Contract Farming System: A Tool to Tranforming Rural Society in Sabah.

Recent decades have seen major change in agricultural technologies as a consequence to various programs for an agricultural development in rural areas of Sabah. Villagers in Sabah have always been receptive to new agricultural technologies that promises to improve their standard of living and as a reflection from the promotion of new agricultural technologies, many peoples in rural areas in Sabah now working with a mix of traditional and modern technologies. Along with the adoption of modern technologies, there has been a rapid transformation to cash economy among rural areas in Sabah (Marten, 1990). However, most villagers in Sabah are still produce almost entirely for home consumption, although the other economic activity of rural peoples in Sabah is small-enterprises as well as “kedai kampung” or rural shop that is registered under the local registration authority. This means, meeting basic household food needs is still the priority of most farmers in Sabah. Most also produced as much as surplus as possible to meet cash needs generated by expanding public education, rural electrification, modern communication (e.g. Radio and Television), and modern transport. It confirmed that most rural societies in Sabah still run their subsistence agricultural economy as compared to cash economy, which generally in farm activities, men do the major task and the women do the very minor task. Alongside with the fact that in this post-modern world most rural society in Sabah involved in agricultural economy, rural population especially among youth has declined. This means that human force for agricultural sector is declined as well. Rural population in Sabah was declining due to migration of younger-age groups. Outward migration among them was caused by the economic purposes such as to find non-agricultural financial resources (work in government sector either in the white or blue collar works). As according to Bryden (2000) villagers often migrated because the trend in agricultural income that is reported as lower than income from other economic activities. Some of them were migrated to the urban areas when they employed as the non-government professional executive level and further their education. Some other (female) moved to follow husband. In short, they were migrated because of work-related reason and to get social fulfillment in the form of further education, social amenities and the family reason. This phenomenon in the future, out migration of youth will leave the youngsters and old folks to maintain the village and at the end, population of rural areas in Sabah will be increasingly independent. Village-base economy especially agricultural production will suffer when the active youth have left for the town. In the other hand, rural poverty profile that is currently high will be increased. Hence, commercialization of agricultural sectors in rural areas assumed as the best resolution to improve villager’s standard of living that is bring about transformation of rural agrarian society from the traditional society to modern agrarian society through contract farming system.Contract Farming System, Rural Society

Is Malaysian Stock Market Efficient? Evidence from Threshold Unit Root Tests

This paper investigates the behavior of Kuala Lumpur Stock Exchange Composite Index (KLCI) for the period from 1980:1 to 2008:8 using a two-regime threshold autoregressive (TAR) model with an autoregressive unit root developed by Caner and Hansen [Threshold autoregression with a unit roots, Econometrics 69 (6) (2001) 1555-1596] which allows testing nonlinearity and nonstationarity simultaneously. Our finding indicates that the KLCI is a nonlinear series that is characterized by a unit root process, consistent with the efficient market hypothesis.Efficient Market Hypothesis, Threshold Autoregressive Model, Unit Root.

A Holistic Approach to University Curriculum: Universiti Malaysia Sabah

In this era of globalisation, most university curriculum requires new sets of settings and arrangements. Universiti Malaysia Sabah (UMS) is no exception. Multi-disciplinary, academic degree-granting programme in UMS have been designed for students and faculties as the basis in ensuring a harmonious existence within and outside the campus. Most of the curriculum in UMS is designed to promote the understanding of universal values and traditions consistent with the quest for global peace and human solidarity. UMS not only provides knowledge, practical experience and skills for scholars and practitioners involved in conflict resolution but also play its role as a peace builder; giving humanitarian and economic assistance. To bring about peace and harmony amongst students of diverse religious and cultural backgrounds, UMS has two components: one is the orientation-training programme for all the new students and the other is the year–round practical training, character building and curriculum development programmes. This paper examines how the forces of globalisation have transformed its curriculum and raised new challenges to our existing institutions in promoting peace and intercultural harmony among students and staff alike.Curriculum, Harmony, University, Peace, Malaysia

Non-Linearity between Inflation Rate and GDP Growth in Malaysia

This study analyses the relationship between inflation rate and economic growth rate in the period 1970-2005 in Malaysia. A specific question that is addressed in this study is what the threshold inflation rate for Malaysia. The findings suggest that there is one inflation threshold value exist for Malaysia. This evidence strongly supports the view that the relationship between inflation rate and economic growth is nonlinear. The estimated threshold regression model suggests 3.89% as the threshold value of inflation rate above which inflation significantly retards growth rate of GDP. In addition, below the threshold level, there is statistical significant positive relationship between inflation rate and growth. Bank Negara (central bank of Malaysia) should pay attention to inflation phenomena and substantial gain can be achieved in low-inflation environment while conducting the new monetary policy.

