1. Attaining the charter to serve as the World’s Islamic Service Center calls for the liberalization of the financial systems through reduction of barriers to entry within the context of the commercial sector so that competition is intensified over time (Wahid & Furqani, 2013). Therefore, it is pertinent for Malaysian financial bodies to manage the global capital flows and especially the short-term flows. Additionally, the backdrop of sustainable and progressive Islamic system encompasses the establishment of the crucial mechanisms which comprise Islamic financial markets, Islamic banking industry, and Islamic insurance or the popularly known takaful market (Abdul Samad, 2014).
The government should also allocate funding for the management industry due to the correlation, synergies, and inter-dependence existing among these structures within the system. Another strategy is a step towards boosting growth of non-bank Islamic Financial Institutions such as the Pilgrim Fund Board, Tabung Haji which has already been included in the system (Baharuddin, 2015). Constituent institutions that should be given emphasis as well are corporate zakat, waqaf, mutual funds, investment trusts, and inheritance management. Establishing forums that boost these structures is part of wealth investment that will appear more viable as the domestic economy gains entry into the next level of growth alongside institutionalization of savings across borders.
Despite more focus being given to financial markets and financial infrastructures, the state has also inclined towards sharia, regulatory aspects, and other legal dimensions. The hallmark of better financial structures is the presence of supervisory and regulatory frameworks which determine the foundation of stable financial system (Abdul Samad, 2014). Thus, for the Islamic financial system to effectively work, it should be instituted on the provisions of Sharia. Lastly, Labuan offshore financial center is now a home to Islamic finance and this is being expanded to other areas within the region to revitalize fund management industry through the exchange bureau known as Labuan International Financial Exchange (LFX) (Wahid & Furqani, 2013). LFX allows trading of capital market instruments and aspects of dual listing for both Islamic and conventional papers inclusive of certain levels of equities, bonds (sukuks), debt instruments, mutual funds, and assurance on asset securities.
2 (a). In the era of financial globalization, and with respect to previous eras, the unpredictability of crises has increased. Thus, in this era the forecast of crises through the analysis of the fundamental economic variables poses greater difficulties; rather, crises seem to be associated with investor expectations based on criteria of group psychology that often move away from financial rationality (Goldin & Mariathasan, 2014).
The financial crises that have taken place in parallel with the development of the financial globalization process seem to have characteristics that differentiate them from those that occurred in previous periods, with unpredictability being the most remarkable (Crotty, 2016). The most important causes of this unpredictability are, on the one hand, self-fulfilling expectations, and on the other the effects of contagion of the crises between different countries; Both phenomena, often linked together, seem to be typical of the era of globalization (Publishing, O. E. C. D. & Verdier, 2013). However, for the analysis of the possible link between the crises and the process of financial globalization it is necessary to analyze two other aspects: on the one hand, the situation, prior to the beginning of the integration process in the global financial markets, with respect to the level of economic and financial development of the different countries, and on the other the way in which the processes of opening conducive to such integration take place (In D’Costa, 2012).
Before crisis, things were different. In America, a lot of cheap money appeared, the rates on loans and mortgages decreased, most American families had financial portfolios, invested their money in unnecessary assets and much more (Spence & Leipziger, 2010).
The US mortgage crisis (2007) triggered the global banks liquidity crisis in September 2008: banks stopped issuing loans, in particular, car loans. As a result, sales of auto giants began to decline (Venugopal, 2010). Three automakers Opel, Daimler and Ford reported in October a reduction in production volumes in Germany. From the real estate sector, the crisis has spread to the real economy, a recession has begun, a decline in production (Feenstra & Taylor, 2014).
IMF recognizes that there is a certain association between liberalization and financial crises. This institution, whose policies are aimed precisely at maintaining economic and financial stability, admits that the financial imbalances of the nineties, including the Mexican and Asian, came to have global effects, adding that they reach an explanation in the context of the processes of deregulation and financial liberalization, the increase in international capital flows and financial innovation at the end of the 20th century and the beginning of the 21st. In fact, all post-Bretton Woods crises were preceded by significant inflows of foreign capital flows (Das, 2010).
