Research

Tharshini Sivabalan · Faizah Haji Mas’ud · Dolly Paul Carlo ·Pertanika Journal of Social Science and Humanities ·2022

Individuals with disabilities are highly exposed to mate crime victimisation than their non-disabled counterparts. This research aims to identify mate crime victimisation among people with disabilities in Sarawak, Malaysia. Data was quantitatively collected among 151 respondents from various governmental and non-governmental organisations in Kuching, Kota Samarahan, and Asajaya that provide residential care, medical attention, training, work opportunities, basic education, and rehabilitation for individuals with disabilities. It was found that most respondents (females between 18 and 28 years old) experienced mate crime victimisation, particularly financial abuse (F₂‚₁₄₈ = 5.905, p = .003) and sexual abuse (F₂‚₁₄₈ = 10.234, p = .001). It is deemed important to identify mate crime victimisation against such individuals with sufficient proof to enable law enforcement agencies and policymakers to develop optimal approaches and programmes that complement the needs of individuals with disabilities and alleviate potential mate crime victimisations.

Norhanishah Mohamad Yunus · Norehan Abdullah ·Malaysian Journal of Economic Studies ·2022 ·JEL: F20, F35, F61, J24, C21, L6

Using a set of absorptive capacity proxies, we present new empirical findings on the role of absorptive capacity in assimilating the technology effects from the presence of multinational corporations (MNCs) in the Malaysian manufacturing industry. We applied a quantile regression estimator to explicitly gauge the level of absorptive capacity among workers by their levels of education at different quantiles of the conditional FDI distribution during the period of 2000–2018. We conclude that the medium-high technology industries benefit more from FDI if the workers’ absorptive capacity level reaches at least the median quantile. Based on the findings of this study, we suggest that educational digitisation efforts in enhancing quality human capital should be intensified, by equipping them with the latest knowledge and skills, which in turn requires cooperation between universities, public technical and vocational education and training (TVET) institutions as well as MNCs.

Ramasamy Thillainathan ·Malaysian Journal of Economic Studies ·2022 ·JEL: L33, Q48

This paper reviews Malaysia’s experience in privatisation in power generation from the first half of the 1990s and the role it played in promoting Malay entry into business. In the pre-1949 period, privately-owned independent power producers and distributors (IPPs and Ds) were the dominant players. The government-owned integrated power utility, Tenaga Nasional Berhad (TNB), became a monopoly only since 1976. TNB’s finances were strained during the Asian Financial Crisis (AFC) period, but contracts were honoured despite strong calls for renegotiation of power purchase agreements (PPA). With the open tender era from 2012, the PPA terms have become very competitive. However, as TNB can continue to bid, this has not made for a level playing field. With competition and fall in interest rate, there has been a significant decline in internal rate of returns (IRRs). Guaranteed off-take enabled some concessionaires to still earn a good equity IRR through aggressive gearing. Development of a more active and liquid bond market has played a key role in privatisation.

Lim Boon-Leong (Tunku Abdul Rahman · University College) · Foong Swee-Sim ·International Journal of Economics and Management ·2020 ·JEL: G32, G34

We examine whether managerial ability is an essential factor that determine CEO remuneration, and as means in resolving both Type I and Type II agency conflicts. Our sample is based on Malaysian family listed companies over 2009-2015, and our results show that, apart from being a crucial determinant of professional CEO remuneration, managerial ability also plays an important role in enhancing the pay-performance sensitivity of outsider manager of Malaysian family firms. Our results also show that the positive association between managerial ability and remuneration of family CEO only helps to mitigate the risk of Type II agency conflict. This agency risk is further heightened by the existence of a significant negative effect of managerial ability on CEO payperformance sensitivity in firms which appoint family CEO as board chairman; and firms with CEO who serves on the remuneration committee. These results are robust to alternative measures of firm performance as well as tests of endogeneity

M.S.M Khair-Afham · Anitha Rosland ·International Journal of Economics and Management ·2022 ·JEL: E44, E51

