than 164 state-owned enterprises. The government administers prices on several basic goods, including fuel, rice, and electricity. An example of utilitiy company is Jawa Power.

Figure 7 : Indonesia GDP Growth Rate

Inflation Trade Balance (BOP) Domestic Indonesia reported a trade surplus equivalent to 859 Million USD in December of 2011. Indonesia major exports are: plywood, textiles, rubber, tin, bauxite, silver, copper, nickel, gold, and coal. Indonesia imports machinery and equipment; chemicals, fuels and food. Its main trading partners are: Japan, European Union, The United States and Singapore.

Figure 8 : Indonesia Balance of Trade

Foreign Direct Investment The foreign direct investment; net inflows (% of GDP) in Indonesia was last reported at 1.88 in 2010, according to a World Bank report released in 2011. The Foreign direct investment; net inflows (% of GDP) in Indonesia was 0.90 in 2009, according to a World Bank report, published in 2010. The Foreign direct investment; net inflows (% of GDP) in Indonesia was reported at 1.83 in 2008, according to the World Bank. Foreign direct investment are the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. This series shows net inflows (new investment inflows less disinvestment) in the reporting economy from foreign investors, and is divided by GDP. Indonesia is the largest national economy in Southeast Asia. It has a market-based economy in which the government plays a significant role by owning more than 164 state-owned enterprises. The government administers prices on several basic goods, including fuel, rice, and electricity.

Figure 9 : Indonesia Foreign Direct Investment

Singapore Growth rate (based on GDP or GNP) The Gross Domestic Product (GDP) in Singapore expanded 1.9 percent in the third quarter of 2011 over the previous quarter. Historically, from 2007 until 2011, Singapore's average quarterly GDP Growth was 6.36 percent reaching an historical high of 39.90 percent in March of 2010 and a record low of -16.70 percent in September of 2010. Singapore along with Hong Kong, South Korea and Taiwan is one of the Four Asian Tigers. Singapore has a highly developed and successful free-market economy. It enjoys a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing service sector. It is also export utilities as it has two big well company known as Starhill Global REIT and Power Seraya.

10

Figure 9 : Singapore GDP Growth Rate Inflation Trade Balance (BOP) Domestic Singapore reported a trade surplus equivalent to 7612 Million SGD in December of 2011. An export is the main source of revenue for the Singapores economy. Singapore relays on purchasing raw goods and refining them for re-export. Singapore's principal exports are petroleum products, food, chemicals, textile and electronic components. Singapore's imports machinery and equipment, mineral fuels, chemicals and foodstuffs. Its main trading partners are Malaysia, European Union, The United States and China.

Figure 10 : Singapore Balance of Trade

11

Figure 11 : Indonesia Inflation Rate

Foreign Direct Investment The Foreign direct investment; net inflows (% of GDP) in Singapore was last reported at 18.51 in 2010, according to a World Bank report released in 2011. The Foreign direct investment; net inflows (% of GDP) in Singapore was 8.11 in 2009, according to a World Bank report, published in 2010. The Foreign direct investment; net inflows (% of GDP) in Singapore was reported at 4.83 in 2008, according to the World Bank. Foreign direct investment are the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. This series shows net inflows (new investment inflows less disinvestment) in the reporting economy from foreign investors, and is divided by GDP. Singapore along with Hong Kong, South Korea and Taiwan is one of the Four Asian Tigers. Singapore has a highly developed and successful free-market economy. It enjoys a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing service sector.

12

Figure 12 : Singapore Foreign Direct Investment

13

5.3 Country Economy 5.3.1 Malaysia Malaysia Gross Domestic Product. The Gross Domestic Product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year. Measuring GDP is complicated , but at its most basic, the calculation can be done in one of two ways: either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). Logically, both measures should arrive at roughly the same total.

