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TOPIC 9 : CURRENT ISSUES & DEVELOPMENT OF MALAYSIAN ECONOMY (HOW…
TOPIC 9 : CURRENT ISSUES & DEVELOPMENT OF MALAYSIAN ECONOMY
WORLD TRADE ORGANIZATION (WTO)
Has 132 members , 31 in process
98 developing countries
Establish in 1995
INTERNATIONAL MONETARY FUND (imf)
Established 1944 with 184 countries member
PURPOSE
Exchange stability
To foster economic growth and high level of employment
To promote international monetary cooperation
To provide temporary financial assistance to countries to help ease balance of payments
GLOBALIZATION
CHARACTERISTICS
Capital flow
Adoption of new task
International trade in goods and services
CONSEQUENCES
Globalization, poverty & inequality
Trade liberalization
Globalization & economic governance
More efficient in market
CHALLENGES
The scale of output required
Technical capacity
Response to change
IMPACTS
Poverty & inequality
Trade liberalization
CHALLENGES
INTERNAL FACTORS
Lost advantages in market pricing & competitive cost
Consumer tend to purchase import vehicles
Subsidize the cost of local parts
EXTERNAL FACTORS
Pressure from some investors
High threat and rivals
WORLD BANK
MISSIONS
To fight poverty with passion
To help people help themselves and their environment by providing resources
EXAMPLE OF IMPORTANT GLOBAL PARTNERSHIP BY WOLRD BANK
Global Water Partnership
Education for all
Global environment Facility
Roll Back Malaria
established in 1944 with more than 10 000 staffs
OBJECTIVES OF MDG
Achieve universal primary education
Eradicate extreme poverty
Reduce child mortality
Improve maternal heaalth
AFTA
Benefit of the member countries facing the challenges of globalization
OBJECTIVES AFTA
Liberalize trade in the region
Produce more competitive business in ASEAN
Increase ASEAN competitive advantage
Established in 1992
PRIVATIZATION
METHODS
Govvernment - identified method
Private sector initiated method
OBJECTIVES
To increase the level of efficiency and effectiveness of public sector
To encourage fair & healthy competition
To reduce govt. financial burden
STRATEGIES
Build - operate - transfer (BOT)
Build - operate (BO)
Acquisition of manament
Built - Transfer (BT)
HOW TARIFF CAN BE USED TO PROTECT LOCAL AUTOMOTIVE INDUSTRY
High tariff will increase govt. revenue
Drive the regional manufacturing integration and cost competitiveness
Tariff is tax or duty on export or import
tariff in Malaysia much higher compared to any other countries. Reduce deficit BOP>
AFTA will drive the regional manufacturing integration & cost competitiveness among ASEAN countries and gain technology transfer to the region