“Malaysia –Truly Asia”

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

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.

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.

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

Part 1

Executive Summary of

Sem. III

“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

 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.

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.

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. Innovation Inventories across the semiconductor industry have been building up and hence production has slowed in many parts of Asia.

Threats are like China, which has emerge as the world’s factory is a strong threat, Other promising Asian economies such as Vietnam are fast becoming low-cost companies in the E&E industry; while at the high-end, Singapore and Taiwan compete for investments in higher-value activity, Concentration in assembly results in lower value additional

The SWOT analysis of India is as follows:

Strengths are like Presence of well-known brands, Abundant Availability of Man Power, Competitive Labor Costs, Presence of established distribution networks in both urban and rural areas, In current years, organized sector has increased its share in the market Vis a Vis the unorganized sector

Weaknesses are like Demand is seasonal and is high during festive season Low purchasing power of consumers Lack of clear-cut government policy for the industry. Very little expenditure in Research and Development area Heavy Taxation, Heavy Taxation

Opportunities are like Penetration Level, Rise in disposable income, Availability of newer variants of a product, Potential markets remaining yet untapped, Availability of financing schemes, Rise in the share of organized retail

Threats are like Threat from new entrants, especially global companies, Rivalry and competition, Threat from substitute products/services, Customer power among respect to availability of choice

Opportunities which are received are like In a recent development, foundation stone of Info city has been laid at Gandhi agar. The project is expected to give a boost to Electronic Industries in general, Idea from the government and the availability of necessary manpower, infrastructure and entrepreneurial state of mind are likely to promise well for attract investment in this field to Gujarat, Gujarat invests in growth of solar power in the state and has had India’s major solar power plant as of January 2012

INDUSTRIAL GROWTH

Industrial sector in India has witnessed positive structural changes since 1991 particularly by way of improvements in productivity, modernization and infusion of new technology. Companies have consolidated their core competencies, while several have tied up with foreign companies to acquire new technologies, management expertise, and access to foreign markets.

 The Gross Domestic Product growth rate measures the increase in value of the goods and services produced by an economy.

 Economic growth is usually calculated in real terms or inflation-adjusted terms, in order to net out the effect of changes on the price of the goods and services produced.

 Malaysia’s economy outperformed expectations to pull off a remarkable growth of 7.2% for 2010 to MYR 558.38 billion, compared with a contraction of 1.7% in 2009.

 The government had earlier forecasted gross domestic product growth at 5– 6%, while other economists were more optimistic with a 7% growth projection.

 Malaysia GDP Jumps to 7.2% in 2010

FOOD SECTOR CONTRIBUTION TO CONSUMPTION

The household sector holds a massive contribution in the Indian economy and it saves the most in India. The following graph showing the contribution of and composition of savings.

Economy stats: India v/s Malaysia

Indian Economy stats Malaysian Economy stats Aid as % of GDP 0.3% 0.1% Ranked 113rd. 2 times Ranked 130th. more than Malaysia

Business efficiency 59.053 65.844 Ranked 33rd. Ranked 26th. 11% more than India Economic freedom 1.5 2 Ranked 123rd. Ranked 80th. 33% more than India. Exports to US $3,233,200,000.00 $5,461,700,000.00 Ranked 19th. Ranked 13th. 69% more than India GDP $4,164,000,000,000.00 $313,200,000,000.00 Ranked 5th in 2006. 12 Ranked 34th in 2006. times more than Malaysia GDP growth > annual % 9.23 annual % 5.16 annual % Ranked 14th in 2005. 79% Ranked 74th in 2005. more than Malaysia GDP (per capita) $3,751.99 per capita $12,155.27 per capita Ranked 121st in 2006. Ranked 60th in 2006. 2 times more than India GDP > PPP $3,362,960,000,000.00 $246,036,000,000.00 Ranked 4th. 13 times Ranked 35th. more than Malaysia

Gross National Income $477,000,000,000.00 $79,326,600,000.00 Ranked 12th. 5 times Ranked 37th more than Malaysia. Gross national income > 28322300000000 292607900000 constant LCU Gross National Income $14.37 per $100 Ranked $34.60 per $100 (per $ GDP) 160th. Ranked 75th. 141% more than India Human Development 0.602 0.796 Index Ranked 128th. Ranked 61st. 32% more than India Income category Low income Upper middle income Income distribution > 3.5% 1.7% Poorest 10% Ranked 22nd. 106% more Ranked 90th. than Malaysia Income distribution > 33.5% 38.4% Richest 10% Ranked 38th. Ranked 23rd. 15% more than India Overall productivity > $7,279.30 $22,969.30 PPP Ranked 50th. Ranked 39th. 2 times more than India Research and 0.6% 0.4% development spending Ranked 39th. 50% more Ranked 50th. than Malaysia Technological 0.2 0.4 achievement

MALAYSIAN ECONOMIC ASSOCIATION

The Malaysian Economic Association was founded in 1962 by professional economists from the University of Malaya, the public sector and industry. The Association's objectives are to stimulate public interest in economics, to encourage the study and discussion of economic problems with special reference to Malaysia.

To provide means for persons interested in economics to exchange ideas, to issue an economic review and other publications, to undertake such economics activities as the Association deems appropriate for the furtherance, promotion and execution of its aforesaid objects.

The Association is affiliated to the Federation of ASEAN Economics Association (FAEA) and International Economic Association (IEA).

The Malaysian Economic Association was founded in 1962 by professional economists from the University of Malaya, the public sector and industry.

One of the important aims of the Association is to provide a forum for economists to exchange ideas on matters relating to the Malaysian economy and to allow for the

12 dissemination of new ideas, new insights and findings on local economic matters among fellow economists as well as interested members of the public.

An important objective of the Association is to facilitate and inculcate greater awareness and understanding of important economic issues among the Malaysian public.

The Association is affiliated to the Federation of ASEAN Economics Association (FAEA) and International Economic Association (IEA).

As, Malaysian economy remains amazingly flexible. Its GDP growth moderated to a still commendable 5.2 per cent year – one year from a revised 5.6 per cent in the second quarter. The growth was driven by strong domestic demand, with impressive although slightly slower year – on - year growth in private consumption and private and public investment outlays. Net exports had meanwhile contracted further due to the deterioration in external demand for manufactured goods and commodities.

Malaysia’s positive growth performance was accompanied by a build-up in inflationary pressure and a surge in foreign capital inflows. The economic rebound also paved the beginning for microeconomic policy normalization.

We also overlook some information of Malaysian Economic Association, whose responsibility is to stimulate public interest in economics, to encourage the study and discussion of economic problems with special reference to Malaysia.

The study was basically done to overview economic risk. As, in Malaysia economic risk are moderate. In this study, we also overlook on various economic policy of Malaysia like Monetary policy and subside & price controls.

We also go through growth of Malaysia, in which Malaysia’s economy outperformed expectations to pull off a remarkable growth of 7.2% for 2010 to MYR 558.38 billion, compared with a contraction of 1.7% in 2009.

There are many sectors wherein India and Malaysia are together trading.

Few Indian companies that made major acquisitions include Reliance Industries Limited, Ballarpur Industries Limited, Larsen & Toubro and WIPRO and have announced fresh investments in Malaysia.

Below is the brief summary of the industries wherein India and Malaysia are trading.

Malaysia Associated Indian Chambers of Commerce & Industry commonly, referred as MAICCI, was established in 1951 as the apex body for all State Indian Chambers of Commerce & Industry. It represents the Indian business community in the private sector and further explores various opportunities in the areas of economy enhancement and development for the Indian community.

The activities of MAICCI are very broad based covering various aspects of the private sector and government raging from trading to policy matters, assisting entrepreneurs, to business counseling, networking within Malaysia and oversea, investment to human resource development.

MAICCI maintains closed co-operation with relevant central government bodies and agencies, and with other national, regional and international organisations whereby the State Chambers uphold the collaboration with the respective State Government and statutory Bodies.

MAICCI also indirectly represents many Indian Trade Associations, among other :

 Malaysian Indian Textiles & General Stores Association

 Malaysian Indian Restaurant Owners Association (PRIMAS)  Selangor & FT Indian Newspapers Vendors Association  Malaysian Indian Hair Dressing Saloon Association  Indian Builders Association Malaysia

 Malaysian Indian Metal Traders and Recyclers Association (MIMTA)  Malaysian Indian Goldsmith Jewelers Association  Malaysian Muslim Restaurant Owner Association (PRESMA)  Malaysian Indian Provision Shop Owners Association  Muslim Mini Market Owners Association

This report is commissioned to study the trade relations between India and Malaysia and to explore the untouched area which can make the trade relations better in the TOURISM INDUSTRY.

The Group also studied the overview of business and trade at international level of Malaysia and also comparison between India and Malaysia. First of all in we study on World Trade Organisation (WTO) between India and Malaysia that India established diplomatic relations with the federation of Malaysia. Malaysia is a federal constitutional monarchy in Southeast Asia. It consists of thirteen states and three federal territories and has a total landmass of 329,847 square kilometers (127,350 sq mi) separated by the South China Sea into two similarly sized regions, Peninsular Malaysia and Malaysian Borneo. The country is multi-ethnic and multi- cultural, which plays a large role in politics. The government system is closely modeled on the Westminster parliamentary system and the legal system is based on English Common Law.

The World Trade Organisation (WTO) was established on 1 January 1995. The WTO replaced the General Agreement on Tariffs and Trade (GATT) following the conclusion of the Uruguay Round of trade negotiations in 1994. WTO promotes global trade through market opening measures and strengthening trade rules, which among others: Provide transparency, predictability and stability. Prevent adoption of unilateral measures on trade matters. The service sector is a rapidly growing component of Malaysia’s economy. In 2011, the last year for which data are available, it expanded 7.2 percent to $96.9 billion and employed over half of the country’s workforce. MICECA is a comprehensive agreement that covers trade in goods, trade in services, investments and movement of natural persons. It value- adds to the benefits shared from ASEAN-India Trade in Goods Agreement (AITIG) and will further facilitate and enhance two-way trade , services, investment and economic relations in general

Trade Facilitation: Negotiations are moving towards developing a new Agreement on Trade Facilitation aimed to address issues relating to: freedom of transit of goods; fees and formalities connected with importation and exportation

The growing global competitiveness of Malaysia’s service sector is reflected in steady growth in trade volumes. Import tariffs, where applicable, are mostly imposed on an ad valorem basis. The import duty ranges between 2%-60%, and the average applied duty rate was 7.4%. About 60% of tariff lines were duty-free. Raw materials,

15 machinery, essential foodstuffs and pharmaceutical products are generally non- dutiable or subject to duties at lower rates.

Malaysia –India trade relation

India's exports to Malaysia witnessed an exponential increase of 130%, to $803 million. Nonetheless, the trade deficit between two countries is what sends India scurrying for cover with Malaysian exports to India standing at meager $1.7 billion.

Malaysia’s imports to India principally comprises of food products, chemical and chemical products, electrical and electronic products, textiles and clothing and manufactures of metal. So far, India has invested $419.9 million in a total of 144 projects in Malaysia. Almost 40% of Malaysian foreign direct investment (FDI) to a tune of Rs.2, 660.67 crore was invested in Tamil Nadu in the last year.

Trade Performance 2011

Malaysia’s exports of rubber products amounted to RM14.2 billion in 2011, a growth of 10.3% from RM12.9 billion recorded in 2010. Significant increases in exports were registered in 2011 for rubber gloves (10.9%), latex threads (8%), tyres (26%), rubber hoses (33%) and catheters (13%) Other product category that has performed well in 2011 was the rubber tubes and hoses which has recorded growth of 33% to RM417 million.

As a part of syllabus the group made report on Malaysia’s overview of foreign trade. Malaysia is well known for its openness to international trade. Foreign trade represents more than double of the country's GDP. The country mainly exports electric and electronic equipment, machinery, mineral fuels and hydrocarbons, animal and vegetable oils and fats, wood and charcoal. . Its main trade partners are the United States, Singapore and Japan, followed by China and the European Union

MAIN TRADES ARE:-

 Agriculture  Mining and Quarrying  Oil and Gas

 Manufacturing  Automobiles  Services  Financial services  Banking  Insurance

These are the pillars of Malaysian foreign trade. Malaysia mainly exports rubber and related product. Also coconut products. Malaysia are open to foreign trade, policies are liberal so foreign investor are attract to the Malaysia. Malaysia mainly based on the agriculture products. Islamic banking is the new concept which being famous worldwide. Petronas oil and Gas Company focuses its related activity.

Malaysia India trade relation:-

 India's exports to Malaysia witnessed an exponential increase of 130%, to $803 million.  The trade deficit between two countries is what sends India scurrying for cover with Malaysian exports to India standing at meager $1.7 billion.

 Both countries can look forward to joint operations in the field of technical collaboration, research and development and franchisee operations, informed Datum Merlyn Kashmir, CEO, Malaysia External Trade Development Corporation.

 So far, India has invested $419.9 million in a total of 144 projects in Malaysia.

 The sectors where investments have been made include: petroleum products, textiles and textile products, rubber products, chemical and chemical products.

 Almost 40% of Malaysian foreign direct investment (FDI) to a tune of Rs.2, 660.67 crore was invested in Tamil Nadu in the last year.

 Maxis, Axitia and Khazana have invested in telecommunication, banking and the health sector in India.

 Malaysia is the 10th largest source of foreign Tourists visiting India.

 Regarding the financial sector, he said the CECA will enhance cooperation in the sector including participation in each other’s capital markets. Malaysia has also agreed to provide commercial banking license to Indian banks.

PESTEL Analysis was another topic to be studied and also comparison between India and Malaysia. First of all in we study on political relationship between India and Malaysia that India established diplomatic relations with the federation of Malaysia. This followed the landmark State visit to India in January 2010 of Malaysia’s Prime Minister Mr. Najib, Foreign Ministers of both countries head the Joint Commission, which held its 5th meeting in Kuala Lumpur on 3rd May 2011. India and Malaysia have agreed to work on a Framework for Strategic Partnership, which envisions development of a multi-faceted relationship with a view to elevate bilateral relations to the level of a long term and strategic partnership. Economic and commercial relations are emerging as the mainstay of the bilateral relationship. Indian companies have invested about US $ 2 billion, making it the 7th largest Investor in Malaysia. Links have improved significantly following a bilateral agreement in 2007 to progressively increase the seat capacity to six major destinations in India and a provision for multiple destinations and designating any number of airlines to operate on the India–Malaysia routes. The service sector is a rapidly growing component of Malaysia’s economy. In 2011, the last year for which data are available, it expanded 7.2 percent to $96.9 billion and employed over half of the country’s workforce. Growth in the Malaysian service sector is largely a product of government policies that promote service industries, including tax benefits and investment, as well as specialization in niche service industries that cater to Islamic consumers. In April 2010, the government eliminated or eased ethnic-Malay equity requirements in 27 service industries in an effort to further increase service industries’ contribution to the Malaysian economy. The growing global competitiveness of Malaysia’s service sector is reflected in steady growth in trade volumes. Malaysia’s cross-border trade in services increased at an average annual rate of 15 percent to $60.6 billion from 2004 through 2008, accounting for 13 percent of total Malaysian cross-border trade and about 1 percent of global services trade in 2008. While the United States maintains a surplus in cross-border services trade with Malaysia, its imports from Malaysia in this sector

18 grew faster than the corresponding exports from 2004 through 2008. In 2008, U.S. cross-border services exports to Malaysia totaled $2.0 billion, while services imports from Malaysia totaled $1.3 billion. Intangible intellectual property and tourism services account for the largest shares of U.S. services exports to Malaysia.  Service sector is growing at a very fast rate compared to any other sector.

 Contribution towards GDP and employment rate is also significantly high Thus importance of service sector

 Our Government also takes same initiative to booster service sector industries.

 For more development service sector industries government should provide bell out package to them. Quantitative analysis suggests that the existence of nontariff measures continues to inhibit foreign participation in Malaysian service industries. While Malaysia has made significant efforts to liberalize certain service industries, Commission staff analysis indicates that further liberalization could increase Malaysia’s yearly services imports from the rest of the world by as much as $2.6 billion.

As per World Trade Organization, eight developing countries are in the list of the world’s 30 largest exporters of services and Malaysia was ranked 30th in 2008. At present 7% of the services sector share of GDP consists of services provided by the Government. The remainder is the tradable services sector which has commercial and growth prospects. The unemployment rate in India was last reported at 3.8 percent in 2010/11 fiscal year. The unemployment rate in Malaysia was last reported at 3.2 percent in July of 2012.India import product is machinery, gems, fertilizers and chemicals and oil. Malaysia import product is electronics, machinery, petroleum products, plastics, vehicles, iron and steel products and chemicals. India export product is textile goods, engineering goods, chemicals, leather manufactures and services. And Malaysia export product is crude oil, liquefied natural gas, palm oil and natural rubber. India GDP Annual Growth is expanded 5.50% in the second quarter of 2012. And Malaysia Annual GDP Growth is expanded 5.40% in the second quarter of 2012. Business Opportunities between India and Malaysia that trade and services, manufacturing and construction are the key areas where we see the larger

19 opportunities for both countries. Indian government on infrastructure development is a big opportunity for Malaysian companies to participate in Indian infrastructure development. The Malaysian Cabinet has already relaxed rules and last month approved the intake of 45,000 workers, mostly from India to fill up vacancies in 13 services sectors, including restaurants.

To be establishing strong Economy relationship between India and Malaysia that Employed Persons in India increased to 27549 Thousand Persons in December of 2008 from 27276 Thousand Persons in December of 2007, according to a report released by the Central Statistical Organization, India. Tourism has been valued at RM50billions and is one of the main services export earner. It grew by 5% in 2008.Other sectors with potential are information and communications technology, construction, Islamic financial services, education and training, management services, medical tourism, logistics and oil and gas services. In Malaysia, services sector is ranked evidently as the second main contributor to the GDP. However, in 2005, it has recorded a remarkable performance where 62% of the 5.3% economic growth rate is represented by services trade (9th Malaysia Plan, 2006). Some of the main services sectors that generated vigorously the revenues for the economy are tourism, telecommunications, education, financial services etc. In terms of world services exports, Malaysia is among the top 30 contributors with a total of USD19.0 billion in 2005 as shown in Appendix 1. It is also among the top three leaders in ASEAN after Singapore and Thailand. In view of the past and continuous outstanding performance coupled with the external dynamism of the services environment, the government has included the services sector as one of the main thrust under the 9th Malaysian Plan to sustain its long term economic growth. Apart from the existing services sector, a few new services subsectors such as aviation maintenance, repair and overhaul; shared services and outsourcing; transport and logistics and business and professional services will be up-scaled potentially (9th Malaysia Plan, 2006). These new services subsectors and the revenues from domestic households and foreign tourists spending are envisaged to increase the current services trade. Despite the capability of domestic services market that serves as foundation for revenue accumulation, the global services environment remains a challenge. This is because Malaysia has signed the General Agreement on Trade in Services (GATS) under the WTO commitment, which means

20 there will be an irrevocable exposure to global open competition that is already in place.  Liberalizing foreign investment in rural banking with the help of mobile technology.

 Liberalizing FBI in Animation sector.

 Relaxing the minimum area norm in construction area.

 Encourage venture capital in services.

 Increasing visibility of India in service through trade fairs, buyer-sellers meets and setting up convention centers.

 Modernizing port infrastructure on priority basis.

The country analysis report on Malaysia provides a wide array of analytical inputs to analyze the country’s performance, and the objective is to help the reader to make business decisions and prepare for the future. The report on Malaysia analyzes the political, economic, social, technological, legal and environmental (PESTLE) structure of Malaysia. The report provides a holistic view of Malaysia from historical, current and future perspective. Insightful analysis on critical current and future issues is presented through detailed SCPT (strengths, challenges, prospects and threats /risks) analysis for each of the PESTLE segments.

In addition, the PESTLE segments are supplemented with relevant quantitative data to support trend analysis. The PESTLE country analysis report series provides an in- depth analysis of 50 major countries.

India and Malaysia have enjoyed commercial links and cultural exchanges dating back to the pre-Christian era. In modern times, bilateral relations have been close and friendly. In recent years, India- Malaysia relations have diversified and developed in an all-round manner, involving frequent high-level exchanges, burgeoning economic engagement, growing cultural, educational and people-to people links, rapid expansion of tourism, and increasing defense exchanges and cooperation.

The Government of India has accorded a high priority to relations with Malaysia in the context of its Look East Policy. Likewise, the Malaysian Government has been increasingly proactive in nurturing closer ties with India. Malaysia has one of the

21 largest communities of persons of Indian origin (PIOs) numbering close to 2 million. In addition, there are a large number of Indian professionals in top positions as well as about 150,000 Indian workers in a range of economic and commercial activities in Malaysia.

The first Indian joint venture, Godrej commenced operations in 1968, and in the seventies and early eighties Malaysia hosted the largest number of Indian joint ventures in any country. The present involvement of Indian companies in Malaysia is extensive in many sectors, while Malaysian companies are increasingly active in India.

Constitutional monarchy note: Malaya (what is now Peninsular Malaysia) formed 31 August 1957; Federation of Malaysia (Malaya, Sabah, Sarawak, and Singapore) formed 9 July 1963 (Singapore left the federation on 9 August 1965); nominally headed by the paramount ruler and a bicameral Parliament consisting of a nonelected upper house and an elected lower house; Peninsular Malaysian states - hereditary rulers in all but Melaka, Penang, Sabah, and Sarawak, where governors are appointed by the Malaysian Government; powers of state governments are limited by the federal constitution; under terms of the federation, Sabah and Sarawak retain certain constitutional prerogatives (e.g., the right to maintain their own immigration controls); Sabah - holds 20 seats in House of Representatives, with foreign affairs, defense, internal security, and other powers delegated to federal government; Sarawak - holds 28 seats in House of Representatives, with foreign affairs, defense, internal security, and other powers delegated to federal government

Economy – overview, Malaysia made a quick economic recovery in 1999 from its worst recession since independence in 1957. GDP grew 5%, responding to a dynamic export sector, which grew over 10% and fiscal stimulus from higher government spending. The large export surplus has enabled the country to build up its already substantial financial reserves, to $31 billion at yearend 1999.

