UTS Ucs3122 Project Group

Today we are going to discuss Gross National Product (GNP) of Malaysia. GNP is the total of all value added by resident producers, any product taxes (minus subsidies) that are not taken into account in valuing output, and net receipts of primary income (employee remuneration and property income from abroad). GNP was replaced by the new term "Gross National Income," or GNI, in the 1993 System of National Accounts. Both show a nation's internal productivity in addition to its net revenue from its residents' enterprises or labour overseas.

For comparisons between economies, GNI is typically converted from national currency to U.S. dollars at official exchange rates, though an alternative rate may be used if it is determined that the official exchange rate differs from the rate actually used in international transactions by an exceptionally large margin. The World Bank employs a unique Atlas technique of conversion to tame pricing and exchange rate swings. Besides that, GNP is interrelated with the economy where it rises and falls will affect the living standard.

GNP of Malaysia has generally increased although it drops in 2020. Here is the changes in GNP with percentage in recent years:
- Malaysia's GNP increased by 4.72% from 2020 to RM 358.37 billion in 2021.
- Malaysia's GNP decreased by 4.85% from 2019 to RM 342.21 billion in 2020.
- Malaysia's GNP for 2019 increased by 7.1% from 2018 to RM 359.66 billion.

GNP is similar to Gross Domestic Product (GDP) where they are the most often used indicators of an economy’s productivity. Both gauge the magnitude of an economy's activity. However, they are different in the way of measuring the range of the economy. The fundamental distinction between the two is that whereas GNP tracks all economic activity carried out by firms and residents of a nation, regardless of location, GDP measures productivity inside a nation's borders. Despite the fact that GDP is more frequently used, their figures are usually comparable.

Credit:
MacroTrends
(https://www.macrotrends.net/countries/MYS/malaysia/gnp-gross-national-product)

Shobhit Seth
(https://www.investopedia.com/ask/answers/030415/what-functional-difference-between-gdp-and-gnp.asp)