Tutorial 1

1. Briefly explain the concept of economic development from conventional perspective
- Economic development generally refers to the sustained, concerted actions of policy
makers of a country and societies that standard of living and economic health of a
specified area.
2. Distinguish between economic development and economic growth in conventional
- Economic development can be traced from independence to present performance. It is
one of the fastest in these regions as well as in the global economic scenario while
economic growth is the increase in the amount of final goods and services produced
by an economy over time. It is unconventionally measured as the rate of increase in
real gross domestic product for example GDP.
3. Briefly explain three sources of economic development
- A rise in the productivity of existing factors – in short run productivity increases due
to economics of scale or more intensive use of capital equipment, better working
condition, better pay. In long run productivity increase through education, training
and skills
- An increase in the available stock of factors of production – a rise in the labor input,
increase in capital equipment and development of natural resources.
- Technological advances /progress – it makes business and workers more productive.
4. Explain the concept of economic development from Islamic perspectives
- Concept economic development from the Islamic perspective is different from the
conventional perspective. It is defined as a social science which studies the economic
activities and problems of man infused with Islamic values. Islam is both a religion
and a way of life. It also covers many dimensions which include the moral, spiritual,
social, political and environmental dimensions. The moral and spiritual developments
are built in the concept economic development.
5. Four factors influence the economic growth from Islamic perspectives
- Investible resources – internal (zakat, taxation, voluntary savings, forced saving),
external (borrowing). Such resources are needed for production of physical assets.
- Human resources – an efficient labor force. Efficiency needs professional and moral
quality. Professional quality refers to the skill and efficiency of doing work, whereas
moral quality provides moral influence to do work with sincerity and honesty.
- Entrepreneurships – entrepreneurship is the creative ability of individuals to seek
profit by combining resources to produce innovative products.
- Technological advances – it involves both product and process innovation. Product
innovation refers to the introduction of new products that did not exist before or an

tangible product. forestry. banking.Secondary sector – economic sector that create a finished.Tertiary sector – also called as service sector and focus on people interacting with people and serving the customer rather than transforming physical goods such finance. mining. wholesale and retail. Define two objectives of the New Economic Model 2010-2020 . Tutorial 2 1. tourism. For example: agricultural. For example: manufacturing and construction .improvement on existing products. fishing. etc. 6. and quarrying such as gold mining. . Process innovation is to devise a new technique of producing existing products at a lower unit-cost. Briefly discuss three categories of economic activities with examples .Primary sector – the sector of an economy making direct use of natural resources.

- Will become a high-income nation with inclusiveness and sustainability by 2020. Briefly explain two characteristics K-economy . . enabling Bumiputera to participate in higher paying jobs.Basic services were adequately provided which include healthcare.To raise the capacity for knowledge. creativity and innovation and nurture ‘first class mentality’. 2.To improve the standard and sustainability of quality of life – the government will continue to provide for basic needs such as water . 3. Improvement of the country ‘s education system. .To move The Economy Up The Value Chain – the government aims to increase the value added of the existing economic sectors as well as generate new knowledgeintensive activities and employment in ICT. Eastern Corridor and Southern Johor Economic Region and ensuring the benefits of growth fairly distributed.Poor rural households were absorbed into the modern sector through non-agricultural development. .Reducing absolute poverty with the intention of eventually eradicating it.The productivity of farmers was raised through. housing as well as water and electricity supply. Briefly explain three achievements of the New Economic Policy 1971-1990 . biotechnology the private sector to take a leading role in the country’s economic development. To promote the transition to higher value added activities in three main economic sectors. . Peninsular Corridor. energy.Restructuring society so as to eliminate the identification of race with economic functions and geographical locations. transportation and others amenities. . irrespective of race. . Treating all groups or members of a group equally and without exception while meeting present needs without compromising future generations.To address persistent socio-economy inequalities constructively and productively – the government strongly believes strategy in eradicating poverty.Increased employment opportunities – the rapid growth of the economy had simultaneously created employment. Discuss four critical thrusts of the National Vision Policy 2001-2010 .Change of economic structure – the secondary and tertiary sectors took over the agricultural sectors as the main contributions to the economy. education. Explain five factors that have restricted the achievement of the New Economic Policy 1971-1990 . provision of irrigation facilities and replanting of rubber with higher yielding varieties. for example new land development. generating more balanced growth. housing. . 4. Government aim to increase quality of its human capital. 5. .

- - Firstly K-Economy focuses on knowledge as the driver of economic growth. Tutorial 5 1. . K-economy includes both qualitative and quantitative changes that transform the way the economy operates. Secondly. labour capital and the entrepreneur. With the multiplier effect knowledge can increase the production capacity of other factors of production.It has capability in transferring technology through foreign direct investment and domestic investment.It creates many opportunities and linkages between this sector and other sector. . Give two role of industrial sector .

.Employment creation create job opportunities for locals and improve skills.Highly depend on foreigners .Lack of domestic R&D .Engage in manufacturing - Roles Employment generation Strengthening industrial linkages Development and modernization of manufacturing 6.Inadequate use of natural resources .Lack of capital .Training ground for tomorrows entrepreneurs .Absence of SMIs role in industrial sector .No of Labor hired (5-75) . Explain three problem faced by heavy industries in Malaysia . Give two important of SME and two problems of SME in Malaysia .Paid up capital between RM500k to RM2.High cost of production .Enhancing technology capability through foreign technology transfer . deregulate the investment environment and to upgrade the level of industrial technology.5m . Define SME and give three role of SME in Malaysia .Improving requisite economic foundation 3.Recover economy - Problems Inadequate finance – limited access to finance and capital Marketing and distribution – limited capacity to meet the challenges of market liberalization and globalization 7. Give three objectives heavy industries in Malaysia .Globalization and liberalization Industrial master plan - Identified 12 sub sectors needed to be developed To rationalize the exiting infrastructure. Give two strategic thrust of the IMP2 .Enhancing competitiveness .Development of inter-industry linkages help developing SMEs . 4.to attract investment.Lack of advanced technology .2. What the problem of industrial sector and how the government address the problem .Lack of expertise 5.

- To provide as much impetus as possible for the private sector participation in the manufacturing sector so that the private sector could be the engine of growth To promote industrial depth. economic linkages and the appropriate economic restructuring. .