Pub Date : 2022-12-26DOI: 10.22452/mjes.vol59no2.8
V. Selvaratnam
Piketty, T. (2022). A Brief History of Equality. Cambridge, Massachusetts: Harvard University Press.
Piketty，T.（2022）。平等简史。马萨诸塞州剑桥：哈佛大学出版社。
{"title":"Book Review: A Brief History of Equality","authors":"V. Selvaratnam","doi":"10.22452/mjes.vol59no2.8","DOIUrl":"https://doi.org/10.22452/mjes.vol59no2.8","url":null,"abstract":"Piketty, T. (2022). A Brief History of Equality. Cambridge, Massachusetts: Harvard University Press.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":"1 1","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41590449","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-26DOI: 10.22452/mjes.vol59no2.7
L. Hung
This study characterises the exchange rate risk premium in the context of a small open economy with a controlled floating exchange rate regime. The empirical analysis applies the time-varying coefficients Bayesian structural vector autoregressive (TVC-BSVAR) model on data from the Vietnamese economy over a sample period from February 2012 to February 2019. The evidence shows that the risk premium varies over time, and increases with inflation and foreign direct investment capital inflows, but decreases with output growth and credit growth. The TVC-BSVAR model displayed highly accurate forecasting performance, accounting for nearly 94% of risk premium in a case study using the US dollar forward selling contract.
{"title":"Exchange Rate Risk Premium in Vietnam","authors":"L. Hung","doi":"10.22452/mjes.vol59no2.7","DOIUrl":"https://doi.org/10.22452/mjes.vol59no2.7","url":null,"abstract":"This study characterises the exchange rate risk premium in the context of a small open economy with a controlled floating exchange rate regime. The empirical analysis applies the time-varying coefficients Bayesian structural vector autoregressive (TVC-BSVAR) model on data from the Vietnamese economy over a sample period from February 2012 to February 2019. The evidence shows that the risk premium varies over time, and increases with inflation and foreign direct investment capital inflows, but decreases with output growth and credit growth. The TVC-BSVAR model displayed highly accurate forecasting performance, accounting for nearly 94% of risk premium in a case study using the US dollar forward selling contract.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43678052","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-26DOI: 10.22452/mjes.vol59no2.6
Motha Namita, Sharon G. M. Koh, A. K. L. Siah
India is one of the world’s top remittance recipient countries. However, there is an ongoing debate on whether workers’ remittances serve as a ‘political curse or cure.’ Additionally, remittances influence the domestic labour supply left behind by migrant workers. Our study aims to utilise the ARDL bounds test and Granger causality to examine the long-run and short-run relationship between remittances, institutional quality, and labour supply from 1990 to 2018 in India. The results from the ARDL bounds test indicate a cointegrating relationship when institutional quality is treated as the dependent variable. The Granger causality test further supports unidirectional causality from remittances and labour supply to institutional quality in India. In the short run, findings indicate bidirectional causality between remittances and labour supply. The study contributes to the literature by constructing a composite index for a more accurate measure of institutional quality. Furthermore, the study includes relevant break dates as dummy variables, as it allows for country-specific structural breaks to be considered. Contrary to prior studies, we find no evidence of a public moral hazard problem created by India’s remittances. We argue that inbound remittances improve the well-being of recipients and pressure policymakers for more political accountability and better governance.
