INTRODUCTION Gross National Product (GNP) is an economic statistic that includes GDP, GDP, plus any income any income earned earned by residents from overseas investments, minus investments, minus income earned within the domestic economy by overseas residents.
Gross national product national product (GNP) is the market value va lue of all the products produ cts and services produced p roduced in one year by labour and property supplied by the citizens of a country. country. nlike!ross nlike !ross domestic product (GDP), product (GDP), which defines production based on the !eo!raphical location of production, GNP allocates production based on location of ownership.
GNP is an economic statistic that is e"ual to GDP plus any income earned by residents from overse overseas as inves investm tmen ents ts minus minus incom incomee earned earned with within in the dom domest estic ic econom economy y by overse overseas as residents.
GNP does not distin!uish between "ualitative improvements improvements in the state of the technical arts increasi increasin! n! computer computer process processin! in! speeds, speeds, and "uantit "uantitati ative ve increases increases in !oods !oods numb number er of computers produced and considers both to be forms of #economic !rowth#.$%&
'hen a countrys capital or labour resources are employed outside its borders, or when a forei!n firm is operatin! in its territory, GDP and GNP can produce different measures of total output. n *++ for instance, the nited -tates estimated -tates estimated its GDP at %/.%% trillion, and its GNP at %/.*01 trillion.
Malaysian GNP in 2006 until 2015 *++0 2he 3alaysi 3alaysian an economy economy stren!th stren!thened ened in *++0,w *++0,with ith real !ross !ross dom domesti esticc product product (GDP) (GDP) e4pandin! by 1.5. 2he robust !lobal !rowth durin! the year resulted in stron! demand for electronics and primary commodities. 2his stron! e4ternal environment was supported by stron! stron! domestic domestic activity activity as private private consump consumption tion rose in line line with with incomes incomes and private private investment increased to e4pand productive capacity to meet demand. 6s a result of the e4pansion in domestic and e4ternal demand, employment also stren!thened as reflected in the decline decline in retrench retrenchment mentss and the accelera acceleration tion in 7ob creatio creation. n. 2he unemployme unemployment nt rate remained unchan!ed at 8.15 while nominal wa!es increased.
*++9 3alay 3alaysia sias s real real !ross !ross dom domest estic ic produc productt (GDP (GDP)) pos poste ted d 0/% 0/%./ ./ billi billion on rin!! rin!!it it (abou (aboutt *++./0billion .-. dollars) in *++9 at current prices, up 0.8 percent compared with that in *++0. 2he 0 percent:stron! !rowth was achieved thanks to stron! domestic demand, driven by stron! private consumption spendin! and investment activities, accordin! to a statement issued by 3alaysias central bank ;ank Ne!ara 3alaysia (;N3).2he economic !rowth rate is hi!her than 1.0 percent in *++0, but lower than 0.< percent in *++/. 2he !rowth prospects prospects for the 3alaysian economy remains favorable in *++<. =4pandin! domestic demand will continue to provide stron! support for the economy .Near:term indicators as well as the latest si4:month smoothed !rowth rate of the Department of -tatistics of 3alaysia leadin! inde4 indicate that the nations economy would remain resilient . *++< Durin! this year ,the impact of the !lobal economic and financial crisis on 3alaysia has been felt lar!ely throu!h a contraction in a!!re!ate demand caused by a collapse in e4ports, either either directly or indirectly, indirectly, to the nited -tates.2he -tates.2he GDP !rowth slowed down to +.%5 in the last
"uarter of *++<, and decelerated decelerated by :0.*5 and :8.5 respectively in the first two "uarters of *++ as a conse"uence before fallin! further by :8.5 in the second "uarter of the year. 3alaysia>s economy has clearly entered a recession followin! a decline in GDP over the first two "uarters of *++. *++ n *++, 3alaysia had the hi!hest and lowest GDP !rowth rate. n early of *++, 3alaysia has und under er!o !one ne the lowes lowestt !rowt !rowth h rate rate of :9.0, :9.0, but 3alay 3alaysia sia re!ai re!aine ned d its its beari bearin!s n!s and mana!ed to !et the hi!hest GDP !rowth rate of 1. at the end of the same year. ?inal consumption e4penditure fell !radually over the whole of *++<, but contracted in the first "uarter of *++ before recoverin! by +.05 in the second "uarter. 'hile public consumption slowed down to *.%5, !rowth of private consumption fell by :+.95 in the first "uarter of *++.
