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Impact of Inflation, Employment and Net Exports in SME in Malaysia<br />

Jesindraa A/P Yaacob<br />

Supervisor: Dr. Noor Haslina binti Mohammad Akhir<br />

Bachelor of Economics (Natural Resources)<br />

School of Social and Economic Development<br />

Small and Medium Businesses (SMEs) is a business entity registered with the commission<br />

of a Malaysian company (SSM). Among the key criteria of SMEs are the number of fulltime<br />

employees and the company's sales profits. Secondary data has been used from<br />

1986 to 2015 for 30 years. SME production affects the inflation rate, and it can be<br />

measured by simple linear regression and it indicates that the production of SMEs and<br />

the national inflation rate is significant. SMEs are among the major employers in Malaysia,<br />

which is 65.3 percent in 2016. Further growth of SMEs is compared with inflation, net<br />

exports and employment by using multiple linear regression and it shows significant<br />

relationships. Finally SME growth in the 10th Malaysian plan has been analyzed by looking<br />

at the first sector productivity.<br />

1495 | UMT UNDERGRADUATE RESEARCH DAY 2018

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