Rahmah Ismail

Information and Communication Technology Use and Economic Growth

In recent years, progress in information and communication technology (ICT) has caused many structural changes such as reorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization process. Growth economists predict that economic growth is driven by investments in ICT. However, empirical studies on this issue have produced mixed results, regarding to different research methodology and geographical configuration of the study. This paper examines the impact of Information and Communication Technology (ICT) use on economic growth using the Generalized Method of Moments (GMM) estimator within the framework of a dynamic panel data approach and applies it to 159 countries over the period 2000 to 2009. The results indicate that there is a positive relationship between growth rate of real GDP per capita and ICT use index (as measured by the number of internet users, fixed broadband internet subscribers and the number of mobile subscription per 100 inhabitants). We also find that the effect of ICT use on economic growth is higher in high income group rather than other groups. This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate ICT use.

The demand for foreign workers in the manufacturing sector in Malaysia

The objective of this study is to investigate the demand for foreign workers in the manufacturing sector in Malaysia. In order to achieve this objective, the simultaneous equation model is developed and the analyses are based on data from the Industrial Survey conducted by the Department of Statistics Malaysia for the period of 1994-2005. The Labor demand model is derived from the Cobb-Douglas production function. The results from the estimation of the production function show that foreign workers in the category of professional significantly contributed to the output growth of ISIC 35, ISIC 36 and ISIC 38, while skilled workers and technical-supervisors also give a significant contribution to output growth in ISIC 31. The demand for foreign workers reveals that professionals and technical-supervisors are positively related to output level and wage rates. However, they are negatively related to the price of capital and local wage rate. It means that the professional and technical-supervisor foreign workers complement the local workers and capital.

TRAINING IMPACT ON EMPLOYEE’S JOB PERFORMANCE: A SELF EVALUATION

Abstract Nurturing a high-quality, knowledgeable and innovative human capital with strong moral and ethical values has become a new source of driving the nation’s productivity growth and competitiveness. Therefore, Human Resource Development Council (HRDC) was established in 1992 to generate lifelong learning in workplace setting to improve labor productivity, technology transfer and innovation. In 2002 it was renamed as Human Resource Development Limited (HRDL). All registered employers with HRDL are eligible for the employees training grants. The total approved training places and disbursement of training grants had increased over the years. This paper investigates to what extent the training programs improve employee knowledge, skills, works behavior and job performance, and what are the significant training related factors influencing job performance. The paper is based on data collected through self-reported survey on 1200 employees (458 responded) at hotels, resorts and ICTs companies in four selected states. Out of the responses, 73 percent attended various training programs coordinated by HRDL. The result shows that, in general, the training programs improve knowledge, skills and positive work behavior of employees. Multiple linear regression analysis supports the hypothesis that training related variables have positive impact on employees’ job performance except cognitive competence.

Economic growth and human development – what do time series data say for Sudan?

This study examines United Nations Development Programme (UNDP)s 1996 hypothesis regarding the existence of a two-way relationship between economic growth (EG) and human development (HD) using Sudanese time series data (1960–2012). The hypothesis suggests that there is a feedback effect between HD and EG. This implies that improving HD could enhance EG opportunities and vice versa. In this study, first we analyse the long-run cointegration relationships using the Autoregressive Distributed Lag (ARDL) approach. Then, to identify the short-run dynamic relationship between HD and EG, we employ the error correction model derived from the ARDL. The results show that in the long run, HD is positively related to EG through education and employment performance channels. At the same time, EG could positively improve the opportunities for the education of households and involvement in economic activities. The short-run dynamic estimation confirms that there is a bidirectional relationship between EG and HD. The overall findings support UNDPs 1996 hypothesis concerning the existence of a two-way relationship between EG and HD. The results also confirm that improving humanity in Sudan promotes not only HD but also overall economic development.

Impact of Training under Human Resource Development Limited on Workers’ Mobility in Selected Malaysian Services Sector

Training is an important component of human resource development and is emphasized in the Malaysian economic development process. The Malaysian Government has established the Human Resource Development Fund (HRDF) managed by the Human Resource Development Limited (HRDL) to enhance and monitor the aspect of workers’ training. The HRDF has managed to increase the workers’ training activities; nevertheless, the issue raised here is to elucidate whether the training has adversely encouraged the workers’ mobility. This paper aims to analyze this issue based on 817 workers in a selected services sub-sector, namely, the information and communication technology (ICT) and the hotel sub-sector in the Klang Valley, Johor Bahru, and Penang, collected in the period of 2008/2009. The results show that the HRDL training has a positive and significant influence on workers’ mobility.