The Gross National Product in Malaysia ro! 2005 to 200" is as ollo#s$
GNP (in *+++ factor)@in!!it 3alaysia in 3illion
*+ +1
* ++ 0
*+ +9
* ++ <
* ++
/*/,*/
/1/,0*1
/<*,*8
/0,+99
1+/,<0/
Private consumption
*%0,*/9
*8+,***
*11,+*<
*90,1*9
*<0,*+1
Private investment
1+,
1/,0/8
1,0
0+,<0
1+,%%<
Public consumption
1<,81
0%,*1<
01,*
9*,<<+
9<,%<9
Public investment
/<,/*1
1*,/98
19,89<
19,991
19,89<
=4ports of !oods A services
11/,*0%
1*,<
0%9,0*<
0*0,<*/
1**,%8
mports of !oods A services
/91,<8<
1%0,/%*
1//,+1
110,+%1
/98,%+*
*+%+ 3alaysia>s 3alaysia>s economy outperformed outperformed e4pectations to pull off a remarkable remarkable !rowth of 9.*5 for *+%+ to 3B@ 11<.8< billion, compared with a contraction contraction of %.95 in *++. 2he !overnment had earlier forecasted !ross domestic product !rowth at 1C05, while other economists were more optimistic with a 95 !rowth pro7ection. 3alaysia>s record hi!h GDP came from a sharp rebound in its manufacturin! manufacturin! sector, which displayed displayed a !rowth rate of %%./5, %%./5, compared to a ./5 decline in *++, mainly from the petroleum, chemical, rubber, and plastic products industries. 2he service sector !rew likewise, displayin! a 0.<5 !rowth rate, compared to a *.95 !rowth rate in the previous period, supported by the wholesale and retail trade, business services, and real estate subsectors. *+%% 3alaysia>s !ross domestic product (GDP) e4panded by 1.*5 in the fourth "uarter of *+%% despite despite the challen! challen!in! in! e4ternal e4ternal environm environment ent as dom domesti esticc demand demand continue continued d to sup support port !rowth. ?ull:year !rowth came in at 1.%5 after e4pandin! 9.*5 in *+%+ as domestic demand conditions remained favourable supported by both private and public sector spendin!. Private comsump comsumptio tion n increase increased d by 9.%5 supported supported by favourab favourable le income income !rowth !rowth while while public public consumption rose by *8.05 followin! hi!her e4penditure on emoluments and supplies and services.
*+%* 2he 3alaysian economy performed better than e4pected in *+%*, with a hi!her !rowth of 1.05 (*+%% 1.%5). 2he stron! !rowth was supported by resilient domestic demand,which cushioned the ne!ative impact of the weak e4ternal environment. Domestic demand recorded its its hi!hes hi!hestt rate rate of e4pans e4pansion ion for for the decade decade,, sup suppor porte ted d by stron! stron!er er consu consump mpti tion on and and investment spendin!. nlike in *++ when the weakness in e4ternal demand had si!nificantly affected domestic economic activity throu!h its impact on private investment and private consumption, domestic demand had remained resilient in *+%*.