This stable macroeconomic environment, in which both inflation and unemployment stand at 3% or less has made possible the relaxation of most of the capital controls imposed by the government in 1998 to counter the impact of the Asian financial crisis.

Government and private forecasters expect Malaysia to continue this trend in 2000, predicting GDP to grow another 5% to 6%. While Malaysia's immediate economic horizon looks bright, its long-term prospects are clouded by the lack of reforms in the corporate sector, particularly those dealing with competitiveness and high corporate debt.

India's export growth to Malaysia nearly tripled from $ 1.3 billion in 2006-07 to $3.4 billion in 2008-09; however, the growth of imports has been more impressive, expanding to $7 billion in 2008-09.

Bilateral investments, Malaysian Investments in India, Malaysia has become a significant investor in India in the last few years. According to official figures, FDI from Malaysia from April 2000 to March 2009 was US$ 214.77 million, placing it at 24th position.

The majority of investments are routed through third countries and actual and pipeline FDI is worth several billion dollars. Malaysian foreign direct investment in India is primarily focused on roads and highways, telecommunications, oil and gas, power plants, tourism and human resources. The highest investment proposals have been in the Fuels (power and oil refinery) sector, followed by Telecommunications and Roads & Highways.

According to the High Commission of India, Kuala Lumpur, there has recently been a surge in Malaysian private sector initiatives in project related investments into India.

Indian Investments in Malaysia, According to the High Commission of India, over 100 Indian Companies including 61 Indian joint ventures are operating in Malaysia. Cumulative Indian investment in Malaysia (from 1980 to 2007) is estimated to be over US$ 1.58 billion.

A new dimension in the India-Malaysia relationship is the co-operation in Information Technology and human resource development. There are 67 Indian companies operating in Malaysia's prestigious Multimedia Super passage.

Malaysia likely to sign MOU with national innovation foundation, Malaysia is likely to sign a memorandum of understanding (MOU) with India's National Innovation

Foundation (NIF) to understand the process related to innovations, methodology and collection of ideas.

A delegation led by Malaysian minister for Science, Technology and Innovation, Dr Maximums J Ongkili visited NIF and Centre for Innovation Incubation and Entrepreneurship (CIIE) in Ahmedabad. They also had a look at certain unique innovative ideas displayed at Society for Research and Initiatives for Sustainable Technologies and Institutions (SRISTI).

Agreement towards implementing Comprehensive Economic Cooperation Agreement (CECA) between India and Malaysia on 1st July 2011. A Joint Study Group was constituted in March 2005 by India and Malaysia comprising government officials and economists to examine the feasibility of a FTA between the two countries. The Study Group submitted its Report in January 2007, recommending a Comprehensive Economic Cooperation Agreement (CECA) between India and Malaysia, and the Report was adopted by both the governments by launching CECA negotiations in February 2008.

India and Malaysia would liberalise their respective investment regimes to facilitate greater FDI into each other’s territory. Both sides would also finalise 2-3 other areas of economic cooperation from among infrastructure development, creative industries, tourism, SMEs, business facilitation, science and technology, and human resource development.

MOU on Cooperation in the Field of Traditional Systems of Medicine, The MOU on Cooperation in the Field of Traditional Systems of Medicine provides a framework for cooperation in traditional systems of medicine between the two countries.

MOU for Cooperation in the field of IT & Services, The first decade of the 21st century witnessed marked increase in collaboration in the field of Information Technology and Services between India and Malaysia. There are at present 60 Indian IT companies, including few of the top-ten Indian IT companies, have established offices in Malaysia with some of them operating their global business center.

Cultural Exchange Programmed for 2010-13, India and Malaysia would be signing a Cultural Exchange Programmed (CEP) for the period 2010-13 during the Prime

Minister’s visit, spelling out a number of activities to further strengthen the existing cultural cooperation between the two countries. This CEP stems from the Cultural Agreement signed between India and Malaysia in 1978.

Challenges faced by Indo- Malay partnership, Major challenge for the Indo-Malay partnership is to scale up the economic relations. A lack of production and manufacturing network between India and Malaysia exists that in return is affecting the potentials of the two countries. The Malaysian perspective on India has generally been derived from the Indian Diasporas present in that country. It generally portrays a partial image of India represented only by the IT professionals and unskilled workers

The conclusions India can be a big market for Malaysian palm oil especially after the reduction of the import tariffs and an important destination for Malaysian investment in the development of infrastructure

Part II

Emphasis on Various

Sector’s of Malaysia and

Establishing Trade

Relations with India &

Gujarat

Emphasis on

Electronic Sector

INTRODUCTION

 The electronics industry which has become a global trade worth billions of dollars was emerged in 20th century. The electronic devices used are in automated or semi-automated factories operated by the industry are used by whole modern society.  The electronic waste items have led to a series of problems due to volume of the industry and the use of poisonous materials as well as the recycling difficulties. In an attempt to address the issues International regulation and environmental legislation has been urbanized.  This segment includes Electronic components like semiconductor devices, Industrial electronics like multimedia and information technology, Consumer electronics like computing devices, mobile handsets and Electrical sector like household appliances, electrical fixtures, wires and cables.

SWOT ANALYSIS OF MALAYSIA

 Strengths:-

Support of Government

 Since 1990s the production and export of components performance of the Malaysian electronics, and in exacting the semiconductor industry, has been remarkable and it has been supported by government policies growth such as tax incentives under the ‘Pioneer Status’ and ‘Investment Tax Allowance’ schemes, which is accessible to projects under the promoted product or promoted activity categories..  The Government has promoted the establishment of international procurement centers (IPCs), that are close by incorporated companies of local or foreign owners, through which the Government will make Malaysia a major distribution centre.  “For example the consent of expatriate posts needed for the IPCs; exemption from the requirements of guidelines on foreign equity ownership of wholesale and retail

trade, cargo consolidation or finished products into free industrial zones or licensed manufacturing warehouses for repackaging and integration before distribution. Duty-free imports of raw materials components are the incentives.”  Malaysia. Also has a wide range of export incentives. The main reason of Malaysian growth and expansion is reserved levels of tariff protection. The openness of the Malaysian electronics market has provided a strong competitive incentive to the development of this export industry due to liberal entry for foreign markets.  Duty-free imports comprised of over 98% of total Malaysian imports of electronic parts during the period 2009-11as data provided by the authorities. Since 2005 Malaysia has also reduced the tariffs under its ITA commitments. By 2011 Malaysia was granted elasticity in cutting its tariffs to zero Contribution to GDP

 The GDP (billion RM) of 2009 is 679.94,of 2010 is 765.97 and of 2011is 829.34.The GDP .i.e. the real growth rate in 2010 is 7.2%, in 2011 is 4.0% and 2012 is 5.0% (est.)10. The Exchange rates is “1 EURO = RM4.4” and 1 US$ = RM3.2 (17.11.2011).  “As announced in the 2011 budget speech, the Malaysian management is trying hard to improve the transition towards a higher value-added and knowledge- based country. Promoting investments and developing products in new areas of growth in selected and strategic economic sectors in agriculture, manufacturing(Electronics included), and services is given more priority”  The main contributor to Malaysia's manufacturing output, employment, value added, and exports are by the electronics and electrical industry. Semiconductors, passive components a relays, printed circuit boards, cathode ray tubes, transformers and coils comes under the sub sector of electronic component.  The other major subsectors are consumer electronics which includes audio-video components, industrial electronics, which include computer, office equipment and telecommunication equipment, automotive and medical equipment. Share of Exports:

 The contribution of exports is about RM513.59 billion (billion RM). Its share in exports is 34.5% which is highest in comparison to petroleum & products 9.9%;

palm oil 9.3%; chemical products 6.9%; machinery 3.4%; manufactures of metal 3.0%; rubber products 2.6 

Subsector Share of Share Share of Share of Growth of exports of total added additional exports output value value 2002/03(%) Electrical & 66.0 31.0 42.9 37 12.1 electronics Food 1.6 7.7 10. 7 7.2 10 products Textiles 2.7 3.4 1.5 2.0 3.8

Apparel - 5.1 1.0 1.3 3.0 - Transport 1.0 5.2 5.2 7.3 -6.6 equipment

 Unique Products  The electronics industry in Malaysia can be categorized into three sub-sectors: Consumer Electronics  The manufacture of color television receivers, audio diagram products such as digital versatile disc (DVD) recorders, home theater systems, blue ray, mini disc and digital cameras are the sub sector.  To support their Asia Pacific markets the foremost companies are now undertaking Research and Development activities in the country itself. Exporting of customer electronic products in 2011 amounted to RM21.5 billion (USD6.9 billion) Electronic Components  Products which include under this electronic components sub-sector include semiconductor devices, passive components parts, on paper circuits and other electronic components which include media, substrates and connectors.

 The electronic components are workings as the most important sub-sector and accounted for 58.7 per cent of the total venture accepted in the electronics sector in the year 2011.  Greater part of the investments which included was from foreign sources. This sub-sector is mainly controlled by the semiconductor players that undertake packaging, assembly and test.  The industry is very unbalanced and is affected by the global economic slowdown. It constituted mainly 91.5 per cent of the total exports of electronic parts or 38.4 per cent of the total electronics components export for the year 2011  Weakness:-  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 domestic electronic industry foundation is still fairly weak, in terms of market shares, dynamism, technological innovativeness, value-added activities, quality improvements, industrial diversity.  The support in infrastructure for innovative and productive industrial development is fairly weak. Therefore, the Malaysian E&E industry will continue to face growing innovation and quality improvement deceits in the global market which will strongly aﬀects it performance.

 The decrease in the exports from resulting in a turn down in its share of exports from 59 percent in 2009 to 41 percent in 2011due to the free trade zones.  The E&E industry is losing its competitive edge in labor intensive assembly, packaging, and testing operations

 Opportunities:-

 Industrial Electronics like semi conductors, Solar and Light Diodes are in high demand so business opportunities are concentrating on intensification the supply chain and the Original Design Manufacturers in Malaysia, especially for the RFID sector.  The leading companies are now responsibility R&D activities in the country to maintain their Asia Pacific markets

 With many important solar cell manufacturers placing their operations in Malaysia in the past three years, the country is situated to be a favorable destination amongst the ASEAN countries, laying the foundation for Malaysia to become a center for solar cell manufacturing and pull towards you more companies to invest in future.  In terms of definite segments of development, in Asia-Pacific the demand is expected to come from PCs, mobile handsets, smart phones, wireless devices, digital cameras, HDTVs and flat panel TVs.  The growing demands of these products are seen like:-  Semiconductors, Solar and Light Emitting Diodes  Industrial Electronics  Business opportunities in industrial electronics will think about on strengthening the supply chain and the Original Design Manufacturers in Malaysia, particularly for the RFID sector.  consumer electronics devices  Malaysia’s consumer electronics devices market, defined as the essential market for computing devices, mobile handsets and AV devices, was expected at around US$14.4mn in 2012. This is anticipated to rise to US$18.7bn by 2016, led by rising incomes and growing affordability of key products. Demand will rise at a CAGR of about 7%, as Malaysian consumers regain confidence.  “Innovation inventory across the semiconductor industry have been increasing up and hence production has decreased in many parts of Asia. Output from Malaysia E&E sector is also witnessing a alike tendency, he added”.  With many foremost solar cell manufacturers placing their operations in Malaysia in the past three years, the country is situated to be a positive destination among the ASEAN countries, lay the foundation for Malaysia to become a center for solar cell manufacturing and catch the attention of more companies to invest in future.  Opportunities for the Malaysian E&E sector look promising with the beginning of the Economic Transformation Programme. In the precedent few months the nation has signed deals which assisting in furthering the country’s place in the global semiconductor value chain.  This year 2011 is generally encouraging for the electronics industry to a great extending. Chip makers in Taiwan and Asia will face slower augmentation rates after the sharp increase in 2010 after the recession. But still, the viewpoint for the 32

semiconductor industry leftovers encouraging with the world semiconductor industry likely to experience increase of five to seven percent in 2011.  Threats:-

 Malaysia’s E&E sector is facing growing competition. China, which has emerge as the world’s factory is a strong risk. A World Bank study shows the raise in export rivalry between Malaysia and China.1 In 2011, 59 percent of Malaysia’s exports to EU were under risk from China compared to only about a 31 percent in 2000.

 Other capable Asian economies such as Vietnam are fast attractive low-cost companies in the E&E industry; although at the high-end, Singapore and Taiwan compete for investments in higher-value doings.

 Focus in assembly results in lower value additional While Malaysia has built up significant cluster in E&E, much of the doings is in comparatively low value-added assembly rather than higher value-added activities such as part manufacturing or Research and Development.

 Malaysia’s capabilities in E&E are moderately unfocused across a range of sectors. As we have a a lot of firms in so-called screwdriver PC and passive component assembly. Going onward, Malaysia should hub on sectors that are high-value and high-growth and in which it has obtainable strengths

SWOT ANALYSIS OF INDIAN ELECTRONIC SECTOR

 Strengths:-

1. Presence of well-known distribution networks in both urban and rural areas of the country: The items are easily available to any part of the country. Even the rural areas have these electronic items.

2. Presence of the famous brands: A large no. of well known brands like Samsung, LG, Sony, Hitachi, Videocon etc, are present in the Indian market. Thus making the market highly latent for customers. In recognition of India’s domestic market potential, Samsung has selected India as one of the topmost six strategic markets in the world beside with the US, China, Russia, Germany and Thailand.

3. In current years, organized sector has augmented its share in the market along with the unorganized sector.

4. Abundant Availability of Quality Man Power: India produces over 600 PhDs, 300,000 engineers, 300,000 non-engineering postgraduates and 2,100,000 other graduates each year. India’s capabilities in IT and engineering make it an attractive place for sourcing engineering services such as Research & Development and design.

5. Competitive Labour Costs: India’s cost of skilled labour is one of the lowest in the world. Like, average labour rate per worker in the electronics division is about $3,000 per year. Labour cost as a proportion of value added is only 21 per cent in India as compared to 23 per cent in China and 30 per cent in Taiwan. Attractive advantage of this many MNCs have set up manufacturing bases in India for domestic use as well as exports.

 Weaknesses

1. Demand is cyclic and is high during festive season

2. Low purchasing power of consumers

3. Lack of precise government policy for the industry.

4. Less expenditure in Research and Development area: The Indian companies do not spend more on the R&D area, thus making the market obsolete.

5. Heavy Taxation: Taxation in the country is among the hurdles for the players. At its nearby structure the total tax frequency in India even at the present stands at around 25-30 per cent, so the similar tariffs in other Asian countries are between 8 and 18 per cent.

6. Weak Infrastructure: This is an additional reason that seems to have held back the industry. Proper power supply is urgent for every consumer electronics product. But that remains a most important interruption in India. The Indian companies do not spend more on the R&D area, thus making the market obsolete.

7. Power of Marketing not used to the maximum

8. Major challenges in front of the Indian electronic manufacturing market are an infrastructure that needs to be enhanced at the earliest possibility, lessening of foreign investment procedures, which are underway, and a modernized government tariff that nowadays makes domestically manufactured goods more expensive than imported goods with zero tariffs.

 Opportunities:-

1. Penetration Level: In India, the access level of white goods is lesser as compared to other developing countries. For example, in 2011, only 66 percent of middle-income families had a TV set, only 28 per cent of the city households possessed a refrigerator, while just a small over 15 per cent owned an air cooler.

2. Rise in disposable income of people: The demand for consumer electronics has been growing with the increase in disposable income attached with a lot of consumers falling under the double income families. The rising Indian middle class is an desirability for companies who are out there to attract them.

3. Availability of newer varieties of a product: Consumers are spoilt for alternative when it comes to selecting products. Newer varieties of a product will help a company in getting the notice of consumers who look for innovation in products.

4. Potential markets remaining yet to be untapped: A large section of the domestic market, typically the rural market is yet to be tapped. Tapping this unused and unorganized market is a main opportunity for the Indian customer durables sector.

5. Availability of financing schemes to the people: Accessibility of credit and the structure of the loan decide the affordability of the product. Sale of a exacting product is decided by the cost of credit as much as the give of the scheme.

6. Increase in the share of organized retail: Increase in organized retail will set the growth speed of the Indian consumer durables business. According to a working paper out by the Indian Council form Research on International Economic Relations , organized retail which constituted a simple four percent of the retail sector in FY07 is probable to raise at 45-50% per annum and quadruple its share in the total retail pie 16% by 2011-2012. The share will grow with superior players entering the market

 Threats:- 1. Threat from new companies, especially global companies: The domestic consumer durables sector faces risk from newer companies, particularly from global ones who have technologically superior products to propose.

2. Rivalry and competition of companies: Presence of a large amount of players in the domestic consumer durables industry leads to competition and rivalry amongst companies. Risk from contention and competition poses a risk to domestic companies.

3. Threat from alternate products/services: The domestic consumer durables industry is overwhelmed by threats from alternate products. Easy convenience to theatres/multiplexes, particularly in urban areas has turned off the viewership from TV to a huge degree. With the start of a gang of FM radio stations, radio sets have nowadays substituted TVs. Cheap imports from Singapore, China and other Asian countries

4. Customer power among respect to accessibility of choice: The accessibility of a wide product line on account of most products being identical poses a risk for companies working in the customer durables sector. Customers have the alternative of both locally produced and imported goods with similar features.

GUJARAT ELECTRONIC INDUSTRY

 INTRODUCTION

Gujarat has emerged as the epicenter of economic activities in the country. The state has time after time recorded higher growth rates than the national average. Factors such as labour harmony, infrastructure development, social sector reforms, an investor friendly climate, clear policies, entrepreneurial skills and careful fiscal managing have contributed to the growth of the state’s economy. Gujarat is mainly a consumer electronics items and devices and its contribution to manufacturing of electronic items is very low as compared to other states like Delhi, Pune, Bengaluru and Chennai

Among the exports in India, this industry contributes 13 per cent. With 5 per cent of India’s population, Gujarat contribution is about 6 per cent. It had an annual average of 9 per cent in the last 3 years and an average industrial growth of 15 per cent.

The incentives provided are as follows:

 Capital subsidies and sales tax incentive for electronics industry.  Capital investment subsidy of between 15 per cent and 20 per cent (up to 1000000) for small-scale units.  Special incentives for obtaining of environment- friendly plant and machinery.  7-year sales tax relief of up to 100% of fixed capital for Category 1, 5years (80%) for category 2.  Sales tax incentive for up to 17 years for leader units.  Incentives on 50 % of the total expenditure on social infrastructure.

The following are the opportunities which can be availed:

 Ease in import of apparatus via several ports in Gujarat.  Biggest IP based E-governance in Asia.  Idea from the government and the availability of necessary manpower, infrastructure and entrepreneurial state of mind are likely to promise well for attract investment in this field to Gujarat.  In a recent development, foundation stone of Info city has been laid at Gandhi agar. The project is expected to give a boost to Electronic Industries in general.  Gujarat has a low cost road and rail networkcompare to other states of India. It has the second lowest real land rates in India, which has made it an attractive objective for many big companies to set of connections their units.  Gujarat invests in growth of solar power in the state and has had India’s major solar power plant as of January 2012. It has selected 716 MW of solar power capability to 34 nationals and international solar project developers in 2009 against the designed 500 MW capacity under its solar power rule. Thos is expected to bring in investments of INR 12000 crore and generate employment for 5000 people  EXPANDING TRADE RELATIONS:-

 India has skillful labour force and at low rate which can be beneficial to Malaysia for starting outsourcing activities. Through this Malaysia can use the skills and knowledge of Indian people which can help develop this industry in a better way.

 Indian companies can also start industries in Malaysia as there is a support of government through the taxation policies. The government has provided two schemes Pension scheme and Investment allowance scheme.

 Malaysia is thinking to use solar energy to move towards saving the environment. India can help develop this technology by providing the necessity help. Gujarat is already using solar energy. So they can use this technology and guidance.

 In Gujarat there are also several ports through which imports and exports can be carried out easily with Malaysia as it also has ports.

 In a recent development, foundation stone of Info city has been laid at Gandhinagar. The project is expected to give a boost to Electronic Industries in general. This project if developed can help in importing and exporting items.

Health Care Sector

HEALTHCARE SECTOR OF MALAYSIA

Healthcare Healthcare in Malaysia is mainly under the responsibility of the government’s Ministry of Health. Malaysia generally has an efficient and widespread system of health care, operating a two – tier health care system consisting of both a government – run universal healthcare system and a co-existing private healthcare system.

Malaysia’s healthcare system is divided into the public and private sector. The government heavily funds the public healthcare sector, and patients pay a nominal sum for treatment, while fees for private healthcare services are paid fully by the patients themselves, their employers, or by insurance companies. The number of (specialist) hospitals, clinics, and dental surgeries has increased tremendously in Malaysia over the last decade, and both private and public healthcare sectors are still expanding.

The value of Malaysia’s healthcare industry is estimated at around $8.4 billion, with total expenditure on healthcare estimated at 4.75 per cent of gross domestic product (GDP). Government and private funding currently account for around 55 per cent and 45 per cent of total health expenditure in Malaysia, respectively. In public sector, the Ministry of Health (MoH) is the main government agency responsible for providing healthcare services in the country.

