“Malaysia –Truly Asia”
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A GLOBAL / COUNTRY STUDY AND REPORT ON “Malaysia –Truly Asia” Submitted to PARUL INSTITUTE OF MANAGEMENT & RESEARCH Institute Code: 711 IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide Prof. KOSHA NAIR Assistant Professor Submitted by Batch: 2011-13, MBA SEMESTER IV (Parul Institute of Management & Research) MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad April 2013 1 PREFACE To develop the human capital, we want our students to be fully equipped with knowledge, practice good moral values, have a broad mind, love the country and possess the physical and spiritual strength and work for the development of the country. With GCST the students get a platform of opportunity to know the current market situation and the behavior of environment. It gives the opportunity where we can apply the theory knowledge in real world and so that we can be a successful manager in future. This changed the market structure, character and focus of marketing strategies. MBA is course where unlike many other courses practical studies are accompanied together with theoretical studies, case and preparation of various reports consist of the practical studies in this course. The preparation of the GCSR is one such part of the practical studies here. For this purpose we are required to select one particular topic or trade and prepare a report through study research. As the student of management it is learning experience to analyze a trade. It is the most essential for us to expose our skill as a future responsible management post. So, we have decided to go for detail study of country “Malaysia”. How investor could invest after using this report. It helps us to develop our skill and confidence to do better in all respect in management field. 2 ACKNOWLEDGMENT We have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and publications. We would like to extend our sincere thanks to all of them. We are highly indebted to PROF. KOSHA NAIR for her guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. We would like to express gratitude towards all our members of Parul Institute of Management & Research, 711 for their kind co-operation and encouragement which help us in completion of our project. We also would like to express our special gratitude and thanks to DIRECTOR DR. P G K MURTHY for giving us such attention and time. Our thanks and appreciations also go to our colleague in developing the project and people who have willingly helped us out with their abilities. 3 Index Sr. Topic Page No No 1 Executive Summary Of Sem III 2 SWOT Analysis of various sectors of Malaysia and Establishing trade relations with India & Gujarat 3 Electronic Sector Health Care sector Tourism Sector Oil & Gas Sector Quarrying & Mining Sector Financial Sector Rubber Plantation and Rubber Industries Education Sector Service Sector Agriculture Sector 4 Conclusions 5 Bibliography 4 Part 1 Executive Summary of Sem. III 5 “GCSR is an effort done by the students to study about the country Malaysia and its components. It’s an effort to study the Malaysian Culture, its demographic profiling, Economic Overview of the country, Overview of Industrial Trade and commerce of the country, Overview of the Different Economic Sectors, Overview of the Business and Trade at international Level, The current trade relations and business volumes of different products with India and Gujarat and the PESTEL analysis. In Semester 4, students have emphasized on SWOT analysis of various sectors and tried to establish opportunities for trade relations with India and Gujarat in particular….” Semester III At a Glance Malaysia is a south-east Asian country. Malaysia is a federal constitutional monarchy , consisting of thirteen states and three federal territories. Since independence in 1957, Malaysia has been transformed from a commodity-based economy focusing on rubber and tin to one of the world's largest producers of electronic and electrical products. Malaysia is considerably open-state oriented, newly industrialized market economy. The state plays a significant but declining role in guiding economic activity through macroeconomic plans. In 2009, the Malaysia's GDP was amounted $207,400 billion, which made it 3rd largest economy in the Southeast Asian and the 29th largest economy in the world by purchasing power parity. Malaysia has been a key supplier of products like rubber, timber, liquefied natural gas, etc to the industrialized countries Malaysia today is a middle income country with a multi-sector economy based on services and manufacturing. Malaysia is one of the world's largest exporters of semiconductor components and devices, electrical goods, solar panels, and information and communication technology (ICT) products. Malaysia is also externally competitive, ranking 18th (out of 135 economies) in the International Finance Corporation 2012 ranking of ease