SULIT MEA3023/A171/4, FINAL EXAMINATION SEMESTER |, ACADEMIC SESSION 2017/2018 DATE : DEC 2017 — JAN 2018 DURATION : 3 HOURS MEA3023 MALAYSIAN ECONOMY (EKONOMI MALAYSIA) INSTRUCTIONS TO CANDIDATES: 1, This paper contains four (4) questions. 2. Answer ALL questions in the Answer Booklet provided 3. Candidates are not allowed to bring any materials except stationeries and non-programmable calculator into the examination hall without prior permission. 4. Candidates are not allowed to take question paper out of the examination hall Please complete your particulars in Borang H and the Answer Booklet. DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE INSTRUCTED TO DO SO L This question paper has three (3) printed pages excluding this cover page eso HAKCIPTA TERPELIHARA USIMSULIT MEA3023/A171/A, This section contains FOUR (4) questions. Answer ALL questions. [100 Marks] Each question carries 25 marks. Question 1 a) Economic growth and economic development are often used interchangeably. However, economic growth is a narrower concept than economic development. Required: i Define economic growth and economic development concept. Support your answers with economic indicator examples. (Hints; Provide ONE (1) economic indicator for each concept) (6 marks) ji, Define economic development from Islamic perspective. Give TWO (2) objectives of development from Islamic point of view. (4 marks) b) The steady growth stage from 1976 to 1984 has been characterised by the switch in government policy from import-substitution industrialisation (ISI) during the 1960s to export-orientation strategy (EOS) during 1970s and 1980s. Required: i Explain ISI and EOS. (10 marks) ji. List any FIVE (5) investment incentives implemented under EOS to attract foreign investment in the industrial sector during 1970s and 1980s. (5 marks) [Total: 25 marks] Question 2 a) The following article title Non-Resident Inflows Lead to Ringgit's Appreciation discuss about stronger ringgit against the US dollar. Non-Resident Inflows Lead to Ringgit's Appreciation The ringgit, along with most major and regional currencies, ended stronger against the US dollar in the first eight month of the year. The appreciation of the ringgit underpinned by resumption of non-resident inflow into Malaysia's financial market, are resulted from the encouraging domestic macroeconomic conditions. HAKCIPTA TERPELIHARA USIM 1SULIT b) MEA3023/A174/A, It was further lifted by measures undertaken by the Financial Market Committee in December 2016 and April this year. The measures included the promotion of foreign exchange (forex) hedging within the domestic foreign market and non- deliverable forward. These two measures, plus the requirement of conversion of foreign currency export proceeds into ringgit and further liberalization on the bond market helped the ringgit to rise 5.1 percent against the US dollar as of August. Monetary policy is also continued to focus on supporting the sustainable growth of the Malaysian economy while maintaining price stability this year. As such, the economy is expected to expand between 5.2 and 5.7 percent this year as a whole. Adapted from New Straits Times, 28 October 2017: B6. Required: i Evaluate who benefits and who are the losers following stronger ringgit. (10 marks) ji, The article mentions “ conditions.” Explain what it means based on any THREE (3) macroeconomic indicators of your choice. (Hints: use GDP growth rate, inflation, unemployment, welfare or others). (9 marks) encouraging domestic macroeconomic The hypothetical values for the currency exchange of the U.S., the U.K., and Japan are indicated as the dollar (S), pound (£), and yen (¥), respectively, Suppose that exchange rates in 2016 were: 2016: SE 60, ¥/$ = 100, and wif = 160 Required: Calculate the following exchange rates for 2016: i aS i, 9 ii, 8 (6 marks) [Total: 25 marks] HAKCIPTA TERPELIHARA USIM 2SULIT MEA3023/A174/A, Question 3 Since independent in 1957, Malaysia has experienced economic growth and phases of development through various economic development policies such as New Economic Policy (NEP), National Development Policy (NOP), National Vision Policy (NVP) and New Economic Model (NEM). Required: a) Discuss TWO (2) objectives of NEP and ONE (1) objective of NDP. (9 marks) b) Identify any THREE (3) of the NEP achievements and any THREE (3) of the NOP key successes. (6 marks) c) Explain FOUR (4) important phases of economic structure and structural changes of Malaysia economy development since independent. (10 marks) [Total: 25 marks] Question 4 The New Economic Model (NEM) was launched by YAB Dato Seri Mohd Najib Tun Abdul Razak, Prime Minister of Malaysia on the 30” March 2010, with the aim to propel Malaysia to being an advanced nation and high income status with inclusiveness and sustainability development. Required: a) Explain THREE (3) goals of NEM. (5 marks) b) Elaborate on the roles played by NEM in generating benefits to: i) Rakyat (people). (10 marks) il) Businesses. (10 marks) [Total: 25 marks] END OF QUESTION Dicetak oleh: Unit Peperiksaan dan Pengiiazahan Bahagian Pengurusan Akademik Universiti Sains Islam Malaysia HAKCIPTA TERPELIHARA USIM 3