Research

Sonia Kumari Selvarajan · Rossazana Ab-Rahim · Nor-Ghani Md-Nor ·Institutions and Economies ·2018 ·JEL: F13; O16; O53

East Asia Pacific has catapulted to be the most dynamic region in the world as a result of economic liberalisation and sustainable growth. This study seeks to investigate if selected East Asian countries are able to converge in terms of trade and investment openness. This paper uses the concept of Phillips and Sul to evaluate trade and investment convergence in East Asia Pacific region during the period 1990 to 2016. The overall results do not support the hypothesis that all countries converge on a single equilibrium in trade and investment liberalisation. However, findings point to the existence of club convergence.

Arif Imam Suroso ·Economies ·2022

Palm oil is one of the most traded vegetable oils in the global market due to its versatile usage and having a lower price than competitor products. Trade is related to logistics performance as it connects the exporter and importer countries; thus, improving the indicators of logistics also improves the performance of trade, especially in agricultural export. Currently, no study has revealed the effect of logistics performance on palm oil export by considering all the indicators. This study investigates the impact of all the indicators of the logistics performance index on palm oil and palm-based products. Using a panel data regression approach, the extended gravity model is applied in this study to examine Indonesia and Malaysia as the leading exporters of palm oil and palmbased products. The results reveal that all the Logistics Performance Index indicators affect palm oil and palm-based products export in Indonesia and Malaysia. The critical indicators of the Logistics Performance Index in Indonesia are timeliness and tracking and tracing. However, competence and quality of trade infrastructure are the main indicators of Malaysia’s palm oil and palm-based products. The future direction of this research is to explore other agricultural commodities and extend the period of the analysis.

Yong-Kang Cheah ·Institutions and Economies ·2018 ·JEL: D01; I10; I12

Medication labelling and patient knowledge can help reduce risk of misuse of medicine. The present study attempts to investigate the demographic, lifestyleand health determinants of awareness of medication labelling among adults in Malaysia. A nationally representative data is used. Findings showage, income, gender, education, ethnicity, marital status, house locality, employment status, physical activity,smoking, hypercholesterolemia and diabetes are significantly associated with awareness of medication label. In particular, age and unhealthy lifestyle reduce the likelihood of being aware of medication label, whereas education level, being married and employed, and having chronic diseases increase the probability of awareness. The study therefore, recommends intervention measures directed toward promoting awareness of medication label among the individuals who have a low tendency to read medication label or may not need read it properly to ensure desirable outcomes.

Krishna Moorthy · Nik Mohamad Zaki Nik Salleh · Ang Xin Jie · Chan Shu Yi · Lau Shin Wei · Loo Yian Bing · Yee Zhao Ying ·Millennial Asia ·2021

This study examines the social media usage of Malaysian millennials in planning their domestic holidays. This study integrated the theory of planned behaviour (TPB) and technology acceptance model (TAM) variables by adding electronic word-of-mouth (e-WOM), as it is a crucial factor influencing the travel industry nowadays. Data were collected from 301 Malaysians. The results show that e-WOM is the greatest antecedent influencing Malaysian millennials to use social media in planning their domestic holidays. Local tourism organizations such as Tourism Malaysia could gain an understanding of the issue through this study, and the promotion of local tourism through social media could be developed to reach millennials in Malaysia.

Sulistiyo K. Ardiyono ·Economic Analysis and Policy ·2022 ·JEL: D22, L2, L6, L8

Numerous studies have explored the impact of the Covid-19 pandemic on firms’ financial performance, but the link between such performance and employment has rarely been estimated rigorously. Using the ASEAN-5 firms’ data from Q1-2018 to Q3-2021, this study shows how the pandemic affects firms’ revenue, cost, profitability, and employment heterogeneously across countries. It is argued that while revenue losses are the main challenge, widespread and prolonged restrictions in some countries have created extra complications in idle inventories and labour. In response to the revenue shocks, firms reduce their employment with an elasticity of around 0.10, indicating that a 10 per cent revenue decline is associated with a 1 per cent headcount reduction in the short run. A further examination using event analyses reveals that the path of labour adjustment is diverse across countries and industries, reflecting the degree of pandemic severity and countries’ structural issues.