This study has examined the impacts of credit supply shocks and other common economic shocks (aggregate demand & supply and monetary shocks) on Malaysia's macroeconomic variables, using the Bayesian structural vector autoregressive (SVAR) model and employing sign restrictions. The results showed that an expansionary credit supply shock positively affected the Malaysian economy, consistent with the existing literature. Based on the variance decomposition finding, credit supply shocks explained a significant portion of the anticipated variation in the GDP growth, inflation, and, most importantly, credit growth in Malaysia. This study further decomposed total private non-financial corporate loans into two components: households and non-financial firms. Unlike other economies that have extensively researched this subject matter (US, UK, Euro Area), the growth rate of households and non-financial firms differed greatly in Malaysia. The empirical findings revealed considerable distinctions between these two components, indicating that different treatments or policy formulations are required rather than employing the same policy to boost or govern Malaysia's credit market

Syazwani Kepli · Yasmin Bani · Anitha Rosland · Nisful Laila ·International Journal of Economics and Management ·2021 ·JEL: G21, E44

Financial institutions like commercial banks play important role in the financial system by helping countries to grow and provide capital and platform for investors. However, banks need to be able to generate income in their lending business and perform efficiently. Nonperforming loans (NPLs) is one of the tools to determine the efficiency of lending institutions in which reflect the quality of the credit portfolio as well as the health of the banking sector. High levels of NPLs in the banking system places the banks in risky situation which may lead to limited financial activities and consequently lower investment and growth. Motivated by this scenario, this study examines the determinants of NPLs in the Malaysian banking system. Using annual data from 1988 to 2018, the study estimates the short and long-run dynamics of several determinants using the Auto-Regressive Distribution Lag (ARDL) cointegration approach. The empirical results demonstrate mixed results. In the long-run, exchange rate is positive and significantly related to non-performing loans, while industrial production and money supply are negative and significant. However, inflation does not have significant effect on NPLs in Malaysia. The findings of this study is useful in assisting the banking institutions and policy makers to design macro and fiscal policies.

Syazreen Niza Shair · Thomas Sachi Purcal ·Pertanika Journal of Social Science and Humanities ·2021

This research compares the quality of life of Malaysian elderlies living in public formal long-term care institutions, including residential care and nursing home care. It provides evidence of the cost-effectiveness of both programs. The sample of Malaysian elderlies aged 60 years and above was collected from the World Health Survey, including five dimensions of health status: mobility, self-care, usual activities, pain and discomfort, and anxiety and depression. Each of the dimensions has three levels, including 1 (“no problems”), 2 (“some problems”) and 3 (“major problem”). The quality-adjusted life-years (QALYs) of elderlies living in both institutions are estimated using a generic health-related measurement method, EQ-5D. In addition, cost-utility analysis is adopted to compare the effectiveness of programs in allocating resources. The QALY of those living in nursing home care is reasonably lower than those in residential care due to their worse chronic health conditions. The majority are categorised as severely disabled. The cost-effectiveness evaluation of each public long-term care model suggests that the residential care program is cost-effective, with the cost per QALY being MYR22 945. At the same time, a nursing home for disabled people is not effective as the cost per QALY is MYR57 822, falls outside the willingness to pay (WTP) range between (MYR 19,929–MYR 28,470).

Farah Ajlaa Julaihi · Asmah Alia Mohamad Bohari · Mohd Azrai Azman · Kuryati Kipli · Sharifah Rahama Amirul ·Pertanika Journal of Social Science and Humanities ·2022

Many countries are witnessing a rise in the ageing population, which has become a global phenomenon that all nations must address. As the population of greying people is expected to increase in Malaysia, the demand for senior citizen accommodation is predicted to have experienced a major rise by 2030. However, although studies related to retirement villages (RV) are highly important to understand how to provide a better ambience for the elderly, research on the development of retirement villages in Malaysia is yet to gather pace fully. Thus, this paper aims to explore the potential of the retirement village in Malaysia by focusing on the push factors for the elderly to move to retirement villages in the local Malaysian context. The outcome of this paper presents the initial findings derived from a literature review and pilot survey. Eight potential push factors were identified after questions were posed to potential respondents through a pilot survey questionnaire. The research revealed that the main potential reason why the elderly relocate to retirement villages was related to social factors, with the elderly preferring better access to healthcare and support due to their unique requirements. The findings of this study are relevant to Chapter 11, as underlined in the Sustainable Development Goals (SDGs), which call on all governments to offer access to a secure, green environment for everyone, especially the elderly. Theoretically, this research provides the first findings on the elements that encourage the elderly to relocate to an RV when they retire in Malaysia.