It can be deduced that the rapid international transfer of capital that enables technological advances; the appearance of new financial instruments, which have often contributed to the increase of speculative operations; and the increase in institutional investors, whose operations have been a point of reference for many uninformed investors, have often been a source of instability
2 (b). On April 2017, approximately 4.4 MYR was needed to exchange with 1 USD. On March-2018, approximately 3.91 MYR was needed to exchange with 1 USD. This means that MYR was stronger in March 2018 than April 2017. Malaysian exports will therefore bring more USD to Malaysia in March 2018 than in April 2017.
3. Malaysia’s MATRADE is an external corporation which serves as a promotion agency and a branch of the Ministry of International Trade and industry. The chief purpose of this agency is the creation of platforms for Malaysian export companies to carve new frontiers in the global markets (Ayob & Freixanet, 2014). The corporation tries to bring potential Malaysian companies into the limelight while championing their outlook based on the phrase ‘Made-in-Malaysia” to suit the aspects of reliability, excellence, and trustworthiness. By taking Malaysia’s enterprises to the global spectrum, MATRADE, therefore, positions Malaysia as a universally competitive trading nation. The corporation has gained sufficient trust because its basis is founded on collaboration with the relevant professional bodies and government agencies (Mahajar et al., 2014). The combinations are mandated to formulate and implement export marketing approaches and promotion campaigns that aid in mapping Malaysia on a global perspective.
Besides, MATRADE is bestowed with the task of conducting financial intelligence and market research then build an all-inclusive information database that highlights areas that need improvisation in advancing the country’s trade (Mahajar et al., 2014). Additionally, its relevance is more viable on the training programs it holds in enlightening the Malaysian exporters and related bodies on international marketing skills alongside protecting Malaysia’s foreign trade interests overseas. The corporation is highly networked and has an approximate 40 offices in leading commercial cities which aid in procuring reliable and accurate market trend information concerning Malaysian competencies in its services and products (Mahajar et al., 2014). It does this by organizing corporate meetings with Malaysian companies and help create connections for these organizations with the fundamental decision makers in both private and public sectors in Malaysia.
4. Pioneering in the market industry is compounded by a variety of challenges before a company can gain strength to beat the market forces. The case of IGENE was not an exception since it encountered profound problems as it gained entry into the market. During the initial stages, the organization thrived with utmost resilience since it had ventured into a business that had no precedent (Fundeanu & Badele, 2014). No one knew about it, and it had never been innovated before. It was a new gesture, and they encountered a difficulty influencing the market into buying their vision whose prospects advocated for much less pay on its product, but whose outlook had never been in the domain of the public before (Ayob & Freixanet, 2014). Thus, it was hard to accrue support into the business because it proved near-impossible convincing clienteles, industry players, and investors into buying their service. IGENE’s primary focus was to perform human autopsy using advanced technology with the aim of giving the deceased the dignity they deserve instead of mutilating them. Such a move had not been implemented before, and due to the low convincing power on its workability now that it had not been used anywhere in the world made a move slow to advance; hence, its growth intensity on a global spectrum became less active.
5. Referring to Porter’s Diamond Model, it is evident that Malaysia plays a significant role in pushing for market representation of small market enterprises within the country and IGENE is not excluded. The model, also known as the Theory of National Competitive Advantage of Industries is a framework that gives an outline revolving around the competitive nature of specific industries internationally (Bakan & Do?an, 2012). For an enterprise to pursue its mission on a global sphere, there should be a set of interrelated location advantages that give organizations an impetus in their tasks. These factors are intertwined in Porter’s model, and they include firm strategy, structure and rivalry, factor conditions, the idea of related and supporting industries, and demand conditions (Mahajar et al., 2014). The government of Malaysia has integrated the aspect of collaboration with the several agencies and corporations by creating a favorable environment which meets these factors thus enabling domestic companies to carry out a stream of innovations and measures of upgrading the same (Fundeanu & Badele, 2014). Therefore, Malaysia’s position in supporting IGENE is viewed on the value it has on its existing industries.