Focus on healthy growth in the medical sector. The Malaysian healthcare sector is well developed compared to some other countries in the region. Many facilities are available for Malaysian as well as for foreigners.

Growth of Healthcare Sector

The Malaysian healthcare sector is set to grow at an average rate of 8.4% over the next six years, according to consultant Frost and Sullivan. The researcher said the size of this sector, which was valued at RM6.96 billion in 2012, will grow to RM11.29 billion by 2018. Malaysia’s healthcare expenditure is expected to almost

double in the next six years, reaching up to RM68.4 billion in 2018 with annual growth rate of 6.5% over the six year period.

The healthcare sector is rapid expanding due to the advancement of technology and the emergence of new challenges in the world of medicine. It is a continuous challenge for this sector to provide better services to the public. The Ministry of Health will continue to be the lead agency and the main provider of health care services for the nation.

With some of the highest levels of national healthcare spending in Asia (ranking third after Vietnam and South Korea). Malaysia is taking hold of its strategic strengths in the pharmaceuticals and medtech sectors, among others, to expand the country’s economic growth. The healthcare industry has shown high profitability margins over other Malaysian industries since 2000, according to the World Health Organization. With plans to expand these sectors into world – class profit hubs, the current small global player sees a tremendous opportunity for pharmaceuticals and medical devices. To meet its growth goals, Malaysia seeks international sponsors and manufacturers to boost these industries.

The medical device industry in Malaysia is incipient and is planned to have a baseline growth rate of only 8 percent, but it holds much opportunity. The Malaysian government is targeting the pharmaceutical industry for a 22 percent growth rate driver by higher exports of generic drugs and increased clinical research. Malaysia’s Minister of Health foresees 1,000 new clinical trials executed per year, 10 times more than the current number.

SWOT ANAYLYSIS OF MALAYSIA

Strengths  Increasingly progressive government policy, aimed at attracting international investment  Improving local manufacturing standards, with a commitment to biotech development  Robust market growth in recent years  Absence of price controls in the private sector

 Sizeable generics market, given low patient purchasing power and lax patent laws  Prescribing and dispensing presently dealt with by general practitioners, boosting overall values of the prescription market  OTC and generics markets are set to grow strongly over the next nine years

Weakness  Lax patent law remains conspicuously below international standards  Recent reform aimed at increasing generic product development worsening operation conditions for multinationals  Strict government drug pricing policy heavily biased towards local drug producers  Local manufacturing output comprising predominantly inexpensive, basic medicines  Market reliant on imports, particularly at the hi-tech end of scale, pressuring government finances

Opportunities  Generics sector as an integral factor of market growth  Exports growing in the face of rising regional and global demand, as well as increasing trade links  Increasingly sophisticated pharmaceutical demand  Government desire to prevent and contain disease outbreaks  ASEAN harmonization encouraging the adoption of Western regulatory standards and the improvement of intra-regional trade  Investment in the biotech sector development supported by government initiatives  Malaysia becoming an attractive location for medical tourism  Planned investment in the expansion of medical facilities

Threats  Existence of a significant counterfeit drugs sector  Government failure to revise discriminatory pricing policy  Possible introduction of price ceilings on essential medicine  Government seeking compulsory licenses for patented drugs

SWOT ANALYSIS OF INDIA

Strengths  Low cost of production  Growing private hospital sector  Success in pharmacy and pharmaceutical industry  Huge market – growing  Large skilled doctors  Urban population  Low pricing in public hospitals Weakness  Low per capita expenditure  Untapped rural market  Excessive dependency on imports  R&D support system not available Opportunities  Overseas company investment  Increasing joint venture and agreements  Overseas assisted projects  Regulatory improvement  Largely untapped markets  Switching over from process patent to product patent  Growing income and growing attending patent to health  Growing outsourcing hub Threats  Unorganized market for medical disposable  Lack of regulation specification of superior product  Threat from other low cost countries like China

HEALTHCARE SECTOR IN GUJARAT

Introduction The Healthcare sector in Gujarat is changing rapidly. The available medical infrastructure and easily accessible healthcare facilities have improved the health of the population of the state remarkably over the years. Gujarat is involving in terms of number of hospitals, healthcare centers, beds and is expected to continue a positive trend in future. The State Government is taking several initiatives to make Gujarat a Global Healthcare Destination. A doctor to patient ratio is 1:10 and nurse to patient ratio is 1:5. Through use of latest technical equipment, increased health insurance, major corporate investments and services of highly skilled medical personnel, the Gujarat healthcare Sector is poised well for a sustained boom. Rs. 26,000 Cr will be invested in the field of healthcare in Gujarat by the national and international healthcare and pharma companies. The Health and Family Welfare Department signed various MOUs with reputed four International, 127 National Companies in the field of Healthcare and Pharmaceuticals as a part of 5th Vibrant Gujarat Global Summit. Out of this, investment of Rs. 15,000 Cr will be in health sector and Rs. 10,686 Cr in Pharmaceuticals.

SWOT Analysis of Healthcare Sector in Gujarat Strength  Gujarat is believed to be fast transforming into a healthcare hub  The healthcare landscape in Gujarat has been changing rapidly  The available medical infrastructure and easily accessible healthcare facilities  Gujarat healthcare market is standing on a verge of great take off

 Medical tourism, enhancement of existing medical infrastructure in improving other facilities has significantly boosted healthcare market in Gujarat Weakness  Higher treatment cost  Lesser competitive edges  Low utilization rates Opportunities  Gujarat has come in the limelight by adopting global practices to deliver seamless patient care of quality  Planning to enter to deliver best in class healthcare  People are growing more aware of their health needs, demand quick response and less waiting times  Increased demand for good quality healthcare Threats  High capital cost  The medical equipment though cutting edge at the time of purchase poses the threat of inevitable obsolescence TRADE RELATIONS Malaysia and India

 As, Malaysia is becoming a location Medical Tourism, many medical conferences, seminars, workshops can be organized  There is increased in medical education industry in India, Malaysian medical students can pursue their medical education in India’s medical institution.  Generic products and medical products can be outsource from Malaysia  Employment to skilled doctors of India can be given in Malaysia’s hospitals and similarly skilled doctors of Malaysia can be given employment in India’s hospitals Malaysia and Gujarat  State Government and private players can change mindsets of Malaysian investors and patients in order to attract global capital, talent and business flow  Medical tourisms is on rise

 The way medical and paramedical colleges are proposed to come up in the state, student exchange programs can be organized  Gujarat will emerge as a leading healthcare tourism destination

Tourism Sector

The study draws attention to the following areas:

MALAYSIAN INBOUND TOURISM ASSOCIATION was founded in 2004 to represent the interest of Malaysian tour operators and companies deriving a substantial part of their income from the provision of tours and tourism services for overseas visitors within Malaysia as well as local tourist. Malaysia gets the ninth- highest tourist volume in the world making it an attractive tourist destination. Malaysia’s tourism industry has been important in driving the country’s economic and social development.

SWOT OF MALAYSIA:

STRENGTHS: Malaysia is a multi-cultural and a beautiful country which makes Malaysia a very unique country with diverse culture. Malaysia offers airport facilities at low cost.

WEAKNESS: The hotels rates are at a low profit margin which is below USD 100 per night which is below the hotel rates around the world.

THREATS: The major threat to the Malaysia tourism industry is the threat of new arrivals i.e. competitors to this industry for example Singapore is one of the competitors in this industry for Malaysia.

SWOT OF INDIAN:

STRENGTH: Rich culture heritage. People of India believe in the different religions, Gods, different rituals, virtues, have different life styles and different culture.

There are so many places in India which are the attraction of the tourist.

Government support: Government of Indian Supports well to the Indian Tourism to grow.

Government also provides the Visa-on-Arrival Scheme for all the 11 countries. Government will launch the Campaign Clean India aimed at creating environment of hygiene and cleanliness.

WEAKNESSES: Poor support infrastructure: Not well structured places so tourist may not be attracted. Infrastructure problem of two type: 1) Urban infrastructure problems, 2) Rural Overcrowding of tourists Overcrowding of tourist sometimes be the weakness of the tourism. Infrastructure problems.

Inadequate marketing and information system: Over government or some institute does not use the appropriate source of marketing like advertisement of the tourism of India.

OPPORTUNITIES: Private sector investment in tourism sector : Many private sectors invest in the tourism like the Taj Hotel of Tata, some amusement park like asselworld.

Availability of high quality human resource: Now a day’s India is also becoming the developed country, Indian government give the education related to tourism and develop the skill of the people.

THREATS: Terrorism: Recently India is facing the highest attacks of the terrorists so the people decline to come to India.

Disorganized tourism development :In India tourism is developed but not the government organized it well. They develop only some places not all the states and regions.

GUJARAT TOURISM

Gujarat has immense potential to become a major tourist destination. Its historical monuments represent the great religions of Asia- Hindu, Buddhist, Jain, Islamic, Parsee and Sikh.Gujarat has many delightful tourist places, memorable historic monuments and sacred pilgrimages, depicting the glorious culture heritage, which can magnetize both Indian and international travelers.The state has pilgrimage places like Dwaraka, Somnath,Dakor, Ambaji etc for Hindus, Udwada, Navsari and Surat for Parsees, Palitana, Girnar etc for jains.

SWOT ANALYSIS OF GUJARAT TOURISM

STRENGTH: Gujarat has historical monuments that symbolize the great religions Hindu, Buddhist, Jain, Islamic, Parsee and Sikh. A wide variety of wildlife including the giant Asiatic lion and Indian wild ass, endangered antelopes, a variety of deer, etc. It has India’s first marine national park.

WEAKNESS: Poor accessibility too many tourist destinations due to basic Infrastructure blockages. Lack of tourist infrastructure & essential amenities at many tourist destinations. Lack of information about various tourist destinations OPPORTUNITIES: Gujarat upcoming as spiritual “Well being” Tourism. Beautiful Sun and beaches which includes water sports and adventure sports. The Cruises theme parks. THEME TOURISM

India is a compelling tourist destination studded with innumerable tourist destinations. This colorful destination of India is a fine blend of forts & palaces, culture & craft and most of all varied bazaars that makes it a destination unmatched.

THE BETTER TRADE RELATIONS

As direct flights are there from Malaysia to Delhi and mumbai,direct flights should also be made available to other states Private flights should can be operated for the tourist of the two countries at concessional rates and with extra amenities.

Cruise ship can be a good and attractive area to explore. Due to India’s poor infrastructure, and quite poor hotel arrangements, tourists can be given concessional coupons of top most hotels.

Tourism institutes can be started up in both countries wherein the students of opposite countries will get education on scholarships.

Indian people can be send to Malaysia tourist spots for cultural shows eg dance ,folks to introduce people to Indian culture and vice-versa.

“More training and education should be imparted in the areas of tourism and hotel management. The concept of river front should be started up in all states of India to attract more tourists. The advertisement section should be more focused on the advertising companies of India and Malaysia should go for tie up. They can go for

50 joint ventures. Hence it can be concluded that very good trade can be made between the two countries by taking initiatives in the areas like:

Education, Advertisement, Transportation. Joint ventures etc.

Along with this as Gujarat is working enthusiastically in the area of tourism basically by making the advertisement done by the famous actor Mr Amitabh Bachan.

 This brand advertising has done a great job and is attracting handful tourists in Gujarat.  Same concept Malaysia should start with to attract more tourists.  This sector is the one which is growing and will grow more with introduction of private players.”

MALAYSIA TOURISM

. “MALAYSIAN INBOUND TOURISM ASSOCIATION - MITA” was founded in 2004 to represent the interest of Malaysian tour operators and companies deriving a substantial part of their income from the provision of tours and tourism services for overseas visitors within Malaysia as well as local tourist. . “MALAYSIA, TRULY ASIA “the country with unique diversity. The distinctiveness and attraction of Malaysia that make it an exceptional tourist destination. . Tourism adds highest offerings to Malaysia’s economic sector. Malaysia is one of the top most attractive tourist travelled country.

. Malaysia is totally new to tourism compared to their ASEAN neighbor such as Singapore, Thailand and Indonesia.

. Malaysia gets the ninth-highest tourist volume in the world making it an attractive tourist destination. Malaysia’s tourism industry has been important in driving the country’s economic and social development. . “Malaysia enjoys a well-built position in global tourism, and was ranked THE NINTH MOST VISITED COUNTRY IN THE WORLD BY THE UNITED NATIONS WORLD TOURISM ORGANIZATION’S (UNWTO) in 2011.It is the second-largest revenue generator for the Malaysian economy after the manufacturing industry.” . In 2010, there were 24.6 million tourist arrivals in Malaysia.  Beside the main cities Malaysia also have attractions like tropical islands like

Labuan Langkawi

Pangkor Redang Island

Tenggol Island Perhentian islands

Kapas Islan Lang Tengah Island

. Also there are national parks and nature reserves which attract most of the tourist and to name a few they are BAKO NATIONAL PARK SARAWAK-famed for its wildlife, especially BORNEAN BEARDED PIGS AND PROBOSCIS MONKEYS.

THE TWO MOST ATTRACTED PLACES OF MALAYSIA ARE

“Kuala lumpur, where one will find the PETRONAS twin tower, which is world’s second-tallest building. Both the 88-story towers soar 1,480 feet high and are connected by a sky-bridge on the 41st floor, the most beautiful building.”

“The limestone temple batu caves, located 9 miles north of the city, have a 328-foot-high ceiling and feature ornate Hindu shrines, including a 141-foot-tall gold-painted statue of Hindu deity. To reach the caves visitors have to climb a step flight of 272 steps.”

S.W.O.T. ANALYSIS OF MALAYSIA TOURISM

STRENGTHS:

. Malaysia is a multi-cultural and a beautiful country which makes Malaysia a very unique country with diverse culture. . Malaysia offers airport facilities at low cost.

52 . English is the most widely spoken in Malaysia as this ease tourist’s means of communication. . Their outstanding places like natural beauty, Tropical rainforest, natural and manmade lakes, island and beaches adds to the beauty of Malaysia. WEAKNESS:

. The hotels rates are at a low profit margin as it is below the hotel rates around the world. This affects the services & the quality that is existing. . As because the return is low , not many training can be given to the hotel staffs. . There is Low profit margin due to the low price of accommodations. THREATS:

. The major threat to the Malaysia tourism industry is the threat of new arrivals i.e. competitors to this industry for example Singapore is one of the competitors in this industry for Malaysia. . Natural disaster such as the tsunami may affect the tourism rate badly in Malaysia. It may also lead to an environmental degradation. . Threat of terrorism also persists in Malaysia. INDIAN TOURISM

INTRODUCTION

. India is one of the most beautiful and attractive countries of the world. It has so many states like Rajasthan, Delhi, Kerala, Jammu, and Gujarat for the tourism. . In India so many Indian tourists as well as foreign tourist are attracted to come and enjoy the place. The place like Agra, Udaipur, Jaipur, the most frequency of tourist is of the foreign tourist. . Now a day’s India is in line with the Malaysia, Indonesia, and Thailand.

53 S.W.O.T. ANALYSIS OF INDIAN TOURISM STRENGTH:

 Rich culture heritage :

. People of India believe in the different religions, Gods, different rituals, virtues, have different life styles and different culture. . The Ghoomer and Kalbeliya dance on the bonfire nights Sam Sands Dunes .The Camel Fair at Pushkar in Rajasthan, Rath Yatra at the Jagannath Temple in Puri. . North India links major historical sites of Delhi, Agra, and Jaipur. . Incredible India campaign has targeted specific group of travelers include American & European tourist, as well as business travelers, and it has have paved out a bright future for India Tourism.

 Government support:

. Government of Indian Supports well to the Indian Tourism to grow. . Government also provides the Visa-on-Arrival Scheme for all the 11 countries. . Government will launch the Campaign Clean India aimed at creating environment of hygiene and cleanliness through persuasion, education, training, demonstration and regulation. . Government has various policies like developmental policy like manpower development, investment facilitation, and infrastructure and product development.

WEAKNESSES:

 Poor support infrastructure:

. Not well structured places so tourist may not be attracted. . Infrastructure problem of two types: 1) Urban infrastructure problems, 2) Rural infrastructure problems. . Problems in infrastructure of urban residence, business premises, urban transport, water, airports, Railways, seaports, Roads, Bridges, Tourism places infrastructure.

[  Susceptible to political events:

. The internal security scenario and social unrest hinder the foreign tourist arrival rates.

 Overcrowding of tourists:

. Overcrowding of tourist sometimes becomes the weakness of the tourism.

. The pollution at the tourism place may be increased due to over crowed.

 Inadequate marketing and information system:

. Over government or some institute does not use the appropriate source of marketing like advertisement of the tourism of India. . People have the lack of information of the place so they are not preferred to go for the tour

OPPORTUNITIES:

 Private sector investment in tourism sector :

. Many private sectors invest in the tourism like the Taj Hotel of Tata, some amusement park like assel world. . The investment provides the high growth to the country, more people get the job and the tourism becomes the best.

 Availability of high quality human resource:

. Now a day’s India is also becoming the developed country, Indian government give the education related to tourism and develops the skill of the people. . So the high qualities in the people are available.

 Aggressive advertising :

[ . Government and other private companies now a day’s do the aggressive advertise for increasing the awareness of the tourism. . For example: Advertise of Incredible India, advertise of Gujarat’s places by the great Amitabh Bachan in Khushbu Gujarat ki .Thus by all these attractive advertisement tourists will be attract to come and visit the places.

THREATS:

 Terrorism :

. Recently India is facing the highest attacks of the terrorists so the people decline to come to India. . Due to increasing terrorism Indian tourism cannot increase and it becomes the biggest threat for the India. . For example; Attack on Taj Hotel.

 Disorganized tourism development :

. In India tourism is developed but not the government organized it well. . They develop only some places not all the states and regions. . For example in Gujarat only development of A’ bad have been developed not other places like Pavagarh, tulsi shyam, Junagadh-Gir, etc.,

 Strong competition : . Strong competition between India, Russia, Malyasia, Indonesia, and Thailand becomes the biggest threat to the Indian tourism.

GUJARAT TOURISM

[ INTRODUCTION

“Gujarat has massive potential to become a top class tourist destination. Its historical monuments represent the great religions of Asia- Hindu, Buddhist, Jain, Islamic, Parsee and Sikh.

For eco-tourist, Gujarat offers opportunities to see a wide range of wildlife including the Asiatic lion and Indian wild ass, endangered antelopes, a variety of deer, etc. it has India’s first marine national park. Gujarat is also one of India’s most famous areas for birdwatchers.

The archaeological zone of champaner- pavagadh has been highly praised by UNESCO as “World heritage site” because of its great mosques, temples, step wells and forts. The wild ass sanctuary, Dholavira harappan city are in the process of giving status of the world heritage site.

56 Gujarat has many delightful tourist places, memorable historic monuments and sacred pilgrimages, depicting the glorious culture heritage, which can magnetize both Indian and international travelers.

The state has pilgrimage places like Dwaraka, Somnath, Dakor, and Ambaji etc for Hindus, Udwada, Navsari and Surat for Parsees, Palitana, and Girnar etc for jains.

EMERGING AREAS

 Spiritual tourism  Well being tourism  Heritage tourism  Culture tourism  Sun & beach  Sports- water and adventure sports  Nature tourism  Urban and rural tourism  Cruises theme park  Meeting and conferences- convention centre  Golf tourism . Heritage tourism

For Hindu religion, Gujarat has important sites like two jyotirlingas at Somnath and Dwarka (Nageshwar), one of the four dhams at Dwarka, Mahakali at Pawagadh is one of the five holy lakes of India is at Narayan Sarovar and one of the seven holiest rivers for Pawagadh. There are also beautiful temples at Dakor, Virpur, Khodiyar, Sarangpur, etc. Fire Temple at Udvada, Navsari Atashbehram and Surat

Atashbehram – are in Gujarat.

Two of the important Jain sites in India are at Palitana and Girnar. There is a regular flow of Jain pilgrims to places like Sankeshwar, Taranga, Kumbhariyaji, and Badhreshwar Mandvi.

The ashrams of Morari Bapu, Rameshji oza, Asharam Bapu, etc is on the holy tourism map of India Archeological & Heritage Tourism Archeological & Heritage Tourism.

Gujarat is also rich in archaeological sites including World heritage site of Champaner, Indus Civilization sites.

The beautiful Ahmedabad’s heritage walk is the single daily departure heritage walking tour in India. Gujarat’s significant heritage has resulted in the state having more than 20 heritage hotels including converted forts and palaces Cultural Tourism.

Gujarat is the ground of rich handicrafts like Patola weaving, khadi, bandhani, embroidery, block printing, rogan painting, woodcrafts, metal crafts, bamboo crafts, pithora, pottery, etc.

TOURISM CONCEPTS:

EVENT BASED TOURISM

. Unique festivals and fairs like Navratri, Uttaranyana/Makar Sankranti, Sharad Poornima, Mahashivaratri melas, Tarnetar Fair, Kvant Fair, Chitra Vichitra Fair, Dangs Durbar, etc.

. The Gujarat government has fashioned successful events like Rann Utsav, Modhera Dance Festival, International Kite Festival, Vibrant Gujarat, etc. BUSINESS TOURISM

[ . Gujarat is one of the primary states in investment and has attracted huge investments in recent years, resulting in tremendous growth in business tourism.

. 51 SEZs in the state reflects an inflated share of business tourist, air traffic and road traffic.

. The excelling Entertainment and recreational Tourism. A 1666km long coastline with many fine beaches.