A Holistic Approach to University Curriculum: Universiti Malaysia Sabah

In this era of globalisation, most university curriculum requires new sets of settings and arrangements. Universiti Malaysia Sabah (UMS) is no exception. Multi-disciplinary, academic degree-granting programme in UMS have been designed for students and faculties as the basis in ensuring a harmonious existence within and outside the campus. Most of the curriculum in UMS is designed to promote the understanding of universal values and traditions consistent with the quest for global peace and human solidarity. UMS not only provides knowledge, practical experience and skills for scholars and practitioners involved in conflict resolution but also play its role as a peace builder; giving humanitarian and economic assistance. To bring about peace and harmony amongst students of diverse religious and cultural backgrounds, UMS has two components: one is the orientation-training programme for all the new students and the other is the year–round practical training, character building and curriculum development programmes. This paper examines how the forces of globalisation have transformed its curriculum and raised new challenges to our existing institutions in promoting peace and intercultural harmony among students and staff alike.Curriculum; Harmony; University; Peace; Malaysia

Universiti Malaysia Sabah (UMS): Towards Maximizing the potential of its Human Resource Development (HRD)

As strategic education agenda works to prepare competent graduates, human resource development has become crucial for uplifting the internal strength of the university. University Malaysia Sabah (UMS) relatively a ‘young’ university has been engaged in establishing learning interaction among its staffs towards excellence. This paradigm is paramount to the strategic human resource provider as it allows not only the students who will be graduating but the young faculty members and its administrative staffs to excel. The purpose of this paper is to discuss the keys to successful university undertaken by UMS. In less than ten years, the faculty members as well as the administrative staffs manage to position the university at par to that of other established higher learning institutions in the nation. With the establishment of learning interaction, human resource development of UMS have shown some impact for promoting educational excellence among Malaysians. Indeed competent human resource plays an important role to meet the vision and the mission of UMS- strive to excel.Human Resource Development; Higher Education

Primary Response and Concern of Sabah’s Geopark Potential Economic Effects: Preliminary Study

Sabah, Malaysia is moving steps forward by announcing the gazettement of some areas as geoparks. Part of the areas include the district of Ranau, Kota Marudu and Kota Belud. Some of the areas involved if not all are under a national park program prior to this. This gazettement undoubtedly has the potential to bring economic benefit to the state. It has the potential to increase land value, stimulating economic activities especially in the services sector via tourism activities, enhancing protection for environment and as a mean to control aggressive use of land for development. On the other hand, there are some concerns of stakeholders. Issues such as potential restriction for farmers to do agriculture related activities and relocation of village among others are potential concern among communities in Ranau, Kota Marudu and Kota Belud. In this regard, in order to examine the real concerns of various stakeholders, some series of roundtable discussions and interviews have been undertaken. Based on the preliminary assessment, very small number of individuals have worry about the geopark idea. Majority look at it positively

Relationship between financing facilities and small and medium industries: empirical evidence from ARDL bound testing approach

A major challenge to the competitiveness of sustainable economic development is a country's global economic position. Small and medium industries, supposed to be drivers of economic development of a country, receive much of negative impact following the global economic uncertainty environment. This includes facing increasingly critical financial facilities. This study seeks to analyze the empirical relationship between small and medium industries and the financing facilities in the short-run and long-run in the state of Sabah, Malaysia. The ARDL bound testing approach was applied, using annual time series data for the years between 1976 through 2005. The successes of small and medium industries have been related to availability of financing facilities. Results show that the relationships between small and medium industries and financing facilities seem to exist in the long-run. In addition, there is a causal relation between small and medium industries and financial loan. The conclusion is that financing facilities may not be the most important factor in the development of small and medium scale industries, but small and medium industries on the other hand functions as the paramount important factor in the development of financing facilities.SMI, Financing facilities, ARDL, Sabah

