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As Malaysia's gross income and spending was recorded a continuous growth from the year of 2010 to 2015,  people spends more eventually.

However, income inequality is a crucial problem in Malaysia. Many of the lower social classes, they only spend their money on basic necessities. This has clearly draw a line in the difference of the spending patterns between the rich and the poor.

Good news is that the Malaysian middle class is expected to keep growing in the future. Most importantly, it will very much benefit the Hotels, Leisure and Recreation industry.

And the bad part would be the overall economic in Malaysia will achieve a slower growth over 2016 till 2030. The country's consumer market might grow in a slower rate as well.

Also, statistics shows that Malaysian who aged between 30 and 34 years old has the highest average income in 2015. Moreover, Peninsular Malaysia is the most dominant consumer market.

However, things might change a little bit now. It was identified that the rural populations are slowly stepping out to get urbanized. They are experiencing rising income and enthusiasm in spending. This totally creates an opportunity for the business develops and investor, in this case it would be the Hotels, Leisure and Recreation industry to spread their marketing across these rural areas. But, first of all, the lacking of internet and mobile phone usage should be fixed.

In these modern days, we should not ever look down on the female populations anymore. They are experiencing rapid improvements in terms of education, incomes, social class and etc. Therefore, it is a higher chance for the female populations to opt for a higher class of relaxation. Then, Hotels, Leisure and Recreation suppliers can offers the best and most luxurious package for them. It is definitely a win-win situation as both parties receives their benefits. Therefore, Marketing can be done focusing on the female populations nowadays.

Resources from
1.http://www.portal.euromonitor.com.ezproxy.taylors.edu.my/portal/analysis/tab
2.http://www.portal.euromonitor.com.ezproxy.taylors.edu.my/portal/analysis/tab
3.http://www.portal.euromonitor.com.ezproxy.taylors.edu.my/portal/analysis/tab

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Numerous Malaysian purchasers were hit by what they considered a triple blow in 2015: a drowsy national economy; the execution of the 6% Goods and Services Tax (GST) in April; and a debilitating cash. The mix pushed up expansion rates, particularly in the second 50% of 2015, constraining numerous family unit to fix their belts keeping in mind the end goal to adapt to the expanding average cost for basic items. Numerous purchasers have started checking their spending and cutting optional spending (counting spending on siestas, eating out and stimulation), and numerous others have committed their opportunity to discovering deals to expand their family unit spending.

Because of fears about the blend of expanding family unit obligation and the critical ascent in property costs, the national bank has acquainted measures with cool the property market by fixing credit prerequisites. This, thusly, has decreased the quantity of home loan advances accessible to shoppers. Some of these measures, including the most extreme credit residency of 35 years for home loans and the evacuation of the Developer Interest Bearing Scheme—which saw the enthusiasm on home loans of homes under development borne by the engineer—have made homes unreasonably expensive for some and pushed numerous planned home purchasers, especially first-time purchasers, out of the business sector. As indicated by examination led by the Khazanah Research Institute in 2015, normal house costs in Malaysia are presently more than four times the middle yearly family unit pay. In urban Kuala Lumpur and Penang house costs are 5.2 to 5.5 times the middle yearly family unit wage, making purchasing a home "seriously exorbitant".

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for elections next year, before the opposition unifies and to ride on the patriotic mood during the 60th Merdeka anniversary.

One factor that could tilt the balance for a snap poll is the fractured opposition, which lost this year in two by-elections and in the Sarawak state elections.

But some analysts say weakening growth and the spotlight of global probes into billions allegedly embezzled from state investment company 1Malaysia Development Bhd are reasons for Najib to delay.

“Ideally, they would want to hold elections when people feel they are materially better off,” Sholto Byrnes, a senior fellow at the Institute of Strategic and International Studies Malaysia, was quoted as saying.

“Having it at a time when oil and commodity prices are so low, when there’s been a lot of fluctuation in the ringgit, negative talk about the economy — I would feel from those points of view, it’s a riskier time to hold elections sooner.”

Ooi Kee Beng, the deputy director of the ISEAS-Yusof Ishak Institute in Singapore, was quoted as saying: “Given how pressurised Najib is by events and by the scandals surrounding him, the need to strategise instead of wait is great. It should not surprise anyone that elections are called sometime next year.”

