UTS Ucs3122 Project Group

KUALA LUMPUR (Dec 1): The Malaysian manufacturing sector moderated further midway through the final quarter of 2022 with waning demand a central feature within the latest survey data.
In a report on Thursday (Dec 1), S&P Global Market Intelligence said order books were scaled back at the strongest rate in 15 months while production levels also lost further growth momentum.
To mirror demand trends, firms lowered input buying and moderated inventory levels, but employment stabilised.
Rates of both input cost and selling price inflation, though ticking up slightly from October, were much softer than seen earlier in the year.
The latest reading pointed to a more marked slowdown in business conditions which was the strongest since August 2021.
The latest PMI reading is representative of approximately 5% year-on-year growth in Malaysian GDP, thereby signaling a slowdown in growth from the situation in the third quarter of 2022.
Credit to: The Edge Markets
(https://www.theedgemarkets.com/article/malaysias-manufacturing-firms-lose-further-growth-momentum-november)
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#2022 # UTSUcs3122projectgroup

Today we are going to discuss Gross National Product (GNP) of Malaysia. GNP is the total of all value added by resident producers, any product taxes (minus subsidies) that are not taken into account in valuing output, and net receipts of primary income (employee remuneration and property income from abroad). GNP was replaced by the new term "Gross National Income," or GNI, in the 1993 System of National Accounts. Both show a nation's internal productivity in addition to its net revenue from its residents' enterprises or labour overseas.

For comparisons between economies, GNI is typically converted from national currency to U.S. dollars at official exchange rates, though an alternative rate may be used if it is determined that the official exchange rate differs from the rate actually used in international transactions by an exceptionally large margin. The World Bank employs a unique Atlas technique of conversion to tame pricing and exchange rate swings. Besides that, GNP is interrelated with the economy where it rises and falls will affect the living standard.

GNP of Malaysia has generally increased although it drops in 2020. Here is the changes in GNP with percentage in recent years:
- Malaysia's GNP increased by 4.72% from 2020 to RM 358.37 billion in 2021.
- Malaysia's GNP decreased by 4.85% from 2019 to RM 342.21 billion in 2020.
- Malaysia's GNP for 2019 increased by 7.1% from 2018 to RM 359.66 billion.

GNP is similar to Gross Domestic Product (GDP) where they are the most often used indicators of an economy’s productivity. Both gauge the magnitude of an economy's activity. However, they are different in the way of measuring the range of the economy. The fundamental distinction between the two is that whereas GNP tracks all economic activity carried out by firms and residents of a nation, regardless of location, GDP measures productivity inside a nation's borders. Despite the fact that GDP is more frequently used, their figures are usually comparable.

Credit:
MacroTrends
(https://www.macrotrends.net/countries/MYS/malaysia/gnp-gross-national-product)

Shobhit Seth
(https://www.investopedia.com/ask/answers/030415/what-functional-difference-between-gdp-and-gnp.asp)

Greetings everyone!

Have you ever wondered why is our Malaysian currency constantly dropping? Here are the reasons why it is continuously deteriorating.

0:55 China’s economic slowdown
2:27 Inflation rate

Credit to: APHD Channel APHD Channel

Kenapa Matawang Ringgit Malaysia Jatuh Bantu Kami Dengan Menjadi Ahli "Membership" APHD Channel⮕ https://www.youtube.com/channel/UChpjlRq-Ikx8JRUiRauIAJg/join--Jom Follow dan Subscribe Kami Di Sin...

Here are some interesting facts about the average wages in Malaysia. Did you know it?
- Do you know that males were paid higher than females on average?
- Do you know which skilled category has the highest increase in mean monthly salaries?
- Are those with tertiary education have a higher salaries?
- What is the minimum wage in Malaysia?
Let us check it out by looking at this poster. Don't forget to help us like, share and comment. Thank you

Today we are going to discuss the Gross Domestic Product (GDP) of Malaysia. GDP is the total of all domestic expenditures, including that of the government, investors, and consumers, plus net exports. Due to the need for an expanding workforce that a developing economy creates, high GDP growth is correlated with low unemployment. Although there are inflationary pressures as well, prudent monetary and fiscal policy can maintain inflation at a manageable level.