{"title":"Investigating the Relationship between Remittances, Institutional Quality, and Labour Supply in India","authors":"Motha Namita, Sharon G. M. Koh, A. K. L. Siah","doi":"10.22452/mjes.vol59no2.6","DOIUrl":"https://doi.org/10.22452/mjes.vol59no2.6","url":null,"abstract":"India is one of the world’s top remittance recipient countries. However, there is an ongoing debate on whether workers’ remittances serve as a ‘political curse or cure.’ Additionally, remittances influence the domestic labour supply left behind by migrant workers. Our study aims to utilise the ARDL bounds test and Granger causality to examine the long-run and short-run relationship between remittances, institutional quality, and labour supply from 1990 to 2018 in India. The results from the ARDL bounds test indicate a cointegrating relationship when institutional quality is treated as the dependent variable. The Granger causality test further supports unidirectional causality from remittances and labour supply to institutional quality in India. In the short run, findings indicate bidirectional causality between remittances and labour supply. The study contributes to the literature by constructing a composite index for a more accurate measure of institutional quality. Furthermore, the study includes relevant break dates as dummy variables, as it allows for country-specific structural breaks to be considered. Contrary to prior studies, we find no evidence of a public moral hazard problem created by India’s remittances. We argue that inbound remittances improve the well-being of recipients and pressure policymakers for more political accountability and better governance.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44221596","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-26DOI: 10.22452/mjes.vol59no2.4
W. M. Wan Norhidayah, Md. Tareq, S. Zaiton, Hasan-Basri Bakti
Natural environments with great recreational value can potentially support tourism, conserve natural areas and prevent environmental damage. However, visiting recreational destinations depends on several motivations related to visitors’ preferences. Therefore, this study aims to identify the heterogeneity of Kenyir Lake, Malaysia, visitors’ preferences and their willingness to pay (WTP) for tourist facility attributes. The choice experiment method has been widely used for economic valuation, and the latent class model can capture the heterogeneity of preferences by characterising respondents in various groups of preferences. The outcome of this study revealed heterogeneous preferences in two classes. The first class represented 91.3% and the second class represented 8.7% of respondents. Moreover, this study’s respondents showed positive WTP values for most attributes. However, the most preferred attribute was superior toilet service, with a WTP estimation of RM7.63 in Class 1. While in Class 2, the most preferred attribute was new jetty construction with a WTP estimation of RM1.99. The findings of this study can assist policymakers in implementing more effective policies as it has provided detailed information about visitors’ preferences for tourist facility attributes in Malaysia.
{"title":"Exploring Preference Heterogeneity and Willingness to Pay for Tourist Facility Attributes in Kenyir Lake, Malaysia","authors":"W. M. Wan Norhidayah, Md. Tareq, S. Zaiton, Hasan-Basri Bakti","doi":"10.22452/mjes.vol59no2.4","DOIUrl":"https://doi.org/10.22452/mjes.vol59no2.4","url":null,"abstract":"Natural environments with great recreational value can potentially support tourism, conserve natural areas and prevent environmental damage. However, visiting recreational destinations depends on several motivations related to visitors’ preferences. Therefore, this study aims to identify the heterogeneity of Kenyir Lake, Malaysia, visitors’ preferences and their willingness to pay (WTP) for tourist facility attributes. The choice experiment method has been widely used for economic valuation, and the latent class model can capture the heterogeneity of preferences by characterising respondents in various groups of preferences. The outcome of this study revealed heterogeneous preferences in two classes. The first class represented 91.3% and the second class represented 8.7% of respondents. Moreover, this study’s respondents showed positive WTP values for most attributes. However, the most preferred attribute was superior toilet service, with a WTP estimation of RM7.63 in Class 1. While in Class 2, the most preferred attribute was new jetty construction with a WTP estimation of RM1.99. The findings of this study can assist policymakers in implementing more effective policies as it has provided detailed information about visitors’ preferences for tourist facility attributes in Malaysia.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45704049","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-26DOI: 10.22452/mjes.vol59no2.3
C. Tang, Yunhee Lim
We estimate the long-run reactions of private consumption in Malaysia to crises, economic leadership, information and communications technology (ICT), and other key determinants using time series econometrics. This study covers the quarterly sample from 1990:Q1 to 2020:Q4. We find that Malaysia’s private consumption and its key determinants are cointegrated, demonstrating that a reliable long-run private consumption function can be estimated. We find that both economic and health crises, namely the Asian financial crisis in 1997/98, SARS and COVID-19 pandemic are likely to reduce private consumption in Malaysia. However, the long-run estimation results show that ICT and economic leadership are positively related to consumption. Therefore, policymakers should set the goal of encouraging the development of ICT infrastructure and good economic leadership in order to promote private consumption, which eventually sustains long-term economic growth and development.
