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From the article “State of the Malaysian
Economy” by Izwan Idris, published in The Star Online and the article “Focus
Economics” published in Economic Forecasts from the World’s Leading Economists,
we can summarize that Malaysia’s economic was expected to grow slower in 2016
compared with 2015, as the government projects slower growth in the
manufacturing, services and construction sectors.

 In my opinion, the slower economic growth
in year 2016 in Malaysia is because of the poor public education and health
service toward the consumer. The workers with the poor education will have the
less knowledgeable on using the new technology similar as the workers who are
unhealthy also will lead to reduce in the productivity. The lesser the output
can be produce, the decrease in the real GDP.

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 To overcome this issue, in year 2016 the
government can improve the healthcare and education service to the public. As
people’s health improves to become stronger, and less susceptible to disease,
the productivity will be increase. When the productivity increases, there are
more output can be produce, and increase in the real GDP.

 Government could also improve in the
technological changes by using better machinery and equipment. The invention of
the new machinery has been an important source of rising labour productivity.
Increase in physical capital workers have available, the more output can be
produce; similar as the increase in human capital through the education, the
productivity also will be increase as the worker having more knowledgeable to
manipulate the new machine. The most important things are the organization
should have the knowledge in organizing and managing the production. A full
experiences and knowledgeable manager would have the more efficient and
effective ways in organizing the production that will lead to the increasing in
the labour productivity.

 Government could decrease their
expenditure through the spending by federal, state, and local governments on
goods and services, but the transfer payment is excluding to increase the total
GDP. Government can reduce the interest rate on loan as the firms can do more
investment with the lower rate of interest to increase the GDP. When there is
an increasing in the investment, will increase in the saving also because they
are directly relative to each other as (Saving = Investment). Both of the
saving and investment increase, the level of loanable funds will increase as
the money supply increase, and the Real GDP also will be increase. 

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