. A hill station at Saputara and other hill sites in South, East and North Gujarat are amazing. BUSINESS MEET

. One of India’s first multiplexes came up at Gandhinagar in Gujarat. Since then, there are number of multiplexes and good cinema theatres in nearly all cities of Gujarat. . The Science City at Ahmedabad has IMAX theatre and other entertainment. . Shopping malls are growing in the prosperous cities of Gujarat has some of India’s best museums Wildlife Tourism.

. Gujarat has famous 4 National Parks and 21 Sanctuaries. It is the only habitat of the giant Asiatic lion, Indian wild ass and much beautiful variety of animal & birds. The giant whale shark breeds on the Gujarat coast. . The Gulf of Kutch in Gujarat is India’s first marine national park

WELL BEING TOURISM

. Gujarat has world top class hospitals at Ahmedabad, Vadodara, Karamsad, Nadiad, etc. A large number of NRIs come for cure at these hospitals. . Gujarat has been the home of Ayurveda for centuries, and many herbs used in the natural cures promoted by Ayurvedic sciences are developed in the state itself. Gujarat has existence of Ayurvedic colleges and pharmacies all over the state. . Jamnagar is one of the places for Ayurvedic studies in India.

S.W.O.T. ANALYSIS OF GUJARAT TOURISM

STRENGTH

. Gujarat has historical monuments that symbolize the great religions Hindu, Buddhist, Jain, Islamic, Parsee and Sikh. . A wide variety of wildlife including the giant Asiatic lion and Indian wild ass, endangered antelopes, a variety of deer, etc. It has India’s first marine national park.

. The archaeological zone of Champaner - Pavagadh have been applauded by UNESCO as the “World Heritage Site”. . Medical tourism hasa very sky-scraping growth potential because of the availability of high-quality, low cost surgeries. WEAKNESS

. Poor accessibility too many tourist destinations due to basic Infrastructure blockages.

[[ . Lack of tourist infrastructure & essential amenities at many tourist destinations.

. Lack of information about various tourist destinations. . Lack of attractive Promotional activates. Lack of private Investors for Gujarat tourism.

OPPORTUNITIES

. Gujarat upcoming as spiritual “Well being” Tourism. . Beautiful Sun and beaches which includes water sports and adventure sports. . The Cruises theme parks. . Increase in Private sector investment.

. The Nature, urban and rural tourism. . Joint ventures with many upcoming private companies. . Excellent infrastructure facilities THREATS

. Competition from advanced South-east Asian countries. . Competition from other state tourism. THEME TOURISM

India is a compelling tourist destination studded with numerous tourist destinations. This colorful destination of India is a fine blend of forts & palaces, culture & craft. One can find the diversity in landscape, climate, food, clothing, language and religion. From famous Buddhist monasteries to churches, from temples to mosques, from backwaters to other uncountable attractions –one can name it and India has it. Even there is a wide scope of adventure in India.

THE ADMIRED THEMES OF TRAVELLING IN INDIA ARE:

Wildlife: Various wild National Parks in India and the trails of the Royal Bengal tiger and the yells of langurs and peacocks.

Adventure: Paragliding, Rafting, Trekking and safaris, pumping and thrilling adventure sports can be well relished in India.

Hill Station: Tea gardens, snow capped mountains, green forests, streams.

Luxury Trains: Luxury Trains of India in a Maharaja Style.

Ayurveda: Age-old healing treatment of Ayurveda.

Pilgrimage: various pilgrimage destinations are in India.

Eco Tourism: Environment and green tourism.

Culture & Heritage: The cosmopolitan land of India.

THE THEME TRAVEL -INDIA

“India is a massively rich cultural treasure in the world. It is a country rich in myth and legend, with musical, culinary and handicraft traditions that have been passed down for generations. There are also customized travel plans for theme holidays in India. The cultural trips of North India take you to the historic cities of Delhi, Agra and Jaipur”.

The major attractions of the theme holidays in India:

“The Gangaur festival, Pushkar festival, The International Kite Festival, the awesome Camel fairs etc in Rajasthan; The Carnival in Goa; Ganesh Chaturthi(festival) in Maharashtra; The awesome Elephant festival,The Boat carnival and Onam in Kerala. The traditional and beautiful dances of India and specially North East India like Bharatnatyam, Odissi, Kuchipudi, Kathak, Bihu, Kathakali craft up the variety of classical dances. The great Taj Mahotsav in Agra, the Khajuraho Festival in Khajuraho, and the Puri Festival in Jagannath Puri Kumbh Mela in various historical places in India, are cultural festivals that make a permanent mark on every tourist.”

FEW INITIATIVES TAKEN BY INDIA

• Heritage Tourism- It gives the experience of the places and activities that authentically represent the stories and people of the past and present.

• Ecotourism- Eco-tourism is for nature lovers, travel and recreation.

• Wildlife Tourism- Wildlife tourism can be an animal friendly tourism, showing animals in their natural habitat.

• DOOM Tourism- Also known as "Tourism of Doom," or "Last Chance Tourism" this emerging trend involves traveling to places that are environmentally or otherwise threatened.

• Educational tourism- Developed, because of the mounting popularity of teaching and learning of knowledge and the enhancing of technical competency outside of the classroom environment.

THE BETTER TRADE RELATIONS

• As direct flights are there from Malaysia to Delhi and mumbai, direct flights should also be made available to other states. Similar initiative is already taken by west Bengal government.

• Private flights should can be operated for the tourist of the two countries at concessional rates and with extra amenities.

• Cruise ship can be a good and attractive area to explore.

• Due to India’s poor infrastructure, and quite poor hotel arrangements, tourists can be given concessional coupons of top most hotels. More training and education should be imparted in the areas of tourism and hotel management.

• Tourism institutes can be started up in both countries wherein the students of opposite countries will get education on scholarships.

• Indian people can be send to Malaysia tourist spots for cultural shows e.g. dance, folks to introduce people to Indian culture and vice-versa.

• The concept of river front should be started up in all states of India to attract more tourists.

• The advertisement section should be more focused on the advertising companies of India and Malaysia should go for tie up. They can go for joint ventures.

• The museums should be made up where the whole countries all successful industrialists and the religious sculptures should be placed up at a single museum to educate the tourist about the whole countries success story and heritage.

• Focusing on Gujarat as they are already working on the advertisement, they can come up with joint ventures with private Malaysian countries.

Oil & Gas Sector

Overview

Malaysia is well gifted with both conventional (non-renewable) and non-conventional (renewable) sources of energy. The biggest non-renewable energy reserve found in Malaysia is petroleum (i.e. oil and gas) which is being actively oppressed. Malaysia's domestic oil production occurs offshore and primarily near Peninsular Malaysia most of the country's oil fields contain low sulfur, premium crude.

Malaysia contains proven oil treasury of 3.0 billion barrels, down from a crest of 4.3 billion barrels in 1996. In spite of this inclination toward declining oil reserves, Malaysia's oil making has been increasing since 2002 as a result of new offshore development.

Malaysia's domestic oil production occurs offshore. Most of the country's oil fields include low-sulfur, high-quality crude. Further half of the country's oil production comes from the Tapis field, which contain a light grade of crude oil with low sulfur content. Gesso Production Malaysia Inc, an associate of ExxonMobil Corporation, is the major crude oil manufacturer in Peninsular Malaysia, accounting partially for Malaysia's crude oil production

In terms of institutional planning, PETRONAS, established under the Petroleum Development Act (1974) as a state-owned endeavor, has limited rights of possession, investigation and creation. It comes beneath the direct purview of the Prime Minister and is responsible for its preparation, venture and regulation of all upstream activities.

As a result of the country's long-term trend toward declining oil coffers, PETRONAS the state oil and Gas corporation, has embarked on an global discovery and manufacturing strategy. Malaysia exports the bulk of its oil to markets in Japan, Thailand, South Korea, & Singapore. Despite active exploring in offshore areas and several new projects due to come on stream in the next some years, it is predictable that Malaysia’s oil production will fall in years to come as its proven oil reserves decline. Malaysia is one of the world’s leading exporters of liquefied natural gas.

Refining

“Malaysia has six refineries, with a total processing capability of 544,832 bbl/d. The three major are the 155,000-bbl/d Shell Port Dickson refinery and the Petronas Melaka-I and Melaka-II refineries, which have capacity of 92,832 bbl/d and 126,000 bbl/d, correspondingly.

The second phase of the $1.4 billion, 200,000-bbl/d Melaka refinery complex, situated about 90 miles south of Kuala Lumpur, commence operations in August 1998. The 100,000-bbl/d Melaka-II following phase is a joint venture between Petronas (45%), Conoco (40%), and Statoil (15%).. One of the chief purposes of this refinery is to supply gasoline to Conoco's service stations in Thiland and a new line of stations planned for Malaysia. The initial stage of the Melaka refinery was finished in mid-1994 and consisted of a 100,000-bbl/d syrupy crude refining unit, which is completely owned by Petronas and processes Tapis crude oil”.

VISION

The oil, gas and energy sector has been the mainstay of Malaysia’s growth and contributes approximately 20% to the national GDP. To attain the ambitious real yearly-growth target and provide a sustainable energy platform, Malaysia is pursuing segment-wise opportunities.

By 2020, Malaysia will have more diversified oil, gas and energy sector that remains very important to our growth and that builds on the nation’s competitive rewards. A driving force would be to strengthen investigation and enhance production from domestic assets. Malaysia will also develop a strong provincial oil field services and equipment hub and a stronger presence in the regional midstream logistics and downstream markets. Malaysia has the prospective to produce alternative energy sources for instance nuclear, solar and hydro to beat the turn down in domestic natural gas production.

Malaysia is targeting to increase total GNI input to RM241 billion by 2020 from RM110 billion in 2009.

Exploration Capacity`

 Malaysia has approximately 615,100 square kilometres of acreages accessible for oil and gas exploration.  Of these, 218,678 square kilometres or 36% of the total acreages are currently covered by Production Sharing Contracts.  Investigation in Malaysia by the production Sharing Contractors has resulted in the discovery of 163 oil fields and 216 gas fields.

Malaysia Trade export & Import

 “Southeast Asia, particularly Malaysia, has been a trade centre for centuries. Right from the beginning Malacca has served as a primary regional commercial center for Chinese, Indian, Arab and Malay commercial dealers for trade of valuable goods.”  Today, Malaysia shares healthy trade relations with a number of countries, especially with US.

The ASEAN Free Trade Area that was established for trade promotion among ASEAN members also has Malaysia as its founding member. Malaysia has also entered into Free Trade Agreements with many countries

Comparison between India & Malaysia (Oil & Gas industry)

Oil production India 9,54,000 Malaysia 7,16,000 Oil Exports India 8,25,600 Malaysia 6,44,900 Oil Imports India 30,60,000 Malaysia 3,55,300 Natural gas production India 528 Malaysia 665 Natural gas Exports India 247 Malaysia 3079 Natural gas Imports India 1215

Malaysia 1269 Higher Exports in 2102

 Refined & Crude Petroleum  Petroleum products

Major Exports Monthly

 Refined Petroleum Products ( RM 4.19 billion, 7.3% )  Liquified Natural Gas ( 3.84 billion, 7.1% )

INDIAN OIL & GAS SCENARIO

The oil and gas sector plays a very important role in the economic and political scenario of the world. The inadequate oil and gas reserve along with increasing energy requirement across the globe has led to spiraling of price resulting in supply related concerns for countries around the world.

The Indian oil and gas sector is having core industries in India and has very significant forward linkages with the entire economy.

The prospects of Indian oil industry are for more exciting than any other, which India being among the slightest explored countries in the world at a well density of 20 per 10000 kms. India is the third largest oil consumer in Asia, even though on per capita basis the use is mere 0.1 tonne per year, the lowest in the province Of the 26 sedimentary basins only eight have been explored until now. All this makes India the preferred destination in terms of opportunities.

Swot Analysis

Major Strength of Malaysia

 Main natural gas discoveries by a number of domestic company hold significant medium to long term potential.  Demand for petroleum products  Increase in demand for Oil & gas  High exploration portfolio

 Independency in Palm Oil

Major weaknesses of Malaysia

 Oil & gas sector dominated by state controlled enterprise  Increase in oil prices  Environmental issues  Lack of awareness in safety issues

Major Opportunities of Malaysia

 LNG imports are still set to grow rapidly over the longer term.  Untapped oil & gas domestic potential  Strong domestic energy demand  High recovery rates from existing project

Major Threats to Malaysia

 Increase competition within government & private players.  Continuing government interference  Changes in national energy policies  Political Instability

Business Opportunities in Malaysia

 “ Malaysia's oil & gas segment is likely to improve with new discoveries and higher-planned capital expenditure in upstream activities in Malaysia.  Malaysia is just at the start of an oil boom, on the back of the promising viewpoint for the exploration and production (E&P) industry the country's deepwater projects will assume a prominent role in providing new growth opportunities in Malaysia and are expected to generate about 250,000 bpd of new oil by 2010.”  Nine deepwater fields have emerged for commercial control from 2007 to 2013.  From a business perspective, oil and gas represent global commerce on a massive scale.

 World energy markets are constantly growing, and companies spend billions of dollars annually to maintain and increase their oil and gas production.  Around 200 countries have invited companies to negotiate for the right to explore their lands or territorial waters, hoping that they will find and produce oil and gas, create local jobs and provide billions of dollars in national revenues.  The investigating arm of Malaysia's Petronas and Japan's JX Nippon Oil & Gas Exploration drilled 3,170 metres into the Adong Kecil West-1 Well in Sarawak state on Borneo Island  The well, about 20 kilometers away from the nearest city of Miri, was establish to have a net hydrocarbon thickness of 349 meters.  "These discoveries prove that onshore Sarawak has the potential for more oil and gas accumulations where the Miri Field, Malaysia's initial oil field, was discovered way back in 1910."

Oil Companies Active in Malaysia

 ExxonMobil’s

Predecessor Standard Oil began prospecting for oil in this region as far back as the early 1900s. Today Exxon have operational attention in 4 Production Sharing Contracts with PETRONAS. Exxon work over 40 offshore platforms in 17 fields in the south china sea, off the East Coast of Peninsular Malaysia, which produce about a 6th of Malaysia's oil and condensate.

 Shell

First set up operations in Sarawak in 1910. Shell upstream companies have benefit in more than 10 production sharing contracts in offshore blocks in Sabah and Sarawak

 ConocoPhillips’

Upstream involvement in Malaysia begun in 2000 and presently consists of interests in three deepwater blocks off the eastern Malaysian state of Sabah

 Murphy

Since 1999, Malaysia has been active, and employs over 400 staff in-nation. Murphy has major interest and operates six separate production sharing contracts (PSCs), covering approximately 6.7 million gross acres

 Talisman

Holds a 41 percent operated interest in Block PM-3 CAA between Malaysia and Vietnam and associated production facilities. In addition, Talisman holds a 33% interest in block 466-Cai Nuoc neighboring to PM-3 CAA and a 60% interest in each of block PM-305 and block PM-314. In block PM-3 CAA, Talisman is making growth developments referred to as the ‘‘Southern Fields’’ and the ‘‘Northern Fields.’’

 JX Nippon Oil & Gas Exploration

Operates a number of gas fields.

Prospects of Trade between India & Malaysia

 Malaysia has highly-skilled, professional, technical and multi-cultural workforces that are recognized all over the world which can be sent to India.

 Malaysia is rich in Production of Palm Oil & Palm products so such products should be manufactured to India.

 As for India LNG is easily accessible, so India can do export of LNG.

 As we have seen Malaysia is rich in Natural Gas Production so they can Export natural gas to required Indian Companies.

 As India is also rich in steel manufacturing & steel products so India can look further for developing trade relations with Malaysia for the export of steel items.

 During the recent tour of Malaysia Indian Prime Minister Manmohan Singh and Malaysian Prime Minister Najib Razzak announced that free trade

accord between both countries would take effect from July 2011, which will boast the two-way trade to $15 billion by 2015

Suggestions for Trade relations between Gujarat & Malaysia

 PETRONAS & Opal (ONGC Petro additions Limited) in Gujarat can have trade prospects as OPAL is constructing an integrated petrochemical complex in Dahej in Gujarat.  The SEZ complex will supply about 50% of its production to overseas markets such as Africa, China, Vietnam, Malaysia, Indonesia, Singapore, Turkey,

Pakistan, Bangladesh and Sri Lanka.  Mineral exploration and processing is another area that could be actively explored by Malaysia in Gujarat  Gujarat can import high quality palm oil from Malaysia as Malaysia is rich in its Content.  ONGC may render service contracts to Malaysian Companies like Exon Mobil, PETRONAS for annual maintenance of Rigs.  Oil companies of both the countries may sign free trade agreement for trading of oil & crude products.  Malaysia holds some of the most productive hydrocarbon basins in the region companies like OPAL, ESSAR, ONGC can tap it.

Quarrying & Mining

Introduction of mining and quarrying sector

Mining

"Mining and Quarrying" means the removal of resources from the earth and includes the removal of burden and the creation, use and maintenance of plant, machinery and buildings and other works connected. Mining, pulling out of rock-hard mineral capital from the earth. These capitals include ores, which hold commercially expensive amounts of metals, like aluminum and iron; valuable stones, such as diamonds; construction stones, such as granite; and rock-hard fuels, such as coal and oil shale. The investigate for and finding of mineral deposit is call exploration.

It is the process of extracting stone for commercial use form natural rock deposits. The industry has two major branches;

I. A dimension-stone branch, involving preparation of blocks of various sizes and shapes for use as building stone, huge stone, paving stone, limitation, and flagging; and

II. A crushed-stone branch, involving preparation of crushed and broken stone for use as a basic construction, chemical, and metallurgical raw material.

The composite of branches of production occupied in the investigation for deposits of minerals and in the taking out from the earth and primary processing (focus) of these minerals. The mining industry is separated into the following core group:

(1) The fuel sector, including petroleum, natural gas, coal, shale, and peat removal;

(2) The ore mining sector, including the removal of ores of iron, manganese and radioactive elements;

(3) The nonmetal-lice mineral and local building resources sector, including taking out of marble, granite,asbestos,chalk,dolomite,quartzite,kaolin,clay,gypsum,marl,feldspar, and limestone;

(4) The mining and chemical materials sector, together with removal of potassium salt, nepheline, potassium nitrate, iron pyrite, and phosphate; and

(5) The hydro mineral sector, excluding use of unlimited mineral waters as well as water for water supply and other purposes.

Quarrying

Quarry is a variety of open-pit mine from which minerals are extracting. Quarries are normally used for takeout building equipment, such as construction aggregate, riprap, measurement stone, sand, and gravel. They are often collocated with concrete and blacktop plants due to the necessity for large amounts of aggregate in those materials. The declaration quarry can consist of underground quarrying for stone, such like a Bath stone.

Types of rock extracted from quarries include:

 Chalk, China clay, Cinder, Clay, Coal, Construction aggregate(sand and gravel), Coquina, Granite, Grit stone , Gypsum, Limestone Marble, Ores, Phosphate rock, Sandstone, Slate

A SWOT analysis of mining and Quarrying Sector in Malaysia

Strengths:

 Malaysia's a once a year average growth of 1.1% since 2011.

 Malaysia is the world's primary producer of tin, supply roughly 40% of the non- communist world's tin.

 Malaysia has attractive mining governmental framework and keen attracting foreign investor.

 Malaysia share with Indonesia the advantage of geographical closeness to China.

 Malaysian gold mining industry is one of the most potential points for increasing the country growth.



Weakness:

 Further than a century of tin mining has bushed the country's accessible reserves.

 Operation of mining is not eco-friendly. Least importance is given to environment concern.

 Malaysia is more concern in foreign investment.

 The mining sector is the toxic waste which is highly polluting industries in Malaysia.

 The main harms caused by mining are namely shape of waste land, harm to natural drainage, pollution and the harm of natural locale.

Opportunities

 Malaysia provides an attractive mining governmental environment for foreign investors (transparent and centralized mining license granting, tax holidays, and 100% foreign ownership).

 Malaysia's leading mining industry is tin mining, is becoming inactive among more than a century of mining having used up the country's funds.

 Malaysian Smelting Corporation's Raman Hydraulic tins mine will continue the country's leading company.

 Old mines in Malaysia are having been successfully transformed into housing estates.

Threats:

 Nearby is the threat for the country give a 100% foreign ownership.

A SWOT analysis of mining and Quarrying sector in India

Strengths:

 The government offers a broad variety of concessions to investors in India, occupied in mining activity. The main concession include,;

 Minerals in their completed form without charge excise duty.

 Pollution control equipment, Environment protection equipment, Energy saving equipment and certain additional equipment appropriate for 100% depreciation.

 Government can provide a low custom duty on capital equipment used for minerals like tin, nickel and bullion aluminum.

 India is world’s largest producer for mica; also third largest producer of coal and lignite and barytes.

 It can be also large manufacturer of iron ore, aluminum, and bauxite and manganese ore.

 Easily labors available.

 Exports iron-ore to Japan and china on a large scale.

Weakness:

 In India output per miner 150 to 2650 tonnes per annum compared to the United States and Australia an average of ground 12000 tonnes.

 Coal mining is India is associated with poor employee productivity because of lack of technologies.

 Meager infrastructure facilities, mining technology are outdated, Low innovation capability. Labor force is highly un-skilled and new.

 Still India has not been able to develop a well-known solution to deal with the fly ash generated at coal power station thought use of Indian coal

 Mining operations are not environment friendly.

 Lack of research and development programs and also training and development.

 In India lofty rate of criminal mining.

 Least importance is given to environment concerns.

.Opportunities:

 Potential areas for looking at business enterprise include silver, nickel, cobalt, and lithium, gold, diamond, zinc, tin, copper, lead, platinum faction of metals and other unusual metals, fertilizer minerals.

 Extensive potential exists for setting up manufacturing units for value added products.