{"title":"Reactions of Long-run Private Consumption in Malaysia to Crises, Economic Leadership and Telecommunication Technology","authors":"C. Tang, Yunhee Lim","doi":"10.22452/mjes.vol59no2.3","DOIUrl":"https://doi.org/10.22452/mjes.vol59no2.3","url":null,"abstract":"We estimate the long-run reactions of private consumption in Malaysia to crises, economic leadership, information and communications technology (ICT), and other key determinants using time series econometrics. This study covers the quarterly sample from 1990:Q1 to 2020:Q4. We find that Malaysia’s private consumption and its key determinants are cointegrated, demonstrating that a reliable long-run private consumption function can be estimated. We find that both economic and health crises, namely the Asian financial crisis in 1997/98, SARS and COVID-19 pandemic are likely to reduce private consumption in Malaysia. However, the long-run estimation results show that ICT and economic leadership are positively related to consumption. Therefore, policymakers should set the goal of encouraging the development of ICT infrastructure and good economic leadership in order to promote private consumption, which eventually sustains long-term economic growth and development.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45002867","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-26DOI: 10.22452/mjes.vol59no2.1
Y. Loke, Phaik Nie Chin, Fazelina Sahul Hamid
This paper provides an overview of the state of financial literacy of Malaysians using data from the OECD (INFE) Financial Literacy Survey conducted in year 2015 and 2018. Besides the three components of financial literacy, namely, financial knowledge, financial attitude and financial behaviour, this paper also analyses the financial vulnerability of individuals. The effects of socio-demographic factors excluding gender are significant in determining financial literacy levels. Generally, Malaysians do not think that they have high financial knowledge, and the objective financial knowledge assessment reflects this as less than 40% of the respondents meet the minimum financial knowledge target score. There are no significant differences in the level of financial knowledge between 2015 and 2018 but financial attitude towards money usage worsened in 2018 compared to 2015. However, in terms of financial behaviour, Malaysians are generally active savers, set long-term financial goals, make considered and informed purchases, and keep a close watch on their personal affairs. Malaysians are financially vulnerable, but they seem more prepared in weathering the storm and having financial cushions for emergencies in 2018 compared to 2015. The findings suggest more effort is needed in educating Malaysians on fundamental financial concepts and ways to enhance their financial cushion.
{"title":"Financial Literacy in Malaysia, 2015–2018","authors":"Y. Loke, Phaik Nie Chin, Fazelina Sahul Hamid","doi":"10.22452/mjes.vol59no2.1","DOIUrl":"https://doi.org/10.22452/mjes.vol59no2.1","url":null,"abstract":"This paper provides an overview of the state of financial literacy of Malaysians using data from the OECD (INFE) Financial Literacy Survey conducted in year 2015 and 2018. Besides the three components of financial literacy, namely, financial knowledge, financial attitude and financial behaviour, this paper also analyses the financial vulnerability of individuals. The effects of socio-demographic factors excluding gender are significant in determining financial literacy levels. Generally, Malaysians do not think that they have high financial knowledge, and the objective financial knowledge assessment reflects this as less than 40% of the respondents meet the minimum financial knowledge target score. There are no significant differences in the level of financial knowledge between 2015 and 2018 but financial attitude towards money usage worsened in 2018 compared to 2015. However, in terms of financial behaviour, Malaysians are generally active savers, set long-term financial goals, make considered and informed purchases, and keep a close watch on their personal affairs. Malaysians are financially vulnerable, but they seem more prepared in weathering the storm and having financial cushions for emergencies in 2018 compared to 2015. The findings suggest more effort is needed in educating Malaysians on fundamental financial concepts and ways to enhance their financial cushion.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46305470","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-14DOI: 10.22452/mjes.vol59no1.2
E. Lim, Jacqueline Liza Fernandez
With the entrance of Uber into the land transportation industry, ride-hailing service has gained popularity and changed the way people travel in urban areas in Malaysia. Despite the growing popularity of this new mode of cab service, studies about factors influencing consumers’ choice to use ride-hailing service are limited in developing countries. This study used primary data collected via a survey in Penang, Malaysia. This study aims to examine the factors affecting consumers’ decision to utilise ride-hailing service. The novelty of this study is the adoption of a Heckman probit selection model to account for the possibility of sample selection bias and the introduction of an important explanatory variable - consumers’ comparative satisfaction with the attributes of ride-hailing and traditional taxi service that affect consumers’ choice of cab service. The results show age, gender, education, marital status, income, cost considerations and vehicle ownership significantly determine the probability of using cab service. Consumers’ choice between ride-hailing and traditional taxi service is affected by gender and their comparative rating of both services in terms of waiting time and the disposition of drivers. This suggests the necessity for cab service providers to improve their service in order to remain competitive in the industry.
