Malaysian Journal of Business and Economics (MJBE)

WORKING HERE OR THERE? ASSESSING THE IMPACT OF JOB LOCATION ON SKILL MISMATCH AMONG YOUNG ENTRY-LEVEL WORKERS

Muhammad Adib Jamal — 2024-06-30

The mismatch between the skills acquired by graduates from higher learning institutions and the areas of employment they enter is an important issue and should concern policymakers. This situation reflects inefficiency in the labor market, which can be caused by various factors. Among them may be the oversupply of graduates in a particular field in the labor market, or the expertise obtained not aligning with the needs of the industry. This situation can lead to the problem of skilled workers being underutilized in the labor market. As highly skilled human capital is a crucial input to both innovative activity and economic growth, their movements after graduation can potentially affect the dynamics of local development and therefore deserve thorough investigation. The main objective of this study is to determine the factors that influence skill mismatch with actual jobs offered among graduates from higher education institutions (HEIs) in Penang. This study adopted a survey approach with 185 university graduates from two public universities in Penang who graduated between the years 2019-2021. Descriptive analysis and logistic regression methods have been used to examine the relationship between salary, job location, and other variables such as family, friends, or hometown to the skill mismatch of these young workers. Results indicate that graduates from programs in Science, Mathematics, and Computer Sciences, and Engineering can find regular jobs that match their field of study. Interestingly, more than three-quarters of graduates from universities in Penang successfully get jobs under the Skilled Workers category. There are only 21% employed in the semi-skilled category and only 4% in the low-skilled category. Graduates working in the sector in the skilled worker's category receive higher salaries compared to graduates working in semi-skilled and low-skilled categories.

WILL HIGHER WAGES BENEFIT THE ECONOMY? THE EFFECTS OF LABOR INCOME SHARE ON MACROECONOMIC VARIABLES IN MALAYSIA

Nurul Sakinah Ngaini — 2024-06-30

In Malaysia, household expenditure drives about 60% of the economy. This suggests that increasing aggregate demand is crucial for economic growth. As demand is a function of labor income, raising the latter puts more money into the pockets of consumers, which eventually facilitates feedback effects on the goods and factor markets and potentially triggers macroeconomic structural changes. Having these effects in hand raises a concern on the extent to which the increase in labor income could influence selected macroeconomic variables, such as shadow economy, female labor force participation rate, technology, labor productivity, foreign workers, and skilled-related underemployment. These are some structural issues pointed out in the Twelfth Malaysia Plan (2021-2025). In the pursuit of achieving targets to increase labor income to GDP from 37.1% in 2020 to 40% by 2025, this paper attempts to examine the impact of labor income on the selected macroeconomic variables using annual data from 2005 to 2021 and employing the Ordinary Least Square (OLS) with robust standard error due to Newey-West procedure. Our results indicate that the labor income could boost female labor force participation rate, labor productivity, and technological innovation. Meanwhile, it is also found that increase in the labor income could dampen the prevalence of shadow economy, skilled-related underemployment, and dependency on foreign workers at various skill levels. Therefore, a policy that targets improving labor income could have greater potential to solve various structural issues inflicted on the nation for decades. Whilst the present study provides empirical evidence on the macroeconomic perspective, it is of great importance for the policy makers to gauge a deeper understanding on such effects at the microeconomic side.

MATCHING SKILLS TO CAREERS: THE IMPACT OF HUMAN CAPITAL ON JOB ALIGNMENT IN MALAYSIA

Low, Choon Wei — 2024-06-30

This study examines the impact of human capital factors on job-matching outcomes among Malaysian employees, emphasizing the roles of work experience and educational attainment. Utilizing a logistic regression model, the analysis reveals that both work experience and tertiary education significantly reduce the likelihood of job mismatches. The findings highlight the importance of employers offering adequate rewards, recognition, promotion opportunities, and work-life balance to enhance job satisfaction and retain employees. Additionally, the study underscores the critical role of tertiary education in preparing employees for the evolving demands of the Fourth Industrial Revolution (IR4.0). Despite its contributions, the study acknowledges a limitation in not capturing the specific educational programs studied by employees, suggesting this as a direction for future research.