 Focusing on technology for future - India's many technology research institutes are working on energy related Research and Development.

 There exist important opportunities for future discovery of sub-surface deposits with the application of modern techniques.

 The Government may get improved recoveries on its investment by concentrating on few important technology areas.

Threats:

 Many Foreign investments in mining sector.

 Heavy tax burdens discourage further investment.

 Politicians rate too low the industry's contributions to the economy.

Mining and Quarrying India circumstances

India’s mining industry value(2012) USD 44.38 billion 2.51% Domestic consumption USD 1.25 billion Global share of export of natural stones 27%

Mineral-rich of India Tamil nadu,andra Pradesh and karnataka

Industry lifecycle of stone industry Relatively new and growing- major of the operators are on small scale basis

India is a country richly endowed with mineral resources such as iron ore, copper, gold, lead, zinc, bauxite and manganese ore which are metallic whilst the non-metallic

77 minerals consist of limestone, phosphoresce, manganese, bauxite and gypsum. Available in abundance, these resources remain to be further exploited and offer potential growth for the industry. India’s mining industry is currently worth USD 44.4 billion, representing around 2.51% of the country’s GDP. With domestic consumption of natural stones worth USD 1.25 billion, and its global share of exports at 27%, the sector possesses hidden potential and it represents a pillar of economic growth. As of 2012, the sector is estimated to have generated revenue of USD 102.93 million and up to June 2012, USD 80 million has been collected. Furthermore, known to be labor intensive, the sector is perceived highly in providing control employment to more than 1 million workers and on an overall basis accounting for 0.18% of total employment. National Mineral circumstances Minerals are priceless natural resources being finite and non-renewable. They signify the very important raw materials for many essential industries and major resource for development. The broad accessibility of the minerals in the form of sufficient rich reserves made it very conducive for the growth and development of the mining sector in India. The country is able with huge property of lots of metallic and non-metallic minerals. Indian mining industry is characterized by a huge figure of small operational mines. The number of mines which report mineral manufacture (exclusive of minor minerals, petroleum (crude), natural gas and atomic minerals) in India was 2628 in 2011-12 as against 2999 in the previous year. Often that 2628 mines, 377 were located in Gujarat after that Andhra Pradesh (372), Jharkhand (288), Madhya Pradesh (251), Rajasthan (215), Karnataka (211), Orissa (159), Tamil Nadu (156), Maharashtra (142), Chhattisgarh (135) and West Bengal (111). These 11 States jointly accounted for 91.97% of total number of mines in the country in 2011-12.During 2011-12 minerals manufacturing was reported form 32 states and union territories of the bulk value of minerals production about 90.16% was confined to 10 states only. Areas are in leading position, in terms of value of mineral manufacture in the country and had the share of 26.03% in the national output.

In order was Orissa with a share of 9.63% follow by Andhra Pradesh (8.98%), Rajasthan (7.93%), Chhattisgarh (7.77%), Jharkhand (6.54%), Gujarat (6.40%), Madhya Pradesh (4.83%), Goa (4.37%), Assam (4.13%) and Karnataka (3.57%) in the total value of mineral production. Remaining 22 States and Union Territories having individual share of less than 3% all together accounted for 9.84% of total value during the year under review. The responsibility of States/territories in the value of mineral production during 2011-12. MINING AND QUARRYING SCENARIO IN GUJARAT Riding along Western part of India, one can reach the incredibly beautiful State of Gujarat, situated between Latitudes North 20° 2 Min. 24° 44 Min. and East Longitudes 63° 04 and 74° 30, having an aerial extent of 1,96,024 Sq. Km. The state boasts of infinite natural riches. Set middle striking landscape, the State has safely hidden in its womb. Blessed with nature's most valuable gift, Gujarat can be described as one of the mineral bowls of India. Mineral Resources At a time when mining and mineral players are gearing up to make in-roads into Gujarat in the upcoming investment summit, Vibrant Gujarat Global Investors’ Summit 2012, the State government has started focusing innovation and value addition in the mining sector. Gujarat is the exclusive producer of agate, chalk, and polite and is leading producer of fluorite (concentrate), fireclay, silica sand, lignite, laterite, petroleum and natural gas and bauxite in the country. State is the lone holder of country's resources of polite, 69% of fluorite, 28% of diatomite, 18% of betonies and 10% of wollastonite. Manufacturing in Gujarat The value of mineral production in Gujarat in 2011-12 which was at 12,782.52 crore, recorded about 0.05% increase as compared to that in the previous year. Gujarat state contain Fourth rank in the country and accounted for about 7.13% of the total value of mineral production in India during the year.

Gujarat was the solitary producer of chalk and fluorite (concentrate) and the leading producer of Kaolin, Marl and clay (others) in the country. The State was also the

79 second largest producer of lignite and petroleum (crude) and solitary producer of fluorite (concentrate) in the country during 2009-10.

Production of lignite got increase by 4.17%, ball clay (378.08%), fireclay (30.71%), Ochre (132.14%), Quartz (10.61%), Dolomite (48.04%), Silica Sand (3.99%), Gypsum (638.99%) and Kaolin (31.40%).

IMPORTANT MINRAL BASED INDUSTRIES IN GUJARAT S.N. Minerals Industries Location

1) Lignite Thermal Power 250MW at Nani-naroli (Surat),210MW plant at panandhro (Kachchh), 250MW Akri Motta Kutch

2) Limestone Cement Industries Amerali, Jamangar , kachchh,porbander, junagadh

3) Limestone Soda ash Porbander , bhavanagr ,junagadh,Surendranagra

4) Silica and glass Glass Bharuch,vadodara -sand

5) Fiuorite fluorite Kadipani( Vadodara) refiningplant,chemical

6) Bauxite Calcinations ,abrasive kachchh, jamanagar, porbandar

7) Bhuj (Kachchh),Vaghodiya,

China-clay Micronization (Vadodara), mahesana, porbandar

rajkot

8) Fire-clay,china- (Kachchh), mahesana, Rajkot, day Levigationunits porbandar ,Surendranagra, jamanagar,

And chalk

9) Pulverizingunits,organo- Bentonite Kachchh and bhavnagar day

10) Granite & banskantha,sabarkantha, Cutting and polishingunits marble ahmedabad

11) quartz dolomite crushing units vadodara &Panchmahals

12) China- day,clay crockery, sanitarywares Rajkot, ahmedabad

Sabarkantha,Surendranagar& Fire-clay tiles glazed wall and florr Mahesana

Opportunities in Gujarat The “Government of Gujarat” organizes in alternate years ‘Vibrant Gujarat Summits since year 2003. Over the years, this Summit has emerge as one of the most significant Summits taking place in India and having involvement from International and National Organization.  The state has rich mineral reserves of lignite, bauxite, limestone, manganese, fluorspar, bentonite, clay, silica sand, and dolomite. Of these, Gujarat has granite reserves worth 2500 million tones, marble worth 360 Million Tones and limestone reserves worth 12,000 Million Tones. So it can be increase the GDP growth.  Gujarat State was also the second leading producer of lignite and petroleum (crude) and remarkable producer of fluorite (concentrate) in the country it can be export the lignite in Malaysia.  Gujarat was the lone manufacturer of chalk and fluorite (concentrate) and the leading producer of Kaolin, Marl and clay (others) in the country.  India is world’s largest producer for mica; also third largest producer of coal and lignite and barytes.

Opportunity Import and export between Gujarat and Malaysia

Import:

Malaysia is the world's primary manufacturer of tin, supply approximately 40% of the non-communist world's tin.

Monument Mining's Selinsing gold mine (Canadian gold producer) is set to become the country's largest gold mine so they can import gold.

Export:

Gujarat State was also the second largest manufacturer of lignite and petroleum (crude) and lone producer of fluorite (concentrate) in the country so they can also export the lignite in Malaysia. Gujarat is world’s largest producer of mica and splitting and also third largest producer of coal and lignite and barites so it can be also export to the Malaysia.

Financial Sector

THE FINANCIAL STRUCTURE OF MALAYSIA:-

 It’s based on the financial institution and financial market.  Financial institution based upon the two markets like 1) BANKING SYSTEM 2) NON FINANCIAL INTERMEDIARIES  Financial market based upon; 1) MONEY AND FOREIGN EXCHANGE MARKET 2) CAPITAL MARKET 3) DERIVATIVES MARKET 4) OFFSHORE MARKET

 Banking system Consists of Bank Negara Malaysia (Central Bank of Malaysia – BNM), banking institutions (commercial banks, finance companies, merchant bank and Islamic banks) and a miscellaneous group (discount house and representative office of foreign banks).

 Bank Negara Malaysia  Islamic Banking  Commercial Banking  Discount House

Conclusion:-

 Almost both nations financial system are same.  Regulation is done by central bank in both nations.  Discounts houses is the new terminology in Malaysia finance system.  Bursa Malaysia Berhad is the stock market of Malaysia.  Private equity and venture capital play a vital role in Indian  In India public banks has around 70 % contribution in banking system but In Malaysia other banks has major share holding in banking system.  Mutual Funds also major contributors in Indian share market as well as economy but in Malaysia there are no such funds.

Learning;

Global country report as part of our syllabus explores many aspects like;  Enhance our knowledge and understanding by studying global environment  It gives us opportunity to study global economics.  Explore our imagination  Make us updated with current scenario.  It teaches us how to work with team and about team work.  Its gives us prospectus of future.

INDIAN FINANCIAL SYSTEM

IFS and its Functions: -

• System that allows the movement of money between savers and borrowers

• It guides household savings to the corporate sector

• Allows “asset - liability” change

• It helps in risk conversion by diversification

Indian Financial System made of: -

1. Banking sector. 2. Capital market. 3. Money market.

Structure of Banking in India

Scheduled bank

Commercial Co-operative bank bank

Public sector Private sector Foreign banks Regional Rural (27) (30) (40) banks (196)

State bank of Nationalized India & its banks (19) associates (8)

Commercial banks

Public sector banks are those banks where government share are more than 50% while nationalized banks are those banks which were nationalized on July 19, 1969. Thus all nationalized banks are public sector banks.

Private sector Banks

• In private sector bank majority of share is held by private individual.

• The first private bank in India was Indus land Bank

Foreign Bank

• Banks from other countries which have branches in a country.

• City Bank was establish in India in 1902

Regional rural bank

• The banks offer credit to the weaker sections of the rural areas, particularly the small and marginal farmers and small entrepreneurs

• RRB’s was set up by the government of India on October 2, 1975

86 Capital Market in India

Capital Market in India

Industrial Financial Government security Developmen Intermedi security (Gill- market t financial aries edged market) Institution New issues market Merchant banks and IFCI Mutual funds Old issue ICICI Leasing market SFC’s companies IDBI Venture IIBI capitalist UTI

Gilt Edged Market and Types

• This market made of the government securities which are “of the best quality”.

• Credible instrument used by government for satisfying its financial need.

• Types:-

1. Dated Securities with a fix maturity date 2. Zero coupon bonds 3. Partly paid stock 4. Treasury Bills Industrial security market

• An initial public offering (IPO), referred to simply as an "offering" or "flotation", is when a company (called the issuer) issues common stock or shares to the public for the first time.

87 • India’s biggest IPO is from Coal India Ltd which raised up to Rs.15000 crore.

Merchant banks

• Merchant bankers assist corporate in raising capital.

• They help in issue of Shares, syndicating loans, public issue of debentures. They do not give funds.

Mutual Funds

• A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests typically in investment securities.

• Types of mutual Funds

1. Open - ended schemes 2. Close – ended schemes

Lease financing and hire purchase

• Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments.

• Hire-purchase contracts give permission the buyer to hire the goods for a monthly rent.

• A hire purchase is termed an installment plan.

• Venture capital Financing

• Venture capital is risk financing accessible in the form of equity.

• A venture capitalist also provides management support as well as acts as a partner and consultant to the entrepreneur.

The Financial System Structure in Malaysia Financial System

Financial Institutions Financial Market

Non-Bank Financial Money & Foreign Exchange Banking System Intermediaries Market 1. Money market 2. Foreign exchange Market 1. Bank Negara Malaysia 1. Provider & Pension Funds 2. Bank Institutions 2. Insurance Companies • Commercial Banks (including Takaful) • Finance Companies 3. Development finance Capital Market • Merchant Banks Institutions 1. Equity Market • Islamic Banks 4. Saving Institutions. 2. Bond Market 3. Others • National Saving Banks • Public Debt Securities • Discount Houses • Co-operative societies • Private debt Securities • Representative 5. Others offices of foreign • Unit Trusts Banks • Pilgrims Fund Board • Housing Credit Institutions Derivatives Market • Cagamas Berhad 1. Commodity Futures • Credit Guarantee 2, KLSE CI Futures Corporation 3. KLIBOR Futures • Leasing Companies • Factoring Companies • Venture Capital Companies Offshore Market

1. Labuan International Offshore Financial Center (IOFC)

Banking System

• Consists of Bank Negara Malaysia (Central Bank of Malaysia – BNM) , banking institutions ( commercial banks, finance companies, merchant bank

and Islamic banks) and a miscellaneous group ( discount house and representative office of foreign banks).

• Largest of financial system, accounting for >70% of the total assets of the financial system.

Bank Negara Malaysia

 Established on 26 January1959 under the Central Bank of Malaya Ordinance 1958. Objectives of BNM are as follows:

 To issue currency and keep funds to protect the value of the currency;

 To serve as a banker and financial consultant to the Government;

 To support monetary stability and a strong financial structure; and

 To control the credit situation to the improvement of Malaysia.

 The purposes of BNM, in essence, summarize the importance of increasing economic growth with price stability as well as maintaining financial stability.

Commercial Banks

• The commercial banks are biggest as well as most important providers of funds in the banking system.

• Current 22 commercial banks (exclude Islamic banks) of which 13 are locally integrated foreign banks.

Commercial Banks

 The important functions of commercial banks are to provide:

1. The mobilization of saving , deposits, surplus and idle funds through savings accounts, currents accounts, fixed deposit accounts, negotiable instruments of deposits and through other banking, financial and investment instruments. 2. The provision of services and facilities for their customers and others members of the public to collect/receive and transfer/pay money in Malaysian ringgits or in other foreign currencies, both locally and internationally. 3. Only commercial banks in Malaysia provide the facilities for current account.

4. The provider of money under various form of overdrafts, loan and advances, and the financing instruments to private individuals and different type of business enterprises and other organizations for personal consumption, investments, working capital requirements and for other productive and economically possible purpose and activities. 5. The provision of banking services and facilities to motivate, help and support productive and profitable consumption of available funds for investments and promotion of exports. 6. The financing of government project and activities through donations to Treasury Bills, Agamas Bonds, Government securities, and so on. Merchant Banks

• Merchant bank play very vital role in progress of financial system of Malaysia.

• They are part of the short-term money market and capital increasing activities including financing specializing in syndication, corporate finance and management advisory services, arranging for the issue and listing of shares, and investment portfolio management.

• There are presently 9 merchant banks in Malaysia.

Islamic Banks

• In Malaysia, different banking legislation and banking regulation prevails equal with those for the conventional banking system. The legal root for the institution of Islamic banks was the Islamic Banking Act (IBA), which came into effect on 07 April 1983. The IBA give BNM with powers to supervise and regulate Islamic banks, parallel to the case of other licensed banks.

• The banking actions of Islamic banks are depends on Syariah principles (the Islamic principles). The first Islamic bank was Bank Islam Malaysia Bank (paid-up capital RM80million) which starts operations on 1 July 1983. On 1 October 1999, a second Islamic bank, namely Bank Mualamat Malaysia Berhad was established. aside from Islamic banks, other financial institutions also offer Islamic banking services through the “Islamic Banking Scheme”

• all Islamic banking entities are suggests banking products based on the Islamic principles.

Discount House

• Discount House commences operations in Malaysia since 1963.

• Generally, the discount house focus in short-term money market operations and move deposits from the financial institutions and corporations in the form of money at call, overnight money and short term deposits.

• The funds moved are invested in Malaysian Treasury Bills, Malaysian Government Securities (MGS), banker acceptance (Bas), negotiable certificates of deposits (NCDs), Cagamas bonds and Floating Rate Negotiable Certificate of Deposits (FRNCDs), as well as to provide an active secondary market for these activities.

Swot analysis of Indian and Malaysian financial sector

INDIA Strength Weakness

Banking sector:- Banking sector:-  In terms of value of assets and  PSUs need to fundamentally capital sufficiency, Indian bank are strengthen institutional skill levels judged to be clean, strong and especially in sales and marketing, transparent balance sheets relative to service operations, risk management other banks. Unique economies in its and the overall organizational area. performance ethic & strengthen  Bank lending has been a major driver human capital. of GDP growth and employment.  Old private sector banks also have  Widespread reach: the immense the requirement to primarily networking & increasing number of strengthen skill levels. branches & ATMs.  Indian banking system has enter at even to the remote corners of the country.

 Foreign banks will have the chance to own up to 74 per cent of Indian private sector banks and 20 per cent of government hold banks. Security market:-

 The weak point of Indian stock security market:- market is its instability i.e. High risk.  The strength of Indian stock market is  It is a kind of gambling where no its capacity to give high return. assurance of return and some time it  SEBI a regulatory body of Indian depends on luck also. stock market who defend the interest of the investors.  Great number of securities which Development financial Institution :- offers medium for investment.  Strong competition from other Development financial Institution :- powerful foreign banks.  Industrial banking capability for  very low number of branches and businesses ATM’s.  State of art IT support and technological innovations

 Customized banking solutions Opportunity Threat

Banking sector:- Banking sector:-  With the development of the Indian  Increase in inflation figures which economy estimated to be strong for would lead to rise in interest rates. quite some time-especially in its  Raise in the number of foreign services sector-the demand for players would cause a threat to the banking services, especially retail PSB and the private players. banking, mortgages and investment  risk of stability of the system: services are estimated to be strong. collapse of some weak banks has  Reserve Bank of India (RBI) has often agreed on a proposal from the Threatened the stability of the government to alter the Banking system. Regulation Act to allow banks to trade in commodities and Commodity derivatives.

93 security market:- security market:-  Stock market gives an opportunity to  The competitors of stock market are money lender and money seeker to post office savings, public provident Invest and use money for their plan. fund, company fixed deposits, fixed  It offers a chance to the investor to be deposits with bank etc. which gives the owner of the company and fixed and secured returns. contribute in the business decision of the company.

Development financial Institution :- Development financial Institution :-  individual banking and superior  Economic crisis. customer service  Favorable Government schemes.  Complex financial products by foreign banks.

 Highly competitive environment due to foreign bank.

 Global economic imbalances Malaysia Strength Weakness  Malaysia has 2 trillion international  Limited scope of diversification. reserves.  Lack of enthusiasm so declining  Malaysia has many strategic performance. alliances in global level.  Bank of Negara imposed 8% risk  Islamic banking in Malaysia is the weight age capital ratio, its quit high best growing sector in global banking so foreign financial institute find it as industry with an average annual barrier. growth 20%.  Malaysia financial need is growing and  financial market still lacking so need is not fulfilling.  Malaysia has limited market penetration so expansion is difficult.  Bank of Negara imposed 8% risk weight age capital ratio, its quit high so foreign financial institute find it as barrier

Opportunity Threat  Focus on Islamic baking creates  Currency counterfeiting more opportunity for the Malaysia  Global economic imbalances financial sector in world level.  Stipulate currency rate  They can make strategic agreement  Competitor like India, America. with neighbor countries.  Concept of discount house is new for world so there is opportunity

expanding this concept.

Opportunity for Malaysia and Gujarat to make investment in each other’s countries in financial sector

Investment opportunity in Gujarat for Malaysia

 Financial sector in Gujarat has been growing at a very rapid pace  Gujarat international finance tech city-the main purpose is to develop Gujarat in finance .it sector  Malaysia can do trade in finance sector with the help of this GIFT.  Malaysian insurance, bank companies can make investment in gift.  Malaysian financial institution can do merger or strategic alliances with Gujarat financial institution.

Investment opportunity in Malaysia for Gujarat

 Strategic alliances between Gujarat and Malaysian financial institution.  Gujarat can establish more physical branches in Malaysia with the aim of promoting outreach of financial services.  The government would also considering granting license to foreign bank in specialized fields where they don’t compete with local banks.  Foreigners are allowed to hold max. 30% share in commercial bank and 70% share in investment bank and conventional insurer. So, Gujarat can grab this opportunity.  As Malaysia have blueprint for the 2020 financial sector so Gujarat can ensure their return on investment.

 By doing investment in Malaysian financial institution Gujarat’ financial institution can grow technologically as well as economically.

Strengthening the Trade Relations:

 Islamic banking is new concept. it is becoming famous in Muslim countries now a days. So India can adopt this concept from Malaysia by making strategic alliance with Islamic banking.

 Malaysia is developing country so they cannot meet there financial need so there is opportunity of Indian banks to establish bank in Malaysia.

 The concept of mutual fund is new for Malaysia, so we can grab this opportunity and can establish relationship.

 Concept of discount house is new for India son they can set that concept through collaboration with Indian company.

 As Malaysian government has increased the FDI from49% to 70 % so India has an opportunity to make investment in financial institution.

 As we can see that Malaysian commercial bank only offer the current account facility so India can tie up with other bank of Malaysia and also offer current account facility.

Rubber Plantation and Rubber Industries of Malaysia

Brief Introduction

Malaysia is the primary maker of natural rubber in the world. Being a leader producer of natural rubber, Malaysia is contributing around 46% of total rubber production in the world. The rubber agricultural estate was started in Malaysia in 1877. First, the seedlings were bring from the Amazon Basin, and were planted here on a trial basis. Then after when the rubber seedlings were successfully planted, certain efforts were made to produce it on a saleable. The British people, who ruled the area and introduced rubber tree provide the capital for clearing the forest and planting rubber trees.

