Reflective Task Subsidies have played a significant role in shaping Malaysia’s economic landscape: economics Assignment, UNMC, Malaysia


University of Nottingham Malaysia Campus (UNMC)

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Reflective Task

Subsidies have played a significant role in shaping Malaysia’s economic landscape, serving as a cornerstone of the country’s development policies for several decades. These financial incentives and support mechanisms, provided by the government, have been employed to promote various objectives, ranging from poverty alleviation and social welfare to industrial growth and economic stability. The use of subsidies in Malaysia has evolved over time, reflecting changing economic priorities and global dynamics. According to the Ministry of Finance, the total amount of subsidies was RM80 billion in 2022. In the 100th People’s Financial Report, the government has provided various consumption subsidies consisting of petrol, diesel, liquefied petroleum gas (LPG), cooking oil, flour, and electricity.

Required: Critically evaluate FIVE (5) advantages of subsidies in Malaysia. Critically evaluate FIVE (5) disadvantages of subsidies in Malaysia. Discuss the challenges and opportunities that Malaysia faces in reforming its subsidy programs to align with international trade norms and promote a more competitive and export-oriented economy.

Reflective Task Requirement 1. Prepare between 3 to 5 pages (double spaced) or 750 to 1250 words (exclude the cover and reference pages) document of your responses and findings based on the given question below

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