THE EVOLUTION OF INTELLECTUAL PROPERTY TRADE RESEARCH

Hao, Xiaoli — 2024-06-30

As an important growth point of the world economy, intellectual property trade is closely related to the division of labor and benefit distribution in the global value chain, and has become an important tool for countries to seek international competitive advantages. However, no systematic literature review has been made on intellectual property trade research. Taking the related research on patents as the object of trade as the research object, this study makes a literature review of the current situation and evolution of intellectual property trade, and its influencing factors. It can be concluded that since the 1980s, the global intellectual property market has expanded with increased transaction scale and international patent technology transactions. Developed countries dominate the market, while China and other emerging countries have risen. The influencing factors include intellectual property protection, economic scale, and geopolitics, amongst others. International protection is essential, and the degree of protection is related to the level of national development. The study found that the current literature on intellectual property trade is far from extensive and in-depth, and there needs to be a scientific framework and system for the research on the theoretical basis and influencing factors.

NEXUS BETWEEN FOREIGN CAPITAL INFLOW, POVERTY AND ECONOMIC GROWTH AMONG SELECTED WEST AFRICA COUNTRIES: A SECTORAL APPROACH

Yitta Lawal Zakariyau — 2024-06-30

In the selected West African nations, issues concerning foreign capital inflows, poverty, and economic growth are complex and multifaceted. These issues encompass reliance on commodity exports, fluctuations in foreign capital inflows, debt burdens, corruption, poor governance, and lack of diversification. Therefore, understanding the nature of these challenges is both relevant and imperative. Consequently, this paper investigates the relationship between foreign capital inflow, poverty, and economic growth in the chosen West African countries. To estimate the model, the study employs a Random Panel model. The findings reveal, among other things, that foreign capital inflows have a beneficial impact on the agricultural, health, and educational sectors in the selected West African nations. It is recommended that in order to support sustainable development and reduce reliance on external expertise, foreign investors should be encouraged to engage in technology sharing, skills transfer, and local capacity building, particularly in the agricultural and industrial sectors. Additionally, incentives should be tailored to attract foreign investment in sectors where these nations excel. This may include measures such as land access, tax breaks, and other sector-specific advantages.

THE RELATIONSHIP BETWEEN GEOPOLITICAL TENSIONS AND GLOBAL TRADE: AN ANALYSIS OF THE EFFECT OF RUSSIA-UKRAINE CONFLICT ON THE BANGLADESHI BRAND CASIO METAL

Salma Akter — 2024-06-30

Md. Badsha Mia founded Casio Metal, a local faucet-manufacturing business, in 1986 with a small capital of 25,000 BDT. Currently, Casio Metal is facing severe disruptions in its business operations, and its survival is threatened by the ongoing Ukraine-Russia war. This is due to the increase in the dollar's value against the local currency, which has resulted in a dollar crisis in local banks, leading most private banks not to grant permission to open LCs. Additionally, the crisis has prevented Md. Badsha from importing necessary machinery and equipment from other countries, including China, from which he usually imports parts and equipment. As a result, the company has been unable to fulfill its orders, significantly impacting its regular operations. This case focuses on the challenges faced by a raw-materials import-based manufacturer during a global crisis and the uncertainty surrounding whether Casio Metal will survive. It is a single case study. The data collection method was based on in-depth interviews with the owner. The interview was audio-recorded with the interviewee's permission. The type of case is an applied decisional case. The protagonist was present. The theoretical framework of this case study is based on the negative impacts of globalization, including its associated costs.

THE RELATIONSHIP OF E-TRAINING, WORK MOTIVATION, AND WORK-LIFE BALANCE ON MALAYSIAN TEACHERS’ PERFORMANCE DURING COVID-19 PANDEMIC

Ariana Chong Suk Eng — 2024-06-30

E-training, work motivation and work-life balance are three crucial factors that could affect employee performance. However, literature review indicates a lack of consistency in the study of the relationship among these elements, particularly in the context of the COVID-19 pandemic. This research delves into how e-training, work motivation, and work-life balance influence teachers' performance during the COVID-19 crisis. Previous studies highlight the detrimental impact of the pandemic on 90 per cent of employees in Malaysia, with 53 per cent of teachers experiencing a decline in performance attributed to elevated stress and mental health issues. A total of 152 teachers from both primary and secondary schools in Malaysia participated in a comprehensive 47-item online survey. The results reveal a positive correlation between e-training, work motivation, and work-life balance with teachers' performance. Teachers equipped with adequate e-training, high work motivation and good work-life balance would translate into increased performance amid the challenges posed by the COVID-19 pandemic. The insights gained from this study can inform government initiatives to design and implement more effective e-training programmes, fostering work motivation and work-life balance for high-performance employees.