The BN may also want to tap the mood of patriotism as Malaysia commemorates its 60th year of independence next year. In Singapore, Bloomberg said, the ruling party retained power with a bigger majority in 2015 amid massive festivities for its 50th anniversary.

For the last election in May 2013, Najib waited until the last minute to dissolve parliament, after two years of hints, Bloomberg noted.

As he vacillated, the opposition grew stronger, giving the BN its worst result in more than five decades in power, including its first-ever loss of the popular vote.

The tables, said the report, had since turned. Infighting and policy differences have torn the opposition alliance apart, while the BN secured bigger wins in the Sarawak state polls in May and two by-elections in June.

And this happened while Najib was battling graft allegations and efforts by former prime minister Dr Mahathir Mohamad to remove him.

The report noted that there were tentative signs the opposition was attempting to unify, and that Najib might not want to wait for them to try.

Najib’s office didn’t reply to a request for comments on the possibility of an early vote, while an Umno spokesman wouldn’t elaborate on the speculation, Bloomberg said.

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Natural Growth in Malaysia has been slowing down since the 1980's and this will continue in 2012-2030 due to a fall in (natural) change after 2016 and lower rates of net migration than experienced in the previous three decades.
Environment Business -

Environment of the firms/company or organisation can be classified into two broad categories: Internal Environment• External Environment Component of Business Environment has variety of factors that can affect company's business.

-Such factors can be national
level,regional level, and international level environmental forces)

- These factors are also known as societal factors or macro level business environment factors. In general, five forces are taken as the general environmental factors namely economic, socio-cultural, political-legal,technological, and international.

Some writers included natural environment as a distinct component but the growing social awareness on natural environment shows that this component can be included into the socio-cultural environment.
CHARACTERISTICS OF BUSINESS ENVIRONMENT
- Business environment characteristics will be indicated that major challenges, opportunities,threat and weakness of the business.

-Characteristics of Business Environment is Complex Business environment principally consists of a number of factors, events conditions.

These are influenced to different departmental source in the organisation. These conditions do not exist in isolation and create entirely new set of influences which interact with each other.This is difficult to influence to organisation.

- All these factors have to be considered as environment analysis is complex and rigid and totally very difficult to grasp by the functional manager and top level employees in the organisation.

-Environment is Dynamic Business and company environment is constantly changing in different nature. Micro and macro environment factors are influenced to business.

- Dynamic environment is flexible and dynamic nature in company. This is causing due to change, strategic manager can shape strategy and formulate short term and long term objectives.

Environment is Multi–faces Strategic observer can shape and observe different characteristics of environment.

- These things are frequently seen when the development happens. All are happy to welcome it and think as an opportunity for the company, even also as threat to company.
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Travel in Malaysia

Industry Overview | 13 Oct 2015

Airline disasters impact travel in Malaysia in 2014

-In 2014, Malaysia was haunted by several major air disasters.

- In March 2014, the Beijing-bound flight MH370 went missing less than an hour after departure
- In July 2014, a Malaysia Airlines-operated plane MH17 bound for Kuala Lumpur from Amsterdam was shot down over Ukraine airspace by a missile.

At the end of the year, Air Asia flight QZ8501 crashed into the Java Sea during bad weather.

All these major airline disasters affected consumer confidence in airline safety and the performance of the different categories in travel in 2014, with airlines being affected significantly by demonstrating only 4% value growth.

-

Malaysia Airlines continued to lead airlines with an overall value share of 30%, down from 32% in 2013.

Devastating airline disasters involving two planes operated by Malaysia Airlines had a negative impact on sales performance in 2014. -Consumers were showing a strong switch to other international airlines due to safety concerns.

Although the company made a huge effort in advertising and conducting sales activities, consumers were still unsure about choosing the airline and turned to other international airlines.

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Digital Media

- 67 % of Malaysians are using internet.
- More people are using mobile devices and social media.
- The mobile entertainment segment is the primary contributor of revenues growth.  - There is also a growing demand for digital media/e-commerce.