Loo Sze Ying · Mukaramah Harun ·Jurnal Ekonomi Malaysia ·2019

This paper estimated the reactions of frms and households to the change of government expenditure from fuel subsidies to two alternative fscal regimes, including the expansion of government expenditure on agricultural investment and direct cash transfers. Outcomes brought by the government expenditure changes to outputs of production for frms, together with the household consumption expenditure, were taken into account. This study was carried out by using a Löfgren-based computable general equilibrium (CGE) model. The fndings showed that complete fuel withdrawal was found to have adverse impacts on frms and households. The withdrawal of subsidy brought a lackluster performance in domestic production. Firms that needed large amounts of fuel products to produce outputs were greatly affected. Besides, households of all segments faced large consumption loss. Nevertheless, the resulting adverse impacts on frms and households could be minimized with the implementation of mitigation measures along with the subsidy reform. The additional fund transfer to the agricultural sector had the merits of improving domestic production and minimizing the consumption loss of the population. In contrast, the direct cash transfer benefted the target population -- the mediumand low-income segments in the urban and rural areas.

Ee Shiang Lim · Jacqueline Liza Fernandez ·Malaysian Journal of Economic Studies ·2022 ·JEL: C13, D12

With the entrance of Uber into the land transportation industry, ride-hailing service has gained popularity and changed the way people travel in urban areas in Malaysia. Despite the growing popularity of this new mode of cab service, studies about factors influencing consumers’ choice to use ride-hailing service are limited in developing countries. This study used primary data collected via a survey in Penang, Malaysia. This study aims to examine the factors affecting consumers’ decision to utilise ride-hailing service. The novelty of this study is the adoption of a Heckman probit selection model to account for the possibility of sample selection bias and the introduction of an important explanatory variable - consumers’ comparative satisfaction with the attributes of ride-hailing and traditional taxi service that affect consumers’ choice of cab service. The results show age, gender, education, marital status, income, cost considerations and vehicle ownership significantly determine the probability of using cab service. Consumers’ choice between ride-hailing and traditional taxi service is affected by gender and their comparative rating of both services in terms of waiting time and the disposition of drivers. This suggests the necessity for cab service providers to improve their service in order to remain competitive in the industry.

Swee-Sim Foong · Jiunn-Shyan Khong · Boon-Leong Lim ·Malaysian Journal of Economic Studies ·2021 ·JEL: G32, G34

This paper examines the risk taking behaviour of Chinese CEO. Our analysis is based on a sample of 362 family firms in Malaysia over the 2009-2015 period using panel GMM methodology. Firstly, our results offer evidence that Chinese CEOs are risk taking. We then examine how CEO power, in the context of Finkelstein’s (1992) structural power, ownership power, expert power and prestige power, might drive risk taking of Chinese CEOs. The results are rather mixed where greater ownership power is likely to promote higher risk taking but greater expert power resulted in lower risk taking. We further show that corporate governance can mitigate risk taking of Chinese CEO in family firms. When the proportions of independent directors and foreign institutional shareholdings exceed the median thresholds of 40% and 5%, respectively, we find that CEO risk taking behaviour turns from positive to negative. Stronger evidence is found when we adjust the thresholds to the 75th percentile of 50% and 15%, respectively. The result is also robust with the use of leverage as a measure for CEO risk taking.