The income approach, which is sometimes referred to as GDP, is calculated by adding up total compensation to employees, gross profits for incorporated and non incorporated firms, and taxes less any subsidies. The expenditure method is the more common approach and is calculated by adding total consumption, investment, government spending and net exports. As one can imagine, economic production and growth, what GDP represents, has a large impact on nearly everyone within that economy. For example, when the economy is healthy, you will typically see low unemployment and wage increases as businesses demand labor to meet the growing economy. A significant change in GDP, whether up or down, usually has a significant effect on the stock market. It's not hard to understand why: a bad economy usually means lower profits for companies, which in turn means lower stock prices. Investors really worry about negative GDP growth, which is one of the factors economists use to determine whether an economy is in a recession The Gross Domestic Product (GDP) in Malaysia expanded 3.7 percent in the third quarter of 2011 over the previous quarter. Historically, from 2000 until 2011, Malaysia's average quarterly GDP Growth was 1.17 percent reaching an historical high of 5.90 percent in September of 2009 and a record low of -7.60 percent in March of 2009. Malaysia is a rapidly developing economy in Asia. Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. The
14

Government of Malaysia is continuing efforts to boost domestic demand to wean the economy off of its dependence on exports. Nevertheless, exports - particularly of electronics - remain a significant driver of the economy. This page includes: Malaysia GDP Growth Rate chart, historical data, forecasts and news. Data is also available for Malaysia GDP Annual Growth Rate, which measures growth over a full economic year.

Figure 13 : Malaysia GDP Growth Rate

GDP (gross domestic product) represent the size and strength of the economy for that Malaysia. For the year 2008 to 2009 Malaysias GDP shows that decreasing pattern amount 7.6% because of decreasing in level of economy activity at that time. However for the year 2010, data shows that increase amount to 5.9%. This shows country doing well in their economy, and the economy of Malaysia at that time in stable condition than before this. As the Malaysia GDP are strength it give a good effect to the YTL Corporation as it the larger company in Malaysia.. For bigger corporations like YTL Corporation however, it can help them to build their business to face forecasted needs in the future to better make money. If GDP growth is forecast to be higher, perhaps the business will spend more money to bring in the possible correlated increase in consumer spending. If GDP growth stalls or starts to retract, perhaps the business will become more conservative in it's business model. Besides that, if the GDP are increases when the economy is healthy, we will typically see low
15

unemployment and wage increases as businesses demand labor to meet the growing economy. This can help of the YTL Corporation because that as the bigger company that have many department like utilities, construction, property development and others, the need are more workers to full fill their department. So when GDP increases and low unemployment at that time so they can get a much workers for their company .Other than that that, for the YTL Corporation, GDP will probably help mainly financial companies purchasing shares, treasury bonds, and currency orders.

Malaysia Gross National Products. Gross National Product (GNP) is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens minus income of nonresidents located in the country.GNP measures the value of goods and services that the country's citizens produced regardless of their location. GNP is one measure of the economic condition of a country, under the assumption that a higher GNP leads to a higher quality of living, all other things being equal. In other words, it is an estimate of the total money value of all the final goods and services produced in a given one-year period by the factors of production owned by a particular country's residents. ("Final" goods and services means goods and services sold or otherwise provided to their final consumers -- that is, to avoid double counting, the value of steel sold to GM to make a car is not added separately into the GNP or GDP totals because its value is already included when we add in the final sales price of the car to the customer.)
00210982467954 FORID:9 UTF-8

2005 GNP (in 2000 factor)Ringgit Malaysia in Million Private consumption Private investment

2006 424,294

2007 454,625.

2008 482,239

2009 496,077 504,864

216,247

230,222

255,028

276,527

286,205

50,841

54,643

59,996

60,896

50,118

16

Public consumption Public investment Exports of goods & services Imports of goods & services

58,395

61,258

65,299

72,880

78,187

48,425

52,473

57,378

57,775

57,378

554,261 475,838

592,89 516,412

617,628 544,059

626,824 556,015

522,913 473,102

Table 1 :

Measure of a country's total economic activity, or the wealth of the country. GNP is usually assessed quarterly or yearly, and is defined as the total value of all goods and services produced by firms owned by the country concerned. It is measured as the gross domestic product plus income earned by domestic residents from foreign investments, minus income earned during the same period by foreign investors in the country's domestic market. GNP does not allow for inflation or for the overall value of production. It is an important indicator of an economy's strength The estimated 1997 GNP of all the world's nations is approximately $18 trillion. National income is equal to gross national product, minus an allowance for replacement of ageing capital stock.