*+%8 2he 3alaysian economy e4panded by /.95 in *+%8, driven by the continued stron! !rowth in domestic demand. Despite the weaker e4ternal environment in the first half of the year, domestic demand remained resilient throu!hout the year, led by robust private sector activity. Private consumption consumption was stron!,supported stron!,supported mainly by favourable employment employment conditions and wa!e wa!e !rowt !rowth. h. Priva Private te invest investme ment nt re!ist re!ister ered ed a stron stron! ! !row !rowth th in *+% *+%8, 8, conti continui nuin! n! the the momentum from the previous year
*+%/ 3alay 3alaysia sia>>s econo economy my recor recorded ded a value value of GDP GDP at @3%, @3%,%+0 %+0.0 .0 billi billion on in *+% *+%/ / (*+%8 (*+%8 @3%, @3%,+%< +%<.< .< billi billion) on) at curre current nt price pricess (Ehar (Ehartt %). %). 2h 2hee contri contribut bution ion of Eomp Eompens ensati ation on of =mployees to 3alaysia>s economy accounted for 8/.8 per cent (@389./ billion) while Gross Fperatin! -urplus holds the lar!est share in income components at 0*.0 per cent (@30*. billion). 2he remainin! of 8.% per cent (@38/.8 billion) was contributed by 2a4es less -ubsidies on Production and mports. n *+%/, the economy stren!thened to <.0 per cent as a!ainst /. per cent in the precedin! year with all sectors posted a better !rowth. Eompensation Eompensation of =mployees rose to .9 per cent
(*+%8 9.*5) which was lar!ely led by -ervices and 3anufacturin! sectors. Gross Fperatin! -urplus au!mented to 0./ per cent (*+%8 8.85) while 2a4es less -ubsidies on Production and mports soared to 19. per cent.
*+%1 n the fourth "uarter of *+%1, GDP e4panded /.15 over the same period of the previous year, which marked the slowest rate since % *+%8. 'hile this was a deceleration, it the fi!ure was above market e4pectations of a /.85 increase and brou!ht full year GDP !rowth to 1.+5. 2hee stron! 2h stron!er er:t :than han:e4 :e4pe pecte cted d perfo performa rmance nce occurr occurred ed in spite spite of a series series of fact factors ors that that threate threatened ned to si!nific si!nificantl antly y comprom compromise ise the economy economy,, includin includin! ! currency currency deprecia depreciation tion,, political instability concerns, unfavourable base effects re!ardin! both investment and consumption, as well as a collapse of revenues related to the oil and !as sector.
%ector that !ost contri&ute in Malaysia's GNP *++0 n *++0, *++0,the the servic services es secto sectorr with with a share share of 1<.*5 1<.*5 to GDP GDP, conti continue nuess to drive drive !rowt !rowth, h, supported by steady e4pansion in wholesale wholesale ,retail trade ,hotels and restaurant restaurant and transport, transport, stora! stora!ee and commu communic nicati ation on sub secto sectorr .'i .'ith conti continui nuin! n! stron! stron! dom domest estic ic dema demand nd and e4pandin! trade related activities, the sector is estimated to e4pand by 1.95(*++10.15)w 1.95(*++10.15)with ith all sub sector recordin! positive !rowth .3anufacturin! which accounts for 8*5 of GDP remain remainss the the lar! lar!est est e4port e4port earner earner and the seco second nd mo most st impor importan tantt secto sectorr !enera !enerati tin! n! employment for the economy .2his is e4pected to record a hi!her !rowth of 9.85 in *++0(*++ *++0(*++11. 11.%5). %5).foll followi owin! n! the anticip anticipated ated better better performa performance nce of the e4port: e4port:orie oriented nted industries ,te4tile and petroleum. *++9 Fn the sectoral front, !rowth was broad based in *++9, reflectin! e4pansion in all sectors of the economy economy.. 2he services services,con ,constru structi ction on and minin! minin! sectors sectors showed showed stron! stron! perform performance ance durin! the year. 2he services sector e4panded by .95, supported mainly by the real estate and business servicesH finance and insuranceH insuranceH communicationH and wholesale and retail trade sub:sectors. 2he construction sector turned around to record a positive !rowth of /.05 driven mainly by the civil en!ineerin! sub:sector. 2he minin! sector also recorded positive !rowth of 8.85 due to hi!her output of oil and natural !as.