Chin Chun How · Wong Hock Tsen ·Jurnal Ekonomi Malaysia ·2019

This study investigated the presence of abnormal returns surrounding stock split announcements and the determinants of cumulative abnormal return and the split factor. This study utilized the fnancial data of 45 corporations that had exercised stock splits on Bursa Malaysia from the years 2011 to 2015. The dependent variables were cumulative abnormal return for 40 days, cumulative abnormal return for 60 days, and the split factor. The independent variables, dividends per share and earnings per share, represent the signalling hypothesis for the stocks in Malaysia, while the bid-ask spread and the trading volume represent the liquidity hypothesis and the market capitalization, respectively. The signifcance of abnormal returns surrounding stock split announcements was tested using standardized t-statistics. The determinants of cumulative abnormal return and the split factor were determined based on Ordinary LeastSquares (OLS) multivariate regression and Stepwise Least-Squares. The empirical results show that there was a statistically signifcant positive abnormal return on day 1 [+1] after the stock split announcements. Dividend per share was found to have a statistically signifcant relationship with the cumulative abnormal return; thus supporting the signalling hypothesis. Bid-ask spread and trading volume were the main determinants of cumulative abnormal return, supporting the liquidity hypothesis under a different estimation window. Bid-ask spread was the only important determinant for the split factor. The results of this study could help investors and policymakers to design policies to improve the overall market effciency in Malaysia, particularly to increase the effectiveness of information disclosure regarding Malaysian stocks.

Ali Albada · Nurhuda Nizar ·International Journal of Economics and Management ·2022 ·JEL: G1, G4

COVID-19 is a highly contagious viral infection that has changed the world, with many human lives being lost. This study aimed to analyse investors' sentiment and stock market behaviour in Malaysia during the COVID-19 pandemic. Stock market performance was measured through the FTSE BURSA 100 Index (T100) from January 29, 2020, until March 31, 2021, by employing principal component analysis (PCA) to construct the investors' Sentiment Index (SMI). The results indicated that the sudden outbreak of COVID-19 and its rapid spread significantly impacted investors' psychology, which disrupted investors' investment decisions. Furthermore, rapid increases in confirmed COVID-19 cases and deaths increased the uncertainty and unpredictability of the country's economic situation. As a result, the Malaysian financial market showed a steep downward trend during the COVID-19 pandemic.

Ke-Chyn Ng · Mui-Yin Chin ·International Journal of Economics and Management ·2021 ·JEL: F14, F31

This study examined the impact of exchange rate fluctuations on the level of international trade between Malaysia and China using 45 observations spanning from 2010 quarter 1 to 2021 quarter 1. The Generalized Autoregressive Conditional Heteroscedasticity (GARCH) model was adopted to compute the exchange rate fluctuations. International trade between Malaysia and China was selected in this study as, since 2009, China has consistently been Malaysia's top trading partner. Besides, to produce precise output, this study employed two models: the export and import models. The empirical results, derived from Autoregressive Distributed Lag (ARDL) modelling, suggested that exchange rate fluctuations had a negative but statistically insignificant impact on exports. In contrast, exchange rate fluctuations had a positive and statistically significant impact on imports. This result implied that importers from Malaysia were generally risk-takers, as they tended to trade significantly during periods of high exchange rate fluctuation. However, to avoid losses for both exporters and importers due to exchange rate fluctuations, policymakers from both countries should ensure that facilities for exchange rate hedging become more convenient and straightforward for traders so that international trade continues to bloom for both countries.

Siew Yee Lau · Ai Lian Tan · Chung Yee Liew ·Malaysian Journal of Economic Studies ·2019

This paper intends to examine the existence of asymmetric effect of public debt on private investment in Malaysia. As Malaysia's public debt has been rising in recent years the question has been raised on whether the persistently high debt level can negatively affect private investment or otherwise. This study, which uses non-linear autoregressive distributed lags (NARDL) estimation with data from 1980 to 2016, shows some evidence of asymmetrical effect in private investment-public debt nexus in both the long- and short-run. There are evidences of long-run asymmetry between private investment and total public debt, external debt, and federal government debt. In the short run, asymmetric relationship exists between private investment and domestic debt, external debt, and federal government debt. The findings also conclude that, in both long-run and short-run, higher public debt crowds out private investment, which is in line with the crowding-out effect hypothesis. Hence, policy-makers are advised to maintain public debt at a healthy level to ensure private investment is not being crowded-out.