Monetary Policy The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves). Monetary policy rests on the relationship between the rates of interest in an economy, that is, the price at which money can be borrowed, and the total supply of money. Monetary policy uses a variety of tools to control one or both of these, to influence outcomes like economic
17

growth, inflation exchange rates with other currencies and unemployment. Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authority has the ability to alter the money supply and thus influence the interest rate (to achieve policy goals). The beginning of monetary policy as such comes from the late 19th century, where it was used to maintain the gold standard A policy is referred to as contractionary if it reduces the size of the money supply or increases it only slowly, or if it raises the interest rate. An expansionary policy increases the size of the money supply more rapidly, or decreases the interest rate. Furthermore, monetary policies are described as follows: accommodative, if the interest rate set by the central monetary authority is intended to create economic growth; neutral, if it is intended neither to create growth nor combat inflation; or tight if intended to reduce inflation.

The Impact of Monetary Policy Every monetary policy impulse (e.g. an interest rate change by the central bank, change in the monetary base resulting from changes in the minimum reserve rate) has a lagged impact on the economy. Moreover, it is uncertain how exactly monetary policy impulses are transmitted to the price level or how real variables develop in the short and medium term.

The difficulty of the analysis is to adjust the effects of the individual channels for external factors. The effect of such external factors e.g. supply and demand shocks, technical progress or structural change may be superimposed on the effect of central bank measures, and it is difficult to isolate monetary policy effects on various variables for analytical purposes. Moreover, the time lag in the reaction of the real sector to monetary measures renders the analysis more difficult. Hence, monetary policy must be forward looking. The individual transmission channels are described in detail below:

Interest rate channel: An expansion of the money supply by the central bank feeds through to a reduction of short-term market rates through this channel. As a result, the real interest rate and capital costs decline, raising investment. Additionally, consumers save less and opt for current consumption over future consumption. This, in turn, causes demand to
18

strengthen. However, this stepped-up demand may cause prices and wages to rise if goods and labor markets are fully utilized. If Interest higher, the YTL Corporation company will buy let say bond because the opportunity cost of holding money is the in higher forgone interest earned on these none money asset, when the interest rate is low , YTL Corporation hold more money because there is less opportunity cost in forgone interest earned on investing in bonds. Suppose the interest rate on bond is low. If YTL Corporation decide to hold money of their money in the bank and speculate that soon the interest rate will climb higher. Malaysia Unemployment Rate The major problem of economic recessions and depressions is high unemployment. When unemployment is severe or prolonged, it can lead to social disintegration, loss of job skills, and increased difficulty of finding a new job. It can also cause social unrest because more people fall into poverty. However, not everyone who is not working is considered to be unemployed but only those who are part of the labor force. The unemployment rate in Malaysia was last reported at 3.1 percent in November of 2011. From 1998 until 2010, Malaysias Unemployment rate averaged 3.34 percent reaching an historical high of 4.50 percent in March 1999 and a record low of 2.90 percent in March of 1998. The labor is defined as the number of people employed plus the number unemployed but seeking work. The non labor forces include those who are not looking for work, those who are institutionalized and those serving in the military. The labor force consists of all those people who are either employed or unemployed, but seeking work.

Figure 14 : Malaysia Unemployment Rate Starting January 2007 until January 2012
19

Formulae to calculate unemployment rate Number of Unemployed Unemployment Rate = Number in Labor Force x 100

IMF : Unemployment Rate (%) Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Malaysia(%) 5.1 4.3 3.7 3.0 2.9 3.1 2.5 2.4 3.2 3.4 3.0 Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Malaysia(%) 3.5 3.5 3.6 3.5 3.5 3.3 3.2 3.3 3.6 3.3 3.2

World Bank : Unemployment Rate (%) Year 1990 1992 1993 1995 1996 1997 1998 1999 2000 Malaysia(%) 5.1 3.7 3.0 3.1 2.5 2.5 3.2 3.4 3.0 Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 Malaysia(%) 3.5 3.5 3.6 3.5 3.5 3.3 3.2 3.3 3.7

20

Types Of Unemployment.

