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
perspectives
- 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

improvement on existing products. Process innovation is to devise a new technique of

producing existing products at a lower unit-cost.
6. Briefly discuss three categories of economic activities with examples
- Primary sector the sector of an economy making direct use of natural resources. For
example: agricultural, forestry, fishing, mining, and quarrying such as gold mining.
- Secondary sector economic sector that create a finished, tangible product. For
example: manufacturing and construction
- 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, banking, tourism, wholesale and retail, etc.

Tutorial 2
1. Define two objectives of the New Economic Model 2010-2020

Will become a high-income nation with inclusiveness and sustainability by 2020.

Treating all groups or members of a group equally and without exception while
meeting present needs without compromising future generations.

2. Explain five factors that have restricted the achievement of the New Economic Policy
1971-1990
- Poor rural households were absorbed into the modern sector through non-agricultural
development.
- The productivity of farmers was raised through, for example new land development,
provision of irrigation facilities and replanting of rubber with higher yielding
varieties.
- Basic services were adequately provided which include healthcare, education,
housing as well as water and electricity supply.
- Reducing absolute poverty with the intention of eventually eradicating it, irrespective
of race.
- Restructuring society so as to eliminate the identification of race with economic
functions and geographical locations.
3. Briefly explain three achievements of the New Economic Policy 1971-1990
- Increased employment opportunities the rapid growth of the economy had
simultaneously created employment, enabling Bumiputera to participate in higher
paying jobs.
- Change of economic structure the secondary and tertiary sectors took over the
agricultural sectors as the main contributions to the economy.
4. Discuss four critical thrusts of the National Vision Policy 2001-2010
- 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, biotechnology the private sector to take a
leading role in the countrys economic development. To promote the transition to
higher value added activities in three main economic sectors.
- To raise the capacity for knowledge, creativity and innovation and nurture first class
mentality. Government aim to increase quality of its human capital. Improvement of
the country s education system.
- To address persistent socio-economy inequalities constructively and productively
the government strongly believes strategy in eradicating poverty, generating more
balanced growth. Peninsular Corridor, Eastern Corridor and Southern Johor
Economic Region and ensuring the benefits of growth fairly distributed.
- To improve the standard and sustainability of quality of life the government will
continue to provide for basic needs such as water , energy, housing, transportation and
others amenities.
5. Briefly explain two characteristics K-economy

Firstly K-Economy focuses on knowledge as the driver of economic growth. With the
multiplier effect knowledge can increase the production capacity of other factors of
production, labour capital and the entrepreneur.
Secondly, K-economy includes both qualitative and quantitative changes that
transform the way the economy operates.

Tutorial 5
1. Give two role of industrial sector
- 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.

2. Give two strategic thrust of the IMP2

- Enhancing competitiveness
- Improving requisite economic foundation
3. Give three objectives heavy industries in Malaysia
- Enhancing technology capability through foreign technology transfer
- Development of inter-industry linkages help developing SMEs
- Employment creation create job opportunities for locals and improve skills.
4. Explain three problem faced by heavy industries in Malaysia
- Lack of advanced technology
- Lack of capital
- Lack of expertise
5. Define SME and give three role of SME in Malaysia
- Paid up capital between RM500k to RM2.5m
- No of Labor hired (5-75)
- Engage in manufacturing
-

Roles
Employment generation
Strengthening industrial linkages
Development and modernization of manufacturing

6. Give two important of SME and two problems of SME in Malaysia

- Training ground for tomorrows entrepreneurs
- 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. What the problem of industrial sector and how the government address the problem
- Highly depend on foreigners
- Absence of SMIs role in industrial sector
- High cost of production
- Lack of domestic R&D
- Inadequate use of natural resources
- Globalization and liberalization
Industrial master plan
-

Identified 12 sub sectors needed to be developed

To rationalize the exiting infrastructure, deregulate the investment environment and to
upgrade the level of industrial technology- to attract investment.

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.