Book Review: Nota & Latihan STPM Ekonomi Malaysia

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Asian Journal of Research in Education and Social Sciences e-ISSN: 2682-8502 | Vol. 3, No. 2, 16-19, 2021 http://myjms.mohe.gov.my/index.php/ajress

Book Review: Nota & Latihan STPM Ekonomi Malaysia

Normala Ismail^1*, Aw Yang Huey²

1 Faculty of Business and Management, Universiti Teknologi MARA, Pahang Branch, Jengka Campus, Bandar Tun Abdul Razak, 26400 Pahang, Malaysia.

2 Faculty of Business and Management, Universiti Teknologi MARA, Perak Branch, Seri Iskandar Campus, Seri Iskandar, 32610 Perak, Malaysia.

*Corresponding Author: [email protected]

Accepted: 15 May 2021 | Published: 1 June 2021

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Abstract: This STPM Economics Notes & Exercise Book published by Penerbit Ilmu Bakti Sdn. Bhd. was written by Ishak Ismail and Yip Seiw Lang, with content that meets the Economics syllabus for STPM. This book contains reviews of STPM questions, questions for Higher-Order Thinking Skills or Kemahiran Berfikir Aras Tinggi (KBAT), and cloned STPM questions, including answers. It is a new book in the market and was first published in 2020. It has 6 chapters, and the exercises for each chapter are divided into Section A (essay questions) and Section B (quantitative questions), except for the chapter on financial institutions that has no quantitative questions. The authors have provided the answers at the back of the book to help students review and check their answers, as well as to train them to answer questions more confidently and effectively. The answer for each exercise has been carefully and clearly demonstrated step by step. Both authors have thoroughly reviewed this subject while writing this book. Thus, the notes and exercises in this book have been written in a compact and simple style. They have also included mind maps (i-Think), which is one of the elements of KBAT. In short, this is an interesting economics book that can help students better understand important concepts in economics, especially those that relate to one another, such as unemployment, inflation, and international trade. Students will also be able to remember economics facts better with its easy-to-understand delivery. Finally, apart from fulfilling the syllabus for the STPM Economics subject, perhaps economic reports from newspaper clippings should be included in this book to provide appropriate insights and exposure to students about current economic situations.

Keywords: unemployment, inflation, international trade, small and medium enterprises _________________________________________________________________________

1. Introduction

This Economics book is divided into 6 chapters, namely, Unemployment, Inflation, International Trade, Small and Medium Enterprises, Financial Institutions, Poverty, and Income Distribution. The authors have included definitions of the titles, concepts, and terms used in each chapter, as well as various examples related to economy and our daily lives.

2. Unemployment, Inflation, International Trade

In the first chapter, Unemployment, the authors have carefully explained important concepts, such as labour and labour employment. The authors have also included the steps to calculate the unemployment rate and explained the different types of unemployment, along with relevant examples. Students will better understand the factors that can influence unemployment, their impact on socioeconomic, and how to reduce problems of unemployment. Tools of fiscal and

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monetary policies, such as government spending and open market operations are described in detail to help readers relate the unemployment problems to current situations. For example, to curb the impact of the Covid-19 outbreak, the government has implemented an expansionary fiscal policy to help the economy to recover.

The second chapter deals with Inflation and the Cost of Living. Steps to calculate the consumer price index have been concisely written so that readers will understand how to calculate inflation rates. The authors have also included the types of inflation, the effects of inflation, and the control measures. The Malaysian National Budget is also part of the content, which could deepen readers’ understanding of the country’s expenditure and debt. Readers will learn that the Bank Negara Malaysia (BNM) holds an important role, especially in implementing the Monetary Policy to ensure economic stability in this country. As stated by the Finance Minister, Tengku Datuk Seri Zafrul Abdul Aziz, BNM will also ‘purchase bonds in the market if necessary and under certain conditions in its efforts to promote a robust domestic bond market,’ (StarBiz, Tuesday, 8 September 2020).

In the third chapter, which focuses on International Trade, the authors explained the concept of open economy and how to measure the degree of economic openness. They have also described the positive and negative effects of international trade. Although certain measures are in place to regulate international trade, the authors did a great job at explaining the limitations that come with applying such measures in the actual economic development of the country. The authors have also explained that trade liberalization policies can positively affect the economy of this country. Emphasis was put on the measures that can encourage exports and increase the import substitution industry in the country. This chapter exposes students to the role of several organizations, such as AFTA, MIDA, and MATRADE. Their knowledge is further increased with discussions on the meaning of the balance of payments and the various formulas to calculate it in an orderly manner. Difficult concepts in this chapter were simplified by the authors so that the readers can easily understand them. For example, they used circle maps to show the four important components in the current account balance and used a table to illustrate the three conditions for the trading account balance.

3. Small and Medium Enterprises, Financial Institutions, Poverty, and Income Distribution

The next chapter focuses on Small and Medium Enterprises. Readers will learn more about the characteristics of business units, such as sole proprietorship, partnership, private limited company, public limited company, and cooperative. It is undeniable that small and medium enterprises have contributed to the economic development of this country, which was thoroughly explained in this chapter. Small and medium enterprises have helped increase the country’s output and reduced its dependence on imported goods, as well as created employment opportunities and reduced the unemployment rate. Subsequently, the living standards of the population will increase, which is the vision of every country to have its people living a comfortable life.