Unemployment is generally classified into 3 types, according to the cause of unemployment. There are frictional, structural and cyclical unemployment. Firstly is frictional unemployment. Frictional unemployment is the unemployment that results when people are between jobs or when they first start looking for jobs. Many people quit or get fired from their job, causing them to be unemployed temporarily. Although most people look for work eventually find another job, there are always others who lose their job for one reason or another, and so become part of the unemployment pool. Because this happens continually, frictional unemployment is persistent, and represents the minimum that the unemployment rate can go.

Secondly is structural unemployment which result when there is a mismatch between the skills demanded by employers and the skills that workers have. Structural unemployment may also result from the relocation of jobs to different geographical areas, because many people tend to remain where they have lived most of their lives. Structural unemployment can persist over many months or even a few years, until people can retrain or develop new skills or they become willing to relocate in new areas where there are jobs.

Last but not least is cyclical unemployment which results from the decreased aggregate expenditure by the economy during a recession, when business have cut back on their production of output. Since labor is an input, reduced output lowers the demand for labor. Hence this type of unemployment is sometimes referred to as deficient-demand unemployment.

Full Employment Because frictional and structural unemployment are part of any economy, true, fall employment, where everyone in the labor force has a job, does not occur. Instead, economists talk about a natural rate unemployment (NRU), which is the absence of cyclical unemployment, but not frictional or structural unemployment. In other words, the unemployment rate will rarely drop below the natural rate of unemployment. Generally, when there is a natural rate of unemployment, the number of job vacancies equals the number of job seekers. Sometimes, however, the unemployment rate can drop a little below the natural unemployment rate, because demand for labor is so high, that even workers who were not actually looking for a job may be enticed by higher wages and the ready availability of jobs.
21

The natural rate of unemployment has come down over the years, largely due to improvements in technology. The internet, for instance, allows employers to post available jobs for little or no cost, or they can search resumes online to find people with the appropriate skill set. People looking for jobs also have it much easier, since they can search for jobs on their own home computers.

The natural rate of unemployment differs among nations. For instance, France, Germany, and the United Kingdom generally have higher unemployment rate than the United States, probably because they have more generous unemployment benefits, which lessen the need to find a new job. The economy is considered to be at full employment when the unemployment rate is equal to the economys natural rate of unemployment, which is also when economic output is at a maximum.

Economic Cost Of Unemployment. Unemployment above the natural rate means that the economy is producing less than its potential output. This is referred to as the GDP output gap, or simply the GDP gap. Higher unemployment rates create a larger GDP output gap. The size of the output gap created by a specific amount of unemployment was first quantified by the economist Arthur Okun and has, since become known as Okuns Law. Okuns Law indicates that for every 1% of unemployment above the natural unemployment rates create a GDP output gap about 2%. So for a $10 trillion economy, a 1% unemployment rate above the natural rate of unemployment creates a $200 billion output gap. In the United States, the Unemployment rates averaged 9.6% in 2010, which is about 5% above the natural unemployment rate. Since the United States had a nominal GDP of about $14.5 trillion, the high unemployment according to Okuns Law would be equal to an almost $1.5 trillion output gap.

Generally. Unemployment rates are higher for people with fewer skills or for people working in lower skilled occupations. Lower skilled workers are also less likely to be self-employed. Teenagers generally have higher unemployment rates because they have lower skills levels, frequently quit their jobs or get fired, and have less geographic mobility than adults. Blacks and Hispanics also suffer a higher unemployment rate than whites because more of them have less education, and are more concentrated in lower skilled occupations. Discrimination also increases the rate of unemployment. People with higher education normally experience lower unemployment rates.
22

