2.

4 INTEREST RATE

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Bangladesh 21.81010209 21.72863302 18.30535 15.86225557 16.74448 17.17623 18.43707 20.42659 18.45908 19.59082
India 26.53850237 28.46290689 22.82579 22.86838944 24.90867 25.68916 27.18508 25.20962 23.65832 23.68803
Malaysia 8.493640419 9.205725871 10.43052 9.84609453 9.588048 9.899958 10.37169 11.28009 12.63965 12.8297
Nepal 5.282810249 4.911449709 4.615617 4.950054843 5.318375 4.151113 2.975021 2.058426 1.655039 1.555759

Interest rate from the year 2008 to 2017 for three countries
based on Axiata Group subsidiaries
30
25
20
15
10
5
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Bangladesh India Malaysia Nepal

Graph 4: Interest rate from the year 2008 to 2017 for three countries based on Axiata Group
subsidiaries.

Interest Rate can be defined as the amount charged by the lender to use the asset,
expressed as a percentage of the principal. Based on graph 4 above, the interest rate of Nepal
is lower than the interest rate of Malaysia which Nepal starting to decrease from 5.3184 (year
2012) to 1.2228 (year 2017) while the interest rate of Malaysia was increasing from 8.4936
(year 2008) to 12.8297 (year 2017). The reducing of interest rate in Nepal will result in more
people are able to borrow more money.

In addition, the interest rate of India is not stable and had achieved the highest interest
rate on the year 2009 which is amount to 28.4629 while the highest interest rate of Malaysia
is amount to 12.8207 on year 2017. Overall, the interest rate of India is much higher than the
interest rate of Malaysia along the year. Meanwhile, the interest rate of Bangladesh is much
more similar to India which is not stable as Malaysia and Bangladesh had reached the highest
interest rate which is amount 21.7286 on the year of 2009.

As interest rates increase, consumers tend to save because the benefits of saving are
higher. As interest rates rise, disposable income expenditures decrease, economic growth
slows, and inflation rates fall. But businesses are also directly affected if interest rate decrease
because they also borrow money from banks to run and expand their businesses.
2.5 EXCHANGE RATE
Country Name 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Bangladesh 68.59828 69.03907 69.64929 74.1524 81.86266 78.10324 77.64141 77.94691 78.46809 80.43754
India 43.50518 48.40527 45.72581 46.67047 53.43723 58.59785 61.02951 64.15194 67.19531 65.12157
Malaysia 3.335833 3.524503 3.221087 3.060003 3.088801 3.150909 3.27286 3.9055 4.148301 4.300441
Nepal 69.7617 77.57343 73.26236 74.02 85.22576 93.08439 97.55484 102.4051 107.3838 104.5119

Exchange rate from the year 2008 to 2017 for three countries
based on Axiata Group subsidiaries
120
Exchange Rates

100
80
60
40
20
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Years

Bangladesh India Nepal Malaysia

Graph 5: Exchange rate from the year 2008 to 2017 for three countries based on Axiata
Group subsidiaries.

An exchange rate is the value of one nation's currency versus the currency of another
nation. Based on the graph 5 above, the overall exchange rate of Malaysia is lower than the
exchange rate of Nepal from the year 2008 to 2017. On the year 2016, Nepal had achieved
the highest exchange rate which is 107.3838 while comparing to Malaysia’s exchange rate is
4.1483 on the year 2016. On the year 2017, 1 Malaysia Ringgit was worth 24.30 Nepalese
Rupee which shown that a depreciation in the exchange rate for both Nepal and Malaysia.
This means that the currency is less valuable than other countries.

In addition, the exchange rate of India is higher than the exchange rate of Malaysia
from the year 2008 to 2017. On the year 2016, India had achieved the highest point of
exchange rate which is 67.1953 while comparing to Malaysia’s exchange rate which is
4.1483. On the year 2016, 1 Malaysia Ringgit was worth 16.19 Indian Rupee and shown that
India’s exchange rate kept increasing from the year 2008 to 2016. On the other hand, the
exchange rate of Bangladesh was increasing from year 2008 to 2012 and shown that 1
Malaysia Ringgit was worth 26.58 Bangladeshi Taka. This increasing exchange rate shown
that when a country's currency is strong, the price of goods imported from abroad will
become cheaper.
2.6 CPI (CORRUPTION INDEX)
Country Name 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Bangladesh 3 3.5 3.5 3.0 3.0 2.5 2.5 2.5 2.5 2.5
India 4 4 4 4 3.5 3.5 2.27 3.14 2.47 2.16
Malaysia 5.1 4.5 4.4 4.3 3.4 3.4 2.88 3 2.46 2.67
Nepal 3 3.0 3.0 3.0 3.0 3.5 3.5 3.5 3.5 3.5

Corruption Index from year 2008 to 2017 for 3 countries based on

Axiata Group subsidiaries
6
Corruption Index

5
4
3
2
1
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Years

Bangladesh India Malaysia Nepal

Graph 6: Corruption Index (CPI) from the year 2008 to 2017 for three countries based on
Axiata Group subsidiaries.

The Corruption Perceptions Index (CPI) is an index that scores countries on how
corrupt their governments are believed to be. Based on graph 6 above, the Corruption
Perception Index of Bangladesh had reached the minimum of CPI which is 2.5 and kept
constant from the year 2013 to 2017. Meanwhile, the Corruption Perception Index of
Malaysia is decreasing and reached the minimum point which is 2.46 same as the minimum
point of Bangladesh on the year 2016.

CPI usually defines corruption as "abuse of public power for private gain." On the
other hand, the Corruption Perception Index of India had achieved its lowest CPI which is
2.16 on the year 2017. Meanwhile, the Corruption Perception Index of Nepal remain constant
which is 3.0 from the year 2008 to 2012 and the CPI increase from year 2012 to 2013 from
3.0 to 3.5.

Countries need to be assessed through at least three sources before they can appear in
the CPI and because it is difficult to measure absolute levels of corruption, the CPI measures
people's perceptions of corruption. Among the year from 2008 to 2017, the Corruption
Perception Index was found to be achieved a very poor performance.