The government doesn’t create competitive industries but offers fertile grounds for companies to thrive and compete. With this in mind, IGENE has full support now that the government encourages and motivates every company to scale higher levels of competitiveness. It does this by stimulating early demand for its products through demand factors, implementing specific creation factors such as a boost in the education system with a focus on technological sciences, infrastructure, and health sector (Mahajar et al., 2014). Additionally, IGENE being a pioneer in the market has been able to maintain its stand as a pioneer in its field because the Malaysian government promotes internal rivalry by enforcing anti-trust laws whereby no other organization can engage on the same business agenda.
6. The internationalization strategies adopted by IGENE to meet their expansion into ASEAN markets are incorporated in Porter’s Diamond Model whereby an organization identifies the decisive factors that enable it to build advantages at a national level concerning foreign competitors (Sui & Baum, 2014). IGENE considers the idea of chance events to suit their expansion activities. The organization dwells on Michael Porter’s perspective of Chance which describes how innovative companies do not shy from starting up new operations. Integrating chance in their framework made IGENE adopt Digital Autopsy in Malaysia. According to Porter, any venture does not have to be profitable during the initial stages just like IGENE. Similar startups in foreign markets such as ASEAN would provide more opportunities for success.
The key competencies that would allow the company to advance in these markets include its pioneering stand in the new subsector of forensic science, a procedure which utilizes the power of imaging and visualization. Therefore, being a pioneering leader and not a market leader spices its strategic position because of its uniqueness. Another strategy worth considering is the idea of nurturing employees and building leaders now that it plans to increase the number of employees (Sui & Baum, 2014). Moreover, the ideology of treating the deceased with utmost respect through digitization via a software-based procedure, and high computing procedures without mutilating it, is a unique proposition that investors might consider buying in the future. Another aspect is its long-term agenda towards coming up with an ecosystem that would ensure bodies get digitized then data gets relayed to a pathologist for processing and results.
References
Abdul Samad, M. (2014). Islamic micro finance: tool for economic stability and social change. Humanomics, 30(3), 199-226.
Ayob, A. H., & Freixanet, J. (2014). Insights into public export promotion programs in an emerging economy: The case of Malaysian SMEs. Evaluation and program planning, 46, 38-46.
Baharuddin, D. A. H. B. (2015). Sustainable Strategies for Economic Transitions in Malaysia. In Strategies Towards the New Sustainability Paradigm (pp. 59-74). Springer, Cham.
Bakan, I., & Do?an, ?. F. (2012). Competitiveness of the industries based on the porter’s diamond model: An empirical study. International Journal of Research and Reviews in Applied Sciences, 11(3), 441-455.
Crotty, J. (2016). Capitalism, Macroeconomics and Reality. Place of publication not identified: EDWARD ELGAR Publishing.
Das, D. K. (2010). Financial globalization: Growth, integration, innovation, and crisis. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.
Feenstra, R. C., & Taylor, A. M. (2014). Globalization in an age of crisis: Multilateral economic cooperation in the twenty-first century. Chicago ; London : The University of Chicago Press
Fundeanu, D. D., & Badele, C. S. (2014). The impact of regional innovative clusters on competitiveness. Procedia-Social and Behavioral Sciences, 124, 405-414.
Goldin, I., & Mariathasan, M. (2014). The butterfly defect: How globalization creates systemic risks, and what to do about it. Princeton : Princeton University Press.
In D’Costa, A. P. (2012). Globalization and Economic Nationalism in Asia. Oxford : OXFORD University Press
Mahajar, A. J. B., Yunus, J. B. M., & Razak, A. Z. A. B. A, (2014). Awareness of the Matrade Export Assistance Programs on Malaysian SMEs.
Publishing, O. E. C. D., & Verdier, L. (2013). OECD Insights: Origins and consequences. Paris: OECD Publishing.
Spence, M., & Leipziger, D. M. (2010). Globalization and growth implications for a post-crisis world. Washington, D.C: World Bank.
Sui, S., & Baum, M. (2014). Internationalization strategy, firm resources and the survival of SMEs in the export market. Journal of International Business Studies, 45(7), 821-841.
Venugopal, R. Y. (2010). India and the global financial crisis: Managing money and finance. London: Anthem Press.
Wahid, N. A., & Furqani, H. (2013). Worldwide Development of Islamic Finance: Trends, Prospects and Challenges. Journal of Islamic Business and Management, 219(1238), 1-41.
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