International University Of Malaya-Wales
Centre Of Foundation, Language & Malaysian Studies
Foundation In Arts
Introduction To International Integration
FSS015
Semester : Sept 2022
The Study On The Impact Of International Integration
Lecturer’s Name :
Miss Nurhasmira Binti Azmi
Group Members:
No.
Name
Student Id
1.
Yap Sun Ming
20190750
2.
Wan Nursyafiqah Binti Noor Hisham
20190815
3.
Daniel Hans Edwin
22010007
4.
Harissa Nazrein Binti Hairul Nazim
20200150
5.
Siti Umairah Binti Shahrul Anuar
20200130
TABLE OF CONTENTS
1. Introduction
1
2. Background Country & Issue
1
3. Analysis On Positive Impact Of International Integration
3
3.1. Impact on economic
3
3.2. Impact on social
4
3.3. Impact on human
4
3.4. Impact on cultural
5
3.5. Impact on environmental
6
4. Analysis On Negative Impact Of International Integration
8
4.1. Impact on economic
8
4.2. Impact on social
9
4.3. Impact on human
10
4.4. Impact on cultural
11
4.5. Impact on environmental
12
5. Conclusion
13
6. Recommendation
14
Reference
16
1.
Introduction
International integration is a way for countries to work together. It usually involves
lowering or getting rid of trade restrictions and coordinating economic and political
policies. The goal of international integration is to increase trade between the
countries involved and lower costs for both producers and consumers. The
expansion of international trade, the expansion of international finance, the creation
of multinational businesses, and the increase in the worldwide movement of people
are the four key elements that lead to global economic integration. Objectively
speaking, global economic integration has never stopped happening in our world,
even though there is still debate regarding its benefits and drawbacks. The main
topic to be discussed is how international integration has affected nations nearby and
even the entire world.
In this particular assignment, we are required to prepare a summary report on the
impact of international integration on society by using academic articles from
international journal publications.
2.
Background Country & Issue
Since 1970, Malaysia’s economy has been developed from primarily agriculture and
commodity based, such as palm oil, tin and rubber, to one of the most diversified,
strongest, fastest developed in Southeast Asia. In Malaysia, primary production such
as producing and exporting rubber, palm oil, natural gas and small amounts of
petroleum, are the major economic sectors in the country. Moreover, Malaysia is one
of the most open economies with an average GDP ratio over 130% worldwide since
2010. Furthermore, the country has about 40% of jobs linked to export activities,
where the openness to investment and trade has been increasing the income growth
and employment creation. Since 2010, Malaysia has achieved an average growth of
1
5.4% of GDP, and it is expected that Malaysia could have the transition from an
upper middle-income economy country to high-income economy country in 5 years
time.
In Malaysia, the income inequality rate among the population is above average as
compared to other East Asian countries. Subsequently, the absolute gap between the
high income group and the low income group has increased, which shows the poor
citizens are being left behind in the economy. However, the Government of Malaysia
has been trying to provide support to the poor with the result of removal of
broad-based subsidies, and support them with cash transfers.
In 2020, the pandemic of COVID-19 has caused a major impact on Malaysia’s
economy, especially on vulnerable households. The Government of Malaysia (GOM)
revised that 5.6% of Malaysia citizens are living in absolute poverty, meanwhile GOM
is trying to tackle the well-being of the poorest 40% of the population (B40). In
addition, the pandemic of COVID-19 has caused the increases of cost of living and
mounting financial obligation as the export and import taxes, and the price of raw
material has increased, which increased the vulnerability of the low-income group in
Malaysia.
According to the World Bank’s Human Capital Index, Malaysia is ranked 55th out of
157 countries in this world. As a result, the GOM will need to improve and advance
the health care, nutrition, education system, social protection, and social welfare to
create more chances to achieve the developed and high-income country status.
Furthermore, the GOM will need to enhance the quality of schooling, plan the
nutritional intervention, support and provide reasonable social welfare for household
investments in Malaysia.
2
3.
Analysis On Positive Impact Of International Integration
3.1.
Impact on economic
These days, economic expansion is a very significant factor in deciding the future
course of a nation's development. This is due to the fact that growth and
development are two different notions, but they are inextricably linked with one
another. It is possible for a country to develop without experiencing growth, yet
growth is necessary for a country to experience development. As a result,
international integration plays a significant role in the expansion and development of
the economy.