Maisyarah Stapah @ Salleh · Bayu Taufiq Possumah · Nizam Ahmat ·Jurnal Ekonomi Malaysia ·2018

This study investigates the determinants of Net Profit Margin (NPM) in Malaysia’s Islamic banking system for the period of 2011-2015 by using static panel data analysis. In Malaysia, conventional banks through its Islamic subsidiary banks are dominating the Islamic banking system in terms of total assets, total loans and total deposits. Therefore this paper attempts to investigate the impact of these Islamic subsidiaries of conventional banks towards the NPM. In relation to that, the impact of the conventional parent banks’ Net Interest Margin (NIM) towards its Islamic subsidiary banks’ NPM is also investigated. For the first objective, the displayed results shows positive relationship indicating that the Islamic subsidiaries of conventional banks’ NPM is higher than the full-fledge Islamic banks’ NPM. While the empirical results on the banks’ specific variables suggest that size, risk aversion and operating cost are positively related to NPM. However, credit risk tends to reduce NPM. Besides that, this study also finds that market concentrations and GDP growth will influence NPM in negative ways whilst inflation and Islamic stock market developments will increase NPM. Liquidity however is found insignificant to NPM. As for the second objective, the Islamic subsidiaries of conventional banks’ NPM is observed as being independent from its conventional parent banks’ NIM.

Rusmawati Said · Ng Kar Yee · Normaz Wana Ismail ·Institutions and Economies ·2019 ·JEL: J81; J83; J61; R15

This paper investigates the impact of foreign labour standards on domestic labour standards in ASEAN countries. The study employs a set of cross-sectional time series data that covers the period from 1995-2008 for its empirical analysis. Three different labour standards indicators, namely numbers of strikes and lockouts, cases of occupational injuries, and trade union density rates–are used as a proxy for labour standards. The results evince a race to the bottom for labour standards, represented by cases of injuries. In contrast, the effect of trade partners’trade union density rate is negative and significant; however, the number of strikes and lockouts has an insignificant effect. The findings of the study suggest that there may be a race to the bottom in terms of working conditions among ASEAN countries, but not on the standards that measure the rights of workers.

Mohd Yassir Jaafar · Anuar Nawawi · Ahmad Saiful Azlin Puteh Salin ·Pertanika Journal of Social Science and Humanities ·2019

This study is intended to examine the levels of directors’ remuneration disclosure among public-listed companies in Malaysia. It further aims to examine the relationship among total directors’ remuneration, directors’ education level, size of external auditors, and proportion of managerial ownership and directors’ remuneration disclosure. The analysis is conducted based on three models, which are constructed from the Malaysian Code on Corporate Governance (Model 1), Global Practices (Model 2), and a combination of both Malaysian Code on Corporate Governance and Global Practices (Model 3). This study found that the size of external auditors had a positive significant relationship, while the proportion of managerial ownership had a negative significant relationship with the disclosure. This study contributes to the improvement of policymaking and body of knowledge by highlighting the relationship between the selected corporate governance characteristics and directors’ remuneration disclosure in the context of Malaysia.

Chan Fatt Cheah · Abdul Samad Abdul-Rahim · Mohd Yusof Saari · Niaz Ahmad Mohd Naseem ·Journal of the Knowledge Economy ·2022

This paper aims to investigate the impact of the economic openness and institutional quality in explaining the environmental degradation in Malaysia that covers from 1980 to 2019. By using an innovative autoregressive distributed lag (ARDL) technique, the result indicates that economic openness that is measured through the trade and FDI are unequivocally environmental improving. Meanwhile, the institutional reforms also appeared to actualize the beneficial effect of environmental emission. The findings show that economic openness and institutional quality act as a key driving force to further curb the CO2 emission and in turn to reduce the environmental pollution. This suggests that countries with adequate trade, FDI, and institutional settings like Malaysia are on the right track to reinforce all efforts in bringing down pollution. Therefore, environmental quality can be improved through the greater ability and willingness to enforce environmental regulations and higher trade liberalization process, which is usually associated with higher income, more economic development, and better environment.