{"title":"Determinants of Using Ride-Hailing Service: Evidence from Malaysia","authors":"E. Lim, Jacqueline Liza Fernandez","doi":"10.22452/mjes.vol59no1.2","DOIUrl":"https://doi.org/10.22452/mjes.vol59no1.2","url":null,"abstract":"With the entrance of Uber into the land transportation industry, ride-hailing service has gained popularity and changed the way people travel in urban areas in Malaysia. Despite the growing popularity of this new mode of cab service, studies about factors influencing consumers’ choice to use ride-hailing service are limited in developing countries. This study used primary data collected via a survey in Penang, Malaysia. This study aims to examine the factors affecting consumers’ decision to utilise ride-hailing service. The novelty of this study is the adoption of a Heckman probit selection model to account for the possibility of sample selection bias and the introduction of an important explanatory variable - consumers’ comparative satisfaction with the attributes of ride-hailing and traditional taxi service that affect consumers’ choice of cab service. The results show age, gender, education, marital status, income, cost considerations and vehicle ownership significantly determine the probability of using cab service. Consumers’ choice between ride-hailing and traditional taxi service is affected by gender and their comparative rating of both services in terms of waiting time and the disposition of drivers. This suggests the necessity for cab service providers to improve their service in order to remain competitive in the industry.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44657865","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-14DOI: 10.22452/mjes.vol59no1.3
W. Wong, A. H. Ahmad, Shamsul Bahrain Mohamed-Arshad, Sabariah Nordin, A. Abdul Adzis
This paper examines the determinants of Malaysian listed firms’ environmental, social and governance (ESG) performance during the period 2005–2018. We focus on individual firms’ continuous efforts to improve their ESG scores once they are ESG rated. Panel fixed effect results reveal that the number of years since a firm was first included in Bloomberg’s ESG score is positive and significantly related to its ESG performance. We interpret this as evidence of firms’ deliberate efforts to improve their ESG scores once they fall under the radar of a third-party ESG rating agency. This finding underscores the importance of third-party rating agency in fostering greater corporate sustainability. We contribute to the literature that posits that ESG third-party rating agency can lead to higher level of ESG practices of the rated firms.
{"title":"Environmental, Social and Governance Performance: Continuous Improvement Matters","authors":"W. Wong, A. H. Ahmad, Shamsul Bahrain Mohamed-Arshad, Sabariah Nordin, A. Abdul Adzis","doi":"10.22452/mjes.vol59no1.3","DOIUrl":"https://doi.org/10.22452/mjes.vol59no1.3","url":null,"abstract":"This paper examines the determinants of Malaysian listed firms’ environmental, social and governance (ESG) performance during the period 2005–2018. We focus on individual firms’ continuous efforts to improve their ESG scores once they are ESG rated. Panel fixed effect results reveal that the number of years since a firm was first included in Bloomberg’s ESG score is positive and significantly related to its ESG performance. We interpret this as evidence of firms’ deliberate efforts to improve their ESG scores once they fall under the radar of a third-party ESG rating agency. This finding underscores the importance of third-party rating agency in fostering greater corporate sustainability. We contribute to the literature that posits that ESG third-party rating agency can lead to higher level of ESG practices of the rated firms.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45731191","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-14DOI: 10.22452/mjes.vol59no1.6
Ren Yu, Qianyi Wang, K. Cheong
The victim of both geographical, historical and administrative isolation, Darjeeling owed its growth to tea cultivation in the hills by migrants from neighbouring Nepal collectively called Gorkhas. Their contributions notwithstanding, they felt discriminated by West Bengal’s residents to whose state they were administratively attached. Poverty and poor working conditions, with no voice in the tea estates, and poorly maintained infrastructure that brought frequent landslides have fuelled demands for “Gorkhaland”, a homeland separate from West Bengal, where the distinctiveness of their identity and their role as Indian citizens would be fully recognised. It did not help that the Darjeeling district had been administratively detached from the political mainstream. Periodic agitations against the state government have weakened local institutions, disrupted the local economy impacting adversely tea production and tourism on which the local economy and the Gorkhas depend. The West Bengal government had partly recognised Gorkha demands by establishing the Darjeeling Gorkha Hill Council and the Gorkhaland Territorial Administration (GTA) each vested with limited autonomy. But disagreements on autonomy have left the Gorkhaland issue unresolved. In the meantime, Darjeeling continues to experience gradual decay, absent adequate support from the West Bengal government and from Darjeeling’s local government, including the GTA itself.
