KOLEJ PROFESIONAL MARA SERI ISKANDAR

PERAK DARUL RIDZUAN

DIPLOMA IN BUSINESS INFORMATION TECHNOLOGY (DBIT)

Unit Name Business Economic

Unit Code ECO1043
Class DBIT3B
Lecturer Mohamad Ilyas b. Abd. Majid
Date Out 5/4/2021 Date In 19/4/2021

Group member’s Student’s ID

Muhammad Amir Izzuddin Bin Asaari SIT20071495
Fazirul Azim Bin Anuar SIT20071460
Aiman Hakeem Bin Tajuddin SIT20071456
Intan Balqis Binti Ismail SIT20071552

VERIFICATION :
Prepared by: Rodziah Binti Osman Date: 22/3/2021
Verified by:
Course Leader Internal Verifier Copy Editor Head of Department
Name Rodziah Name Siti Nor Name Nur Name Muhamad
Osman Haliza Adilah Ependi
Osman Binti Yaakub
Samsudi
n

Signatu Signature Signatur Signatur

re e e

Date 22/3/2021 Date 24/3/2021 5/4/2021 5/4/2020

CONTENT

KOLEJ PROFESIONAL MARA SERI ISKANDAR...............................................................1

LIST OF FIGURES....................................................................................................................2

1. INTRODUCTION..................................................................................................................3

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2. CONTENT.............................................................................................................................5

2.1 – Types of production..........................................................................................................5

2.2 - Factor of production used..................................................................................................6

2.3-The company’s marketing: Production, Price, Promotion, & Place....................................7

2.4 – Which market structure can be classified..........................................................................8

2.5- Economies and diseconomies of scale................................................................................8

LIST OF FIGURES

Figure 1 : Maybank logo............................................................................................................3

Figure 2 : Tiger logo..................................................................................................................4

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1. INTRODUCTION

Maybank was established in 1960 and is now the largest firm on the Malaysian Stock
Exchange by market capitalization (Bursa Malaysia). It is ranked first among Malaysian
listed firms and among the top 500 companies in the Forbes Global 2000 ranking of the
world's leading companies.

Figure 1 : Maybank logo

Commercial banking, investment banking, Islamic banking, offshore banking, leasing and
hire buying, insurance, factoring, trustee services, wealth management, stock broking,
nominee services, venture capital, and Internet banking are among the goods and services
offered by the Maybank Group. Maybank's goal is to humanise financial markets in Asia by
providing people with access to financial services on good terms and at reasonable prices,
and to be at the centre of the society at all times. Then, they also aim to humanise financial
services by giving consumers easy access to credit, offering equal terms and prices,
recommending consumers based on their needs, and, finally, being at the centre of the
market. Maybank vision is “Advancing Asia's Ambition With You” . [ CITATION May20 \l
1033 ]

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Furthermore, their symbol has their own core values which is :

Figure 2 : Tiger logo

 Teamwork - We work as a team in an atmosphere of shared respect and integrity.
 Integrity - In all of our affairs, we are truthful, knowledgeable, and ethical.
 Growth - We are guided by a need to develop and innovate.
 Excellence and efficiency - We are dedicated to providing exceptional support and
efficiency.
 Relationship building - We are always forming long-term, mutually beneficial
alliances.

According to maybank.com, with total assets of USD165 billion, Maybank is one of the top
five banks in Southeast Asia. It employs 45,000 people and has a global network of over
2,400 branches and offices in 20 countries. [ CITATION May201 \l 1033 ]

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2. CONTENT

2.1 – Types of production

In economics studies, we have three types of production. For example, primary, secondary,
and tertiary. So, Maybank employs tertiary production based on the three forms of production
discussed above. Tertiary output includes all services that allow finished products to be
placed in the hands of consumers. Meanwhile, these services are provided to customers by
companies in all industries. This is due to the fact that Maybank offers services to consumers
who use Maybank services such as loan services, cash withdrawal, online banking, and so on.
As an example, consider online banking services. Customers who choose to use money in
their savings account will do so via Maybank's online services. This is because it makes it
easier for Maybank and customers to manage all money transactions. As a consequence, a
transaction confirmation of the consumer's itinerary will be sent to the sms number phone
that you entered in the Maybank2u account information. You will be able to access and save
your resit transaction for future reference.