EXPLORING THE MEDIATING EFFECT OF PERCEIVED EASE OF USE AND PERCEIVED USEFULNESS ON ACTUAL ADOPTION OF MOBILE WALLETS IN MALAYSIA

Go, You How — 2024-06-30

Our study examines the actual adoption of mobile wallets (m-wallets) in Malaysia, with a particular emphasis on addressing the factors influencing the selection and efficient utilization of this payment method. We concentrate on the globally recognized Alipay and the locally established GrabPay. Based on the Technology Acceptance Model (TAM), the study investigates consumer-centric and technology-related factors and explores the role of Perceived Ease of Use (PEOU) and Perceived Usefulness (PU) as mediators in influencing the actual adoption of m-wallets. To compare Alipay and GrabPay, the data collection is through a survey of 632 responses and utilizing PLS-SEM and Welch's t-test for analysis. Our findings highlight the significant impact of compatibility on actual adoption, mediated by both PEOU and PU. However, personal innovativeness, mobile payment knowledge, and self-efficacy are found to have a relatively minor effect on actual adoption. GrabPay exhibits higher convenience and compatibility compared to Alipay, while personal innovativeness shows similar patterns for both platforms. Self-efficacy consistently influences adoption for both m-wallets. As compatibility is identified as the most crucial factor leading to m-wallet adoption, it is advisable for m-wallet service providers to offer a variety of services tailored to accommodate the diverse lifestyles of consumers.

EXAMINING INFLUENTIAL ELEMENTS IMPACTING PERFORMANCE IN SUSTAINABLE MANUFACTURING WITHIN MALAYSIAN ENTERPRISE: A CONCEPTUAL ANALYSIS.

Ang Hong Loong — 2024-06-30

This study investigates the factors of sustainable manufacturing that affect the performance of Malaysian manufacturing enterprises. It focuses on sustainable innovation, quality, cost efficiency, delivery, and operational flexibility. By applying Dynamic Capabilities theory, the study aims to provide useful insights to Malaysian manufacturing companies. The major goal is to develop a conceptual framework for sustainable manufacturing that will improve organizational performance. It is important to emphasize that empirical validation is currently lacking in this study, necessitating additional research to examine the applicability of Dynamic Capabilities, sustainable innovation, and flexibility in predicting organizational performance. Future research should incorporate quantitative approaches and different samples to enhance the generalizability of the findings. This study emphasizes the critical roles of sustainable innovation and flexibility in influencing organizational performance, highlighting the importance of including these factors in sustainable manufacturing strategies. Furthermore, it provides stakeholders in manufacturing enterprises with insights to help them strengthen their strategic communication on the benefits of sustainable manufacturing. The study not only offers valuable information to policymakers, industry experts, and the academic community but also emphasizes the importance of conducting additional empirical research to examine and expand upon these conceptual insights.

THE INFLUENCE OF ADOPTING ARTIFICIAL INTELLIGENCE (AI) ON MALAYSIA'S ECONOMIC ENVIRONMENT.

Caroline Geetha — 2024-06-30

This study aims to conduct a systematic review of the implications of adopting Artificial Intelligence (AI) on the economic landscape of Malaysia. Aligned with economic growth theories, the research underscores AI's pivotal role in transforming resources characterized by diminishing marginal returns into assets with increasing marginal returns. The analysis is multifaceted, addressing three fundamental perspectives. First, it examines AI adoption's impact on both microeconomic and macroeconomic dimensions. At the macroeconomic level, the study observes AI's influence on demand-pull and cost-push inflation, affecting overall price levels in the Malaysian economy. At the microeconomic level, AI adoption is linked to increased productivity and efficient resource allocation, leading to economies of scale. In an innovative and competitive business environment, AI adoption further enhances the quality of goods and services while ensuring competitive pricing strategies. Second, the study differentiates the positive and negative consequences of AI adoption across various sectors and demographic groups, providing specific examples of how different industries and population segments may benefit from or face challenges due to AI implementation. Finally, the analysis distinguishes the short-term and long-term impacts of AI adoption. In the short term, changes in employment, productivity, and consumer prices are identified, while the long-term analysis explores structural changes, including income redistribution and sustained productivity growth. The findings highlight the net positive impact of AI adoption in Malaysia, emphasizing that its benefits outweigh the costs. The study underscores the significance of government involvement in formulating policies and providing necessary infrastructure, aligning with Romer's theory of economic growth to drive successful and sustainable AI adoption for economic development.