Identifying Drivers of the Malaysian Economy Using Policy-Relevant Measures

Saari, Mohd Yusof; Utit, Chakrin; Hamid, Nur; Maji, Ibrahim Kabiru; Hassan, Aminuddin

doi:10.22452/mjes.vol54no1.2

Cited by 3 publications

(7 citation statements)

References 17 publications

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“…For Malaysia, it was utilised by Utit el al. (2015) and Saari et al (2017) to study the economic impact of the waste sector and identify the drivers of the Malaysian economy.…”

Section: Multiplier and Linkages Measuresmentioning

confidence: 99%

From Waste to Wealth: Identifying the Economic Impact of the Recycling Sector in Malaysia

Utit

Rosland

Saari

et al. 2021

MJES

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This paper assesses the economic impact of the recycling sector in Malaysia to gauge its potential for strengthening green-based economic growth in alignment with the Sustainable Development Goals (SDGs). This study employs a comparative impact assessment to analyse the input-output multiplier and linkages using the national input-output tables for 2005, 2010 and 2015. Our results indicate that the recycling sector has high potential to transform waste to wealth from which its value-added multiplier is sufficiently high and is also reinforced with high spillover effects. The recycling sector is identified as a strategic sector, where approximately 70% of its products are embodied in intermediate demand. This sector conforms to circular economy practices as other sectors in the economy are utilising recyclables for remanufacturing purposes. The value-added footprint level of the recycling sector also shows an increasing trend that implies its growing importance in supporting the growth of other production sectors in the economy. At the sectoral level, most of the recyclables are utilised by the Wholesale and Retail Trade sector. Hence, our work emphasises the importance of prioritising the recycling sector in development plans, as well as improving and strengthening the backward linkages between the recycling sector with other production sectors.

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“…For Malaysia, it was utilised by Utit el al. (2015) and Saari et al (2017) to study the economic impact of the waste sector and identify the drivers of the Malaysian economy.…”

Section: Multiplier and Linkages Measuresmentioning

confidence: 99%

From Waste to Wealth: Identifying the Economic Impact of the Recycling Sector in Malaysia

Utit

Rosland

Saari

et al. 2021

MJES

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“…Comparison of the values of the backward and forward linkages for each sector in an economy provides a mechanism for identifying the "key" sectors in that country and grouping those sectors into spatial clusters (Miller & Blair, 1985;Saari et al, 2017). Focusing on the air transport industry, the backward linkage effect means that the production activities of the air transport industry may induce greater use of other sectors as an input for air transport production.…”

Section: Input-output Analysismentioning

confidence: 99%

The Economic Impacts of Air Safety Rating Downgrade for Malaysia

Sarmidi

Khairuddin

Zainuddin

2021

MJES

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In 2019, the US Federal Aviation Administration (FAA) downgraded the Civil Aviation Authority of Malaysia (CAAM) from tier one to tier two. Existing research has revealed that downgrading air safety ratings has a detrimental effect on the aviation sector. Although extensive research has been carried out on air safety downgrading, limited studies have delved into the backward and forward linkages and inter-industries framework. By employing a difference-in-differences (DID) panel data econometric and input-output (I-O) analysis to a modified sectoral aggregation of Malaysia’s I-O Table 2015, this study is able to simulate the impact of air safety downgrading. The findings show that, apart from being a “key” industry, air safety downgrades could result in a RM722.5 million loss to Malaysia’s GDP. A more in-depth inspection of the results indicates that the reduction in GDP mainly results from the air transport industry (RM252.0 million), other transportation services (RM107.0 million), and wholesale and retail trade (RM66.2 million). The findings complement earlier related studies that air safety rating downgrades could be a severe threat to sustainable economic growth.

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“…It is no exception for the economic sectors available in Malaysia. Based on input-output data, there are many methods to measure the level of connectivity; as in development and economic planning, the economic drivers are identified based on two frequently used measurements: linkages and multiplier (Saari et al 2018). The linkages are used to measure how the growth of one sector can benefit other sectors.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Backward linkages are used to measure the relationship between input providers for the economic sector. For example, if one sector increases its output, there will be increasing demand from other industries (as suppliers), whose goods and production factors are used as input for that sector's production (Saari et al 2018). Meanwhile, forward linkages measure the relationship between buyers for the output produced by the economic sector.…”

Section: Literature Reviewmentioning

confidence: 99%

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A Probe into the Status of the Oil Palm Sector in the Malaysian Value Chain

et al. 2021

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A ban on palm oil imports by the European Union has become a problematic issue, especially for palm oil producers’ countries. Oil palm has been widely used in many sub-sectors, and any changes in the production side may affect many sectors that use oil palm as an input factor in their productions. This study explores the chain of the oil palm sector on the other sub-sectors in Malaysia by using a value-added multiplier method and network modeling. The study focuses on the specific oil palm sub-sector and oils and fats sub-sector in the Malaysian economic structure based on the Malaysian Input-Output 2015 Table. Network visualization and all the analyses involving network methods were developed and performed using UCINET and GEPHI software. The value-added multiplier results explained that the net value between output multiplier and import multiplier is vital to depict the real impact of net resources used as an input factor in the oils and fats and oil palm sub-sectors. The high-density value level shows that the Malaysian oil palm sector has high connectivity in the economic system. From the network visualization analysis, the oils and fats sub-sector has a high level of integration with other sectors within the network. Meanwhile, the oil palm sub-sector categorized in the periphery structure group has a low level of integration in the input-output network. This is due to the high value-added demand for oil palm in the oils and fats sub-sector in the manufacturing sector. Overall, most of the sub-sectors in Malaysia are highly interconnected due to the high clustering ratio. Therefore, ensuring sufficient oil palm production is vital for sustainable production of other sub-sectors.

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Identifying Drivers of the Malaysian Economy Using Policy-Relevant Measures

Cited by 3 publications

References 17 publications

From Waste to Wealth: Identifying the Economic Impact of the Recycling Sector in Malaysia

From Waste to Wealth: Identifying the Economic Impact of the Recycling Sector in Malaysia

The Economic Impacts of Air Safety Rating Downgrade for Malaysia

A Probe into the Status of the Oil Palm Sector in the Malaysian Value Chain

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