Favorable conditions for rubber plantation  A mean temperature of 27°C, never falling below 22°C. Heavy rainfall above 200 cm. with no drought.  Deep rich soils with good drainage preferably brittle, well-oxidized and acidic in reaction.  Sufficient supply of labour is an important factor for the collection and plantation of rubber over large holdings. Area of Production

In Malaysia, Rubber can grow anywhere, because of the suitability of climate and top soils but most of the rubber estate are demanding in the western coastal plains of Malaysia. The plantation in coastal zone gets the benefit of nearest port for its export .Yet very low areas are avoided in order not to suffer from stagnation of water The greatest production is in its Jahore State of Southern Malaysia Over here Rubber agriculture occupy about 4-2 million acres or about 66% of the total cultivated area in the country.

Rubber Sector Overview

Production (Ratios of 2012)

Natural Rubber Consuming Industires 100.00% 50.00% Natural 0.00% Rubber … … Consuming

Latex Latex Industires Gene Others

 Latex products (80.4%)  Tyres (9.3%)  General rubber products (7.2%)  Industrial rubber products (3.3%) and  Others (0.2%) The continuous and rapid growth in the sector holds Malaysia again a foremost producer of natural rubber in the world’s map.

The natural rubber production of Malaysia in 2012 - 996,212 tons with comparison to 2011- 939,245 tons. The home utilization of natural rubber for 2012 was 401,928 tons. The natural rubber consuming industries for 2012 as below.

Natural Rubber Production

10 Natural Rubber 9 Production 2011 2012 The Production is in Lac Tonnes

99 Key problems in the sector

In the rubber sector of Malaysia, there are certain problems also .The main problems in this sector are mainly the government policies and regulations which are quite unfavorable for the foreign investors as previously the regulations of the government regarding wages and benefit to domestic workers are more rigorous and the taxes rates are higher. The rubber planters of Malaysia are also facing the problem of additional production that is mainly because of the wide area is available for the plantation, which results in lower prices and profits .The abundant production of artificial rubber in America and such other countries has also given a huge set back to marketing. The artificial rubber which is a result of such combination of other ingredients like petroleum, alcohol, coal and other materials which are obtained at a very low cost of production.

The second problem could be the need of replacement of the rubber trees which are very old with the news plants of very high yield. The government of Malaysia has laid certain individual taxes on exported rubber and the money as a result is utilized for the process of replanting rubber tress. Because of all such problems and hazards which are creating threats, rubber planters are now moving ahead to rubber plantation and converting the rubber estates into the palm. However it doesn’t mean that rubber plantation system would discontinue. The artificial rubber is excellent for certain other uses but still it is not as satisfactory as natural rubber for general purposes such as tyres. The expanding role of government in the management of the rubber plantation the production of rubber in Malaysia will without doubt maintain and increase in significance.

Adopting new technologies  To defeat the productivity hesitant blocks Malaysian Rubber Board presented its newly hatched technologies to make life easier for rubber producers and increase productivity too.  Introducing the Automatic Rubber Tapping System (ARTS) the Director- General of Malaysian Rubber Board said the newly introduced technology which is in a pre-commercial trials now was developed to first and foremost address labour shortages (and to reduce dependency on foreign workers) and increase output.

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 The Rubber tappers have to be at the plantations early in the morning when the turgor pressure is high and more latex can be tapped the director added A mechanized and automated device ARTS is able to undertake the task without any human administration.  The solar-powered device is attached to a rubber tree and at a programmed time can perform the tapping without the need of any field administrator The system has a moving blade to skin the bark with accuracy to expose the latex vessels It can also cut at precise depth and thickness The tapping time is also programmable and has a short tapping length of 1 inch A piping system is also attached at each tree to collect the latex. Industries in Malaysia

Rubber-based Industry A new technological device called solar powered is attached to a rubber tree & at a pre sated programmed tome can perform the tapping. There is no need for any human supervision over there due to this advance tapping system. The system contains a moving blade to skin the bark with a deep accuracy to expose the latex vessels. It can also cut at precise depth and maintains ideal thickness level of inch. A piping system is also attached with it at each and every tree to collect the latex effectively.

The Malaysian rubber products industry is a combination of more than 500 producers of natural rubber which is generally related with latex products like tyres and other tyre related products and industrial and other general products for different utilization. The industry is contributing near about 18.2 billion to the overall export earnings of the nation.

The total products of rubber accounted for 3.8% of Malaysia’s total exports as far as manufacturing products are concerned.

The sub sector of latex products is the largest sub sector within the industries of rubber products and comprises 125 producers and manufactures who are producing different latex products for daily use able rubber products. These such products are gloves, catheters, condoms, latex threads and others. This sub sector accounted for 81 % of the total value of rubber exports largely contributed by

101 catheters, gloves, condoms and latex threads. Malaysia is again maintaining its top leader position as far as rubber production is concerned by having a great market share and rubber production share which is largely contributing to the overall production of rubber in the world. It is the nation which is a leader producer and exporter of such valuable natural rubber products motioned above for personal and medical purposes.

Currently there are 120 companies in the tyre and tyre related products. The sub sectors comprising 9 tyre producers while the others are producing tyre treads for retreading, valves and other accessories. There are 3 main tyre producers who arer leader in that particular sector, producing passenger tyres, commercial vehicle tyres and earthmover tyres.

The sub sector of industrial and common rubber products comprises 185 companies manufacturing a large range of various rubber products such as mounting, beltings, tubing’s, hoses, seals and sheeting’s for the electrical, automotive and other electronics, machinery and equipment and construction units, and largely for the household market.

Today there is a need to diversify the rubber products industries as the aspects of rubber production and utilization have been changed due to the dynamic trend. It is therefore necessary to expand the rubber industry further which would emphasize on such high value added and technology. Such rubber products have to be diversified in various sectors like engineering, construction and marine applications.

The government of Malaysia is continuing the development of Malaysia’s resource base industries to promote it globally. It is mainly because of there is a need to diversify the nation’s sources of growth. As far as concern with the fiscal incentives which are presently obtainable for promoted products & activities, the Malaysian government has further fine tuned the incentives to give support to specific activities among the rubber production industries. Further to encourage investment in the resource based industries and domestic companies of rubber production for reinvestment to expand their projects which are eligible for establish status or for investment tax allowance.

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Rubber Export Malaysia produces about 1-5 million tons of natural rubber annually A major part of it is sent to Singapore or Penang from where it is exported all over the world.

The chief rubber-importing countries are:

(i) Singapore (for re-export) (ii) Russia and European countries (iii) U.S.A. (iv) Japan (v) India

Malaysia’s Export Partner Export (%) 20 0 … … …

… Export (%) … … Sing Chin USA Japa Thai Hon

Note: India is indirect importer of Malaysian rubber from Singapore. Uses of Rubber Rubber is used for making several articles ranging from footwear, sports goods, cushions, insulated material for cable, and pencil erasers to tyres and tubes. However it is its use for making tyres and tubes of automobiles which is of greatest importance Thus indirectly rubber helps in promoting the system of modern transport and communication Malaysia will continue to play its dominant role in world's rubber production and export.

Expansions

Malaysia eyes rubber, oil plantations in Myanmar

103 Malaysia is planning to expand the rubber plantation by going globally in certain countries Recently in a press conference the Minister of oil and plantation Malaysia has announced to go for rubber plantation in Myanmar.

Developments and productivity in the Industry

The top three rubber-producing countries in the world namely Thailand, Indonesia and Malaysia stopped setting export limit quotas following a rise in prices in the year 2009.The higher level of world wide spread of influenza H1N1 had increased the overall demand for rubber glove during the period. Local rubber glove producers have increased production to their maximum capacity to meet the demand from international markets.

The trouble of compulsory standard of new tyres and approved permits on selected used tyres had increased the standards of manufactured tyres in the market The standards have been imposed to reduce the number of tyre-related road accidents in the country According to the Malaysia Department of Statistics (2011) the ratio of total production to total region tapped was 121.1Kg per hectare (kg/ha) In comparison to the figures from September productivity in October increased about 3.1%. However the year-on-year productivity recorded a decrease of 16.8% The table below is a principal statistic for the years 2010/11 and covers among others the production, export, import and consumption in the rubber sector.

Trade relations between INDIA & MALAYSIA

The legal framework central mutual trade and economic cooperation includes a Trade Agreement signed in October 2000 Bilateral Investment Promotion and Protection Agreement in April 1997 and a Double Taxation Avoidance Agreement signed in May 2001 As far as concern with rubber production due to the poor performance of local and domestic rubber producers India will need to have more rubber import from Malaysia during the current year. However India also eyes to have rubber plantation to have natural rubber sources in the various parts of the country.

Opportunities for India

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As a part of the expansion of Malaysia’s natural based Industrial sectors India has the opportunity to establish trade relations by welcoming them in India and accept their business in certain east regions nearby Myanmar-Bangladesh.

Initiative of Apollo Tyres

in the midst of the domestic tyre industry facing a crisis due to the global shortage of natural rubber according to recent information in corporate Apollo Tyres Ltd has taken on lease about 10,000 hectares of land in Laos in South-East Asia for rubber plantation to have better cycle of rubber production.

With this move Apollo being the first Indian company to acquire a property for growing rubber It would take 2-7 years for the yield to be tapped Apollo Chairman and Managing Director Onkar S Kanwar has announced in front of media recently.

Rubber plantation in Gujarat

The rubber plantation in Gujarat is a difficult challenge to take due to obvious reasons. The overall temperature of Gujarat is quite not suitable for the rubber plantation in comparison with Malaysia and other such regions of India. However an attempt has been made recently. The details regarding that attempt are as follows: The Rubber plantation has been introduced for the first time in Gujarat in the area which is quite nontraditional region for the rubber plantation and cultivation of rubber with the support of such voluntary organizations and the government agencies jointly First pilot project for the rubber plantation in near about 20 to 22 hectares was launched near lachakhedi village in Valsad district in the month of August current year with the collective efforts of Gujarat Narmada Valley Fertilizer Company a famous voluntary organization and government undertaking organization.

The assistant development officer of Rubber Board’s regional office Dr.B Rajeevan told that UNI that planting of rubber saplings began this year and near about more than 10000 trees will be planted in an area of 20 to 22 hectares during

105 the next five years. As top soil conditions of this hilly covered area is generally much suitable for the rubber plantation like Malaysia the immigration facilities available there would contribute to the success of the rubber plantation programme he added Further he told that GNFC the initiative taker was funding the entire pilot project, which is being implemented by Dhurve with technical and other support from the rubber board.

The board of rubber plantation is offering preservation grant and subsidies under different categories to promote the rubber plantation which could offer a stable income from the 8th year of plantation for a further period of near about 20-24 years While talking about the returns DR. Rajeevan told that the net income per hectare and per year would come near about Rs.35 to 40 thousand as per the widespread market rate which is at present in the lowest level because of industrial recession Further he also said that the other suitable places for the plantation are also under consideration of GSFD Gujarat state forest Development Corporation.

To overcome the long development period of rubber plantation which is generally anticipated nearly 7 years the government rubber board suggesting the farmers to go for inter planting and inter cropping of selected crops in the rubber plantation area and also providing necessary guidance and motivation to farmers to go for this new farming of rubber and to earn extra income during the non-yielding phase In other states of India which are quite successful in this plantation the board is collecting samples to identify the ideal land and suitable conditions for the nontraditional areas for rubber plantation and agriculture By means of these efforts at some level the rubber board would succeed to try a new element in the farms and in Gujarat it would be a new achievement for the government as well as for the farmers to gain a new heights of agricultural success and to built new trade and agricultural development dimensions.

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Education Sector

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HISTORY OF MALYSIA

Malaysia is a central legitimate monarchy in South Asia. It includes of thirteen states and three federal territories and has a total landmass of 329,847 square kilometers (127,350 sq mi) estranged by the South China Sea into two similarly sized regions, Peninsular Malaysia and Malaysian Borneo. Land borders are joint with Thailand, Indonesia and Brunei, and maritime borders exist with Singapore, Vietnam, and the Philippines. The wealth town is Kuala Lumpur, while Putrajaya is the place of the federal government. In 2010, the residents were 28.33 million, with 22.6 million living in the neck of land. Malaysia has started in the Malay kingdom there in the area which, from the 18th century, become subject to the British Empire. The first British territories were known as the Straits conclusion, whose founding was follow by the Malay kingdom accurate. Malaya united with Sabah, Sarawak, and Singapore on 16 September 1963, with being added to give the new state the name Malaysia. Malaysia has had one of the best economic records in Asia, with GDP growing an average 6.5% for almost 50 years. The state is mixed and multi- cultural, which plays a great role in political affairs. The government system is powerfully model on the Westminster official scheme and the legal system is base on English common Law.

THE EDUCATION SECTOR IN MALAYSIA

 The advanced education sector is accountable for the process of higher education institutions in Malaysia and is under the be in charge of of the Ministry of Higher Education. The Education area has always enjoyed the highest national Development plan which symbolize the guarantee of the Malaysian government towards education. Malaysia’s HEIs house additional than a million student in 2011, of which regarding 93,000 were global students from more than 100 countries. In contrast, there were about 89,686 Malaysian students who were studying abroad in 2011.  Five of the 20 public universities in Malaysia have been assigned research university status with other financial support for R&D and commercialization of learning. The remaining 15 public universities have been categorize as either complete or center universities. In the 2012 new year’s talking, the Minister of Higher Education announce that five public

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universities have been given self-sufficiency in administration, human resources, financial & academic management and student intake. They are University Malaya, University kebangsaan Malaysia, University Saints Malaysia, University Putra Malaysia and University expertise Malaysia. This move is intended at cheering excellence amongst local institutions of advanced learning.  The excellence of higher education is protected through the Malaysian Qualifications Agency (MOA) which undertake the implementation of the Malaysian Qualifications structure.MQA is also accountable for excellence assurance and the approval of courses and other related functions, cover both public and private higher educational institutions.

GOVERNING AUTHORITY FOR HIGHER EDUCATION-MOHE

 The advanced education sector is below the authority of the Ministry of Higher Education (MOHE).The institution of this ministry on 27 march 2004 was a effect of the improvement of the agency of Education and noticeable an significant part of the past in Malaysia, chiefly in the growth and development of the higher education sector. The organization of MOHE is in line with the apparition of the government in production Malaysia a centre of educational excellence and internationalizing Malaysian education.  MOHE is the governing power for the Malaysian top learning sector. It oversees HEIs (equally public universities and private advanced learning institutions), society colleges, polytechnics and additional government agency concerned in senior education actions such as the Malaysian Qualification Agency, The National Higher Education Fund Corporation.

THE NATIONAL HIGHER EDUCATION FUND CORPORATION ACT, 1990

The reason of this act is to set up a finance that provides economic support throughout learning loans to students at highly developed educational association in Malaysia. It also provides for the organization of a economy scheme with the object of instilling economy lifestyle in children, from as in the early hours as year in primary school; with the purpose of allow them to investment their own advanced education in opportunity. All higher educational institution in service in Malaysia are subjected to one or additional of the over legislation, depending on whether the education 109 supplier is in public or privately-owned. The legislation has made potential the following main enhancement in the Malaysian advanced education system:

 The condition for the foundation of privately-run universities and organized development of confidential education at tertiary level  The provision for setting up of a quality undertaking organization by the administration to apply the Malaysian condition Framework as a basis for quality declaration in superior knowledge and also as a position typical for nationwide qualifications.  The establishment of student loans for greater access to higher education.

SWOT ANALYSIS OF EDUCATION INDUSTRY OF MALAYSIA

STRENGTHS

 The pattern of decision making.  Possibilities to as of the Board by the representation of the interest groups.  Civil interest inside possessing education.  Participation in private entities.  Network as well as connection of the schools.  Project of the professor in addition to teachers determined towards reform.

WEAKNESSES

 Calculation of the real demand, talent to make a sensible plan of supply.  Participants have a facility for decision making, conflict of interest  dependence as of the tuition fee  Teacher and workers salary and wages, allowance, social welfare  Lack of savings and out-dated facilities lack of essential infrastructure.

OPPORTUNITIES

 Policy pursue from administration  Public force on improvement  superior message, technology, opportunity

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THREATS

 View on reform is not firm, affected by attention  necessary investment, reliability of the monetary source  Education value, injured standing

THE EDUCATION SECTOR IN INDIA

The right to education bill that was current of air in 2005 has not been approved and all conversation on the function of the private sector in learning had been scuttling. Therefore it was hearting to note that lacking delay after the vote of self-reliance, the HRD ministry ongoing discussion of going to assemblage to start some serious reform in the education sector. The supplementary area that is middle is the deregulation of the university sector and allows distant and confidential distribution in college and universities. The HRD Ministry has once more happening talking about deregulation and regimenting higher education in line with the recommendation made by the information charge. There is modest time this educate assembly has and therefore it would be enormous if it could begin these improvement.

Education in India has suffered from harsh troubles. It has forever been seen as a restricted section and the poor were always gone out. Even now there are thousands of village lacking entrance to schools. Even if there are schools, they are destined to give students to universities, where the best go to. sensible and occupational learning was unnoticed as that was not an area where the most excellent sector would go to. Also, education was measured an area where the government would have total ownership and control. While commercialization was careful desirable in other sector, it was not merely seen as a decision in education, and in comparable ways in the health sector, together these sector experience as they only provide access to the rich and the urbanized India. But in this section we shall not argue the health sector. As a outcome what happen was that very few schools and colleges were opened and since the sector was completely run by the government, the people it could employ as ability were typically of poor excellence.

The improved faculty was a small number of and far between and more exceptions. Even now the difficulty is sharp as is replicate in the more than 40 % opportunity that

111 survives in our ruler colleges like the Indian Institutes of Technology and the Engineering Colleges.

OBJECTIVE OF EDUCATION

INDIVIDUAL DEVELOPMENT:-

 Develop the physical & mental faculty.  Acquire the capacity of sensitive, pleasure and look through sound and act by the aims of education.  Mean of education should be to make family personality in no hesitation and nature needy and to make them strapping actually and psychologically.  Education is planned to urbanized every child’s quality, behavior and traditions and as much facts as the child can take in not only memorize.

SOCIAL AND NATIONAL DEVELOPMENT:-

 Social aim of teaching is similarly chief since an individual lives in society and they have their responsibility towards his nations.  There is perceptive that “the present education system does riot required results mainly because it is removed from the social content and goals.”

SOCIAL TRANSFORMATION:-

 Education should not simply equip a human being to adjust with society to its customer and gathering, but it be supposed to allow him to bring attractive change in the culture.  It has been consequently not necessary that every instructive institution from secondary school to University College should be urbanized to develop into a collection of change....  However, it is central that we should be quiet clear about the reason of modify.

VALUE EDUCATION:-

 Education is a reasonable effort toward learning basic facts about humanity. The center idea behind value education is to nurture vital values in the student so that the nation that teaches us to administer complexity can be constant and additional urban

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SWOT ANALYSIS OF EDUCATION INDUSTRY OF INDIA

STRENGTHS

 A significant initiative towards achieve worth was taken by UGC through the concern of NAAC as well as NBA through AICTE.  Indians have turn into the richest and the majority expert cultural group of people in overseas by the good worth of the highest education moreover human resources.  Higher education is highly subsidized in addition to thus it is easily reached to the weakest of the weak. It is equity & accessibilities principle has allow many of the inexpensively poor to obtain upper education.  Higher education has provided as a tool of social vary.  It has built-in us internationally by the good quality of English as a average of instruction.  Globally competitive.  Several institutions of brilliance acquire deem Universities and self-sufficiency position.  Indian universities are making offshore campus in a foreign country.  Several Central Universities such as IITs, IIMs, TATA and IISC and the laboratories of CSIR are accurate as center of superiority with worldwide values and are also familiar globally. WEAKNESSES

 No provision in academic review in Universities and Colleges.  Need of mission for quality in majority of institution.  Academic head in mass of university, Colleges at the faculty level are chosen by best part, not selected on merit.  Decision making in university is highly centralized.  Complicated office events and executive employees are not efficiently trained.  student are not concerned as partners in executive process. .

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OPPORTUNITIES

 Autonomy to be given only after NAAC’s authorized approval and higher rating for it.  UGC appraisal professional committees may be club with NAAC/NBA’s assessment and official approval examine terms in the area of comparison.  Acts, statutes and organization of the UGC. AICTE and the universities are in conformity with one another and go behind a comparable outline.  The part of NET examination consequences of a University may be taken as the one of the key stricture of presentation of a University/Institution. .  Universities necessary to respond at pace with the universal change in other sectors.  Students are needed to be treated as customers and the Universities have to work more towards approval of the changing needs and goal of the students.  Newest technologies like web learning, internet, and video talks are a fully utilized.  Education to be included with other sectors like health care, poverty lessening, communications growth etc.  Educational liberalization the length of with national and state height target can be system in advanced education as in the region of Agriculture, Commerce, Economy, and Industry. THREATS  Professional education to important extent is commercialized in the face of the involvement of the government.  Mainstream of the students are studying customary course away of pressure and be short of of option but without an attention to follow them sincerely.  Skill education has become endangered and only just few takers are there for them.  Several courses are run just for sake of sustained existence of those departments and to continue the job of teachers.  Lack of educational review instrument makes it smaller amount promising to provide monetary help on the basis of educational excellence

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THE EDUCATION SECTOR OF GUJARAT

The Gujarat secondary and high secondary Education panel (GSHSEB) is in charge of the schools run by the association of Gujarat. However, the majority of the private schools in Gujarat are related to the middle Board of Secondary Education and board for the Indian school certificate Examinations board. Gujarat has thirteen state universities and four agricultural universities.

