Malaysia Economic analysis for markting
... 1 Latent Demand and Accessibility in Malaysia 2 2. ... 0 General Economic Data 10 3. ... 0 Political stability in Malaysia 17 4. ... 3 Developmental aspirations of Malaysia 18 4. ... 4 Operational Factors of the Enterprise in Malaysia` 20 4. ... 2 Advertising Cost in Malaysia 29 6. ... 0 Channels of Distribution in Malaysia 31 7.1 Retailing in Malaysia 32 8. ... This paper concentrates on the macro marketing to evaluate the effect of country economic environment. ... They have a positive social and economic influence where they operate. Developing countries such as Malaysia, in spite of economic and marketing problems are excellent markets. These countries are experiencing the strongest economic growth and do some research about their economy do help the MNCs achieve the goals there. Because of Malaysia¡¯s central location, between the Indian Ocean and the South China Sea, Malaysia has traditionally been a meeting point for traders and travelers from both the East and West. Therefore, the paper uses Malaysia as the illustration of East-Asia &pacific country to explain the importance of country economic analysis for a MNC to expanding its business to Asia. ... 1 Latent Demand and Accessibility in Malaysia Malaysia, a middle income country, transformed itself from 1971 through the late 1990s from a producer of raw materials into an emerging multi-sector economy. Growth is almost exclusively driven by exports - particularly of electronics - and, as a result Malaysia was hard hit by the global economic downturn and the slump in the Information Technology (IT) sector in 2001. ... Kuala Lumpurs healthy foreign exchange reserves and relatively small external debt make it unlikely that Malaysia will experience a crisis similar to the crisis of 1997, but the economy remains vulnerable to a more protracted downturn in the US and Japan, top export destinations and key sources of foreign investment. Political relations between the United States and Malaysia have been strained in recent years by a general deterioration in human rights and judicial independence in Malaysia, the questionable actions against former Deputy Prime Minister Anwar, and excessive Malaysian rhetoric. Nevertheless, in most areas, our overall relationship with Malaysia is quite good. Malaysia has cultivated an excellent relationship with the U. ... The United States and Malaysia differ on some international issues, but work together on others. Malaysia was a strong supporter of NATOs action in Kosovo and has contributed to international peacekeeping forces. Malaysia is a leading member of the Association of Southeast Asian Nations (ASEAN), an organization the United States supports strongly. Malaysia also generally has played a helpful role in Asia-Pacific Economic Cooperation (APEC), which includes the United States and most economies around the Pacific Rim. All the economic and political information show the potential demand that cooperating worldwide MNCs to improve the performance and that is the reason why this paper choose Malaysia as illustration to analyze the effect of national economic environment, 2. ... 1 Total of Population The total population of Malaysia, according to the 2000 Census, was 23. ... And until the end of 2002, Malaysia total population is reach 24. ... Their share of the total population of Malaysia was 18. ... Ethnic composition Of the total population of Malaysia in Census 2000, about 21,890 thousand or 94. ... Age The proportion of population of Malaysia below 15 years of age in Census 2000 was 33. ... Conversely, the proportion of population 65 years and over for Malaysia in Census 2000 was recorded at 3. ... Consequently, the median age for Malaysia as a whole increased from 21. ... All these different age parameters point clearly towards a continuation of the trend of population ageing in Malaysia. ... Sex ratio Census 2000 revealed that for Malaysia as whole men outnumbered women, a pattern not unsimilar to that observed in 1991. ... Islam was the most widely professed religion in Malaysia; its proportion increasing from 58. ... Malaysia, being a multi-religious nation, also had a fair share of those embracing other religions such as Buddhism (19. ... 3 percent in 1995 to 37 percent in 1999, bringing Malaysia closer to creating a bigger middle- income class. ... 7 Malaysia 2,020 2,472 5. ... 