GDP per capita is of more importance to development economists than GDP. A basic picture of the amount of development may be obtained by examining how much each economic sector produces, and there are significant relationships between this and other development indices. Despite a booming economy, inhabitants of the country may suffer if population expansion outpaces GDP growth.

Malaysia's GDP for each quarter of recent years is shown at the poster below where it increased by 3.09 percent in 2021 and the medium-term prediction placed it at 5 percent. GDP shares in 2022 are 58.1% of services, 24.3% of manufacturing, 6.4% of mining and quarrying, 6.4% of agriculture, and 3.5% of construction. Both of these production sectors increased in the second quarter of 2022 except for agriculture where it decreased from 0.1% to -2.4% when compared with the previous quarter.

The ratio of trade to GDP in Malaysia is about 120%. The world economy has a significant impact on its economy. For a very long time, the nation has maintained a trade surplus. The nation has amassed significant foreign reserves thanks to its quickly expanding foreign trade. Machines, manufactured goods, chemicals, and fuel make up the majority of its exports. China, ASEAN, Japan, and the USA are significant trading partners.

Credit:
Aaron O’Neill
https://www.statista.com/statistics/318977/gross-domestic-product-gdp-growth-rate-in-malaysia/

Department of Statistics Malaysia
https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=100&bul_id=VEdjcVNyZ1dkUlh1SHl2US9SMSs1Zz09&menu_id=TE5CRUZCblh4ZTZMODZIbmk2aWRRQT09

MacroMicro
https://en.macromicro.me/collections/1681/malaysia/809/asean-real-gdp

This video is mainly about how much money is enough for retirement. In today’s standard, is RM 1,000,000 enough for the retirement? The answer depends on few factors such as the inflation rate, the desired retirement lifestyle and the lifespan. The retirement planning is influenced by three factors and also the factors that are out of control. Therefore, you need to think of what retirement lifestyle you desire to live. You need to estimate the cost per year based on the chosen retirement lifestyle. Besides, you need to take into consideration other factors such as tax, insurance or others. Next, you need to consider 4% inflation of your estimated retirement cost per year. Last, you need to calculate the retirement fund required per year when you are retired. The common method is using the rule of 25. The formula is multiplying the retirement cost per year by 25.

Highlights:
0.00 Intro
0.45 Lifespan
1.24 The desired retirement lifestyle
2.09 Inflation
2.35 Sponsor
3.21 Retirement

Video credit to: Mr Money TV
Video link:
https://youtu.be/pwHA0H-_5cU

Is $1 Million enough for Retirement? | How much to RETIRE COMFORTABLY? Is $1 million enough for retirement? How much we need to retire? $1,000,000 Is Not Enough For Retirement? $1,000,000 sounds a lot to most of us! But the valu...

The World Bank Group Inclusive Growth and Sustainable Finance Hub in Malaysia (the Hub) serves as a partner to the country and its people in developing and implementing global development solutions.

The Hub draws on global knowledge to further unlock Malaysia’s potential; catalyzes knowledge, research, and application for impact; and shares Malaysia’s development experience for the global development agenda.

The three thematic areas work by the Hub under its second phase of operation from 2020-25 which will focus on

• Supporting Inclusive Growth
-This area will help to promote the inclusive growth outcomes in Malaysia and other countries.
• Promoting Sustainable Finance and Inclusive Finance
-In this area the Hub analytical, advisory and research work will aim to boost financial sector development in Malaysia.
• Enhancing Good Governance
-The Hub’s work program will focus on enhancing governance and public sector management which will increase the income of Malaysia.

This three thematic areas work by the Hub is a economy strategy that will help to improve the economy of Malaysia.

Credit to: The World Bank in Malaysia
(https://www.worldbank.org/en/country/malaysia/overview #2)

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Good day, everyone!

Today we are going to discuss the Overnight Policy Rate (OPR) Malaysia. OPR which is set by Bank Negara Malaysia (BNM) is an interest rate that the borrower bank needs to pay to the lending bank. OPR is interrelated with Standardised Base Rate (SBR), Base Lending Rate (BLR) and Base Rate (BR) of majority banks. Although every bank is permitted to set their own BR, any increase or decrease of OPR will also affect the value of BR.