Consumers Basic Right to Housing: The Role of Institutional Frameworks in Malaysia

There are eight consumers? rights and one of them is the right to basic needs. The right to basic needs encompasses, inter alia the right to housing. There are several international documents which recognize the consumers? right to housing. In upholding the consumers? right to housing in Malaysia, the main institutional framework which is responsible in providing houses to the consumers is the Ministry of Urban Wellbeing, Housing and Local Government. This Ministry is assisted by other institutions such as, Department of Housing, 1Malaysia PRIMA Corporation and National Housing Company Limited, together with private sectors. The objectives of this paper are to analyze the international documents which acknowledge the consumers? right to housing, the roles of the institutional frameworks and the challenges they face in providing houses to the consumers. The findings of the research show that the consumers? basic right to housing has been recognized internationally and various programs have been implemented by the Ministry of Urban Wellbeing, Housing and Local Government and related institutions to uphold the consumers? basic right to housing. However, there are challenges that need to be faced by the Ministry of Urban Wellbeing, Housing and Local Government and related institutions, such as, the difficulty to fulfill the demand due to very limited affordable houses can be built at the urban areas. It is suggested that, apart from implementing affordable homes and citizen friendly homes programs, the Government needs to take other measures, such as, controlling the price of the houses and the insertion of stringent conditions in the National Housing Policy regarding the purchasing of the second and subsequent houses.

Keanjalan Buruh-Output dan Keperluan Pekerja Asing dalam Sektor Pembuatan di Malaysia

Artikel ini bertujuan menganalisis keanjalan buruh-output pekerja asing bagi keseluruhan sektor pembuatan dan mengikut sub-sektor pembuatan terpilih di Malaysia. Berdasarkan kepada nilai keanjalan ini, unjuran terhadap keperluan pekerja asing bagi tahun 2020 dilakukan. Pekerja asing diklasifikasikan kepada tiga kategori, iaitu pekerja profesional asing (pengurusan, profesional dan eksekutif), pekerja teknikal asing (teknikal dan penyeliaan) dan pekerja am asing (perkeranian, operator pengeluaran dan lain-lain). Analisis artikel ini menggunakan data panel Penyiasatan Industri Pembuatan dari Jabatan Perangkaan Malaysia pada peringkat 5 digit mengikut Piawaian Klasifikasi Industri Malaysia (MSIC) bagi tempoh 1990-2010. Kaedah Seemingly Unrelated Regression (SUR) digunakan bagi menganggar model permintaan pekerja asing mengikut tiga kategori pekerjaan. Dapatan kajian menunjukkan keanjalan buruh-output pekerja asing bagi keseluruhan sektor pembuatan adalah positif dan signifikan bagi kesemua kategori pekerjaan. Namun terdapat nilai keanjalan buruh-output yang negatif apabila analisis dilakukan mengikut subsektor pembuatan. Unjuran keperluan pekerja asing bagi tahun 2020 menunjukkan permintaan kepada pekerja profesional asing, pekerja teknikal asing dan pekerja am asing masing-masing dijangka meningkat sebanyak 10.5 peratus, 8.3 peratus dan 10.0 peratus. Ini memberi implikasi bahawa kerajaan perlu meningkatkan penawaran buruh tempatan bagi ketiga-tiga kategori ini sesuai dengan keperluan sektor pembuatan supaya kebergantungan kepada pekerja asing dapat dikurangkan.