Therefore, employment and unemployment rate have affected on YTL Corporation. An economy with high unemployment is not using all of the resources, specify labor, available to it. Since it is operating below its production possibility frontier, it could have higher output if all the workforce were usefully employed. However, there is a trade-off between economic efficiency and unemployment. If the frictionally unemployed accepted the first job they were offered, they would be likely to be operating at below their skill level, reducing the economys efficiency. During a long period of unemployment, workers can lose their skills, causing a loss of human capital. Being unemployed can also reduce the life expectancy of workers by about 7 years. GDP per capita in Malaysia Per capita income or income per person is a measure of mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate such as GDP or Gross National Income and dividing it by the total population. It does not attempt to reflect the distribution of income or wealth. According to the World Bank, the GDP per capita in Malaysia was last reported at 5185 US dollars in December of 2010. Previously, the GDP per capita in Malaysia standard at 4915 US dollars in December of 2009. The GDP per capita in Malaysia is obtained by dividing the countrys gross domestic product, adjusted by inflation, by the total population. Historically, from 1960 until 2010, Malaysia's average GDP Per Capita was 2539.94 dollars reaching an historical high of 5184.71 dollars in December of 2010 and a record low of 814.58 dollars in December of 1960. This page includes a chart with historical data for Malaysia's GDP Per Capita.

23

The GDP dollar estimates given on this page are adjusted for inflation. The term Constant Prices refers to a metric for valuing the price of something over time, without that metric changing due to inflation or deflation. The gross domestic product per capita is the value of all final goods and services produced within a nation in a given year divided by the average (or mid-year) population for the same year. The gross domestic product (GDP) is one of the measures of national income and output for a given country's economy. The GDP can be defined in three ways, all of which are conceptually identical. First, it is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time (usually a 365-day year). Second, it is equal to the sum of the value added at every stage of the intermediate stages production by all the industries within a country, plus taxes less subsidies on products, in the period. Third, it is equal to the sum of the income generated by production in the country in the period that is, compensation of employees, taxes on production and imports less subsidies, and gross operating surplus or profits.

Total Labour force in Malaysia. The total Labour force in Malaysia was RM11999920.39 in 2009, according to a World Bank report, published in 2010. According to the World Bank, the total labour force in Malaysia was reported at RM11738199.21 in 2008. Total labour force comprises people ages 15 and older who meet the International Labour Organization definition of the economically active population.
24

All people who supply labour for the production of goods and services during a specified period. It includes both the employed and the unemployed. While national practices vary in the treatment of such groups as the armed forces and seasonal or part-time workers, in general the labour force includes the armed forces, the unemployed and first-time job-seekers, but excludes homemakers and other unpaid caregivers and workers in the informal sector. This page includes a historical data chart, news and forecast for total labour force in Malaysia. Malaysia is a rapidly developing economy in Asia. Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multisector economy. The Government of Malaysia is continuing efforts to boost domestic demand to wean the economy off of its dependence on exports. Nevertheless, exports particularly of electronics remain a significant driver of the economy.

Figure 15 : Forecast For Total Labour Force In Malaysia

25

Investment in energy with private participation (US dollar) in Malaysia According to a World Bank report, published in 2010, the investment in energy with private participation (US dollar) in Malaysia was 181500000.00 in 2009. Investment in energy projects with private participation covers infrastructure projects in energy such as electricity and natural gas transmission and distribution that have reached financial closure and directly or indirectly serve the public. Movable assets and small projects such as windmills are excluded. The types of projects included are operations and management contracts, operations and management contracts with major capital expenditure, green field projects in which a private entity or a publicprivate joint venture builds and operates a new facility, and divestitures. Investment commitments are the sum of investments in facilities and investments in government assets. Investments in facilities are the resources the project company commits to invest during the contract period either in new facilities or in expansion and modernization of existing facilities. Investments in government assets are the resources the project company spends on acquiring government assets such as state-owned enterprises, rights to provide services in a specific area, or the use of specific radio spectrums. Data are in current U.S. dollars. This page includes a historical data chart, news and forecast for Investment in energy with private participation (US dollar) in Malaysia. Malaysia is a rapidly developing economy in Asia. Malaysia is a middle income country has transformed itself since the 1970s from a producer of raw materials into an emerging multi sector of economy. The Government of Malaysia is continuing efforts to boost domestic demand to wean the economy off of its dependence on exports. Nevertheless, exports particularly of electronics remain a significant driver of the economy.

26

Figure 16 : Forecast for Investment in Energy with Private Participation

27

You might also like