EE JIA EN (20200272)

MPU 3253: Introduction to Entrepreneurship

A) Economic forces
Economic forces are factors that use to determine the state of competitive environment
among the industries in which the firm operates such as level of employment, rate of
interest, and the rate of inflation. (economic forces).
Malaysia is speeding up its techniques to become a center for drone research and
development. The Malaysia Digital Economy Corporation has charged with introducing
innovation and the digital economy has hosted a meeting with the other local businesses
to talk over the basic foundation of building a UAS traffic management platform for the
Malaysian drone ecosystem. They estimated that drone tech can generate a number of
RM532.7 billion by 2025. (Sharon, 2019).
Additionally, the drone’s industry in Malaysia has a significant impact on our
economy. Recently, DroneTech is a conceptual level but has functions available as part of
innovative technology waves such as search-and-rescue operations and agriculture usage.
Furthermore, the local mail provider, Pos Malaysia and Communications and Multimedia
Commission Multimedia held a two-day drone competition in April 2019 aimed to adopt
the drones for usage in the postal and courier industry within five years. (Rozaidee,
2019).
Moreover, the invention of drones benefiting economic forces by creating job
opportunities. Over the past 10 years, commercial drones use has created jobs primarily
of manufacturing and also drone operators. Additionally, the state will be benefited from
the tax windfalls and stemming from increased economic activity. Commercial drones
help industries to be more cost-effective means of inventory, transportation, and
distribution whereby these can be given to the consumer through a price reduction. (Nath,
2020).
In conclusion, the three points of economic forces do a favor for the entrepreneur to
start their firms.
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B) Social Forces
Social forces are an element of society that has the capability of causing cultural change
or influences people. (social force). It alters the way of how people or businesses behave
and sets the priority.
As drones invented, many cyclists bought them in order to take nice pictures or record
their bike traveling. Some cyclists often take a bike ride with 2 drones, front and behind
to protect them from the cars. As “cyclodrone” will have a light shining in order to let the
drivers know that there is someone cycling in front. (Peter, 2014). This likely helps to
decrease the number of accidents and also increase participation in the social network by
uploading their cycling video.
Besides that, drones can benefit in terms of security. The uses of the drone increase in
terms of monitoring and controlling the citizens in Malaysia. In addition, drones help to
improve our surveillance, and it is expected to be part of the country’s efforts to lower the
problem in the following days. (Lewis, 2020).
Moreover, Aerodyne CEO, Kamarul A Muhamad told that a common use for drones
is the aerial mapping whereby it uses the satellite systems to take pictures in a given site.
The picture taken from the drone can then be joined together to become a highly precise
map. (Kumar, 2019). This favors the business opportunity as it increases the data
accuracy and also productivity at the work. It helps to reduce the jobs of combining all
pictures into one big map to easily overview a place.
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C) Law governing drones in Malaysia

In Malaysia, flying a drone is a legal activity approved by the Civil Aviation Authority of
Malaysia (CAAM). (Drone Laws in Malaysia). Civil Aviation Regulation 2016 (P.U.(A)
97) is the law published for drone operator to follow. Part XVI Regulations 140 to 144
that deals with the UAV. Regulations 140 states that individuals cannot fly UAV over
122 meters height only if approved by the director-general. Regulations 141(1) list that no
person can fly a drone for aerial work without similar approval. (Buang, 2019).
Additionally, operators cannot fly a drone near the airport, military-based, and
telecommunication-based stations. They cannot fly drones in a place where have a crowd
of people unless the people are actually involved in handling their drones. (Malaysia
UAV Laws, 2017).
 If individuals fly a drone in which the weight is more than 20kg, they must have a
private pilot’s license. (Malaysia Drone Laws (2019)). The fees applying for the drone
permit are RM1000 while for the drone that less than 20kg is RM250.
Moreover, flying a drone for commercial purposes requires granting of the license and
permit from the Director-General of CAAM. Drones that more than 20kg, a certificate of
airworthiness is require in the first application together with RM500 registration fees. For
permit renewal, it requires RM500 and for change of obtained permit, it requires RM250.
(The ultimate guide to Malaysia (Kuala Lumpur & Borneo) drone rules & laws 2020,
2019).
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References
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Kumar, A. (2019, July 9). Drone tech and the roar of Malaysia’s flying dragons.
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Lewis, S. (2020, March 23). Coronavirus: Malaysia to use drones to control public
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