In the past, measuring economic growth was relatively simple. Economic growth referred to an increase in the amount of goods and services produced per head of the population over a period of time. However, as society progressed new challenges emerged which required a rethink of what economic growth actually is.
In today’s competitive and dynamic environment, the services sector has become one of the key drivers of global economic development. The services sector or third sector of the economy does not produce goods but provides services to users. In the Malaysian GDP, the services sector has been divided into five main sub-sectors.
Equality simply means that there should be no glaring differences in living standards, quality of life, or the well-being of the people. In ensuring inclusive growth for Perak, the benefits of economic growth must be felt by the masses and distributed equitably. This will improve the quality of life for the majority of the people, and is necessary to promote social justice and cohesion, particularly in a multiracial society such as Perak.
Malaysia has transformed itself over the decades from raw materials producing country to a leading exporter of electrical appliances, electronic parts and components, processed palm oil and natural gas, among others. Currently, manufacturing remains as the second largest contributor to the nation’s GDP.
The B40 is not unique to Malaysia alone, it is a global phenomenon and as such that, in 2014 the World Bank created a Shared Prosperity Indicator (SPI) to measure their income growth in each country. The B40 households refer to the group of people with the lowest 40 percent income calculated based on the income distribution of monthly average income.
Malaysia has had a good growth track record in term of GDP, moving to RM787,611 million in 2013 from RM543,578 million in 2005. Stating an increase of 44.5% growth.
In 2015 Malaysia received 25.7 million tourist which generated RM 69.1 Billion. However, this rapid growth has brought about the deterioration of the ecosystem, particularly with pollution arising from inadequate waste management. This has marred public perception of the industry. If this environmental degradation is not addressed, repeat visits are likely to decline.
Mangroves play a key role in protection from strong winds and waves, soil stabilization and erosion protection, flood mitigation, and preventing contamination of nearshore waters. Thus, it acts as first line of defense in protecting shorelines and riverbanks against erosion which can have costly impact in restoration.
Perak is well endowed with large tracks of forest supporting diverse flora and fauna. These forests are distributed from the sea to the mountains, with mangroves along the coastal zone. The Perak forests are diverse, supporting many families of tropical hardwood trees, especially Dipterocarps, which grow to exceptional sizes over hundreds of years.
The availability of man-power within the State; and, the diversity and capacity of that manpower are crucial components in ensuring continued and accelerated economic growth in Perak. A major challenge for Perak appears to be recruiting and retaining talent within the state, and this is linked to trends of population ‘out-migration’.
For the last five decades Perak’s population towards Malaysian totality has been shrinking, from 15% in 1970 to 8.1% in 2014. Now, it only covers 2.4 million people of the national population distribution of 30.26 million.
Tourism is one of the main sectors that contribute growth to the State of Perak, providing employment, attracting investments and creating demands. Tourism economic industry has the potential to not only be one of the key development sector, but and also a way to alleviate poverty and ensure inclusive growth.