Impak Globalisasi terhadap Produktiviti Buruh dalam Sektor Perkhidmatan

Globalisasi membawa pelbagai kesan yang menjadi cabaran utama kepada Malaysia dalam meningkatkan produktiviti yang menjadi pengukur bagi daya saing. Atas justifikasi tersebut, kajian ini bertujuan mengkaji impak globalisasi ke atas tingkat produktiviti buruh sektor perkhidmatan bermula alaf baru pada tahun 2000. Data kajian meliputi tempoh 13 tahun dari 2000 hingga 2012. Menggunakan indikator globalisasi terdiri daripada pelaburan langsung asing (FDI), tahap keterbukaan ekonomi (OPN) dan buruh asing (FL), kesan globalisasi ke atas produktiviti buruh sektor perkhidmatan dianalisis menggunakan model kesan rawak dan model panel dinamik Generalized Method of Moments (GMM). Dapatan model kesan rawak menunjukkan pemboleh ubah FDI adalah positif dan signifikan dalam mempengaruhi tingkat produktiviti buruh. Dapatan ini selari dengan dapatan bagi model panel GMM. Sebaliknya, pemboleh ubah OPN secara konsisten menunjukkan hubungan negatif bagi kedua-dua model, sementara FL menunjukkan dapatan yang tidak konsisten. Implikasi dasar daripada dapatan kajian ini ialah negara perlu terus memberi galakan terhadap kemasukan pelabur asing, terutama bagi pelaburan berskala besar dengan kos relatif lebih murah disebabkan FDI mampu meningkatkan tingkat produktiviti buruh sektor perkhidmatan secara signifikan, khususnya dalam jangka panjang. Selanjutnya, pelaburan yang dapat menjana pekerjaan dengan upah tinggi perlu diberi galakan sepenuhnya, di samping usaha menyerap dan mengguna teknologi baru dalam kalangan pelabur tempatan. Ini perlu kerana sektor perkhidmatan perlu dipacu oleh pengetahuan dan asas teknologi yang tinggi supaya sektor ini kekal sebagai sektor yang kompetitif kepada ekonomi negara.

Kecekapan teknik institusi pendidikan tinggi swasta di Malaysia

Artikel ini bertujuan untuk mengukur kecekapan teknik bagi sektor perkhidmatan pendidikan tinggi swasta (sektor PPTS) di Malaysia bagi tahun 2010. Sektor itu dijangkakan mampu untuk menyumbang sehingga RM 1.3 bilion setahun kepada Pendapatan Negara Kasar (PNK) dari tahun 2010 hingga 2020 melalui dasar liberalisasi pendidikan swasta. Institusi Pendidikan Tinggi Swasta (IPTS) di Malaysia merupakan sub sektor terpenting dalam sektor PPTS yang juga merupakan salah satu sektor dalam Bidang Keberhasilan Ekonomi Negara (NKEA). Namun, tidak terdapat sebarang petunjuk ekonomi mahupun prestasi terkini sektor PPTS sehingga kini. Maka, artikel ini akan mengenal pasti tahap kecekapan teknik IPTS menggunakan data keratan rentas 126 buah IPTS berdasarkan bancian tahun 2011 yang diperoleh daripada Jabatan Perangkaan Malaysia. Tahap kecekapan teknik diukur menggunakan Data Envelopment Analysis (DEA) bukan parametrik yang berorientasikan output dengan nilai ditambah sebagai output manakala bilangan pekerja dengan pendidikan tertiari, menengah dan rendah, bilangan pekerja pengurusan, profesional dan eksekutif, bilangan pekerja teknikal dan penyeliaan, bilangan pekerja perkeranian dan berkaitan, bilangan pekerja pekerjaan am, bilangan pelajar dan jumlah aset sebagai input. Selain itu, tahap kecekapan teknik dianalisis dengan lebih lanjut menggunakan jadual silang dan ujian chi-square dengan saiz operasi dan intensiti modal IPTS. Kajian mendapati lebih banyak IPTS bersaiz sederhana dan besar serta IPTS yang lebih berintensifkan modal beroperasi pada tahap kecekapan teknik yang lebih tinggi berbanding IPTS bersaiz kecil dan IPTS yang kurang berintensifkan modal. Kesimpulannya, IPTS di Malaysia adalah beroperasi secara kurang cekap bagi tahun 2010. Implikasi dasar adalah IPTS perlu meningkatkan keupayaan pengeluaran, mengurangkan kos dan meningkatkan kualiti perkhidmatan, seterusnya meningkatkan penjanaan pendapatan sektor PPTS.

Economic growth and human development - does gender matter?

Several studies examine the UNDPs 1996 hypothesis regarding the existence of a two-way relationship between economic growth and human development. This implies that improving human development could enhance economic growth opportunities and vice versa. Using Sudan time series data (1960-2012), the present study seeks to examine whether this hypothesis may vary between males and females. The empirical findings of the present study suggest that such relationships may vary between gender and over time. More specifically, whilst education and training improves the capability of females to contribute positively and significantly to a countrys economic growth in the long run, improving male health reduce and significantly affects economic growth. In addition, household expenditure tends towards improving the human development of females compared to males over time. The results suggest that improving gender equality in Sudan, in addition to human development generally, also constitutes a means of attaining better economic performance, particularly in the long run.