*++< 2he services sector remained as a ma7or contributor to overall GDP in *++< with a re!istered !rowth of 9.*5. 6lthou!h the !rowth was lower compared to *++9 ,sub:sectors like the wholesale and retail trade finance and insurance, communication, transportation and stora!e and other services lent si!nificant support to stren!then the overall !rowth in the -ervices -ector. Durin! the first half of *++<, this sector posted a stron! performance as a result of available demand evident in a stable environment supported by the increase in tourism: related activities. *++ 2he manufacturin! e4port sector has been hit the worst durin! this !lobal crisis in *++.2he electrical and electronics industry declined sharply by /%./5 in the first "uarter of *++ compared with a fall of **.15 in the last "uarter of *++<, due to a contraction in e4port oriented industries and weaker support from domestic:oriented industries. n addition, value added in the manufacturin! sector declined by %9.05 in the first "uarter of *++ compared with a drop of <.<5 in the fourth "uarter of *++<.Iowever, Palm oil is the country>s main a!ricultural product for domestic as well as e4port markets. 3alaysia currently accounts for
/%5 of world palm oil production and /95 of world e4ports. 2here 2here appears to be less worry re!ardin! the impact of the !lobal crisis on this sector.
*+%+ ?or *+%+,the most contribute is manufacturin! sector, which displayed a !rowth rate of %%./5, compared to a ./5 decline in *++, mainly from the petroleum, chemical, rubber, and plastic products industries. 2he service sector !rew likewise, displayin! a 0.<5 !rowth rate, compared compared to a *.95 !rowth rate in the previous period, period, supported by the wholesale and retai retaill trade trade,, bus busine iness ss servic services, es, and real real estat estatee subse subsecto ctors. rs. 2h 2his is was was furth further er aided aided by a continuous inflow of forei!n direct investment and the Eentral ;ank of 3alaysia>s prudent mana!ement of the reserve position. *+%% 6s percenta!e share of real GDP by sector, the three lar!est sectors in *+%% were services (1<.0 per cent), manufacturin! (*9.1 per cent) and a!riculture (9.8 per cent), while the remainin! sectors were minin! (0.8 per cent) and construction (8.* per cent).
*+%* 2he services sector was responsible for the lar!est share of 3alaysia>s GDP. n *+%*, the sector contributed 1/.0 per cent to the country>s GDP and recorded a !rowth rate of 0./ per cent in value added. =mployment =mployment in the services sector was estimated at 0.9 million persons or 18.1 per cent of total employment in *+%*.Productivity of the services sector is e4pected to !row more than four per cent in *+%*, led by communications (1.95), wholesale and retail trade (/.5) and the other services (1.05) sub:sectors.
*+%8 6ll sector in *+%8 record a positive !rowth. 2he !rowth continued to be driven by services sector with stron! activitiy in domestic oriented services,particularly with wholesale and retail trade as well as communication subsector.2he service sector e4panded 1./5 durin! the first si4 month of *+%8,mainly driven by resilient domestic consumption and investment activities.2he subsector is e4pected increased 1.95 supported by stron! consumption.
*+%/ 3alaysias economy e4panded at a faster pace of 0./5 in the second "uarter 6pril to June *+%/, underpinned by stron! !rowth in the services and manufacturin! sectors : e4ceedin! forecasts of 1.<5. ?or the first half of *+%/, 3alaysias GDP stren!thened to 0.85 from /./5. 2he services sector recorded sustained !rowth of 05, faster than the 15 a year a!o, supported mainly by the trade:related sub:sectors. Iowever, it was slower from the 0.05 !rowth in %, *+%/.2he manufacturin! sector e4panded at a faster pace of 9.85 from the 8.<5 a year a!o (% *+%/ 0.<5) underpinned by the electronics and electrical cluster, particularly semiconductors. 3eanwhile, the a!riculture sector re!istered stron! !rowth of 9.%5, reflectin! hi!her production of palm oil.
