Consumer Finances in MalaysiaEssay Preview: Consumer Finances in MalaysiaReport this essayConsumer finances in Malaysia is seeing a growth in 2017 as per Euromonitor’s report (Euromonitor International, 2017). According to the same report, the growth is mainly focusing on the categories such as auto loan, durables lending, education loans and mortgage despite having their own challenges in the economic circumstances as well as the increase in living cost. It is also found that the growth of this industry is mainly driven by the rapid increase of Malaysian youth from middle-income population who are eager in accumulating assets. In Malaysia, there are a few providers of consumer finances which include Maybank, CIMB and Hong Leong (Bank Negara Malaysia, 2017). This paper will be focusing on Hong Leong Bank to further illustrate the components to be discussed.
The Malaysian State has shown that the financial system is a reliable and effective system that delivers on social service programmes. So where is the need for a ‘transparent’ financial system that makes the financial system accountable?
Budgetary and Government Funding in Malaysia in 2017, which includes Budgetary and Government Funding in Malaysia in 2017, which includes PEN & Lending Trust (PEN.PED), was announced by the government in March 2017. This included all the major components and components, namely government spending on public administration, social assistance (PAS), education and healthcare, transportation, education cost savings and the state of the economy. More specifically, the government budget is projected to increase by about 10 billion from 2017-2018 in various parts. The amount to implement the budget is estimated to be about $1.3 trillion, while it is estimated to be a third of the projected budget. In Malaysia, the budget is the one of the major sources of revenues related to social security and social security services such as: State Department, Ministry of Social Welfare and Health, the Department of Education and Health (EDH), the Department of Transport to the tune of over 20 per cent, Civil Insurance, State Department, Civil Services (SHAC, 2017). The government also invests heavily in public goods (PMEs) such as electricity and water plants; health (MSPs), tourism; the social welfare service.
However, while the government is looking for ways to attract investors in the financial sphere, many of the state governments have not found a viable alternative to private sector for the local economy.
A good idea of what is required to get the current economic situation and sustainable development into Malaysia can be found in the Department of Transportation. In Malaysia, the government has committed to increase the efficiency of the highway system and also the traffic infrastructures. Therefore, it needs to invest more in the transportation sector in its efforts for improving the life of the Malaysian economy.
This will involve the creation of a new, multi-national Infrastructure Development Corporation (IDC) for infrastructure development of Malaysia, such as the Malaysian Railways which will deliver connectivity to and from the country with high speed Internet of Things (IoT) by 2022. This IDC will be funded by the government, which will be able to spend at least 60 per cent of its budget on the construction phase. The Government also plans to invest in infrastructure development of the country by the end of 2019/20, which in turn would help the growing economy of Malaysia.
However, no project of budget for the construction of roads in Malaysia could be built without the contribution of Singapore. The Singapore government needs to build up road infrastructure in Kuala Lumpur and will require an additional $600 million for roads. The road tolls in 2014 would have increased to Rs 8,700 crore and the amount of land in the roads will be increasing to Rs 28,000 crore. There are also numerous needs for various parts of the road infrastructure in different parts of the country, such as the highway toll service in Selangor, the airport and airport management road network (MOU) as well as the Central Roads Directorate (CRI) on its own.
The main issues of the state government are roads, transport infrastructure, transport finance and the public transport sector. The major areas where the local industry, tourism and housing have struggled are roads, railways, bus service and the development
The Malaysian State has shown that the financial system is a reliable and effective system that delivers on social service programmes. So where is the need for a ‘transparent’ financial system that makes the financial system accountable?
Budgetary and Government Funding in Malaysia in 2017, which includes Budgetary and Government Funding in Malaysia in 2017, which includes PEN & Lending Trust (PEN.PED), was announced by the government in March 2017. This included all the major components and components, namely government spending on public administration, social assistance (PAS), education and healthcare, transportation, education cost savings and the state of the economy. More specifically, the government budget is projected to increase by about 10 billion from 2017-2018 in various parts. The amount to implement the budget is estimated to be about $1.3 trillion, while it is estimated to be a third of the projected budget. In Malaysia, the budget is the one of the major sources of revenues related to social security and social security services such as: State Department, Ministry of Social Welfare and Health, the Department of Education and Health (EDH), the Department of Transport to the tune of over 20 per cent, Civil Insurance, State Department, Civil Services (SHAC, 2017). The government also invests heavily in public goods (PMEs) such as electricity and water plants; health (MSPs), tourism; the social welfare service.
However, while the government is looking for ways to attract investors in the financial sphere, many of the state governments have not found a viable alternative to private sector for the local economy.
A good idea of what is required to get the current economic situation and sustainable development into Malaysia can be found in the Department of Transportation. In Malaysia, the government has committed to increase the efficiency of the highway system and also the traffic infrastructures. Therefore, it needs to invest more in the transportation sector in its efforts for improving the life of the Malaysian economy.
This will involve the creation of a new, multi-national Infrastructure Development Corporation (IDC) for infrastructure development of Malaysia, such as the Malaysian Railways which will deliver connectivity to and from the country with high speed Internet of Things (IoT) by 2022. This IDC will be funded by the government, which will be able to spend at least 60 per cent of its budget on the construction phase. The Government also plans to invest in infrastructure development of the country by the end of 2019/20, which in turn would help the growing economy of Malaysia.
However, no project of budget for the construction of roads in Malaysia could be built without the contribution of Singapore. The Singapore government needs to build up road infrastructure in Kuala Lumpur and will require an additional $600 million for roads. The road tolls in 2014 would have increased to Rs 8,700 crore and the amount of land in the roads will be increasing to Rs 28,000 crore. There are also numerous needs for various parts of the road infrastructure in different parts of the country, such as the highway toll service in Selangor, the airport and airport management road network (MOU) as well as the Central Roads Directorate (CRI) on its own.
The main issues of the state government are roads, transport infrastructure, transport finance and the public transport sector. The major areas where the local industry, tourism and housing have struggled are roads, railways, bus service and the development
In this industry, the demands are driven by a few factors such as the income levels of the consumer and their savings levels. In cross sectional studies, the income levels will often be observed to be closely associated with the development of financial sector. This has then explained that the demands of financial services in terms of volume and sophistication are much greater within the community with higher income compared to those from lower income economies (Allen, 2013). Since savings culture is usually related to the robust demand for financial services, it is worth saying that the level of savings and the level of incomes are close connected. Standing on this concept, the share of consumption in income will usually have the tendencies of being much lower within higher income groups probably due to their transitional income is way higher than the lower income groups (Dick, 2002). As per the study by Ando (1963), the life cycle hypothesis holds the assumption that an individual’s prime earning years will always be the period where he/she will have the highest demand for banking services.
Based on such demands, the elasticity of the demands and supply is worth to be analysed for the banking or consumer finances industry. Elasticity refers to the responsiveness towards any changes in a certain variable to a change in another. There are three types of elasticity that can be associate with the consumer finance industry. The first elasticity is own-price elasticity. This type of elasticity helps to measure the responsiveness of the demands for any changes that occur in the