Microeconomics

Siti `Aisyah Baharudin · Hayyan Nassar Waked · Mohd Shah Paimen ·Jurnal Ekonomi Malaysia ·2021 ·JEL: A1, D1, E7

This research attempts to analyze households’ responses to Movement Control Orders (MCO) and assess the impact of MCO on consumer confidence based on the potential disproportionate impact on various income groups in Malaysia. Households’ responses and consumer confidence are measured through an online survey to collect the targeted groups’ financial situation and household information and expectations during MCO. A total of 660 respondents from all over Malaysia were involved in this study. Analysis of the MCO responses showed that households were able to comply with MCO rules with the highest positive response of 99.7%. In comparison, the households’ responses to the implementation of MCO showed the highest negative response of 18.4%, with the majority represented by the B40 income category (65.2%). The consumer confidence present index is operating at six times higher than the expectation index, which indicates that the implementation of MCO in the short-run has a moderate impact on households’ economic status than in the long-run involving the COVID-19 pandemic effect on the overall economy. According to the people’s confidence to the government in the long-run, current political developments are essential to influence the people’s confidence in the economy. The consumer confidence index gives an overview of two policies that need to be emphasized by the government. Based on the short-run status of food consumption, this study strongly recommends that the policymakers consider establishing a National Food Stockpile in light of the nation’s food security and moving on to food-based agriculture that considers the targeted groups in the long-run.

Asma Rashidah Idris · Muzafar Shah Habibullah · Badariah Haji Din ·Jurnal Ekonomi Malaysia ·2018

The “old-age security” and “complete substitutability” hypotheses suggest that fnancial market can affect individuals’ decision to have less or more children. It has been recognised in the literature that at low level of fnancial development, children are considered an asset and a form of investment that could provide returns and security during old age. However, at higher level of fnancial development, individuals have more access to the fnancial market that can provide funds and fnancing during old age and as a result the demand for children is less. Furthermore, increase in female labour participation rate in the fnancial industry as well as in other economic sectors will also induce demand for fewer children. In Malaysia, the development of banks as well as the non-banking fnancial institutions has broadened credit accessibility to households and it could affects household’s decisions over the number of children they should have. Thus, the present paper empirically investigates the long-run relationship between fertility rate, fnancial development, income and household consumption in Malaysia for the period 1975 to 2013. In this study we employed the autoregressive distributed lag (ARDL) modelling approach for the testing of cointegration. Our results suggest that fnancial development and household consumption expenditure are negatively related to fertility rate, while fertility rate portrays a non-linear long-run relationship with income, thus exhibiting an inverted U-shaped curve with income in Malaysia.

Norlida Hanim Mohd Salleh · Suhaya Samad ·Jurnal Ekonomi Malaysia ·2018

The Federal Land Development Authority (FELDA) is fundamentally established for the purpose of addressing the poverty problem caused by the absence of agricultural land to generate income. Now, through the plan the main problem has been solved. In fact, in order to increase farmer income, various efforts have been made. Various forms of involvement are involved by settlers, including the involvement of the FELDA community in the homestay program. Participation in the homestay program not only addresses the problem of the lack of provision of accommodation services in remote tourism areas but can generate additional income to the community as well as bringing some additional impact. This study aims to analyze the impact of the community that is involved in the program. The impacts are in four (4) aspects, which are the economic, social, cultural and environmental aspects. This study is based on fieldwork with the aid of questionnaire as a study instrument. A total of 161 respondents were involved in this interview at several homestay locations throughout Peninsular Malaysia. Sample selection is randomly stratified. Mean analysis is used for the purpose of assessing the impact obtained besides assisted by one-way ANOVA test and Post Hoc Turkey HSD test. The findings show that the homestay program has a positive impact on the businessman in terms of economic, social, cultural and environmental impact. Compared to the economic impact, the higher the Semenchu Homestay, Mata Ayer and Sg. As compared to other homestays, while in terms of cultural impact, homestay Mata Ayer, Semenchu and Jengka homestay over other homestays. In terms of environmental impact, the benefits enjoyed by Homestay Sg. Klah is the highest. For social impact, this study found no significant difference between all homestay studies. Since the involvement in the homestay program can have significant impact on entrepreneurs, encouragement and assistance from the government and the FELDA are required. Homestay operators can also make high-impact homestays such as Homestay Semencu, Mata Ayer, Jengka and Sg. Klah as a model for developing their homestay.

Cai Yunchao · Selamah Abdullah Yusof · Ruzita Mohd Amin · Mohd Nahar Mohd Arshad ·Jurnal Ekonomi Malaysia ·2020

Using data collected from urban households in the Klang Valley, Malaysia, this study examined the impact of household debt on urban household consumption decisions. The findings revealed that household debt does not generally affect consumption decisions, except in the case of expenditure on vacation, which tends to be reduced for households facing high levels of debt. Furthermore, general financial wellness tends to be the main factor affecting consumption rather than debt. Households with poorer financial wellness make more frequent cuts to daily meals, fruit, utility, transportation, clothing, medical care, vacations, and leisure activities. Although the impact of debt on consumption is not extensive, it must be closely monitored to ensure that the risk is contained and that the wellbeing of households is not adversely affected.

Siew-Pong Cheah · Lin-Sea Lau · Chee-Keong Choong ·International Journal of Economics and Management ·2021 ·JEL: D3, D63, G51

Most past studies have assumed a symmetric relationship between income distribution and household indebtedness. Therefore, linear or symmetric modelling would miss possible asymmetric relationships between income distribution and household debt, resulting in misleading conclusions and policy suggestions. Thus, this study has explored the potential asymmetries between household debt and income inequality within long-run and short-run relationships. This study discovered that the association between income inequality and household debt was asymmetric in the long and short run using the nonlinear autoregressive distributed lag model. The results showed that only decreases in income inequality had a significant and positive effect on household debt, while increases in income inequality did not have a significant effect. The findings emphasised the need for policies to reduce income inequality to lessen debt among Malaysian households.