Readers can also learn that unemployment, as discussed in the previous chapter, has some relevance with this fourth chapter. In fact, the topic of each chapter in this book is interrelated with one another. For example, the export subsidy awarded by the government to local producers will help small and medium enterprises grow, which will subsequently increase the competitiveness of local products in the global market. The authors have also discussed the role of the government in helping small and medium enterprises deal with the problems they

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face. This chapter will expose readers to the knowledge of how government agencies, such as TEKUN, MARA, and SME banks, can help small and medium enterprises solve their problems, for example, lack of relevant technology and lack of skilled labour.

The fifth chapter discusses the topic of Financial Institutions. The authors described the various financial institutions in this country, especially the central bank, Bank Negara Malaysia (BNM) and commercial banks, such as Maybank Berhad, CIMB, and Public Bank Berhad. Readers will learn of the connection between BNM and monetary policy, which are implemented to ensure the economic stability of this country. The functions and roles of financial institutions are included in brace maps to facilitate learning and improve students’ thinking skills. In addition, bubble maps were used to showcase credit institutions. In this chapter, the readers are exposed to the various forms of loan facilities provided by commercial banks and other financing companies. Problems faced by debtors are also discussed and presented in circle maps. Many credit agencies are studied in this chapter, such as ar-Rahnu, insurance companies, cooperatives, and Amanah Ikhtiar Malaysia. The notes provided by the authors are concise and easy to understand.

The sixth chapter is on Poverty and Income Distribution, whereby the authors discussed the meaning of the concept of poverty. They have also presented common causes of poverty in the form of a circle map, in addition to methods of measuring income distribution, namely, the percentile method and the Gini coefficient method. It would be better if the authors had included the graph of inequality in income distribution for better understanding. Next, to help students remember important facts and improve their skills in answering questions, the authors used bubble maps to complement their description of non-wage income, poverty eradication policies, and agencies that can help eradicate poverty. In this chapter, the readers will also learn more about the roles of FAMA, AIM, JKM, and programmes aimed at eradicating poverty in Malaysia.

4. Conclusion

Overall, this is a special kind of economics book that will fascinate and help students better understand the important concepts in economics, especially those related to each other, such as unemployment, inflation, and international trade. The notes will help students remember economic facts better by means of its easy-to-understand delivery. The authors’ detailed research on this subject has led to the publication of this notes and exercise book, with its compact content and mind maps (i-Think), which is one of the elements of Higher-Order Thinking Skills. In conclusion, the authors have meticulously written each chapter to emphasize critical thinking exercises, which will encourage students to further develop their creative ability to solve various problems effectively and for making the best decisions. This book is also suitable for those who wants to learn more about economics, especially monetary policy and the national budget, as well as financial programmes run by the government. Since economics is an academic field that reflects on our everyday life, this book should be read by everyone in order to understand government policies, as well as to appreciate the efforts and policies put in place by the government.

References

Salvatore, Dominick, Jamaliah Mohd. Khalili, Arlinah Abdul Rashid, Ismadi Ismail, Rosilawati Amiruddin, Suresh Narayananet (2012). Essentials of Managerial Economics. Kuala Lumpur: Oxford Fajar Sdn. Bhd.

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Habibah Lehar, Yaacob Anas and Hwei Choo, Tey (2014). The Malaysian Economy. Kuala Lumpur: Oxford Fajar Sdn. Bhd.

Marshall, A. (2013). Principles of Economics. London: Palgrave Macmillan UK.

Ng, David S. H. (2001). Economics Made Easy. Kuala Lumpur: Kumpulan Budiman Sdn.

Bhd.

Noor Azman Ali, Mokhtar Pet, Zaiton Hussin, Zakiyah Jalun, Zaini Abd. Jamil, Muhammad Solahuddin Harun (2017). Success Perniagaan SPM. Oxford Fajar Sdn. Bhd.

Noryati Ahmad, Hamisah Abd. Rahman, Sharifah Faigah Syed Alwi (2016). Fundamentals of Finance. Kuala Lumpur: Oxford Fajar Sdn. Bhd.

Nota dan Latihan STPM Mikroekonomi Semester 1. Penerbit Ilmu Bakti Sdn. Bhd.

Praktis Topik KSPTL STPM Semester 1, 2, 3 Ekonomi. Sasbadi Sdn. Bhd.

Tey Hwei Choo, Azfar Hilmi Baharudin, Hanani Ahmad Fuad (2018). Malaysian Economy:

Unlocking Growth, Sustaining Equity. Kuala Lumpur: Oxford Fajar Sdn. Bhd.

Vengedasalam, D. & Madhavan, K. (2013). Principles of Economics. Kuala Lumpur: Oxford Fajar Sdn. Bhd.

https://www.thestar.com.my/business/business-news/2020/09/08/bank-negara-will- buy-bonds-if-needed-says-zafrul