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    MACROECONOMICS

    STUDIES OF MALAYSIAS ECONOMY

    FARRUKH KHAN

    THIBEN RAJ - 1001027150

    SANTHINIYA - 1000821021

    JACKLYN

    KAMALLIYA

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    INTRODUCTION

    MACROECONOMIC

    Aggregates the indicators such as Growth

    National Product (GDP),unemployment rate, and

    inflation and develop the relationship between

    factors.

    Such as income, output consumption, savings and

    extra.

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    Gross Domestic Product (GDP)

    (output)

    Macroeconomic output is usually measured by

    Gross Domestic Product (GDP).

    National output is the total value of everything

    a country produces in a given time period.

    Everything that is produced and sold generates

    income.

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    UNEMPLOYEMENT

    The amount of unemployment in an economy

    is measured by the unemployment rate, the

    percentage of workers without jobs in the labor

    force.

    The labor force only includes workers actively

    looking for jobs.

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    INFLATION

    Inflation is a rise of price levels goods and

    services in an economy over a period of time.

    Negative effects of inflation include a

    decrease in the real value of money and other

    monetary items over time, uncertainty over

    future inflation.

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    HISTORY OF IMF

    The IMF is the International Monetary Fund,

    headquartered in Washington, D.C. It's a

    global organization made up of 185 member

    countries, founded in 1944.

    The IMF is governed a Board consisting of the

    finance minister or central bank leader of each

    member countries. They meet annually, inconjunction with the World Bank.

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    International Monetary Fund(IMF)

    IMF states its goals as "to promote international

    monetary cooperation, exchange stability, and

    orderly exchange arrangements; to fostereconomic growth and high levels of employment;

    and to provide temporary financial assistance to

    countries to help ease balance of payments

    adjustment.

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    IMPACT OF SHARP INCREASE &

    SHARP DECREASE

    GDP

    1998(-7.288) Decrease

    2000(8.72) Increase

    2001(0.518) Decrease

    2009(-1.636)Decrease

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    IMPACT OF SHARP INCREASE &

    SHARP DECREASE

    INFLATION

    1998(5.293) Increase

    2008(5.4)Increase

    2009(0.6)Decrease

    UNEMPLOYEMENTNot impact

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    ECONOMIC FORECASTING

    Prediction for future economic known as economic

    forecasting, which the process of making prediction

    about economy performance for coming years.

    An economic outlook could include expectations for

    inflation, productivity growth, unemployment and

    balance of trade.

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    ECONOMY FORECAST FROM THE

    2012 T0 2016

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    GRAPH FOR ECONOMY FORECAST

    FROM YEAR 2011 TO 2016

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    MALAYSIAN ECONOMY OUTLOOK

    OPINIONS

    Ahmad Husni Hanadzlah

    In December 2009, Second Finance Minister Datuk Seri

    Ahmad Husni Hanadzlah acknowledged Malaysias loss of

    competitiveness and decade-long economic stagnation.

    Unlike former compatriots South Korea, Singapore and

    Hong Kong which have all progressed, Malaysia is still

    elusively seeking to escape the middle-income trap.

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    MALAYSIAN ECONOMY OUTLOOK

    OPINIONS

    Professor Dr Terence Gomez

    The NEM made clear that Vision 2020 is not possible without

    economic, social and government transformation which was

    urgent and radical. It proposed market-friendly affirmative

    action measures, focusing on the bottom 40% of low-income

    households. This prompted speculation, and perhaps hope, in some

    quarters that the government would move away from distortionary,

    race-based affirmative action policies.

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    MALAYSIAN ECONOMY OUTLOOK

    OPINIONS

    Danny Quah

    Quah says 40% of government spending is currently paid

    for by petroleum revenues, which would dry up by 2014.

    And 20% of government spending goes towards subsidies

    alone. In response to a reference to the recent Are we

    going bankrupt? controversy, Quah says, Controversy?

    Hardly a controversy, its just arithmetic.

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    CONCLUSION

    Knowledge based economy is focused on the

    production and management of knowledge in the frame

    of economy constraints. In other words it refers to the

    knowledge and technologies to produce economic

    benefits and as well as job creation which they already

    did and it leads us to the construction of High tech city

    near Kuala Lumpur called Cyberjaya which is good

    news.

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    RECOMMENDATONS

    Malaysia needs to maintain its edge over it competitors

    since there growing competition from other emerging

    market. It will be very hard and challenging for

    Malaysia since there are new technologies are on their

    way. We have to realize what we need and why we

    need. We have to do investment on our IT departments

    so they can introduce to us new and modern

    technologies.

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    THE END

    Q & A