presentation4 malaysia vs ukraine

8/13/2019 Presentation4 Malaysia vs Ukraine

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MALAYSIA

Team:

Iuliia Diuba

Nadiia Smirnova

Valentyn Rudnytskyi

Anna Shevchenko

Elena Gorodinscaia


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Contents

What Ukraine and Malaysia may share in COMMON?

What are the DIFFERENCES?

What lessons from Malaysia are applicable in Ukraine?

What recipes can be adopted?


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Commonalities

ECONOMY

Services - a relatively small portion of GDP

Reliance on Exports & export diversification

Relatively cheap labor force (stuck in the middle)

Relatively low FDI inflows / Shady nature of FDI (reinvestment from off-shores?)

Search for new possibilities

SOCIAL

Income distribution inequality

POLITICAL

MaturityNewly independent


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1. Large portion of non-services in GDP structure

2. Cheap labor force

Average salary inUkraine: $341

Malaysia: $350 (unskilled)

Commonalities


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3. Low FDI flows

4. Income distribution

Net FDI inflows: 2-4% GDP over years

Different reasons, same result

10% of richest

Ukraine: 25%

Malaysia: 35%

20% of poorest

Ukraine: 11%

Malaysia: 5%

Commonalities


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5. Newly independent countries

6. Search for new possibilities

Malaysia: 1957from the UK

Ukraine: 1991from the USSR

Large capital stock v.s.Absence of self-governance traditions

DiversificationMove towards services

Growth of role of education

Commonalities


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Differences

Economic

Overall, Malaysia scores much higher on key economic

indicators

GDP: absolute, per capita, growth, structure

National saving and Household Consumptionas a % of GDP

Levels of Investmentin the economy .

Deficits and Debt (public, external debt)

Financial sector & Reforms to attract investment

Transparency and ease of doing business (regulations and

restrictions).

Aspirations: technology-intensive economy with higher

value-added activities vs. traditional raw

materials/manufacturing economy


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Differences


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Differences

SOCIAL

Demographic homogeneity: ethnic groups, religions

Mentality and work ethics:MalaysiaIslam+Buddhism,

UkraineSoviet past+Christian influences

Social tension and Interracial conflicts

Migration :Malaysiaillegal immigration (other Asian countries)Ukraineunofficial emigration (brain drain)


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Differences

Political/ Legal

Legal system:

Malaysialargely based on English common lawUkraine - Civil law system

Government type:

Malaysia - Constitutional monarchy

Ukraine -Republic


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Lessons learned

Peoples belief in a single common idea (create a strategic development plan and

communicate it to the general public)

Retention of the talents ( Malaysia has invested in the development of its human

resources, in order to move up the value-added production chain and compete in

the intellectually-intensive sectors).

Emphasizing branches of economics with large potential and their development

(invest in the economic sectors of tomorrow, IT, medical tourism etc. Stimulate

entrepreneurial outlook)


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Lessons learned

Improve business climate - Fight corruption (Malaysia has reduced its system risks

and improved its investment climate by decreasing bureaucracy and corruption

levels, and overall, making its economy more market-friendly)

Attract investment (reform the financial sector, improve business climate, relax

enterprise-ownership limitations etc.)

Improving the living standards of the population: Reduction of the crime level,

Increasing of the life level (income) of poor people, reducing inequality.

Getting rid of inefficient practices (dismantling NEP, eliminating subsidies etc.)


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What can be ADOPTED

Focus on the development of economic sectors with higher value-added potential(i.e. IT,medicine, production of technologically intensive machinery etc.)

Improve business climate (reduce bureaucracy, create simple and transparent rules and reduce

number of restrictions, reduce corruption).

Attract FDI (tax-exemptions, market-friendly legal and regulatory systems, etc)

Stimulate domestic investment (improve domestic business climate, reform the financial

sector, reduce the tax burden etc.)

Reduce the budget deficit (increase tax revenues by reducing the tax burden and reducing the

underground economy, revise the contracts on tax-havens, such as the contract with Cyprus

etc.).

Eliminate inefficient practices (revise subsidies, reduce number of government-controlled

enterprises, reduce direct government participation in the economy etc.)


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Thank you for attention!

presentation4 malaysia vs ukraine

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