Narrowing development gaps in ASEAN

Development gaps happen when there is a difference in either the per capita income or other social development between countries or regions. The enlargement process in the ASEAN widened further the existing developmental gap. Using GDP per capita, HDI index and information technology data, this paper examines the extent of the developmental gap in the ASEAN prior to the enlargement exercise and after the process. The paper also examines income convergence in the ASEAN over the period 1970-2003. The results reveal that income gap among the ASEAN members did not converge after decades of integration process. Comparison with the EU's integration experience shows that the structural funds and other policy tools executed by the EU are among the key elements of convergence that are absent in the ASEAN. Political will in ensuring compliance and effective implementation is clearly needed for a successful ASEAN economic integration

The determinants of non-tariff barriers in Malaysia’s agricultural sector

The successive rounds of multilateral trade negotiations have resulted in significant tariff reductions in many countries. Malaysia is no exception as the applied most-favoured-nation tariff rate in her agricultural sector in 2009 is relatively low, averaging at 2.8 percent.Despite the reduction in tariff barrier, the incidence of non-tariff barriers (NTBs) in the sector over the 1978–2007 period has generally increased even though efforts at dismantlin these barriers have long been initiated. Thus, the paper seeks to identify factors that influence the level of NTBs in the agricultural sector. Using the autoregressive distributed lag (ARDL) approach to cointegration, we find imports, average tariff, sectoral competitiveness level, and employment growth to be significant determinants of NTBs in the agricultural sector. The findings provide a greater understanding of the reasons behind agricultural trade protectionism

Liberalization of retail sector and the economic impact of the entry of foreign hypermarkets on local retailers in Klang Valley, Malaysia

The primary purpose of this research is to investigate the impact of liberalization of retail sector via the presence of foreign hypermarkets in Malaysia on local retailers. Both quantitative and qualitative methods (survey and interviews) were used to collect and analyze the data. A total of 135 questionnaires were completed. The findings from the survey reveal that the entry of foreign hypermarkets in a town often affects the business environment of the local retail businesses. It is found that the newly established foreign hypermarkets tend to acquire much larger market share from the existing local businesses. The survey found that some businesses benefited from the presence of foreign hypermarkets (especially complementary type of retail businesses) while others do not (specifically those retail businesses that are related to groceries)

Intellectual property system and industrial development in Malaysia

This work examines the economic impact of IP reforms in Malaysia. These reforms could be in two forms. The first is the introduction of specific economic and industrial policies to spur innovation and technological growth in certain sectors. The second is the reforms in the various intellectual property legislation either to encourage filing of application or to ease and expedite the examining and processing of IP filings. In quantifying the effect of IP reforms on FDI, IP creation and economic growth, the work adopts an established regression analysis model

Potential impact of trips-plus provisions on Malaysia’s domestic pharmaceutical industry

Trans-Pacific Partnership Agreement (TPPA) which is now known as the Comprehensive and Progressive Agreement on Trans Pacific Partnership (CP-TPP) opens door of opportunities as well as challenges to Malaysia. The agreement has become subject of heated debate in Malaysia as well as other countries due to the reason that it may bring some new elements which are not in the other earlier Free Trade Agreements (FTA) on which Malaysia has signed. One of the key concern is the possibility of including WTO-Plus commitments in the agreement which is TRIPS-Plus element which may affect access to medicine and the local pharmaceutical industry. This study focuses on one issue that is on the potential impact of TRIPS-Plus provisions in the intellectual property chapter on Malaysia’s pharmaceutical domestic industry sales. In assessing the potential impact of the TPPA on Malaysia’s pharmaceutical industry, simulation exercise using Model of Impact Changes in Intellectual Property Rights have been undertaken. The finding of the study indicates that domestic pharmaceutical industry sales may drop if data exclusivity, patent term restoration and patent linkage is being implemented

The impact of trade facilitation on automotive export performance of Thailand

This study examines the impact of trade facilitation on the export performance of Thailand's automotive sector. It employs augmented gravity model using panel data over five-year irregular period (2007, 2010, 2012, 2014 and 2016) and 97 country pairs between Thailand and Thailand's importing countries. Seven indicators are used as proxies for trade facilitation which are overall logistics performance index (LPI) and its six components: 1) customs; 2) infrastructure; 3) international shipment; 4) logistics quality and competence; 5) tracking and tracing; 6) timeliness. The initial result indicates that overall LPI is not a significant factor to automotive export. A further investigation shows that three components of the trade facilitation index have positive impact on Thailand's automotive export; namely infrastructure, tracking and tracing, and timeliness; while the other three are not significant. Additionally, income level of importing countries, common land border, and common membership of regional trade agreement between Thailand and its trading partners positively affect automotive export of Thailand. However, the impact of distance in international automotive trade of Thailand seems to be declining over time, which may be due to rapid technological progress and the locations of high purchasing power countries that are far from Thailand