Exportation is something that is encouraged in Malaysia thanks to its many
worldwide connections. It has had a positive impact on the economy in three distinct
ways. To begin, it is a source of exchange rates, which helps to boost the overall
balance of payments. Second, it serves as a driver of the creation of new jobs, and
third, it enables the state to take advantage of economies of scale while
simultaneously boosting the rate of technical development in the manufacturing
sector.
In the course of its history, Malaysia has been successful in luring around ten percent
of the total foreign direct investment (FDI) slated for Southeast Asia, with Indonesia
and Singapore taking the most amount. These days, the competition for investors is
getting fiercer as more and more countries, such as the Philippines, Vietnam,
Thailand, and most recently, Myanmar, are offering appealing high-return investment
opportunities. The considerable expenditures that Malaysia has made in its
infrastructure, government services, and a more sophisticated corporate climate that
is more in line with international norms have allowed the country to compete
successfully on a risk-reward basis.
For instance, Malaysia is the second main producer of palm oil in the world, after
Indonesia. It has supplied international markets such as China and India. The
Malaysian government has encouraged people in the rural areas of the Felda
Holdings settlement to participate in the palm oil plantations, such as Chini, Pahang,
Malaysia.
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3.2.
Impact on social
Integration into society means making a society that works for everyone. It is the
process of building the ideals, partnerships, and organizations that are needed to
create a more fair and inclusive society, where everyone, no matter their race,
language, or religion, can fully exercise their rights and responsibilities on the same
level as everyone else and contribute to society.
Malaysia has a diverse social structure. The native Malays, as well as a large
population of Chinese and Indians, are the main ethnic groups. The majority of
Malaysians are Muslims, followed by Christians, Buddhists, and Hindus. Despite the
fact that there are divides, public congruity is a remarkable feature of the country.
Malaysia is ethnically diverse and has a vibrant social life.
​Malaysia's multicultural ethos is reflected in its three most prominent cooking styles,
which are Chinese, Indian, and Malay. Not only that, but Malaysians share traditions,
holidays, and festivities regardless of religious beliefs or ethnicity. For example,
anytime one of the races celebrates their festivals or celebrations, they will invite
each other to a social event, commonly referred to as a "open house," where they will
exchange food and traditions. The blending of people and cultures from all across the
country allows for the exchange of ideas and ways of life, resulting in dynamic
cultural variety.
When it comes to rural areas, the positive impact of international integrations stems
from the people that are government funded and supported. Using palm oil
production as another example, the rural areas that are in the palm oil plantation
settlement have advanced since the business and production started. Infrastructure
of the society in rural areas has better access to infrastructure such roads and
highways, as well as amenities like schools, hospitals and the Internet.
3.3.
Impact on human
When it comes to economic equality and social sustainability, rural communities,
especially those with little economic opportunity, confront significant obstacles. The
complexity of the problems involved makes it impossible to ignore. The communities
that make up a country's rural areas contribute significantly to the nation's political
and economic stability. The majority of individuals in nations with new and developing
economies, like Malaysia, live in rural areas. This is a human issue since they are
typically poorer and more disadvantaged than their metropolitan counterparts.
4
However, international integration permits rural integration to progress farther. It has
contributed to a more effective allocation of resources by boosting competition and
expanding the internal market's capacity, hence having a good effect on rural
populations. This is anticipated to result in accelerated economic expansion and,
subsequently, a rise in per capita income.
For example, oil palm smallholders in Malaysia are frequently family-owned and
dependent plantations. Oil palm is a main source of cash income for many people,
but other crops are often grown alongside it to make sure there is enough food. In
both east and west Malaysia, many smallholders are native people who may or may
not have land titles, but have lived in and used the area for generations.
Many smallholders switched from cash crops, which had previously served as the
family's primary source of nourishment, to oil palm. This is especially true for rural
and indigenous people in distant locations who require cash revenues. Consequently,
as a result of international integration, firms such as FELDA initiated social and
humanitarian initiatives to relocate and alleviate poverty via oil palm. It has proven to
be one of the most effective government-led projects to organise and assist
smallholder farmers. Parents who were formerly farmers are now able to earn
enough money to provide their second-generation children with a better education
and lifestyle, allowing them to become doctors and engineers.
3.4.