Izaan Jamil · Mori Kogid · Thien Sang Lim · Jaratin Lily ·Economies ·2022

This paper investigates the impact of soybean and crude oil futures on palm oil indexes by utilising monthly data from three palm oil indexes listed in Bursa Malaysia, i.e., the Asian palm index, Malaysian palm index, and Plantation index, spanning from January 2010 to June 2020. The impacts were analysed using the Autoregressive Distributed Lag (ARDL) bounds test approach and causality test. The statistical findings revealed that the Asian palm index has a long-run relationship with crude oil futures and crude palm oil, and a short-run relationship with soybean futures, crude oil futures, and crude palm oil. On the other hand, the Malaysian palm index has a short-run relationship with soybean futures and crude palm oil, whereas the Plantation index has a short-run relationship with crude oil futures, crude palm oil, and exchange rate. For the long-run strategy, this study recommends close monitoring of crude oil futures. Meanwhile, the short-run strategy requires close monitoring of the crude oil and soybean futures. Eventually, the empirical findings proposed that interested parties such as fund managers, investors, and traders should pay attention to crude oil and soybean futures to mitigate risk and diversify their portfolios with greater emphasis on crude oil futures.

Farhad Taghizadeh-Hesary · Han-Phoumin · Ehsan Rasoulinezhad ·Economic Analysis and Policy ·2022 ·JEL: H81, G21

The main objective of this paper is to identify the determining factors of the optimal credit guarantee ratio in four members of the Association of Southeast Asian Nations (ASEAN), namely Indonesia, Singapore, the Philippines, and Malaysia, by employing statistical techniques and the Vector Autoregressive (VAR) approach. The empirical findings prove that the loan default ratio is the optimal credit guarantee ratio’s main determining factor. The empirical findings confirm that the credit guarantee ratio needs to be increased in the ASEAN region to help SMEs survive in the wake of the COVID-19 pandemic and for the post-COVID-19 economic recovery. The results show that the credit guarantee ratio should vary for different countries based on the macroeconomic climate and for each bank or, in other words, for groups of banks with similar financial soundness. The practical policy recommendations are establishing a regional credit guarantee scheme (RCGS) and evaluating banks’ soundness for setting the optimal credit guarantee ratio.

My-Linh Nguyen · Toan Ngoc Bui ·Economies ·2021

This paper focuses on examining the nonlinear impact of trade openness (TO) on economic growth (EG) in the Asean-6 countries (Indonesia, Malaysia, Thailand, Singapore, Philippines, and Vietnam). In order to achieve the set research objectives, the authors estimate the research model through the fixed-effect panel threshold approach. Unlike previous studies, this paper finds that there is a nonlinear impact of TO on EG, whereby TO has two threshold values. Specifically, before the first threshold value, TO plays an important role in boosting EG. However, this impact level decreases gradually when TO exceeds this threshold value. In particular, when exceeding the second threshold value, the impact of TO on EG is still positive but has a relatively low value. The research results show that if TO increases to a high level (beyond the threshold value) without combining with other complementary policies, this does not encourage high-efficiency EG. In addition, this study also shows that EG is positively affected by domestic investment and negatively affected by financial crisis. The findings in this paper are of great importance for the Asean-6 countries as well as researchers.

Noor Zahirah Mohd Sidek · Bhuk Kiranantawat · Martusorn Khaengkhan ·Economies ·2022

In the present paper, we show how uncertainty emanating from fluctuations in economic uncertainty, news-based uncertainty, and geopolitical risks affect the number of containers exported from Thailand via Penang Port, Malaysia. Our sample extends from January 2009 to May 2020 from three main entry points in the Northern Peninsular Malaysia–Thailand Border: Padang Besar, Surat Thani, and Bukit Kayu Hitam. Two modes of transportation of containers are mainly used for export purposes, namely, road and rai. This study examines the nonlinear effect of uncertainty on trade by employing a two-regime Markov regime-switching approach. The empirical results show that, overall, uncertainty significantly affects the movement of containers in the high-uncertainty regime. Therefore, small ports must continue to diversify their client base to cushion the impact of fluctuations in global trade due to uncertainty

Hylmee Matahir · Chor Foon Tang ·Institutions and Economies ·2018 ·JEL: C33; C51; Z30

This study explores critically major determinants of inbound educational tourism demand in Malaysia between 2002 and 2014 by employing dynamic panel system Generalised Method of Moment (GMM). The study found academic reputation as the main driving factor of educational tourism followed by economic capacity of country of origin and the quality of higher education. The findings of this study provide some insights for the policymakers to plan their promotional strategies to attract a greater number of international students to Malaysia to pursue their higher education.

Fazli Wadood · Mohammed Emad Alshaikh · Fazal Akbar · Maqsood Mahmud ·Entrepreneurial Business and Economics Review ·2022

The main objective of this research is to integrate the resource-based view (RBV) to analyse how the relationship between firm performance and entrepreneurial orientation is mediated by outbound innovation among furniture firms in Malaysia.