Optimal hedge ratio and the hedging performance of commodity futures: the case of Malaysian crude palm oil futures market

This paper aims to examine the hedging performance of the crude palm Oil futures Market in Malaysia. The optimal hedge ratios and the hedging performance are examined for two different futures contracts denoted as futures 1 and futures 2 using daily settlement prices from January 4, 2010 to October 31, 2017. Four econometric models comprising of the standard ordinary least square (OLS), vector auto-regression (VAR), vector error correction model (VECM) and the bivariate generalized autoregressive conditional heteroscedasticity (BGARCH) models are employed to compute hedge ratios. The first three models estimate constant hedge ratios while the last model estimates time varying hedge ratio. The effectiveness of the hedge ratios for two contracts is evaluated in terms of in-sample and out-of-sample performance. For in-sample performance, January 4, 2010 to October 31, 2016 period is used while for out-of-sample validation, a one year data from November 2016 to October 31, 2017 is used. The empirical results show that the bivariate GARCH model performs better in the reduction of risk for both periods and the nearest futures contract (next one month contract) appears to be better in hedging than the far futures contract (next two month contracts). This suggests that the investors can use crude palm oil futures contract particularly the nearest futures contract as an effective instrument to hedge the risk and the bivariate BEKK-GARCH as an efficient model for designing hedging strategy

An essay on the ethics of Islam towards environmental resources

In this paper, we have discussed the Islamic attitudes towards the environmental resources and the importance of its protection and preservation for sustaining life on earth. The paper maintains the view that the today’s outcry for environmental crisis is man-made. It is a consequence of humans’ irresponsible, irrational and thoughtless development activities for material gains. The environmental problem is so acute and widespread today that it becomes virtually impossible to get rid of. It is now a global concern. The paper stresses that a true believer who realizes and imbeds into his or her behavior or attitudes with the fundamental values of Islam such as- the concept of divine unity, trusteeship or amanah, justice and the responsibility as taught by the holy Qur’an and the prophetic traditions will be morally and spiritually uplifted which in turn will prepare him/her to use environmental resources rationally and responsibly. Rational and responsible use of environmental resources is a gesture of mans’ gratitude to Allah and His commands to ensure respects or honor towards the rights of other creatures which is essential to pave the way to maintain a state of balance in the environmental system. In other words, a true believer will abide by his/her creator to behave as a guardian of the earth, uphold His trust he/she is entrusted and behave not like a predator that can jeopardize the balance in the environment

Constant & time-varying hedge ratio for FBMKLCI stock index futures

This paper examines hedging strategy in stock index futures for Kuala Lumpur Composite Index futures of Malaysia. We employed two different econometric methods such as-vector error correction model (VECM) and bivariate generalized autoregressive conditional heteroskedasticity (BGARCH) models to estimate optimal hedge ratio by using daily data of KLCI index and KLCI futures for the period from January 2012 to June 2016 amounting to a total of 1107 observations. We found that VECM model provides better results with respect to estimating hedge ratio for spot month futures and one-month futures, while BGACH shows better for distance futures. While VECM estimates time invariant hedge ratio, the BGARCH shows that hedge ratio changes over time. As such, hedger should rebalance his/her position in futures contract time to time in order to reduce risk exposure

Total quality management practices in Islamic banking system: a study in banking sector of Malaysia

Total quality management is evolving over time and like many other industries, it is practicing by Islamic banks in Malaysia. The objective of this study is to identify the need of TQM in Islamic banking system, to understand its role and challenges for implementation. We have used qualitative research methods by taking five interviews and observations of three banks that follow Islamic Shariah principles, located in International Islamic University Malaysia. The findings from this research were comprehensive. TQM significantly impact the performance of Islamic banking system by enhancing customer satisfaction with limited challenges. Continuous improvement of processes involves training of employees. More data can be collected from other banks in available course of time if permits. Research findings can be helpful for those banks who did not implement TQM yet

Analysing and forecasting the underemployment trend in Malaysia

In this paper we aim to examine and forecast the underemployment trend in Malaysia. We primarily focus on two measurements of underemployment which are time-related and skill-related underemployment for a period of ten years starting from 2005 to 2015. To forecast the number of time-related and skill-related underemployment for 2016 we use exponential smoothing forecast method. The data and other information related to underemployment in Malaysia are collected from Department of Statistics, Malaysia. The study found that although the proportion of time-related underemployment over employment is relatively stable during the ten years period, the number of skill-related underemployment is increasing by years. Females are mostly affected by both time-related and skill-related underemployment

VARIABILITY ANALYSIS OF 6T AND 7T SRAM CELL IN SUB-45NM TECHNOLOGY

This paper analyses standard 6T and 7T SRAM (static random access memory) cell in light of process, voltage and temperature (PVT) variations to verify their functionality and robustness. The 7T SRAM cell consumes higher hold power due to its extra cell area required for its functionality constraint. It shows 60% improvement in static noise margin (SNM), 71.4% improvement in read static noise margin (RSNM) and 50% improvement in write static noise margin (WSNM). The 6T cell outperforms 7T cell in terms of read access time (TRA) by 13.1%. The write access time (TWA) of 7T cell for writing "1" is 16.6 x longer than that of 6T cell. The 6T cell proves it robustness against PVT variations by exhibiting narrower spread in TRA (by 1.2 x) and Twa (by 3.4x). The 7T cell offers 65.6% saving in read power (RPWR) and 89% saving in write power (WPWR). The RPWR variability indicates that 6T ell is more robust against process variation by 3.9x. The 7T cell shows 1.3x wider write power (WPWR) variability indicating 6T cell's robustness against PVT variations. All the results are based on HSPICE simulation using 32 nm CMOS Berkeley Predictive Technology Model (BPTM)

Unused medication waste: respondent’s opinion from current study in Malaysia.

There are a lot of effort have been employed to find out the major factor which increase the volume of medication waste. However, several survey reports were highlighted the key factors of medication waste like lack of knowledge on the serious impact of unused medication waste, neglected the proper disposal technique, not following the drug take bag system, pharmacy or dispensaries were not providing proper guideline or any materials to return unused medicines to the pharmacy, not enough campaign or community activities on medication waste, educational institute were not taking any responsibility like institution base extra seminar or lecturer on dangerous environmental impact and serious public health problem due to unused medications. However, this report will be encouraged to the government policy maker, social and welfare department and health facilities department to take an emergency necessary steps to reduce or resolved this problem

NON-BANK FINANCIAL INTERMEDIARIES (NBFIS) AND ECONOMIC GROWTH IN MALAYSIA: AN APPLICATION OF THE ARDL BOUNDS TESTING APPROACH TO COINTEGRATION

This paper empirically examines the impact of Non-bank financial intermedi­aries (NBFIs) on economic growth in Malaysia using the time series data for the period 1976-2004. We employ a recently developed autoregressive distrib­uted lag (ARDL) bounds testing approach to cointegration suggested by Pesaran et al (2001) which is more suitable for estimation in small sample size studies and also capable of testing the existence of long run relationship irre­spective of whether the underlying variables are integrated of order I(0), I(1) or mutually integrated. We found evidence of a stable long run cointegrating relationship between per capita real GDP and economic growth in Malaysia. The regression result suggests that the development of NBFIs has positive and sig­nificant long run impact on per capita real GDP in Malaysia