Question

Perform country Analysis of MALAYSIA using EAF (Environment Analysis Framework) in terms of business opportunities for OIL and GAS sector.

Please provide detail write up using all four factors economic, political, cultural and demographic and linkage with 4 levels International, national, industry and Firm.

Answer 1

Ans) Malaysian economy is expanding, as its GDP growth rate is increasing from stagnation point from last few years , the growth mainly in Malaysia because of demand and supply of oil and gas sector. There is also other factor which influencing the growth is low inflation with high employment services. The domestic policies promoting industries in producing more goods to fulfill the demand of the goods. The international trade war among US and China benefiting Malaysia and other mainly Asian countries. The result of this is increasing exports of Malaysia and decreasing import in the country, creating trade surplus, further increasing the growth rate of the economy. The economy earns higher rating in economics in first half of 2019, by showing low inflation and high growth of export or rise in demand of the product in the international market influencing the growth of the economy. But the growth rate at the expanse of oil and gas will not occur always in the country as it will effect the environment adversely in long run. The country should set a limit , and should not allow the mining , gas production or other related activity to cross this limit to save the environment or country by adverse effects. Although the industry and small firms are growing up with the increase in demand and low inflation but the prices of commodity is increasing in the economy, only the petrol price or gas price are low but the price of various commodities are increasing this will also effect the growth rate.