*+%1 2he nternational 2rade 2rade and ndustry 3inistry is confident the services sector will contribute 9+5 to the !ross domestic product (GDP) by *+%1, on par with with other developed countries such as the nited -tates and Japan. Deputy 3inister Datuk 3ukhriz 3ahathir said on 2uesday the %+th 3alaysia Plan, runnin! from *+%% throu!h *+%1, anticipates that the avera!e real annual !rowth rate of the sector should accelerate to 9.*5 durin! *+%+:*+%1, and reco!nises that hi!her investments are needed in the services sector.
Conclusion (Re)ie# ro! 2006 to 2015
Durin! the review period, the manufacturin! sector continued to remain as one of the ma7or contributor contributor to economic !rowth. !rowth. 2he competitivenes competitivenesss of the manufacturin! manufacturin! sector will be further enhanced by focusin! on hi!her value added and hi!h:technolo!y activities as well as promotin! productivity produ ctivity driven !rowth. 2he 2hird ndustrial 3aster 3as ter Plan (3P8) has h as outlined the strate!ies for the period *++0C*+*+, to promote the development of %* tar!eted sectors, namely petrochemicals, petrochemicals, pharmaceuticals, pharmaceuticals, rubber and rubber products, wood:based products, oil palm:based industry, industry, food processin!, processin!, electrical electrical and electronics electronics (=A=), medical devices, te4tiles and apparel, machinery and e"uipment, metals industry and transport e"uipment. n terms of GDP share, the manufacturin! sector contributed 8+.95 in *++1 and *.%5 in *++<. Durin! the review review period, manufacturi manufacturin! n! !rowth was 1.*5 1.*5 in *++1, 0.95 in *++0, 8.%5 in *++9 and %.85 %.85 in *++<. 2he lower lower performa performance nce in *++9 and *++< was due to reduced !lobal !lobal demand for =A= =A= products. ?urther decline decline is e4pected e4pected in *++ due to the current !lobal economic crisis. n the recent news,3alaysia>s services sector is continuin! to e4pand and the hope is that it will contribute even more to the economy.Deputy ?inance 3inister Datuk 6hmad 3aslan said said the the Gover Governm nment ent was !enera !enerally lly sup suppor porti tive ve of entre entrepre preneu neurs rs who who want wanted ed to start start businesses, particularly in the services s ervices sector, secto r, by providin! various loan schemes.Ie said this in response to the latest !rowth fi!ures released by ;ank Ne!ara on ?riday, which showed the services sector had contributed a stron!, sustained 05 to the country>s second:"uarter !ross domestic product (GDP) fi!ure of 0./5.6hmad 0./5.6hmad said 3alaysia>s GDP !rowth !rowth for the "uarter had beaten most countries in the 6sean re!ion, includin! -in!apore at *.%5, while surpassin! that of -outh Korea (8.05), the nited -tates (*./5), the nited Kin!dom (8.%5) and @ussia (%.*5).LFnly Ehina at 9.15 beat 3alaysia>s GDP !rowth,M he said.6hmad told reporters this after launchin! I Pro 3otorsport -dn ;hd in Kuala umpur yesterday.3alaysia>s 0./5 second:"uarter economic !rowth also beat forecasts of analysts and was a +.*5 improvement
over the first "uarter.2he construction sector was the main contributor to the GDP at .5, followe followed d by manufac manufactur turin! in! (9.85), (9.85), a!ricult a!riculture ure (9.%5), (9.%5), private private consump consumptio tion n (0.15) (0.15) and petroleum and minin! (*.%5).6hmad said the stron! !rowth was the result of !ood mana!ement of the economy in the midst of the uncertainty in the !lobal environment, as well as 3alaysia>s political stability.
