Impact of GDP rate on telecom industry growth, Malaysia - Celcom Company

Impact of GDP rate on telecom industry growth, Malaysia
2/5/2019
Celcom Company

Managerial Economics 1
Contents
Introduction....................................................................................................................................2
About the company.......................................................................................................................3
Malaysia GDP rate and telecom growth....................................................................................3
Impact of GDP rate on telecom industry (Celcom Company)................................................4
GDP rate affects the Consumer spending............................................................................5
GDP rate fluctuations create the impact on companies......................................................5
GDP rate affects employment.................................................................................................6
GDP rate creates an impact on stock market.......................................................................7
Companies use the GDP to predict business growth..........................................................7
GDP rate affects the infrastructure of the country...............................................................8
Conclusion......................................................................................................................................9
References...................................................................................................................................10

Managerial Economics 2
Introduction
This paper is based on understanding the concept of managerial economics that can
directly create an impact on the working of the companies present within different
industries. There are different economic factors that create an impact which include
demand and supply, GDP of the country, consumption of products, national income and
many others. The focus is done on the GDP, which is clear with the topic that helps in
understanding the Impact of GDP rate on telecom industry growth majorly for the
Celcom Company present in Malaysia. This has been found that GDP is considered as
the comprehensive quantitative amount of the nation’s entire financial activity. The
concept of the GDP reflects the financial value of goods and services which is
manufactured within the national boundaries of the company. Every country maintains
their GDP rate, which can create an impact on the operations of the companies. This
has been explained with the help of Celcom Company that is considered as an
example.
In addition, the data for the paper has been collected with the use of the qualitative
approach as a secondary data method. In which the data and information have been
collected with the effective use of books, journal, company’s website, government
website and many other websites.

Managerial Economics 3
About the company
Celcom Axiata Berhad, DBA Celcom is considered as one of the oldest mobile
telecommunication providers in the market of Malaysia. The company is a member of
the Axiata group of the companies. The company began with the operations as the STM
cellular communications in the year 1988 with the fleet group and Telekom Malaysia as
the shareholders. Currently, the company is considered as one of the premier mobile
telecommunications company and it offers the post-paid mobile and the digital services
with the motive to close it to the 11 million subscribers. The company has the widest
network in Malaysia with the population coverage of approx. 95% majorly for the 2G,
90% for the 3G and for 4G/LTE networks. Malaysia country is putting efforts to become
the high-income nation by the year 2020 (Axiata, 2018). In the year 2016, the country’s
economy expanded by 4.2% which is mainly driven by the demand and government
which led to the improvement in the projects that are present under the National
transformation program.
Malaysia GDP rate and telecom growth
The economy of Malaysia has expanded by 4.4% year-on-year in the 3rd quarter of the
year 2018 that is subsequent a 4.5% increase in the preceding three-month duration
and lowers than the market consensus of approx. 4.6% (Trading Economics, 2018).
This has been found that presently the GDP rate in Malaysia is 5.9% (Ying, 2018). This
helps GDP rate of the country helps in understanding the impact on the company which
can be positive and negative. Telecommunication revenue in Malaysia was reported at
approx. 4.59% in the year 2014 as per the World Bank Collection of the growth pointers
that are accumulated from known sources (Trading Economics, 2018). This has been
found that the rise in the GDP rate will lead to the increase in the companies involved in
the telecom industry which majorly focuses on Celcom Company.
In the Malaysian market, this has been found that telecommunication companies
provide basic facilities and features that support people to express with one another and
to make use of the different types of content. This has been found that Malaysia