Question

QUESTION 1:

You are required to identify the economic systems adopted in Malaysia and North Korea. Describe the characteristics of the economic systems for both countries. Provide suggestions to overcome the economic problems in Malaysia and North Korea.

QUESTION 2:

Find ONE article from the local newspaper or magazine related to fiscal policy in Malaysia. The article must be between January 2015 and January 2020. Summarise the article, highlight the important fiscal instruments used by the government in the chosen article and discuss the impacts of its’ actions towards achieving the country’s long run macroeconomics goals.

Answer 1

Question 1

Malyasia is ranked in the top twenty economies of the world with a world class competitiveness .It is the 7th largest economy in between the Islamic countries which is by Gross domestic product .The Economic system of Malaysia is based on LAISSEZ FAIRE , that is for the national interest and for realignment of national wealth there is free economy with the government control. This system of economy of malaysia focusses majorily on the trade and invetment , also including manufacturing and services.The main development of malaysia economy is due tp the wealth of natural resource in agriculture ,forestry ,it has .In 2015 the gdp was 296 billion dollar which represent 0.48 % of the world economy .The average economy GDP of malaysia is about 79.7 billion US dollar which is from 1960 to 2015 with record gdp of 338.1 billion US dollar oin 2014 financial year.The major produce of the country is cocoa , rubber,palm ,rice ,oil.Infact abundancy of natural resource in malaysia of minerals ,LPG,TIN,petroleum .The average oil production in malaysia is 619,00 bbl/day which was in 2015 octobver.It has a big share in mannufacturing and export .We can say that malaysia is the largest exporter of electrical goods and appliance and semiconductor devices in the world.

Characteristics

• Highly open , upper -middle income economy
• Diversification in exporting prodcut ranging from manufacturing of electrical to oil , natural gas etc.
• Pragmatic policies adoption for the economy
• Partnering of private sector with the public sector
• Introduction of LIBERTY EQUITY POLICIES for foeriegn investors.

North Korea

The millitary-economy parallel development policy is persisted in north korea for a long time which according to the expert , had an obstacle for the economic development of this country .This has worsen the chronic economic problem.There is pause in the industries , power output, with the shortage of food just due to the systematic problem in thuis country .The capital stock of North korea is beyond repair according to the CIA world factbook.This country is know for its secrecy and do not release their accurate data of economy .It has not published its official data since 1965 ,no macroeconomic indicators or stats.The gdp of north korea in 2015 was around $ 40 billion according to the factbook of CIA which is not updated since 2015 till now.The per capita income of GDP was $1,700 .In terms of Agriculture the GDP accounts for 25.4 % where industry 41% and account service as 33.5% which was estimated in 2017 .This make the North korea to be a tiny matchstick in fornt of the economic system ofMalaysia .TThe economic system of north kore portrays

• Stagnation
• Slowdown
• starvation
• Low per capita income
• Low GDP overall
• Poor living standards
• Millitary development parallely with economy
• Self isolation and hardship

HAVE A GOOD DAY !