Upload
nikita-babich
View
236
Download
0
Embed Size (px)
Citation preview
8/13/2019 Presentation4 Malaysia vs Ukraine
1/16
MALAYSIA
Team:
Iuliia Diuba
Nadiia Smirnova
Valentyn Rudnytskyi
Anna Shevchenko
Elena Gorodinscaia
8/13/2019 Presentation4 Malaysia vs Ukraine
2/16
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?
8/13/2019 Presentation4 Malaysia vs Ukraine
3/16
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
8/13/2019 Presentation4 Malaysia vs Ukraine
4/16
1. Large portion of non-services in GDP structure
2. Cheap labor force
Average salary inUkraine: $341
Malaysia: $350 (unskilled)
Commonalities
8/13/2019 Presentation4 Malaysia vs Ukraine
5/16
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
8/13/2019 Presentation4 Malaysia vs Ukraine
6/16
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
8/13/2019 Presentation4 Malaysia vs Ukraine
7/16
8/13/2019 Presentation4 Malaysia vs Ukraine
8/16
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
8/13/2019 Presentation4 Malaysia vs Ukraine
9/16
Differences
8/13/2019 Presentation4 Malaysia vs Ukraine
10/16
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)
8/13/2019 Presentation4 Malaysia vs Ukraine
11/16
Differences
Political/ Legal
Legal system:
Malaysialargely based on English common lawUkraine - Civil law system
Government type:
Malaysia - Constitutional monarchy
Ukraine -Republic
8/13/2019 Presentation4 Malaysia vs Ukraine
12/16
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)
8/13/2019 Presentation4 Malaysia vs Ukraine
13/16
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.)
8/13/2019 Presentation4 Malaysia vs Ukraine
14/16
8/13/2019 Presentation4 Malaysia vs Ukraine
15/16
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.)
8/13/2019 Presentation4 Malaysia vs Ukraine
16/16
Thank you for attention!