Gujarat is and known for many national level institutes. The Space Application Centre (SAC) is an institute for freedom research and satellite communication in Ahmadabad, India, under the guidance of the Indian breathing space Research Organization (ISRO). Dr. Vikram sarabhai, a legendary scientist, industrialist, and seer Gujarati, play a significant position in it. He also found Physical Research Laboratory; a research organization encompasses Astrophysics, planetary system, and space energy. He also envision Indian Institute of management Ahmadabad, one of the globally made-up management research institutes that is located in Gujarat’s profitable resources Ahmadabad and is the top rank institution in country.

Central Salt and Marine Chemicals Research organization has been established under council designed for scientific and engineering Research management of India at Bhavnagar. It was install by Late Pandit Jawaharlal Nehru, the first prime Minister of India on 10 April 1954, with a view to stand out research on maritime salt. And salt from internal lakes and sub-soil salt water, it is operational.

KALA BHAVAN, MAHARAJA SAYAJORAO UNIVERSITY OF BARODA

The Maharaja Sayajirao University of Baroda, Vadodara is a premier institution of higher education of Gujarat and has been ranked among the top 10 universities by “India Today and Hindustan Times” in their survey. It is single of the oldest universities of Gujarat and is known universal for its Faculty of Fine Arts, manufacturing, Arts, reporting, and Education, Law, social Work, medication, Science and performing Arts. It is Gujarat’s only entirely English Medium State university. Initially known since the Baroda College of science. it became a university, Ahmadabad University, Saurashtra University, Veer Narmada South Gujarat University, Nirma

115 campus and Hemchandrcharya North Gujarat University are also surrounded by reputed universities, affiliate many reputed colleges.

Gujarat also has a few of the most excellent engineering institution in India like Sardar valabhbhai National Institute of Technology., Dhirubhai Ambani Institute of Information and communication Technology, IIT Gandhinagar and Institute of technology below Nirma University. Gujarat Science City is a administration scheme to illustrate more students towards education in science, an amphitheatre, and dancing musical fountain in the middle of others. Institute of Management under Nirma University is continually ranked among the top MBA colleges in India. B.K. school of Business Management is ranked 6th in conditions of financial Management K.S. school of Business Management is also an MBA college in Gujarat University as long as a unique five year’s included MBA course. The National Institute of Design (NID) in Gandhinagar is internationally highly praised as one of the foremost multi-disciplinary institute in the ground of plan education and research centre for Environment planning & Technology University, popularly known is single of the best preparation and architectural school not in India, but diagonally the world; as long as various technical and professional courses. In addition up, institution of rural management Anand. IRMA is a one of the most important pectoral institutions in rural management. IRMA is a unique organization in the sense that it provides expert education to teach manager for rural management. It is the simply one of its type in all Asia.

Apart from that, Mudra Institute of declaration Ahmedabad (MICA) is one of the the majority famous institutes for mass communication and is well-renowned crossways India, IIT Indian institute of knowledge was documented at Gandhinagar in the year 2008. IIT Gandhinagar is mentored by IIT Bombay. Government college, Chandkheda, and Gandhinagar . the Institute of Seismology division, Government of Gujarat in 2003 and is record as a society. ISR campus is at Raisan, Gandhinagar in a extensive and attractive area on the banks of sabarmati River. Amis and objectives include assigning optimum seismic factor for building in diverse region and long-term appraisal of tremble possible.

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SWOT ANALYSIS OF EDUCATION INDUSTRY OF GUJARAT

STRENGTH

 Thirty years of proven practice in university level education and training with growing significance on research and consultancy activities to more enhance quality of teaching and training.  Up-to-date facilities and communications like laboratories, teaching aid, networked computers, farm, radio telescope etc.  Educational activities adapted to the more latest socio-economic trends resultant in the development of a broad range of courses.  Quality promise of courses through established link planning with foreign university most important to international recognition of University of qualifications.  Experienced academic and support staff and continuous improvement of human resources through a planned staff development programme.  Transparent choice of students based on their merit.  Ability to participate fully in forum and activities conduct in two major international languages, English and French.  Successful adoption of mixed mode escape for common modules with large class sizes.

WEAKNESSES

 Low recruitment and retention levels of staff due to unlikable terms and conditions of employment.  Important confidence on unpaid lecturers in some Faculties.  Inadequate research culture emanate from the initial "developmental"  Low proportion of PhD holders between educational staff.  Little emphasis given to the recruitment of international students.  Inadequate records facilities thus warning academic development.  Inadequate public transport facilities after normal working hours.  Lack of land for future expansion of the campus.  Lack of services for student welfare/counseling/career guidance.  Limited sports facilities and other campus activities.  Deficient provision for an all round development of student character.

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 Insufficient sense of belonging to the University.  Few opportunities for continuing education and lifelong learning.  Weak public perception due to the absence of a public relations strategy.

OPPORTUNITY  Internationalization of activities, especially regionally, including recruitment of international students.  Diversification of sources of income through improved utilization of consultancy and research potentials.  Strategic alliances and partnerships with institutions of international reputation for contribution university courses.  Strategic alliances through national institutions.  Exploitation of multi-lingual assets to become a local multi-lingual centre.  Use of distance education, flexible learning and acceptance of new information and communications technologies to increase admission.  Strategic position for the organization of global seminars development programmed within the locale of globalization.

THREATS

 Inapt funding prevents scope of future growth and productivity.  Free university education within the background of growing tendency of privatization.  Large number of providers of university level education.  Deficiency of an effective national regulatory framework for authorization of degrees.  veteran staff leaving for greener ground

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The Service Sector of Malaysia & India

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SERVICE SECTOR IN MALAYSIA:

The service sector is strongly known as the tertiary sector and Industries. Service is defined in conventional economic literature as uncountable goods and services. The tertiary sector of economy involves the provision of services to businesses, firms as well as final consumer’s beneficiary.

It has been globally accepted that an adequate measures of service sector contribution to the economy is 22% of total exports. In Malaysia the figure for 2006 and 2008, at Ringgit Malaysia (RM) 101.9billion and RM103billion respectively, came up to 18%.

According to World Trade Organization (WTO), eight Growing and developing countries are in the list of the world’s 30 biggest exporters of service sector and Malaysia was ranked 30th in 2008. At Currently 9% of the services sector shares of Gross domestic product consist of services provided by the Government. The remainder is the trade services sector which has commercial, growth and development prospects. Industry policy in Malaysia falls into four types. Each type is characterised by different objectives:  Wealth redistribution industrial policy is intended at making sure of a fair distribution of wealth amongst all different races in the nation.  An export promotion industrial policy is objective at endorsing the development of manufacturing industries serving in foreign markets and global market.  Import substitution industrial policy’s reasons for promoting the development of manufacturing industries serving domestic markets and also for Internal markets.  Response to globalisation industrial policy aims dealing with new competition from large firms in the domestic market.

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 Export promotion industrial policy:  Malaysia has executed this policy extensively for the years. This has assumed the form of granting tax incentives and holidays, establishing export processing zones and industrial areas.

 Import Substitution Industrial Policy: Malaysia has been executed at least two types of import substation policies. The first type targeted at promoting the development of light industries like food, paint, and clothing. The second type had focus on the development of heavy industries. This kind if industrial policy is executed through targeted government investments supported by tariff protection, import, restrictions, and at times government favouring products manufactured locally.

SWOT ANALYSIS ON MALAYSIA:

 STRENGTHS:

 Malaysia is a country on the continuous going on. Often dubbed the lucky country because of its wealth of electronic technology, mineral resources and fertile soils, Malaysia did not rest on its laurels but took decisive steps to progress from an economy dependent on former agriculture, primary commodities and electronics goods in the sixties to a manufacturing-based, export-driven economy spurred on by high technology as well as new innovative technologies and innovative ideas develop, knowledge- based, talent based and capital-intensive industries. The structural transformations of Malaysia’s economy develop from last 35 years surprise.

 Continuous Economic Growth: Malaysia’s new innovative and faster booming work management through economy is extremely and gradually improvement. Malaysia continuously changes and

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modifications of technology and skill development through as impact that Malaysia economy flexibility examine competitive countries. Their main motto is continuous development and change.  Supportive Government Policies: Malaysia Government also takes seriously initiative to being strongly helpful for public sector as well as private sector business. Government take same liberalize against critical government rules and regulations. And also provide tax benefits plans for service sectors booming. Like liberal policies for foreign direct investment in service sector.  Liberal Equity Policy: We know that some countries government involving in private sectors business and some government restriction rules and regulation due to its business does not expansion but in Malaysia government allowed 100% equity holding in project markets and also allowed 100% foreign direct investment in service sector.  Attractive Tax Incentives:

Malaysia's company tax rate is balanced and attractive at 29% and is approved to both internal and external companies. Malaysia also offers a exceed of tax incentives and compensation for manufacturing projects under the Promotion of Investments Act 1987 and the Income Tax Act 1967. The main benefits and incentive are the Pioneer Status, Investment Tax Allowance, Reinvestment Allowance, and Incentives for High Technology Industries, purchasing and selling equities and incentive plan for Strategic Projects and Incentives for the establishment of International/ Regional Service-based Operations.  Weaknesses:

 Malaysia needs to lock itself in to great Asian player’s china, India, US and Indonesia.  Service sector growth can leverage Asia-pacific momentum while also keeping employment and money at home.  Malaysia needs to expansion its strategic South China Sea location and positions itself as service hub for emerging Asian middle classed- the so called air Asia game plans.  Malaysia can drive its growth and features by providing services to only Indonesians.

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 Opportunities:

 Liberalization of services sector: The liberalization of the services sector in Malaysia will open up greater opportunities for the young generation to be employed in an international company. International Trade and Industry Deputy Minister, Datuk Jacob Dungau Sagan yesterday said the presence of the foreign companies would diversify the sectors into areas that were yet to be ventured by local companies. Speaking at a press conference after making his presentation at his ministry's open day at University Malaysia Sarawak here, he said the Legoland theme park in Johor's Iskandar Malaysia development was among the successes achieved through the liberalization of the sectors.  Indian fast foods and finger foods: In modern time youth are mostly like to eat fast and finger foods like pizza and burgers. It is a very favourite food in India as well as many other countries. MacDonald's and Pizza Hut know as their pizza and burgers favours. It’s a lay good role model in fast food service industries. They are provide best quality products and with low prices. and also provide best infrastructure for consumers.  Family diners: In Malaysia live many others religious peoples so same religious take lunch and dinner with whole family members. Well arrange sitting and different religious favours food. Create like a home atmosphere in the restaurant.  Sandwich & salad parlors: In Malaysia peoples does not like to eat heavy and spicy foods so Malaysian peoples like to eat soft and health food like Salad and Sandwich. And like to eat in the morning whenever commercial peoples going to daily work duties. Means breakfast food. Salad and Sandwich is most health for maintain perfect health.  Bread and other bakery product outlets:

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In foreign and fast growing countries peoples have not sufficient time to cooking and arrange dinner food. So they are like to eat Bread and other bakeries product with one cock. These are ongoing food like walk and eat. In Malaysia bread and bakery’s business is earning good profit with lower margin of investment.  Career counseling centers: Every year 32 millions born in Malaysia, and minimum 3 million of these likely to go for studies about the 12th grade but having not well about the job and vocation trends in India and beyond the other countries, to this is only one sector that is poised for faster growth. Through peoples being well aware about importance of career and its goal.  THREATS:  Financial Services Sector: Bank Negara Malaysia, the country's financial services regulator, said the domestic life insurance sector will continue to grow with the economic recovery, and will not be adversely affected by the acquisition of AIA Group Ltd. by United Kingdom. - based prudential pictures. - The growth is mainly due to improvements in the performance of the equity market and in business conditions. Growth figures show the financial sector in Malaysia remains sound and resilient, said by Bank Negara Malaysia. - The proposed acquisition of American International Groups by Prudential may lead to more intense market competition and a potential layoff problem in Malaysia, said the regulator. A spokesperson declined to comment on whether it will take actions to protect the insurers' employees and policyholders, but said efforts are constantly undertaken to ensure that the financial sector continues to remain strong and robust to effectively meet the financial services needs of the economy. Threat of terrorism in Malaysia: The impact of the public displeasure of the Prime Minister, Datuk Seri Dr. Mahathir Mohamad in his message to the Dewan Negara on Monday over the move by certain countries to place Malaysia on top of the danger threat list issued to travellers affecting tourist arrivals and the entry of foreign investment could not last more than 84 hours, for it was completely eclipsed by the latest warning by the United States on Wednesday that terrorist attacks similar to last month's Bali bombing which killed nearly 400 people could take place in other Southeast Asian nations, including Malaysia.

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 Threats of safety and security: The Department of State remains determined about the possibility of terrorist attacks against United State. Citizens in Southeast Asia. In each and every organization Safety and Securities in major problems. Every country spends much money on Safety and Securities but they also result in uncertain and not garneted. The United State Government has been designated two such groups, Jemaah Islamiyah (JI) and the Abu Say yaf Group as Foreign Terrorist Organizations. JI, which has a known presence in Malaysia, is linked to al-Qaeda and other regional terrorist groups and has cells operating throughout Southeast Asia.

 Traffic safety and road Situation: While in Malaysia, you may encounter road condition that differs significantly from those in the United State. The information below about to Malaysia is for general reference only and may not be totally conformed and accurate in a particular areas and circumstance. Many car borrowing agencies in Malaysia are willing to rent vehicles for a long term and short term to United State citizens with valid United State driver's licenses. In many area road and infrastructure is not properly development so it’s a threat for a counties. Nevertheless, if you plan on drive in Malaysia, you have strongly international driving licence and driving permit. More information on how to obtain an International Driving Permit is available on the Road Safety Overseas section of the Department of State authorise persons website. If you plan to stay in Malaysia for a longer period of time, you must have a local and NRI visitor’s driver's permit through the Road Transport Department of the Malaysia.

SERVICE SECTOR IN INDIA:

The service sector now count for more than half of India’s Gross domestic product: 53.16% in 1998-99. This sector has exceeded at the expense of both the agricultural, Information Technology and industrial sectors through the 199s. This gain in the service sector’s share in Gross domestic product marks a structural shift in the Indian economy

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and adopt it nearest to the fundamental of a developed/growing economy (in the developed economies, companies, industries and service sectors play a major share in Gross domestic product while agriculture accounts for a relatively lower share). The service sector’s share has gain from 47.69 % in 1990-91 to 55.16 % in 1998-99. In contrast, the industrial sector’s share in Gross domestic product has declined from 27.38% to 20.01% in the 19990-91 and 1998-99 respectively. The agricultural sector’s share has declined from 38.93% to 24.83% in the respective years. Many economists caution that if the service sector bypasses the industrial service sector, economic growth can be disorted. The say that service sector growth must be supported by proportionate growing of the industrial sector, otherwise the service sector growth will not be stable. It is true that, In India, the service sector’s contribution in Gross domestic product has sharply grown and that of industry has declined. But, it is equally correct that the industrial sector has to fast growing, and grown quite impressively through the 1990. Services or the tertiary sector of the economy covers a widely gamut of activities like trading, Information Technology, finance and Banking, infotainment, real estate, transportation, security, management and technical consultancy among several others service sector. The various sectors that combine together to constitute service industry in India as per the below:  Information Technology  Hotels and Restaurants  Banking  Other Transport & storage  Communication(post, telecom)  Railway  Insurance  Real Estate Business  Business services  Public Administration; Civil services  Personal Services/ home services  Community Services

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SWOT ANALYSIS ON INDIA:

 STRENGTH: The accelerated economy growth of both India and china in presently year has been a focus of significant strategy discussion and analysis. On the different hand this growth is led by the It industry in India, on the other, it is the manufacturing industry based in china. However, service sector play very different role in both countries. the share of service sector in India’s GDP is 62% while its share in china GDP is 48.70%.since 1992,india and china have witnessed spectacular average annual growth rate of 10.5% and 6.6% respectively (for period of 1992 to 2005). In India, service sector has become dominant contribution, like that the success in this regard has been called is India’s services sector revolution. However, in china, the services sector has lagged behind the manufacturing sectors. During the 1955 and 1965, research by Kuznets and chenery suggested that the development would associated with sharp decrease in proportion of GDP generated through primary sector, counter balance by significant increase in industries and modest increase in services sector. Kongsamut conducted a study of 125 countries and shoe that the sector share given agriculture as the economy lecture goes more services sector and less to the industries. Furthermore the Morden view also suggestion that the share of agriculture decrease the economy growth with an increase in services sector, and share of industries first increase and then stabilizes or declines. India’s growth trajectory fits in the pattern. Quite exactly in the four decade period 1955-1990, agriculture share in GDP decline by 30% while industries and services, both gain equally. The share of industries stabilized in 1990 and the whole subsequent decline in agriculture has been picked up by the services sectors. However, we were seen that despite a considerable decrease in the share of agriculture in Gross domestic product, there has been no significant decline in the share of agriculture in employment .on the other hand the share of services in Gross domestic product has been raised but with no increase in the share in employment. As Metter of fact, that there has been a decline of 1%.

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 WEAKNESS – LIMITATIONS: The services sector in India as at present, suffer from low productivity low quality in spite of fairly large investment in technology unless sustained effort are put in to improvement of these, with the increasing importance the services in weak of structural adjustment and liberalisation in the economy, we may get in two alternative scenarios. One, economy and social position of workers in services sector will steadily go down since real incomes cannot be higher then productivity for any extended length of time. This means economy stagnation and consequent social and consequent social tensions. Two, the workers in the sector will use their numerical strength to get wage higher than their economic contribution justified. Reducing every ones income and increasing unemployment, like, personnel having technical skills Two, the workers in this sector will use their numerical strength to get wages higher than their economic contribution justified it. Reducing everyone's income and increasing unemployment, for example, personnel having technical skills. The knowledge, the workers have about their job, is the starting point for improving productivity, quality and performance. Partnership with other equally knowledgeable workers is the only way to ensure higher productivity and qualities of product.

 OPPORTUNITIES: As below list of opportunities ready for the taking of the food and services areas is rather long. Among the most interesting one in the food and dinner sector are as following:

 Indian fast food & finger food: While pizza and burger and popcorn may find a lot favour from Indians across India and across all age and income groups, the facts remain that almost all religion of India still have their own local fast food options and outsell the ordering by mail. MacDonald's and Pizza Hut can be the important role models in terms of efficiency of service, quality, hygiene, and overall value but the menu should be Indian rather than Indianite version of American food.

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 Bread and bakery product outlets: KSA studded on the eiting habits of urban Indians specially bread and other bake products are very high changing preferences per KSA studies on the eating favours of urban Indians, specialty bread and bakery products are very highly on the changing and modify their preferences. The success of five-star and six star-hotel-based bakeries for the up market consumers.

 Multi cuisine healthy food stores: for a country having such a wide range of repertoire of cuisines, and the ever increase more adventurous Indian plates, and the growth an eating at out as an activities.

 Ice-cream and juice/beverage parlors: There have been many starting at an initial stage and some continue to doing superbly such as Bhailal. Sadly, however, there is a glaring gaps between the nearly price & value need and the available many options if one were to note that Bhailal is biggest Delhi-based and the only other choice is perhaps Baskin Robbins.

 Indian "desserts and snack food" chains: It’s a lovely soft and tasty food and peoples are like it to eat. Lastly, in the genre of food and food service chains, it is a biggest opportunities to starting national, local publics, NRI or at least regional chains offering Indian sweet, namkeen/farsaans, and snack-foods such as vada and samosas. Manmohan success should certainly put any doubt on this opportunity to rest. It’s a chines food to eat. What is needed is a belief that the Manmohan business model can be replicated (and certainly improved and modified upon from the customer service perspective) by even large business houses such as ITC and others.

 THREATS:

 Cyber attacks leading threat against USA: US intelligence leaders said for the first time on Sunday that cyber attacks and cyber espionage have supplanted terrorism as the top security threat facing USA.

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 India’s global dreams need local solutions: If we do a few things correctly, there will be a gradual shift in the way India is viewed by the international community when it comes to manufacturing and Mechanise, writes V Raja the National electronics manufacturing policy passed by the Cabinet will work if we fix the operating environment and tax structures. It has become common for our trade pundits to make emphatic claim that India is set to become the next major international manufacturing hub, an aspiration or wishful thinking.

 Travel agents to seek review of a transaction fees: Travels agent associate TAAI and TAFI have decided to appeal in the Supreme Court to seek a review if its recent directive that had banned airlines from charging transaction fees in any form. We are an affected party of the Supreme Court directives. We will petition the apex Supreme Court for modifications or change in its directives and interim measures. We want a status quo ante, Travel Agents Association of India (TAAI) legal advisor Bhupendra Singh Chauhan told reporters in Mumbai.

SERVICE SECTOR OPPORTUNITIES IN GUJARAT:

Service sector consist of the soft parts of the economy such as insurance, government, tourism, banking, retail, education and social services. In soft sector employment people use time to deploy knowledge assets, collaboration assets and process engagement to create productivity, performance improvement potential and sustainability.

TYPICALLY SERVICE SECTOR EMPLOYEMENT INCLUDE: - Hotel & Restaurants - Business services - Communication - Tourism Business - Banking & Insurance - Information Technology - Education & HRD - Transport and storage - Consulting - Real Estate

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 India’s large sector of engineering & Technology talent and its rapidly expanding telecommunication sectors, IT–ITES have in current years been the key catalyst of growth way.

 Growth and improvement of effectively in others key areas, such as Information Technology, financial services, transportation and transport infrastructure facilities, are vital to facilitating expansive of service sectors of the economy.