0 General Economic Data The economy of Malaysia once relied principally on the production of raw materials for export, most importantly petroleum, natural rubber, tin, palm oil, and timber. After Malaysia gained independence in 1957, however, the development of the manufacturing sector took priority. From the mid-1970s to mid-1990s Malaysia had one of the world¡¯s fastest-growing economies, mainly due to rapid industrialization. ... In 1991 the Malaysian government launched the ambitious ¡°Vision 2020¡± program, which envisions Malaysia attaining the status of a developed nation by 2020. ... The modernization is designed to propel Malaysia into the digital age and position it as a hub for high-technology businesses in Southeast Asia. However, the country¡¯s reliance on exports of manufactured goods, such as computer microchips and other electrical components, has made its economy susceptible to regional and global economic downturns. Malaysia was one of many Asian countries that suffered economic decline during a regional economic crisis in 1997 and 1998. ... In 1997 Malaysia¡¯s annual budget included revenues of about $23 billion and expenditures of about $20 billion. ... Recent economic indicators information please refers to the appendix for economic analysis 3. ... The contribution of each industry after 97¡¯ economic crisis see the table below. ... 2 Foreign Investment Malaysia received strong inflows of foreign direct investment flows in the decade before the regional economic crisis, mainly thanks to considerable investment from multinationals. ... With strong competition for foreign direct investment coming from Vietnam and China, Malaysia has sought to refine the range of promoted activities in order to channel investment into more high technology, capital intensive manufacturing operations. Malaysia wants to transform its manufacturing base from one which is primarily an assembly operation to one which is capital intensive and generates a higher level of value added per employee, in order to sustain increasing wage costs. ... About the details please refer to appendix for economic analysis.Malaysia is a founding member of the Association of Southeast Asian Nations (ASEAN) and is a full participant in the ASEAN Free Trade Area (AFTA), established in 1992 with the goal of establishing nearly free trade among member nations. ... Malaysia became a member of the World Trade Organization (WTO) in 1995. Figure 3: Malaysia Trade with world from 1992-2002 Exports grew by 6% in 2002, compared to sharp contraction in 2001 (by 10% in 2001 in US$ terms). ... China¡¯ share in Malaysia¡¯s trade, while small (4. ... Given that China¡¯s business cycle is unsynchronized with those of Malaysia¡¯s trading partners, closer links with China is likely to play an important stabilizing role for Malaysia¡¯s balance of payments. Although competition between Malaysian and Chinese exports in third country markets is likely to intensify, an analysis of US import data shows that since 1998 Malaysia has sustained increasing competitiveness in key segments of electronics exports such as office/data processing machines, relative to the reference economies¡ªChina, Singapore, South Korea and Taiwan, all of which are Malaysia¡¯s close rivals in electronics exports. The terms of trade effect of China¡¯s accession into WTO is likely to be positive for Malaysia, given that China¡¯s demand for food and energy imports is expected to rise significantly and Malaysia is a new exporter of these products. While Malaysia seems to be coping well against increasing competition, China¡¯s entry into the WTO places a premium on the competitiveness of Malaysian firms and Malaysia¡¯s attractiveness as a destination for FDI. ... Net international reserves with Bank Negara Malaysia increased from $30. ... Other exchange rate please refer to appendix for economic analysis 3. ... The unemployment rate keeps increase since 1997 because of the economic crisis. ... Details please refer to the appendix for economic analysis Employment Number of workers 9,951,767 (2001) Workforce share of economic sector Agriculture, forestry, fishing 18 percent (1999) Industry 32 percent (1999) Services 50 percent (1999) Unemployment rate 3 percent (2000) The Labour force, number employed and unemployed rate change see the figure below. ... 6 Inflation Rates Inflation has a widespread influence on economic activities and our daily lives. ... Malaysias present economic achievement is strongly attributable to its excellent historical record of inflation. This record of simultaneously keeping inflation and unemployment low is something that Malaysia can be proud of because the two variables normally have a short-run inverse relationship. ... 8 Table 4: Malaysia Inflation rate from 1997-2002 4.0 Political stability in Malaysia Malaysia¡¯s political stability is influenced by the ethnic Malay community that is based along lines defined by either Islamic observances or secular priorities. Malaysias principal handicaps is that the country remains saddled with governments and ruling parties that in the eyes of important portions of the public must bear responsibility for the economic dislocations of 1997 and 1998, but to date have not owned up to their failures and misdeeds. ... 1The Parliament Malaysia is a constitutional monarchy, based on a general right to vote. The paramount ruler (the king) and a bicameral Parliament nominally head the Federation of Malaysia, which was formed on 09/07/1963. Malaysia consists of 13 states and the governmental district of Kuala Lumpur. ... Each of Malaysia¡¯s states is given a considerable political influence.