In 2020, OPR Malaysia had decreased due to Covid-19 pandemic in order to encourage consumption and borrowing activities for a better domestic economy. Besides that, OPR has risen since May 2022 due to the reopening of the global economy in order to improve the conditions of the labour market for the recovery of economic activities. The increment of OPR is also aimed to control the inflation rate and stop the cycle that the prices increase causing the wages increase and then leads to the increase in prices again. However, OPR increases will result in higher interest rates for housing and other loans, and this indirectly increases the cost of living and burdens the family.

What happened when OPR decreases:
- Reduced monthly instalments. When there is a BR/BLR adjustment, banks are required to send out a notice letter on the new instalment amount at least 7 calendar days before the day the revised monthly instalment takes effect.
- A shorter term of the loan (if the old monthly instalment sum is maintained). Banks will still provide customers with the choice to shorten their loan term even if they are compelled by default to reduce the monthly instalment on variable home loans correspondingly.

What happens when OPR increases:
- Increase the amount due each month. The quantity of your monthly instalment payments increases whenever the OPR rises since banks pass along the higher borrowing costs to customers in the shape of a higher interest rate.
- If the amount of the monthly instalment is maintained, the loan term will lengthen. The payback time would lengthen owing to the rise in interest rate if the former monthly instalment amount is kept.

Credit: Miichael Yeoh
(https://www.iproperty.com.my/guides/bnm-increases-opr-how-will-it-affect-your-home-loan-ctr-29559)

Greetings everyone!

Subsidy is an incentive given by the government to individuals or businesses in the form of cash, grants, or tax breaks that improve the supply of certain goods and services. Are subsidies any good? Does it really help? Let’s learn the pros and cons of subsidies.

Credit to: MyClan

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Government Subsidies: Good or Bad? Government subsidises a lot of things for its citizens and subsidies have faced a lot of support and criticism from the general public, economists and thinke...

Malaysia’s economy posts double-digit growth for first time in a year in the third quarter

Malaysia's economy posted its first double-digit growth in more than a year in the third quarter, Bank Negara Malaysia said on Friday, driven by higher domestic demand and strong exports.
Gross domestic product (GDP) rose 14.2% in the July-September period from a year earlier, faster than the 11.7% growth forecast in a Reuters poll and faster than the 8.9% annual growth in the previous quarter. It is also the fastest pace of growth since the economy expanded by 16.1% in the second quarter of 2021.
Bank Negara Malaysia (BNM) said the growth was driven by continued expansion in domestic demand, a strong recovery in the labor market, strong exports, and continued policy support.
Headline inflation likely peaked at 4.5% in the third quarter and is expected to moderate thereafter, but it will remain elevated, BNM said.
Credit to:CNBC (https://www.cnbc.com/2022/11/11/malaysia-q3-gdp.html)
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Hello, everyone!

Today we are going to discuss the comparison of income and expenditure and also the budget deficit in Malaysia. Budget 2022, as released by the Ministry of Finance (M*F) is anticipated to cost RM332.1 billion which is higher than the revenue of RM234 billion.

The expenditure is set aside:
-RM233.5 billion (70%) for Operational Expenses (OE)
-RM75.6 billion (22.8%) for Development Expenditures (DE)
-RM23 billion (7.2%) for Covid-19 fund

When spending exceeds income, there is a budget deficit, which is a sign of a nation's financial stability. Typical situations that reduce revenue and increase spending to produce deficits include:
-An increase in expenditures for the military, Medicare, or Social Security.
-Greater government support for specific industries.
-Tax reductions yet provide businesses money to hire more people.

High budget deficits lead to the reducing expenditure on programs and potentially impact the infrastructure upgrades. Tax will increase for big businesses and this limits their capacity to make investments or recruit new staff. Inflation, or the persistent rise in prices, is also a looming issue with a budget imbalance. One of the ways to reduce the budget deficit is by reducing restrictions and lowering corporate income taxes to boost company confidence and advance economic development, which raises taxable earnings and boosts income tax receipts.

Credit:

Emmanuel Santa Maria Chin
(https://www.malaymail.com/news/malaysia/2021/10/29/budget-2022-rm233.5b-estimated-for-operational-costs-11-years-on-1mdb-debt/2016935)

Adam Barone
(https://www.investopedia.com/terms/b/budget-deficit.asp)