Impact on cultural
One of the most prosperous nations in Southeast Asia is Malaysia. Malaysian society
is complex and diverse. It has many different races, religions, languages, and
cultures, but unlike other Southeast Asian countries, there has been no sign of
cultural integration in the past few years. In Malaysia, people of all different races
have lived together peacefully for a long time while keeping and improving their own
traditions, religions, educational systems, and cultures. All of them, meanwhile,
struggle to maintain their traditions in the face of modernization. Malaysia's food,
lifestyle, fashion culture, and other aspects are all affected by foreign integration. For
instance, McDonald's, KFC, pizza, and spaghetti are available everywhere, not just in
Malaysia. In Malaysia, a wide variety of foods from other nations are readily
available. The way that people eat evolves along with the meals. For instance,
whereas Indians and Malays often eat with their hands, globalization has led to the
majority of Malaysians using spoons.
5
An integrated rural area is one where a town has all the necessary resources to
satisfy the requirements of its citizens on a daily basis by offering a range of essential
goods and services. This is essentially a small town's function. The town's offerings
of products and services are adequate to suit the requirements of the local and
surrounding families. Most of the goods and services people need may be obtained
without their having to travel elsewhere. Residents of the town typically obtain their
most recent information on a variety of topics, including the cost of food, health
conditions, and market-available consumer goods, straight from mass media, mainly
newspapers, radio, and television. This is no longer significant because most houses
now have a radio, television, or newspaper subscription. The same can be said about
personal computers with internet access and mobile phones, both of which are
examples of contemporary communication technology. These have increased
household awareness of new knowledge, concepts, and cutting-edge technology.
Information, innovative concepts, and innovations may be quickly accessible via
these modern communication tools.
3.5.
Impact on environmental
The battle against global warming and the preservation of the environment both
heavily rely on international trade. The WTO claims that trade policies are effective
instruments for boosting resource efficiency, accelerating investments in clean,
resilient infrastructure, and promoting climate-friendly innovation. The WTO reports
that in many markets, concentrated solar and wind power are now the least
expensive sources of electricity. For the past seven years, new capacity for
renewable energy has increased faster than new capacity for fossil fuels. In 2019,
nearly 75 percent of the world's new electricity capacity was generated by renewable
sources.
By encouraging economic growth, social welfare, and population growth, increasing
commerce can help us become better at taking care of the environment. More
crucially, free markets can facilitate access to cutting-edge innovations that increase
the effectiveness of regional production processes by reducing the use of resources
like energy, water, and other hazardous inputs to the environment. In a similar way,
trade and investment liberalization might make businesses more likely to follow
stricter rules for the environment. As a country becomes more connected to the rest
of the world's economy, the top importers put more environmental demands on that
country's export industry. The supply chain is then changed by the changes that are
6
needed to meet these standards. This encourages the use of industrial tools and
methods that are better for the environment.
Resources for renewable energy (RE) are abundant in Malaysia. Rural regions
without access to electrical grids can greatly benefit from the electrification and
sustainable exploitation of these resources through hybrid systems. The integration
of hybrid renewable energy generation in isolated and rural locations satisfies the
necessary power demand and reduces emissions. RE projects, R&D efforts,
technology, energy laws, and plans for the future have all helped the growth of RE
technologies in this country. Rural regions may be efficiently electrified using solar,
wind, hydro, biomass, and a combination of these energy sources. This is how
Malaysia's environmental situation has been impacted by international integration.
(Hossain et al., 2014)
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4.
Analysis On Negative Impact Of International Integration
4.1.
Impact on economic
According to conventional economic theory, global financial integration will increase
everyone's well-being. The international financial markets act as a middleman
between countries that lend money and countries that want to borrow money.
Borrowing, which would ultimately increase productivity and strengthen a nation's
economy, is a vital way for a country to fund the growth of its economy. However, the
rise in public debt may also have implications for the nation, and a high debt level
might have a damaging effect on the acceleration of economic growth. If a
government manages its debt well, it will benefit the populace by raising living
standards. Debt, however, turns into a problem when a government borrows so much
money that there is doubt about its capability to pay it back.
A nation could end up on the negative side of national debt through borrowing. For
example, interest rates go up when corporate bonds and government bonds compete
for investors. Whether the public or private sector should obtain more funds, it would
only result in one party receiving less capital from investors than the other. But as
history has shown, significant borrowing could lead to weaknesses. If a country's
debt-to-GDP ratio exceeds a given threshold, it is more likely to have a severe
financial crisis (Reinhart and Rogoff, 2009). As debt levels rise, it becomes more and
more important for borrowers to be able to pay back their loans.
This has an impact on economic growth, particularly in impoverished rural areas.
