The private sector is the engine of economic growth for a country, especially for developing economies like Malaysia. The post-pandemic recovery will need to be more strongly supported by the private sector due to the medium-term fiscal space being limited. This study makes some important contributions in analyzing and deepening understanding of the determinants of credit to private sector in Malaysia. The main objective of the study is to investigate the factors that influence domestic credit to private sector in Malaysia over the period of 1960 to 2020 by applying Johansen cointegration and Vector Auto-Regression method. It is revealed that gross capital formation and broad money have a negative relationship with domestic credit to the private sector. The long-run relationship does not exist among the variables. This study also found that general government final consumption expenditure is an important factor to fuel the financial strength of domestic banks in providing credit facilities to the private sector. The findings provide valuable insights for guiding the policymakers in strengthening the private sectors as a key driver of economic growth. Further research should be done to investigate the implications of credit to private sector on economic growth.
Economic growth is the most important factor for poverty reduction and development of living standards in developing countries like Malaysia and the rapid economic growth is crucial in advancing the economy towards the Millennium Development Goals (MDGs). However, concerns rose about impending slower growth in Malaysia, and this leads to the question why Malaysia could not maintain a stable increase of economic growth. According to Bank Negara (2012), strengthening domestic demand has become a key driver of growth, underpinning the continued resilience of the economy despite the challenging external environment. On the other hand, as Malaysian economy has undergone transformation into a highly-open economy through greater trade and financial integration since the late 1970s, this study also examine the impact of external demand to the Malaysian economic. Thus, the main objective of this study is to develop an understanding of the impact of the domestic and external demand factors on economic growth in Malaysia using the time series data from 1960 until 2018. The method employed in this study includes Engle Granger Co-integration, Error Correction Model (ECM), and Multiple Linear Regression. This study revealed that household consumption, government spending, gross investment, and export have a positive relationship with economic growth. Meanwhile, import and the economic in Malaysia related negatively. The results of this research support the idea that Malaysia's growth is externally driven, rather than internally driven. This study also confirms that the variables have significant relationship with economic growth. Therefore, this study suggest that Malaysia need to review and update its high-tech export strategies, and rejuvenate its high-tech export industries to meet the rising challenges of exporting high-tech products to the world.
The hotel industry is characterized as a human-intensive service provider, therefore, innovation, particularly service innovation, does not generally depend on technological and scientific contributions. Most often, innovation in this industry is derived from human interaction that often leads to little adjustments or continuous improvement to meet potential customer expectations and to satisfy the current customers. Although several recent studies have begun to address this issue, an understanding of service innovation in low-technology and service industries, particularly hotel firms, is less understood. This research builds on the resource-based view (RBV) of the firm to examine the effects of entrepreneurial orientation on service innovation and service innovation on hotel performance. Utilising a quantitative approach, 73 hotel operators were taken as the sample of this study. A non-probability sampling of purposive sampling was used in this study whereby only hotels that have a star rating from one to five stars were chosen and included in the sample based on the list of registered hotels provided by Sarawak Ministry of Culture, Arts and Tourism Malaysia. The findings of the study found that there is a positive relationship between entrepreneurial orientation, service innovation and performance. This study makes a considerable contribution to the existing literatures on entrepreneurial orientation, service innovation, particularly in regards to explaining the performance of hotel industry in Sarawak.
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