{"title":"More than Tea - Environmental Decay, Administrative Isolation and the Struggle for Identity in Darjeeling","authors":"Ren Yu, Qianyi Wang, K. Cheong","doi":"10.22452/mjes.vol59no1.6","DOIUrl":"https://doi.org/10.22452/mjes.vol59no1.6","url":null,"abstract":"The victim of both geographical, historical and administrative isolation, Darjeeling owed its growth to tea cultivation in the hills by migrants from neighbouring Nepal collectively called Gorkhas. Their contributions notwithstanding, they felt discriminated by West Bengal’s residents to whose state they were administratively attached. Poverty and poor working conditions, with no voice in the tea estates, and poorly maintained infrastructure that brought frequent landslides have fuelled demands for “Gorkhaland”, a homeland separate from West Bengal, where the distinctiveness of their identity and their role as Indian citizens would be fully recognised. It did not help that the Darjeeling district had been administratively detached from the political mainstream. Periodic agitations against the state government have weakened local institutions, disrupted the local economy impacting adversely tea production and tourism on which the local economy and the Gorkhas depend. The West Bengal government had partly recognised Gorkha demands by establishing the Darjeeling Gorkha Hill Council and the Gorkhaland Territorial Administration (GTA) each vested with limited autonomy. But disagreements on autonomy have left the Gorkhaland issue unresolved. In the meantime, Darjeeling continues to experience gradual decay, absent adequate support from the West Bengal government and from Darjeeling’s local government, including the GTA itself.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45581106","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-14DOI: 10.22452/mjes.vol59no1.4
R. Thillainathan
This paper reviews Malaysia’s experience in privatisation in power generation from the first half of the 1990s and the role it played in promoting Malay entry into business. In the pre-1949 period, privately-owned independent power producers and distributors (IPPs and Ds) were the dominant players. The government-owned integrated power utility, Tenaga Nasional Berhad (TNB), became a monopoly only since 1976. TNB’s finances were strained during the Asian Financial Crisis (AFC) period, but contracts were honoured despite strong calls for renegotiation of power purchase agreements (PPA). With the open tender era from 2012, the PPA terms have become very competitive. However, as TNB can continue to bid, this has not made for a level playing field. With competition and fall in interest rate, there has been a significant decline in internal rate of returns (IRRs). Guaranteed off-take enabled some concessionaires to still earn a good equity IRR through aggressive gearing. Development of a more active and liquid bond market has played a key role in privatisation.
本文回顾了马来西亚自20世纪90年代上半叶以来在发电私有化方面的经验，以及它在促进马来人进入商业领域方面所起的作用。在1949年之前，私营独立电力生产商和分销商（独立发电商和配电商）是主要参与者。政府所有的综合电力公司Tenaga Nasional Berhad（TNB）自1976年以来才成为垄断企业。TNB的财务在亚洲金融危机（AFC）期间紧张，但尽管强烈要求重新谈判购电协议（PPA），合同还是得到了履行。随着2012年开始的公开招标时代，PPA条款变得极具竞争力。然而，由于TNB可以继续竞标，这并没有创造一个公平的竞争环境。随着竞争和利率下降，内部收益率（IRRs）显著下降。有保证的承购使一些特许经营公司通过积极的杠杆作用仍能获得良好的股权内部收益率。发展一个更加活跃和流动性更强的债券市场在私有化中发挥了关键作用。
{"title":"Privatisation of Power Generation in Malaysia: Impact on the Entry of Malays into Power Business","authors":"R. Thillainathan","doi":"10.22452/mjes.vol59no1.4","DOIUrl":"https://doi.org/10.22452/mjes.vol59no1.4","url":null,"abstract":"This paper reviews Malaysia’s experience in privatisation in power generation from the first half of the 1990s and the role it played in promoting Malay entry into business. In the pre-1949 period, privately-owned independent power producers and distributors (IPPs and Ds) were the dominant players. The government-owned integrated power utility, Tenaga Nasional Berhad (TNB), became a monopoly only since 1976. TNB’s finances were strained during the Asian Financial Crisis (AFC) period, but contracts were honoured despite strong calls for renegotiation of power purchase agreements (PPA). With the open tender era from 2012, the PPA terms have become very competitive. However, as TNB can continue to bid, this has not made for a level playing field. With competition and fall in interest rate, there has been a significant decline in internal rate of returns (IRRs). Guaranteed off-take enabled some concessionaires to still earn a good equity IRR through aggressive gearing. Development of a more active and liquid bond market has played a key role in privatisation.","PeriodicalId":42743,"journal":{"name":"Malaysian Journal of Economic Studies","volume":" ","pages":""},"PeriodicalIF":0.8,"publicationDate":"2022-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47053910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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