High levels of foreign debt might make it difficult for nations to invest in their
infrastructure, health care, or educational systems as their meager tax revenues are
diverted to paying off their debts. Long-term economic growth is impeded by this. A
debt crisis can also be brought on by poor debt management along with shocks like a
fall in commodity prices or a significant downturn in the economy. Foreign debt is
often made worse by the fact that it is usually written in the currency of the lender
instead of the borrower. That means it will be more difficult to pay off those loans if
the currency of the borrowing nation declines.
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4.2.
Impact on social
While there is little doubt that globalisation has significantly improved living
standards, increased food safety, and reduced poverty levels in many nations, one
unforeseen effect of globalisation is an increase in the consumption of foods and
beverages that are high in calories but low in nutrients. These changes are mostly
caused by macroeconomic variables including rising urbanisation, expanding
economies, and trade liberalisation on a global scale. Together with less physical
activity, these factors are making the number of obese people around the world grow
(Fuster et al., 2010).
There are several effects of the rise in obesity in metropolitan areas, including
changes in the living environment, the range of dietary options, and lifestyles brought
on by technological advancement and automation. The quality of nutrition and energy
intake are generally directly impacted by these changes. Significant urbanisation has
also resulted in a decrease in the amount of farmland available, along with an
increase in agricultural production efficiency, which encourages the migration of rural
surplus labour to the city for work (Wang et al., 2006). By lowering the local supply of
agricultural goods and the energy use of employees, these changes may have an
impact on the availability of food.
The shift to a more automated, technology-driven economy and lifestyles causes
people to lead more sedentary lives and use less energy. Obesity is likely to become
more common as people's calorie consumption rises while their energy consumption
falls. Low energy consumption decreases the need for energy, which causes surplus
energy to progressively build up to the point where it is impossible to return to the
former level of metabolism without consistent and intense activity (Popkin, 2010).
The use of processed foods and the use of pesticides in crop planting to shorten the
length of growth and boost profits are both products of globalisation. Animals like
cows are fed hormones to boost their milk production or weight in order to maximize
the productivity of those sold to the meat industry. Chronic illnesses are becoming
more prevalent as a result of increased dietary chemical consumption. There is a
significant death rate. In addition, life expectancy is declining in underdeveloped
nations.
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4.3.
Impact on human
International Integration, despite helping developing and introducing Malaysians to a
better lifestyle, does bring the negative impact of lifestyle disease for the human.
The goal of integration is to cooperate with different countries to go towards
globalizations. Globalisation has expanded the use of processed foods and
pesticides in agricultural farming to reduce crop growth and improve profit. Animals
such as cows are offered medications that encourage them to produce a lot of milk or
gain weight for those sold for meat in order to benefit from commerce. Chronic
diseases are becoming more common as a result of increased chemical ingestion
from food.
These diseases result in humans being affected by food poisoning,
abnormal growth hormones, introduction of different gender hormones to the
opposite gender and many more. In Malaysia, one of the most common lifestyle
diseases comes from consumption of chicken that has been injected with steroids to
make the chicken grow bigger. Learn from the production from American food
policies that allow injection of steroids into chicken for better growth. These policies
are adapted within Malaysian food policies as well to cope with the high demand of
massive chicken meats. The effect of the consumption of those chickens is that
humans experience abnormal hormone growth. According to Lany,
(2017).
International Integration brought in the adoption of agriculture in malaysia for chicken
to be injected with steroids which helps with the demand of big mass of meat in
chicken growth. But if consumed may cause abnormal hormone growth in humans.
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4.4.
Impact on cultural
International integration does have a negative impact towards Malaysian culture. In
fact, the whole world reported having influences both positive and negative in the
aspect of culture due to the integration that has been formed. International integration
culture is known to expose each country's culture from their own country to the other.
Which results in citizens to adapt and benefit other cultures into their own. However,
Malaysians has been reported been influence of the foreign culture extremely that
affect their own originated culture to slowly fades day by day. Malaysians are known
as an adapter which means the citizens of Malaysia could easily adapt to anything
very quickly. Eversince international integration in culture was introduced in malaysia,
the original culture in malaysia starts to slowly fade as the newer generations no
longer follows nor up to date on their own culture but instead constantly updated of
the foreign culture. According to Halim, (2007). worldwide communication, media and
entertainment, information technology, culture, and modern lifestyles have all had a
detrimental influence. The younger generation, particularly teens, must be aware that
they are now living in a competitive environment in which hegemonization and
assimilation of all aspects of life are taking place.
11
4.5.
Impact on environmental
Malaysia faces tons of environmental issues every year so the environmental
management malaysia (MIDA) adapted the international policies and management
for their environment. Malaysian consumers appeared to be highly aware of climate
change mitigation and adaptation initiatives implemented by the government.