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2.2 - Factor of production used

The factors that will be evaluate are divided into 2 which are external factors (Gross
Domestic Product, and inflation) and internal factors (interest income, non-interest income).
The main objective of this study is to study the factors attributes to the profitability
performance of Maybank Bhd. comprises of interest income, non-interest income, Gross
Domestic Product (GDP), and inflation rate. The study also will determine the profitability
performance of bank for 10 years period. Apart from that, there are few supporting objectives
to support the main purpose were listed below:
 To study the relationship between internal variables and bank profitability.
 To identify whether bank cost and bank revenues will contribute to profitability
performance of Maybank Bhd.
 To determine which factor contribute the most to profitability of Maybank
 Bhd.
 To analyze the trend of Maybank profitability over 10years and
 identify Maybank’s strength and weaknesses using certain profitability ratios.

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2.3-The company’s marketing: Production, Price, Promotion, & Place

Production (MAYBANK)
Maybank Company provides many kinds of products and services which are commercial
banking, investment banking, Islamic banking, offshore banking, leasing and insurance. They
also provide us with internet banking which is by the name Maybank2U. This show that
Maybank does not only have the service to take money out of the ATM machine but they also
do all kind of services, this is because Maybank wants to provide access to financial services
to the people at fair terms and pricing, and to be always be the heart of the community.

Price (MAYBANK)
For users that what to start access inside the Maybank account, the cost is only RM20 to start
earning interest. It also don’t have service or maintenance charge required.

Promotion (MAYBANK)
Maybank Company also do a lot of promotion and when they do, Maybank will collaboration
with other company to make the promotion more interesting. For example, Maybank used to
do collaboration with Habib Jewel, and it’s for the customer that spend more than RM100
with your Maybank card at any Habib outlets in Malaysia. The winner will win RM500000
that worth of prizes. Other than that Maybank also used to do collaboration with Vivo and
Apple. Whoever use Maybank to transfer funds using Foreign Telegraphic Transfer, M2U
Visa Direct and Western Union winner can get new brand of smartphone and tablets.

Place (MAYBANK)
Maybank headquarters is located at Kuala Lumpur. Maybank Company incorporated on 31
May 1960 and commenced operation on 12 September 1960. It was listed on the Kuala
Lumpur Stock Exchange on 17 February 1692

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2.4 – Which market structure can be classified

Interest Rate–Linked Structures: Gives out return based upon the movement of interest rates
(KLIBOR, LIBOR, etc). Only stipulated coupon is paid if certain conditions are satisfied
and/or maintained.
Debt–Linked Structures: Offers pay out based upon the yield on debt or fixed income
securities.
Foreign Exchange–Linked Structures: Disburse a return linked to particular currency or
basket of currencies. A relatively short-term investment or deposits where the return is linked
to the movement in the currency rates of the selected market or currency basket over the life
of the deposits.
Equity–Linked Structures: Pays a series of coupons linked to particular listed equity or basket
of listed equities.
Index–Linked Structures: Provides return based on the performance of indices (KLCI, Fund,
etc). Also pays the quoted coupon if certain conditions are satisfied.
Commodity–Linked Structures: Pays a return linked to the performance of a commodity or
basket of commodities over a defined period. On the maturity of investment or deposits,
investors receive the principal amount plus return, if any, based on the percentage change in
the underlying commodity (or basket).
Credit–Linked Structures: Offers exposure in performance of certain credit names without
having to directly purchase the selected bonds.
Hybrid Structures: Offers a return based on a performance of a combination of asset classes.
Provides stable return and investors can benefit from diversified and mixed portfolio
investments.

2.5- Economies and diseconomies of scale faced by Maybank

Economies of scale
Resilient consumer spending as private consumption boosted by 0%goods and services tax
(GST). Trade diversion and substitution as well as investment relocation opportunities arising
from the US-China trade war.
Diseconomies of scale
Slowdown in public expenditure and private investment amid new government’s policy
uncertainties after the general selection. Contractions in mining and agriculture sectors due to
disruptors in natural gas and palm oil outputs. Limited first policy flexibility and budget
constraints. Supply-demand imbalances by oversupply of commercial and residentials
properties