of doing business in the world. General Information Head of Government: Datuk Seri Najib Tun Razak Population (2009): 27.7 million Capital: Kuala Lumpur 6 Currency: Malaysian Ringgit Official language: Bahasa Malay, English, Chinese Exchange rate (Sept 09): 1€ = 5.0982MYR Demography is the statistical study of living populations and sub-populations. It encompasses the study of the size, structure, and distribution of these populations, and spatial and temporal changes in them in response to birth, migration, aging and death. The term demographics refers to characteristics of a population. Demographic trends are used by government to predict what services will be needed in the future. Marketers to segment the market depending on the age, gender, income level, race and ethnicity. Literacy rate depicts the segment which is more employable in the industry. The products which are imported by the country to establish trade relations with it. Malaysia's population, as of July 2010, is estimated to be 29,179,952, which makes it the 41st most populated country in the world. Of these, 5.72 million Malaysians live in East Malaysia and 22.5 million live in Peninsular Malaysia. The Malaysian population continues to grow at a rate of 2.4% per annum. The Age Structure from 0-14 years is 29.6% (Male 4,374,495/ Female 4,132,009), from 15-64 years is 65.4% (Male 9,539,972/ Female 9,253,574) and from 65 years and over is 5% (Male 672,581/ Female 755,976). The Birth Rates is 20.74 births/1,000 populations while the Death rate is 4.95 deaths/1,000 populations. The Literacy ratio between the age 15 and over can read and write is 88.7% which includes male is 92% and female is 85.4%. The ethnic groups which includes Malay 50.4%, Chinese 23.7%,Indigenous 11%,Indian 7.1%,and Others 7.8% The Muslim religion is the highest i.e. 60.4%, Buddhist are 19.2%,Christian are 9.1%,Hindu’s are 6.3%, Confucianism, Taoism, other traditional Chinese religions are 2.6%, and Other or unknown are 1.5%. The Languages which are widely used Bahasa Malaysia, English, Chinese, Tamil, Telugu, Malayalam, Panjabi and Thai. 7 The commodities which are exported are electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals and its partners are Singapore 13.4%,China 12.6%,Japan 10.4%,US 9.5%,Thailand 5.3%, and Hong Kong 5.1% The commodities which are imported are Electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals while its partners are China 12.6%,Japan 12.6%,Singapore 11.4%,US 10.7%,Thailand 6.2%, and Indonesia 5.6% The agricultural products are palm oil, rubber, cocoa, rice, subsistence crops, timber and pepper. The industries which they are mainly into rubber and oil palm processing and manufacturing, light manufacturing, pharmaceuticals, medical technology, electronics, tin mining and smelting, logging, timber processing, logging, petroleum production agriculture processing, petroleum production and refining. The activities which they are mainly into are visiting the rain forest, Diving, Shopping, Visit a longhouse, Spelunking and Dining Out. Modern society uses all manner of electronic devices built in automated or semi- automated factories operated by the industry. The size of the industry and the use of poisonous materials, as well as the difficulty of recycling has led to a series of problems with electronic waste items. The SWOT analysis of Malaysia is as follows: Strength of this are accessible to projects under the "promoted product" or "promoted activity" categories its government will intends to make Malaysia a major distribution centre. There has also foreign equity ownership of wholesale and retail trade; duty-free imports of raw materials, components, or finished products into free industrial zones or licensed manufacturing warehouses for repackaging. Its Contribution to GDP in 2012 is 5.0% (est.) 10. The electronics and electrical industry is the largest contributor to Malaysia's manufacturing output, employment, value added, and exports includes audio-video components, industrial electronics, it’s also include computer, office equipment and telecommunication equipment, automotive and medical equipment. 8 Weakness are lack of initiatives and limited skills development as the workforce comprises of diploma holders or certified technicians so this industry is losing its competitive edge in labor intensive assembly, packaging, and testing operations, The support in infrastructure for innovative and productive industrial development is fairly weak. Opportunities are like The leading companies are now responsibility R&D activities in the country to support their Asia Pacific markets, With many important solar cell manufacturers locating their operations in Malaysia in the past three years, the country is positioned to be a favorable destination among the ASEAN countries, laying the foundation for Malaysia to become a hub for solar cell manufacturing and attract more companies to invest in future.