Broadband IT

- Malaysia strives to promote itself as an IT hub in the Asia-Pacific region.
- Demand for broadband is increasing due to mobile technology.
- Mobile broadband is popular due to the usage of smart phones.

- In its efforts to become an industrialised nation by year 2020 and realising the importance of broadband, the government has devised a national broadband plan and invested in wireless networks to increase broadband access.

- This strategy will help to achieve the target as it will use a mixture of fixed, mobile and satellite technologies. This will lead to a large demand for telecommunication products and solutions including cloud computing.

Cloud Computing and Data Centres

- It is an important part of most organisations.
- IT strategy is one of the government’s top 10 strategic technology priorities in the government’s Economic Transformation Programme.

- Malaysia  is providing a base for cloud computing growth and IT security solutions.

- According to Frost & Sullivan (2015) 33% of organisations consider cloud computing as their top priority and one-third of organisations in Malaysia are using some form of cloud computing.

- The adoption of cloud computing offers multiple potential benefits.

- Tthere are also drawbacks regarding bandwidth consumption, lack of maturity of cloud environments, latency, data security and privacy guarantees from service providers.

Financial IT

- Bank Negara Malaysia (BNM), the country’s central bank, is responsible for promoting monetary stability and smooth operations of national payment and settlement systems.

- The introduction of the Tun Razak Exchange, formerly known as the Kuala Lumpur International Financial District, will house major international banks and financial services firms which is expected to draw local software investments that support the growth of industry-specific applications such as banking and customer services solutions.

Health IT

- Healthcare expenditure in Malaysia is increasing rapidly.

- The scale and scope of e-health in Malaysia shows potential in Internet-based health services. e-Health in Malaysia covers all forms of electronic health care delivered over the Internet.

- The Malaysian government has committed funding to enable telemedicine and healthcare IT adoption feasible for the rapidly growing healthcare sector.

IT Services

- Malaysia’s IT services spending is forecasted to grow 9.5 per cent over 2016-2020 and reach A$3.3 billion by 2020 (Business Monitor International 2016).

- The Malaysia IT market is one of the most developed markets in the Southeast Asian region.

- Malaysia is generally viewed in a positive light for its competitive position, which has attracted several reputable multinational corporations and service providers.

- IT can account for as much as 70% of company IT budgets, according to Business Monitor International (2016).

- Strong domestic demand for outsourcing services and intense competition from India and China, the government has been supportive in developing Malaysia into a competitive location through various incentive programs aimed at upskilling the local workforce to create a ready IT services talent pool.

- World-class companies such as DHL, HSBC, IBM, Intel, Motorola, Nokia, Shell, Unisys and others have set up their base of regional and global operations in Malaysia.                                                                                                                                      High internet penetration rate stimulates online travel

- The internet penetration rate in Malaysia exceeded 60% of the overall population in 2014, with the broadband penetration rate reaching 67%.

- This has enabled travellers to reach out to consumers easily through the internet.

- Online travel is becoming an important trend spanning across categories like airlines, lodging and intermediaries.

- Airasia, Agoda.com and Expedia.com also have a high percentage of online sales in 2014.

- Car rental is following the trend also.

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Malaysia population will reach 36.8 million in 2030. It will still remain higher than most of the countries in Asia Pacific.
The large and growing number of elderly will pose challenges for governments while providing huge opportunities for businesses targeting this market segment. Net migration has been positive since 1979, in 2000-2014 it accounted for over a quarter of population growth. It will be lower in 2015-2030, accounting for just 11.0% of population growth, as a result of reduced dependency on low skilled foreign workers due to a shift from labour intensive to knowledge and innovation based economic activities.

The markets are becoming more diverse as most immigrants in Malaysia in 2013 came from other Asian countries, and therefore English is used widely in business. Malaysia is significantly more urbanised than the Asia Pacific region as a whole. 54.9% of the Asia Pacific population will live in an urban area in 2030, up from 46.1% in 2015. 74.7 % of the population in Malaysia lives in the urban area and most of the population were located in the Peninsular Malaysia.

The Peninsular Malaysia will probably seen as a great target market for the business industry because of the strategic geographical location and because the population in peninsular malaysia is larger than the east malaysia. Therefore it will be an great opportunity for the business industry to develop their business.