According to a recent Malaysian poll on climate change and consumer behaviour,
most individuals have changed their purchasing habits due to concerns about climate
change. Malaysian consumers' responses to climate change included modifications
to their water consumption and adopting the practice of recycling. These adaptation
of policies due to international integration in environment management is what
causes the changes in behaviour of citizens to happen. Malaysia adapted the
management learned from the Asean organisations to implement the management of
environment to stabilise the country's natural environment issues. However due to
the adaptation of the Malaysian environment of social behaviours, the political
environment kept changing all the time which caused instability within the country.
The changes were affecting the country's trading activities as the demand and the
needs of the citizens changed overtime. According to ITA, (2022), While the
Malaysian government has made significant progress in addressing natural
environmental challenges, the economic effect of the catastrophes has made many
importers of US goods wary of adding new product lines until they see greater
long-term development. Supply chain interruptions, inflationary pressures, and
geopolitical concerns all weighed on corporate demand in general. Immediate
problems include operational limits caused by labour shortages and increased
expenses in the midst of a noticeable downturn in global economic development.
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5.
Conclusion
As a result, it is clear that international integration is a process of change in which all
nations rely on each other to bring changes to their economies. Globalisation has
brought integration in the economic, social, and political sectors among countries. In
the economic sector, agriculture typically dominates the economy in ASEAN
countries like Malaysia, especially in rural areas. As a result, it is claimed that the
agricultural sector has the potential to increase employment opportunities, expand
the economy, improve food security and production, foster social cohesion, and
maintain political stability. According to this study, some authors believe that
international integration is a good thing because it can lead to the growth of new
industries and jobs in developing countries. Some of them disagree and view
globalisation in a negative context. They think the international integration that is
happening only forces the poor countries in the world to do whatever the developed
countries tell them to do. However, international integration cannot be stopped, even
though the dispute about global economic integration continues. So, the only initiative
that can be taken is to minimise the negative effects of global economic integration,
and try to maximise its positive factors as best as possible. Then, all communities in
the countries involved can enjoy the benefits and live a better life in a prosperous
world.
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6.
Recommendation
Anyway, we would like to suggest some recommendations to improve the
performance of the rural economy in Malaysia. This is because the life of rural
communities is often equated with aspects of an undeveloped life, low levels of
education, limited community involvement in mainstream development, doubtful
development potential, and various other characteristics of backwardness. The fact
is, this shortcoming can be overcome and is able to bring better changes to the rural
economy.
One of the suggestions is that government and banking agencies should offer loans
and finance agricultural projects so that they can help rural communities face the
problem of a lack of capital to commercialise their agricultural activities. For example,
the bank can offer loan schemes such as livestock loans, fisheries loans, short-term
credit schemes for rice production, and so on. The loan programme is offered to
make it easier for farmers or small business owners to get financial and project
management consulting. Therefore, if the group targeted by the government is able
to generate income through the project, it is sure to be able to reduce poverty and
increase the economy in the agricultural sector.
Another suggestion to improve economic performance is to reorganise export goods
to improve the quality of the product. Therefore, efforts to enhance the growth of
products and the economy of a region should be primarily focused on Research and
Development (R&D). According to Nguyen et.al. (2020), R&D is not only producing
creative and innovative goods. In fact, it can also boost productivity and reduce
production costs. So, focusing on the agricultural sector through R&D is highly
encouraged in order to produce many high-quality breeds. For example, through
R&D studies, MARDI has succeeded in producing high-quality durian breeds such as
D24 and D10, which have disease resistance, fast growth and are capable of
producing quality fruit. Expansion through this method not only benefits the farmers
but also improves the economy in the long term.
Apart from the agricultural industry, the infrastructure of the tourism sector is also
important for rural economic development. Rural tourism activities should be
promoted because they can raise rural residents' quality of life while also making
long-term improvements to basic infrastructure facilities. For instance, rural residents
take advantage of this opportunity by becoming tour guides, opening village hostels
or restaurants to serve tourists. As a result, the tourism sector not only enhances the
economy but it also has a positive effect on the socioeconomic standing of the rural
14
population. In addition to not concentrating too much on a single sector of the
agricultural industry, it is crucial to include rural tourism as one of the new strategies
in the rural development plan.
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“Gynecomastia” Terutamanya Kaum Lelaki. Nu Ideaktiv Sdn Bhd. Jangan Makan
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