 EMPLOYMENT DISTRIBUTION:

 Employment is distribution across the services sector with community, social and personal services accounting for 0.9 million followed by transport, financial, IT, storage and communication etc.  The total employment opportunities in public sector and private sector has been increased from 1.75million at the beginning of June 2007 to 1.90 million at the end of July 2008 growing at 2.35%  The employment in a private sector has been increased to 0.955 million at the end of July 2007 to 1 million at the end of 2008.

 EDUCATION SECTOR:  Gujarat had an effective and efficiency literacy rate of 61.3% as per 1991 census. Gujarat goal to have 100% literacy by 2011.  Knowledge based and talent based companies have been prominent among the booming and fastest growing services in the Gujarat.  The provisional number of education institute imparting primary education is 39,066 in 2006-07  32 university and 43 degree engineering and 57 diploma collages provides a pool of quality knowledge manpower.

 EDUCATION OPPORTUNITIES:  Setting up of short term and distance learning courses in existing ITI, Polytechnics, diploma and Engineering Institute.

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 Start up of anchor Institutes in various different focus industry sectors.  Start up of Bio-Technology research oriented Collages & institutions covering a wide variety of contract research of bioremediation and quality certification and validation facilities and institutes specializing post graduate courses, graduate courses, specialized courses and value added courses  Opportunities in health-care sector to growing and improvement of facilities clinical research institutes, Healthcare Outsourcing (BPO).

 HEALTH SECTOR:  Healthcare’s important for having a healthy production workforce and normal welfare so as to achieve population stabilize and good health.  Gujarat is on very firstly forefront of setting up and maintaining good health infrastructure at different levels. Recently 1425 health institute are functioning at different levels 1075 primary health centers, 275 community health center and sub district level hospitals.  Gujarat offers holistic medicinal services and cost effectiveness treatment through various district hospital, sub district hospital and private specialty hospitals.

 INFORMATION TECHNOLOGY:  The projected software export will be achieved 242 million USD in 2011-12.  The state produce around 611919 graduates each year, nearly 14.7% of which can be directly from the IT workforce based and the rest have the occupied to be employed in the its sectors.  The state has 38 AICTIC approved engineering collages which produce nearly 14000 students every year.

 TOURISM SECTOR:  Gujarat has immense potential to become a biggest tourist destination. Its historical monument represent the religions of Asia- Hindu, Buddhistt, jain, Islamic, sikh and parsee.

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 There are above 400 archaeological websites in the state including many of the most substantial excavations of Indus valley tourism civilization period at Lothal.  The state has important pilgrimage place like Dwarka, Somnath, Dakor, Ambaji, Udwada, Navsari, Pawagadh, Surat and Vadodara etc.

 REAL ESTATE SECTOR:  The industries of the state have helped the real estate industries to groom in different cities and areas. The expenses of real estate properties in the cities, town, villages and areas like Ahmadabad, Gandhinagar, Surat, Vadodara, Vapi, Bharuch etc are very encouraging and these have been emerged as important sector for investment.  The real estate sector has been strong witnessed of Development. There are many factors for this like wholesaler, retailer, IT, finance, BPR, KPO and telecom etc.  Through road roads are connectively between many areas, villages, cities and towns. It has one of the top per capita power uses/consumption (1185 units, as compared to India’s average of 596 units) and competitive industrialize/commercial real estate rates in comparison to other states in India.

SUGGESTIONS:

 Malaysia should expand their businesses in other countries.  Malaysia can expand and grow their hotel industry in India by providing Malaysian food.  Growth and improvement of effectively in others key areas, such as Information Technology, financial services, transportation and transport infrastructure facilities, are vital to facilitating expansive of service sectors of the economy.  Malaysia and India has great opportunity in employment.

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Agriculture Sector

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INTRODUCTION Malaysia is the largest market for India’s engineering goods in the ASEAN region. Areas of operation for Indian companies are. Information Technology, Biotechnology, Manufacture Of Textiles And Yarn, Palm Oil Refining, Manufacture Of Drugs And Pharmaceuticals, Automobile Associated Activities, Specialty Chemicals, Steel Furniture Rubber Products.

Agriculture in Malaysia makes up 12% of the nation's GDP. 16% of the population of Malaysia is employed through some sort of agriculture. The plantations such as rubber, palm oil and cocoa had made a good opportunity for Malaysia. There are number of crops which are grown for domestic purpose such as bananas, coconuts, durian, pineapples, rice, as well as rambutan.

Rice is a staple foodstuff diet of Malaysians and it is a symbol of traditional Malaysian culture, the production of rice, which stood at 1.94 million metric tons, plays an important part in the country's agriculture. However, the production of rice does not encourage the country's needs and so Malaysia imports rice from Thailand and Vietnam.

The agriculture sector in Malaysia can be divided into two sector i.e. land sub-sector and smallholders’ sub-sector.

The estate sub-sector consists of business enterprises generally involved in the invention of industrial crops such as cocoa, rubber and oil palm and is owned by

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private companies, public-listed corporate entities or public land development agencies.

The smallholders’ sub-sector is less commercialized and is mainly for food production such as fruits and vegetables.

CONTRIBUTION TO GDP

In spite of the refuse of agricultural contribution to GDP, it gains a high priority in national development planning. The main reason is poverty in this sector remains obvious. The agricultural sector seems to be necessary or very essential in reducing the urban rural disparity gap. The share of this sector in the GDP is decreased from 29.9% in 1970 to 22.9% in 1980, 18.7% in 1990. Thus in 1999, agricultural sector accounted for 9.4% of the GDP, 8.4% in 2000 and decreased further to 8.3% in 2010. The primary sector such as agriculture, forestry and mining made up contribution at the year of independence was 45% in comparison to the secondary sector (manufacturing and construction) 11%.

CONTRIBUTION TO EMPLOYMENT

Due to low rubber prices and lack of logging areas, the employment here decline. These fall in percentage of the workforce that the employment in the agriculture sector is contracted appropriate to the increased use of labor saving technologies. So causing labor shortage as local labor force shifted into economic sector for higher wages and improved farm management. In 2000, 15.3% of total employment stated that 1423 thousand employee and tend to decrease in 2005 (13.3%) and 2010 (10.9%). Agricultural has increased job opportunities and created different sources of income. However, in the agricultural sector the overall employment has reduced over the years, while those in manufacturing increased.

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SWOT ANALYSIS OF AGRICLUTURE SECTOR OF MALASIYA

SWOT

ANALYSIS

STRENGTH THREATS WEAKNESS OPPORTUNITIES

STRENGTH

The Malaysia’s tropical climate is very favorable for the production of various unique fruits and vegetables as well as for palm oil and paddy. This area is very rarely affected by hurricane or famine. Malaysia has a humidity level of 90% due to its location is close to the equator. The weather is hot and humid whole year. Malaysia is occupied with hills along with large scale agriculture requires a high quantity of flat land. Malaysia does not have a strong temperate climate. Because of these disadvantages, Malaysia

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cannot produce adequate amount of rice crops and other food products to supply the country and forces it to import.

In East Malaysia and in the northern states of Peninsular Malaysia logging is an important export revenue earner. More tropical wood and sawed tropical timber abroad than any other country is one of the biggest exporters of hardwood

WEAKNESS The soil is highly leached infertile acid tropical soils and as such fertilizer application is important in Malaysian agriculture. The total land area of Malaysia is 328,550 km. Of this, 68 % are forests & woodlands, 12 % are planted to permanent crops, 3 % are considered arable lands and the remaining 17 % for other purposes. In the marketing system and R&D the lacks of funds and marketing outlets have restricted their products to the consumer.

Rubber, oil palm and rice occupy the mass of agricultural lands. Oil palm and rubber, considered as “golden crops” because of their highly exports, comprise 44 % and 29 % of the total agricultural land, respectively. Though, the area dedicated to rubber has been declining ever since the early 1980s due to the weak rubber prices.

During the period 1985–1995 which caused a turn down in production and shortage of raw materials that ultimately led to the closure of many processing factories. Oil palm area, on the other hand, has shown an increasing movement from 1,482,400 hectares in 1985 to 2,540,000 hectares in 1995, with yearly growth rate of 5.5 %.

OPPORTUNITIES New rice varieties and new technologies from research and development efforts can be accepted. Rice is a significant part of everyday Malaysian diet. Malaysia produced 1.94 million metric tons of rice. Yet with high production, Malaysia still produces only 80% of what it needs to support itself and must import the rest. The increasing population is in need for more research and technological advancement to have a growth in rice production for consumption.

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Alternative crops to plant every season & managed to reverse the previous trend that is “reducing production and increasing rice imports”. Marketing strategies can be enhanced to offer agro products to their consumers.

THREATS

Agricultural of some rainforest land proves to be a failure for its helps to grow incomplete, acidic soils of these forests. In general forest clearers use cut and flame techniques to clear land instead of burning. Large single cash crops like rice, fruits, oil palms, coffee, cocoa, tea, soybeans, cacao, rubber, and bananas are cultivated. Some of these crops are well adapted to such conditions and last longer on cleared forest lands. Still, there are many problems with this type of single crop plantations (monoculture) in the tropics, also the loss of forest. Due to planting of a single crop, it makes the crop highly weak to disease and pests.

In natural tropical forest common infestations are rare as individuals of a given type are widely dispersed. The planting of single crop plantations can be economically risky with the price fluctuations, in international commodities markets. As well, a single cold mean or drought can destroy a substantial segment of the agricultural economy.

Due to natural calamities, there can be a great loss in agriculture (Hurricanes or drought) & global warming there is a change in climate

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INTRODUCTION OF INDIA

Agricultural production in India is a determinant of overall economic growth and a very huge employer of the rural population. Indian agriculture has an extensive background of last 10,000 years. At present, the agricultural production of the country holds 2nd position all round the world. In 2009, agriculture & it contributed 16 % of the GDP of the country. Additionally, the sector recruited about 52% of the total manpower.

In spite of that slow decrease in its contribution to GDP of the country, at present, agriculture is one of the biggest industries in India.

Total food grain production, for instance, amounted to 206.4 million tones, including 87.8 million tons of rice and 73.0 million tons of wheat. However, yields per hectare remain small by international standards. Other major crops grown such as oilseeds, cotton,

140 pulses, sugar, tea, coffee, rubber, jute & potatoes. The current slowdown in this sector is a issue for concern and calls for a change in the government's agricultural policy. Some institutes research suggests, India to maintain GDP growth of around 7 % or more, agriculture has to grow at, or in surplus of 4 %.

SWOT ANALYSIS OF AGRICULRURE SECTOR IN INDIA

STRENGTHS The Indian agriculture is large, competitive, healthy developed and it offers products at low prices. The sectors experience a regular demand; due to Indians have strong preference for fresh rather than processed foods & for local spices and ingredients. It provides employment to a large Indian population in rural area. The technology as well as government initiative supports the development of this sector. The government policy to strengthen and encourage IT power, the department of agriculture and cooperation takes a multiple of measures to promote the use and application of technology with the plan of making agriculture “online” for the use of farmers, exporters & traders, etc. • Rich availability of raw material • High availability of labor • Growing capacity of food processing industry • Vast pool of scientific and technical manpower

WEAKNESS

The main weakness present for the agricultural sector in India is lack of government support, the move of the workforce from agriculture to non-agriculture in India is particularly time consuming, largely attributable to rigid labor laws in both the agricultural & industrial sectors. It highlights the need for improvement in agriculture, in particular trade liberalization and export promotion strategies. Inadequate road linkages is also a major constrain for the expansion of well functioning agricultural markets. An ongoing destruction of land holdings, poor maintenance of irrigation systems and declining soil fertility in some areas.

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It is based on seasonal and the truth that agricultural sector production is heavily dependent on the annual monsoon, due to 1/3 rd of cropland is irrigated. The major food grain crops and some cash crops (oilseeds, cotton, jute and sugar) depend on the south west.

 Improper irrigation system  Unorganized Market  Traditional approach of farming

 Lack of awareness and consequently  Only seasonal product are focused for farming

OPPORTUNITIES

A rising population, rapid economic development, and political & social demands exceed the permission as well as the capabilities of any corporation in an emerging economy and India is no prohibiting to this. The growing population has made industrial development one of the Indian government's highest policy priorities. It is a key element of economic development, as it helps in raising national income at a more rapid speed. It is also a requirement for continued agricultural development. The government plays a vital role in assisting farmers throughout agricultural credits, subsidies, price support schemes & extension services. Even though there is no food security concerns at present, better agricultural productivity will hold the key to constant growth in food production, given the limits of the resource base. These opportunities helps for the economic growth to benefit more people only if the country increase agricultural productivity, improves its system of education to help the millions who must leave farming and promote labor intensive manufacturing industries. • Partner with firm that only plants and harvests crops. • Expanding international level Market • Developing organized market • Agricultural education

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THREATS

It is covered by forests and woodland, and one half of this area is reserved for the production of timber and other forestry goods. There are growing concerns from environmentalists and local government over the rapid reduction of forest areas, ecological factors, and insufficiency of natural resources.

When income rises, India is becoming an increasingly important market for processed foods, particularly in the cities and among young people. Aware of quality and international brands, consumers are less expected to support national products, and are more dependent to pay premium prices for foreign products of better quality. This represents a potential replacement to the local products, impacting the production levels of agriculture sector.

Food support prices for wheat and rice have given farmers little incentive to diversify and have filled government storage facilities to excess while keeping the market price of food grains artificially high. Current agricultural policy, which supports cereal rice production, is very expensive and will be unable to deal with the likely scenario of a shift in consumption from cereal food towards non cereal food. The beginning of high yield crop varieties and new fertilizing and irrigation techniques over current decades i.e. Green Revolution significantly increased productivity in some regions.

It is understandable that agricultural sector represents one of the most significant sectors of the economy of India. So, its prospective growth has to be one of the primary goals of the government development plans. The current state of the agricultural sector is a reason for concern and calls for a change in the government’s agricultural policy.

• Increased competition • import threat • environmental threat • threat to unorganized retail players

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IMPORT - EXPORT BETWEEN INDIA AND MALAYSIA

 India's export to Malaysia: sugar, rice (other than basmati), wheat, fresh vegetables and fruits, cotton yarn.  Malaysia's major exports to India: Palm Oil, rubber.

India's export storage bin to Malaysia is large and diversified consisting of sugar, rice, Groundnuts, wheat, fresh vegetables and fruits, cotton yarn. Although balance of trade has favored Malaysia, primarily because India imports expensive commodities from the former like palm oil and petroleum on a large scale the India. Malaysia trade is benefiting both nations.

EXPANDING TRADE RELATION WITH INDIA

For India as well as most ASEAN countries, food security is a key area of concern. There is scope for cooperation in improving productivity and in reducing wastage by application of knowledge, including with biotechnology, to various components of agricultural and agro-processing value chain. More purposely, India faces constant shortages of cooking oil, while Malaysia and Indonesia are major palm oil producers, creating opportunities for mutually beneficial cooperation.

Malaysia is not growing seasonal crops. So India can export those seasonal crops, vegetables and fruits (apple, mangoes and many more). Malaysia cultivates some fruits which are different like rambutan and durian. These are the specialty of Malaysian agriculture. These fruits will not find in Indian market so that can be exported by them to India.

Malaysia sends their students to India for agriculture study. There are several other areas particularly those relating to agricultural research and biotechnology -- where the

144 scientists from India could fruitfully cooperate. They could also seriously consider facilitating trade and investments in agro-chemicals and fertilizers. India faces persistent shortages of cooking oil, while Malaysia and Indonesia are major palm oil producers, creating opportunities for mutually beneficial cooperation.

EXPANDING TRADE RELATION WITH GUJARAT

Malaysia’s benefit can be further expanded due to the requirement of other oilseed producers to reduce support to their industries, which will most likely put upward pressure on prices of other edible oils such as soybean and corn oil. The higher prices of these products can result in a substitution effect that will be beneficial to palm oil. Cocoa can be imported from Malaysia.

Groundnut, Cotton, sugar, spices (like cumin seeds) can be exported to Malaysia from Gujarat. Gujarat is well known for tomatoes, tobacco, bajra crops, mangoes, so they can import from Gujarat.

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Conclusion and

Suggestions for

Developing Trade

Relations with India and

Gujarat

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Conclusion

The electronic industry is such a industry which is developing speedily day by day. Every individual living in this world uses electronic components in their day to day life. This disposable income of the people is also increasing leading to more demand of these items. Companies are also increasing their production and trying to fulfill this growing demand. There are various competitors also in this industry which are trying to attract the customers. The Malaysian electronic industry also has much strength which gives impetus to this industry along with the weaknesses which can be taken care of in the future. There are also various opportunities like developing new technology through research and development. But the greatest threat is China which is posing a problem. The Indian electronic industry is also very supportive and has many opportunities which can help us to develop trade with them. Gujarat has also various opportunities which can help in developing trade with Malaysia. Thus we can conclude that trade can be developed between Malaysia and India. Trade can also be developed with the state of Gujarat. Hence, efforts should be taken to develop trade and improve it. India’s government is welcoming joint venture collaborations with Malaysian Pharmaceutical firms.

There is a huge growing market

India can also do R&D investment in Malaysia.

Pharmaceutical product or generic products can be outsourcing from Malaysia.

Malaysia and India both are dependent on imports of healthcare product, so unique product of both countries can does export to each other.

Healthcare is available at very competitive charges so Gujarat become a lucrative destination for Indian people and foreign people wanting to undergo the best treatment at cost-effective rates

There are excellent multi-specialty hospitals with ultramodern infrastructure which offers attractive options for foreigners and NRI

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Hence it can be concluded that very good trade can be made between the two countries by taking initiatives in the areas like: Education, Advertisement, Transportation. Joint ventures etc.

Along with this as Gujarat is working enthusiastically in the area of tourism basically by making the advertisement done by the famous actor Mr. Amitabh Bachan.

Gujarat and Malaysia should go for tie ups between the tourism, transport, food and the advertisement industries for much better relations.

Also the countries can give discount coupons to the opposite countries tourists to attract more tourists.

At the end of study we conclude that Malaysia's leading mining industry is tin. Malaysia export this tin to India .Malaysian Smelting Corporation's Raman Hydraulic tins mine will continue the country's leading company. Malaysian gold mining industry is one of the most potential Malaysia has attractive mining governmental framework and keen attracting foreign investor. India is world’s largest producer for mica; also third largest producer of coal and lignite and barites. Other things of Indian industries and Malaysian industries use their own self.

Almost both nations financial system are same.

Regulation is done by central bank in both nations.

Discounts houses is the new terminology in Malaysia finance system.

Bursa Malaysia Berhad is the stock market of Malaysia.

Private equity and venture capital play a vital role in Indian finance system.

In India public banks has around 70 % contribution in banking system but In Malaysia other banks has major share holding in banking system.

Mutual Funds also major contributors in Indian share market as well as economy but in Malaysia there are no such funds.

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Malaysia has located itself to be the world‘s leading producer and exporter of rubber products. One of the challenges for the Malaysian rubber industry is to remain competitive against cheaper products from low-cost producers, particularly the People‘s Republic of China and India, through higher productivity and quality The Malaysian rubber products industry also has to remain flexible in competing with other natural rubber producing countries such as Thailand and Vietnam as these countries also have easy access to readily available raw materials.

Malaysian companies need to focus on R&D activities. Efforts have been made to improve efficiency, productivity, and new product development in the downstream activities to produce high value-added and high-technology rubber products such as for engineering, construction, and marine applications R&D is also required to fulfill with stringent standards and regulations imposed by export markets.

Gujarat is a very fast growing state in all over of India. In the Tenth Five Year plan the country has achieve 7 % economic development rate but Gujarat state has got 10.86 % growth rate. Thirty years of proven experience faculties in university level education and training with growing emphasis on research and consultancy activities which will further improve quality of teaching and training. Gujarat is land of chance in education. In Gujarat Indians most valuable education is establish like Indians institute of Ahmadabad and Nirma. They also provide distance education, flexible learning and approval of new information and communications technologies to increase access. Gujarat is faster enlargement state in education. Many huge companies now establish their organization in Gujarat.. . Many universities tie up with group and they present education as per organization menu card. Malaysian and Gujarat have similarity in education programme. Like they concentrate on culture education equal as Gujarat. There is an opportunities for the Malaysia for strap up with Gujarat universities like IIM and M.S. university. And Nirma university.

After doing the whole study we can conclude there are many factors of service sector of Malaysia, service sector of India and Gujarat and SWOT analysis of service sector of Malaysia and India to handle it effectively. The following are impacting on service sector.  Service sector of Malaysia and India are developing continuously.  After doing SWOT analysis of Malaysia and India we get the idea and know of all the sector’s situations.  Both the country has many opportunities in all the sectors.

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Mainly at improving physical infrastructure such as roads, irrigation and drainage systems, extension of production cost subsidies for such inputs as fertilizers, pesticides and seeds to increase rice yields, and the adoption of multiple cropping annually. Trade liberalization should be done by both the countries.

Till now no MOU’s signed for agro-business, so both country can increase trade relation between them by Signing MOU’s regarding Agricultural products. India is Malaysia's largest trading partner while Malaysia is India's second largest trading partner in the Association of South East Asian Nations (ASEAN).The aim of this agreement is to raise bilateral trade

Benefits of FTA, The deal were aimed at reducing or eliminating tariffs over 90 per cent of the goods traded between the countries. FTA between the two countries will lead to increasing investment in the research and development sector and enhance technology transfer from Malaysia to India, resulting in increasing production efficiency and quality. Reduction in input costs and costs of industrial production will lead to a greater competitiveness of Indian exports in the foreign markets. Petroleum will be cheaper due to reduction in tariffs on the imports of crude oil from Malaysia. Indian consumers will be spoilt for choice as they will get a larger variety of products at better prices.

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