Malaysia GDP GDP Gro#th Rate *201+,2016-
2he Gross Domestic Product (GDP) in 3alaysia e4panded %.1+ percent in the fourth "uarter of *+%1 over the previous "uarter, acceleratin! from a +.9 percent rise in the previous period. GDP Growth @ate in 3alaysia avera!ed %.* percent from *+++ until *+%1, reachin! an all time hi!h of 1.+ percent in the third "uarter of *++ and a record low of :9.0+ percent in the first "uarter of *++. GDP Growth @ate in 3alaysia is reported by the Department of -tatistics 3alaysia.
CONCLUSION 6part
f ro m
t h is
usin!
2he !r !ros osss
dom do mes esti ticc
prod pr oduc uctt (GDP)
is
o ne
of
th e
primary indicators used to !au!e the health of a countrys economy economy.. t represents the total dollar value of all !oods and services produced over a specific time periodH you can think of it as the size of the economy. sually, GDP is e4pressed as a comparison to the previous "uarter or year. ?or e4ample, if the year:to:year GDP is up 85, this is thou!ht to mean that the economy has !rown by 85 over the last year. 3easurin! 3easurin! GDP is complicated (which is why we leave it to the economists), but at its most basic, the calculation can be done in one of two ways either by addin! up what everyone earned in a year (income approach), or by addin! up what everyone spent (e4penditure method). o!ically, both measures should arrive at rou!hly the same total. 2he income approach, which is sometimes referred to as GDP(), is calculated by addin! up total compensation compensation to employees, employees, !ross profits for incorporated incorporated and non in cooperated cooperated firms, and ta4es less any subsidies. 2he e4penditure method is the more common approach and is calculated by addin! total consumption, investment, !overnment spendin! and net e4ports. 6s one can ima!ine, economic production and !rowth, what GDP represents, has a lar!e impact on nearly everyone within that economy. ?or e4ample, e4ample, when the economy is healthy, healthy, you will typically see low unemployment and wa!e increases as businesses demand labour to meet the !rowin! economy. 6 si!nificant chan!e in GDP, whether up or down, usually has a si!nificant effect on the stock market. ts not hard to understand why a bad economy usually means lower profits for companies, which in turn means lower stock prices. nvestors really
worry about ne!ative GDP !rowth, which is one of the factors economists use to determine whether an economy is in a recession recession..
GNP measures total supply supply of of output produced durin! a !iven period, it then must also e"ual total demand demand assumin! assumin! there is no savin!s in an economy. 2otal demand for domestic output is made up of five components consumption, !overnment spendin!, investment, net e4ports and net factor payments. ;ecause GNP must e"ual total demand for output, it can then be e4pressed mathematically by
GNP . C / G / I / N /NP
2he calculation is broken up as follows •
Eonsumption (C) is the actual consumption spendin! of the household sector. t consists of food, clothin! and all consumer spendin!. Eonsumption is by far the lar!est component of GNP and accounts for appro4imately two:thirds of total demand.
•
Goods and services (G) is the ne4t lar!est component of !overnment purchases. 2hese items include salaries for !overnment employees, national defense, and state and local !overnment spendin!. Government transfer payments, such as unemployment compensation, are not included.
•
nvestment spendin! (I) is not what we commonly think of when we discuss investin!. t does not include include the purchases of stocks stocks and and bonds bonds.. @ather, investment spendin! includes business spendin! that will improve the ability to produce in the future. nventory spendin!, capital improvements, and buildin! machinery are included in this cate!ory. nvestment in housin! construction is also included.
•
2he net e4ports (N) component is e"ual to e4ports e4ports (!oods (!oods and services purchased by forei!ners) minus imports imports (!oods (!oods and services purchased by domestic residents). ?or some time the .-. has been buyin! more forei!n !oods and services than it sells abroad, which creates a trade deficit, deficit, thereby reducin! its GNP.
•
?inally, net factor payments (NP) are the net amount of payments that an economy pays to forei!ners for fo r inputs used in producin! prod ucin! !oods and services, serv ices, less money the economy receives for sellin! the same factors of production.