Savings, Investment & FDI Contribution To Malaysian Economic Growth In The Globalization Era

What are the prospects and future of Foreign Direct Investment (FDI) in Malaysia now? Malaysia is undoubtedly a development success story. Throughout the post-independence period since 1957, Malaysia has enjoyed rapid economic growth with rising per capita income and price stability. Rising living standards, greater urbanization and access to health and education, and an improvement in the distribution of income have accompanied economic growth. Malaysian performance has been particularly remarkable after 1987 when the economy achieved above 7 per cent growth in seven consecutive years reaching virtual full employment in 1995. Malaysia now aspires to become a fully developed economy by 2020. This dramatic economic transformation has occurred against a background of massive shifts in the world economy as a result of increasing internationalization of production and trade. Foreign investment funds are returning to the market attracted by the corporate restructuring news and a belief that South East Asian stocks are generally undervalued. But FDI remains a big worry for the government and the last quarter figures cannot have helped. A recent survey by the Japanese Chamber of Trade and Industry in Malaysia claimed that the country no longer enjoyed a competitive advantage over its neighbors and that 22 per cent of Japanese companies operating in Malaysia were contemplating moving. In Penang more multinationals in the electronic sectors are planning to pull out of Malaysia in the next few months and relocate to China and Vietnam. So far these have all been in factories producing labor-intensive products. The main reason given for relocation is because of high labour costs. The purpose of this paper is to examine the Malaysian economic growth with emphasize on saving and investment in the context of globalization of the world economy. The main issues are: 1. Malaysian economic and Fiscal policy to stimulate economic growth. 2. The key policy shifts to guide the study of globalization and developmental implications to overall growth trends. 3. The role of foreign direct investment (FDI) and the implications of globalization for domestic employment and real wages, and poverty and income inequality.From our analysis we found that economic development in Malaysia can be seen as a variant of the Solow model, in which savings, investment and capital accumulation are the major agents of growth. One aspect of the fast factor accumulation in this country is the important of FDI flows as a source of technology and management skills. FDI vis a vis savings and investment may have triggered export competitiveness by improving the technology, management and marketing of export industries

Entrepreneurial capability (EC) environment in ASEAN-05 emerging economies: An empirical approach

Purpose – The entrepreneurial capability (EC) environment refers to the general social and economic settings of a given local/regional entrepreneurship environment. The primary purpose of this study is to uncover key indicators of the EC milieu and test these components empirically within the context of the Association of South East Asian Nations (ASEAN)-5 economies to elucidate the current state of their EC environments, at the regional and national levels. To this end, the aim of this study is twofold. First, this work endeavors to explicate the determinants of EC, with aims of elucidating its association to commercial opportunities in (ASEAN)-5 economies, namely, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Next, this study applies the developed theory, including the identified determinants of EC to empirically test the efficiency and imperative coefficients of variables that have an impact on perceived entrepreneurial capabilities within a given environment. Design/methodology/approach – This research applies two frontier models, namely, the consistent estimation of fixed-effects and linear transformation stochastic frontier models, to assess the coefficients of significant EC variables for the panel sample. Data corresponding to the assessed variables were retrieved from the databases of the Global Entrepreneurship Monitor (GEM) – 2016 and the World Competitiveness Yearbook (WCY) – 2016, for the period, 2010-2016. Findings – The attained results suggest that factors corresponding to the variables “Entrepreneurship as a good career choice” and “perceived opportunities” have played a significantly positive role on the EC environment of ASEAN 05, although findings suggest both factors may still be improved upon. Conversely, the “fear of failure rate” factor was shown to have exerted a negative impact on the efficiency of the EC environment of ASEAN 05. Other important variables – such as intellectual property rights, university education and knowledge transfer rate – were shown to generate a positive impact on the EC environment of these economies. Originality/value – This study makes an important contribution to the entrepreneurship literature and can stimulate policymakers to rethink the EC settings of ASEAN-05 in their pursuit of an innovation-driven region