Malaysian Economy Chapter 5: Service Sector

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary role of the service sector in an economy?

To provide jobs, inputs, and public services for the economy (correct)

To provide raw materials for manufacturing

To regulate the economy's investment climate

To promote the growth of the agriculture sector

As an economy matures, what happens to the share of GDP contributed by the service sector?

It fluctuates randomly

It decreases significantly

It increases gradually (correct)

It remains constant

What is the current trend in the services sector globally?

It is growing vigorously due to globalization, government liberalization, and advancement of ICT (correct)

It is declining due to the slow pace of globalization

It is stagnant due to lack of investment in ICT

It is fluctuating due to economic uncertainty

What is the significance of the service sector in Malaysia's economy?

It is a significant contributor to GDP and job creation Signup and view all the answers

What is the ranking of Malaysia's services sector in terms of value added in South East Asia?

5th Signup and view all the answers

What percentage of Malaysia's workforce is employed in the services sector?

More than 60% Signup and view all the answers

What is the ultimate goal of developing the service sector in Malaysia?

To become a developed nation Signup and view all the answers

Which of the following countries has the services sector as the leading contributor to GDP?

US, Japan, Brazil, India, and Singapore Signup and view all the answers

What is the effect of the service sector on the overall investment climate?

It has a significant and positive impact Signup and view all the answers

What was the economic growth rate of Malaysia in 2020?

5.3% Signup and view all the answers

What is a characteristic of the service sector in developed countries?

It is a significant contributor to GDP Signup and view all the answers

What is the relationship between the service sector and economic growth?

The service sector is a determinant of economic growth Signup and view all the answers

What percentage of Malaysia's economic growth rate in 2020 was represented by services trade?

57.7% Signup and view all the answers

What is the primary objective of the government's policy in the service sector?

To promote the sector's development Signup and view all the answers

Which of the following services sectors generated revenue for the economy in Malaysia?

Travel, transport, telecommunications, computer & information, and other business services Signup and view all the answers

What is the source of the data on the contribution of the service sector by countries in 2018?

The World Factbook Signup and view all the answers

What percentage of Malaysia's exports was accounted for by the four components in 2015?

86.1% Signup and view all the answers

What was the total value of Malaysia's services exports in 2005?

USD 19.0 billion Signup and view all the answers

Which of the following is true about Malaysia's economy in 2016?

It witnessed a GDP growth of 4.5% in quarter four of 2016. Signup and view all the answers

What was the contribution of the services sector to Malaysia's GDP growth in 2016?

54.6% Signup and view all the answers

What was the growth rate of the services sector in Q4 2016?

5.5% Signup and view all the answers

What is the emerging contributor to the Malaysian economy?

Digital economy Signup and view all the answers

What was the value-added growth rate of the digital economy between 2015-2017?

9% Signup and view all the answers

What is the characteristic of the economy's transformation in Malaysia?

Economic sectors moving to higher value-added economic activities Signup and view all the answers

What is the main goal of the Services Sector Blueprint launched in 2015?

To transform the sector into a more knowledge-intensive and innovation-led sector Signup and view all the answers

What is the projected annual growth rate of the services sector?

6.8% per annum Signup and view all the answers

What was the total value of Malaysia's exports of services in 2020?

RM92.6 billion Signup and view all the answers

What was the total value of Malaysia's imports of services in 2020?

RM140.1 billion Signup and view all the answers

What was the main reason for the highest deficit in services in 2020?

Disruption in the key services components, namely Travel and Transport Signup and view all the answers

What was the expected contribution of the services sector to GDP in 2020?

56.5% to GDP Signup and view all the answers

What was the expected number of jobs provided by the services sector in 2020?

9.3 million jobs Signup and view all the answers

Which sector saw a windfall opportunity in 2020?

Telecommunications, computer and information services Signup and view all the answers

What is the ranking of Malaysia in terms of ease of starting a business in 2020?

97 Signup and view all the answers

What percentage of the workforce is employed in knowledge-intensive jobs in 2014?

25.2% Signup and view all the answers

What is the main challenge of the services sector in Malaysia?

Contribution of services sector to GDP is relatively low Signup and view all the answers

What is the source of the data on Malaysia's ranking in terms of logistics performance in 2020?

Global Innovation Index Signup and view all the answers

What is the current trend of the services sector in Malaysia?

Growing Signup and view all the answers

What percentage of the population has access to ICT in 2015?

74.8% Signup and view all the answers

What is the title of the blueprint that outlines the plan for the services sector in Malaysia?

Services Sector Blueprint Signup and view all the answers

What is the ranking of Malaysia in terms of regulatory quality in 2020?

40 Signup and view all the answers

Study Notes

Importance of Service Sector in Malaysia

The service sector makes a significant contribution to GDP, providing jobs, inputs, and public services for the economy.
It has a direct and significant impact on GDP and job creation, and provides crucial inputs for the rest of the economy, affecting the overall investment climate.

Role of Service Sector in Malaysia

The services sector assumes an increasing share of GDP as the economy matures, evident in developed countries.
It is the main engine of growth to propel and sustain the economy, making a direct and significant contribution to GDP and job creation.

Service Sector Development in Malaysia

The services sector is an important engine of the global economy, growing vigorously due to globalization, government liberalization, and rapid advancement of ICT.
It has successfully played a key role as one of the main economic builders in many economies, contributing significantly to GDP.

Service Sector Contribution to GDP and Employment

In 2020, the services sector contributed 57.7% to the GDP, with a growth rate of 5.5% in Q4 2016.
Employment in the services sector accounted for more than 60% of the workforce, with a value-added of USD160 billion in 2015.

Digital Economy in Malaysia

The digital economy is an emerging contributor to the Malaysian economy, driven by growing digitalization and use of technology in economic activity.
It has recorded a positive performance trend between 2015-2017, with a value-added growth of 9% and employment growth of 5.4%.

Policy and Planning in Malaysia Services Sector

The development of the services sector is guided by the Services Sector Blueprint, launched in 2015, aiming to unlock the sector's potential and transform it into a more knowledge-intensive and innovation-led sector.
The Blueprint aims to grow the services sector at 6.8% per annum and contribute 56.5% to the GDP in 2020, providing 9.3 million jobs.

Challenges and Opportunities

The services sector faces challenges, including a relatively low contribution to GDP compared to developed countries, a skewed mix of services sub-sectors, and lower growth of total investments.
However, there are opportunities for growth, including the digital economy, e-commerce, and knowledge-intensive industries such as halal, ecotourism, and ICT.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers the importance and contribution of the service sector in Malaysia, its role in the economy, growth, and government policies involved.