Medical tourism service quality: finally some empirical findings

The purpose of this paper is to examine service quality, perceived value, overall satisfaction and future intention among medical tourists who seek treatment in Malaysian private hospitals. Self-administered questionnaire was main method of data collection. Respondents comprised foreign patients who seek medical treatment, and/or related medical services such as tests and medical check-ups. Expatriates and foreign nationals residing in Malaysia were excluded. Altogether 173 responses were received and analysed by SPSS 17. Three dimensions of medical tourism service quality were identified namely medical staff quality, supporting services quality, and administrative services quality. Medical staff quality was found to predict all three variables of patient satisfaction, perceived value and future intention for treatment. Very limited empirical research has been carried out with actual data from patients due to difficulty in getting access to international patients, and patients’ reluctance to participate. This study is among the first few which examines medical tourism service quality with actual patient data. The research identifies important constituents of medical tourism which may assist policy-makers and hospital managers in better understanding the industry

Country perspective on medical tourism: the Malaysian experience

Purpose – The study seeks to explore the perception of international patients on Malaysia as a medical tourism destination country, as well as overall patient satisfaction, perceived value and future intention for repeat treatment and services. Design/methodology/approach – Self-administeredquestionnairewasthemainmethodofdatacollection. The survey covered major private hospitals in medical tourists’ states in the country, namely, Penang, Melaka, Selangor and Kuala Lumpur. Convenience sampling was used due to the condition of patients as respondents. Findings – Indonesian patients formed the largest majority of international patients in the country. Five dimensions of medical tourism in Malaysia was identified, namely, hospital and staff, country factor, combining tourism and health services, cost saving and insurance and unavailability of treatment. Of these, hospital and staff was found to be the most important factor for the patients. Perception of value, overall satisfaction and intention for future treatment was also found to be high. This indicates that Malaysia is on the right footing in this burgeoning industry. Practical implications – Findings from the study will enable policy-makers to better position Malaysia as a medical tourist destination country. Originality/value – Medical tourism is a recent phenomenon and very little empirical research has been carried out at the patient level. This study is one of the first few studies which seek to explore medical tourism from the perspective of the patients themselves

Service quality, value, satisfaction and future intention in medical tourism / Noor Hazilah Abd Manaf…[et al.]

Medical tourism is a new and exciting industry due to its rapid growth and huge economic potential. Malaysia is joining the bandwagon with Thailand, Singapore, and India in being the main medical tourist destination countries in Asia. Medical tourism is a term that is loosely used to denote patients who travel abroad to another country for medical treatment, which may range from wellness services to invasive procedures such as a heart bypass or organ transplant. As a major medical tourism country, the study seeks to explore the impact of service quality on perceived value, patient satisfaction, and future intention of patients to seek medical services in the country again. This study also investigates the relationship between patient satisfaction and perceived value; and between future intention and perceived value. A structural model by using PLS-SEM was established from the research finding with data collected from 161 responses from medical tourists surveyed in major destination hospitals in Kuala Lumpur, Malacca, and Penang

The potential impact of Trans Pacific Partnership Agreement (Tppa) On Malaysia’s Trade

Trans-Pacific Partnership Agreement (TPPA) which is now known as the Comprehensive and Progressive Agreement on Trans Pacific Partnership (CP-TPP) opens door of opportunities as well as challenges to Malaysia. The agreement has become subject of heated debate in Malaysia as well as other countries due to the reason that it may bringsome new elements which are not in the other earlier Free Trade Agreements (FTA) on which Malaysia has signed. Competition policy, government procurement, labor standard and WTO-Plus commitments in the agreement which is TRIPSPlus element which may affect access to medicine among others are among the contentious issues. This study focuses on one issue that is whether or not TPPA will bring significant effect on Malaysia’s export. In assessing the potential impact of the TPPA on Malaysia’s trade, the study uses gravity model to estimate the effects. The study found that FTA has positive effects on Malaysia’s export of beverages and tobacco (SITC-1), mineral fuels, lubricants and related materials (SITC-3),manufacturing goods classified chiefly by material (SITC- 6), machinery and transport equipment (SITC-7), miscellaneous manufactured articles (SITC-8) and commodities and transactions not classified elsewhere in the SITC (SITC-9) but negativeeffects on the export of food and live animals (SITC-0) export of animal and vegetable oils and fats (SITC-4)