Mnc In Banking Industry

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Malaysia and other ASEAN countries found that trade-base and open economics as the MNCs’ appealing factors. Malaysia so far kept average protection levels that involved MNC operations. GDP ratio of Malaysia achieved 50% due to differentiating production and investment structure in the country. The rate at which export volume increase is in tens and about 7% per year. When compared to a 10% of manufactured export in the year 1970, the rate at present is 25%. Other than the expansion of Malaysia’s export volume, MNCs had contributed to intrafirm trade activity. It accounts for 30% of America and Japan’s manufactured exports. With this intra trade, gross exportation exceeded import rates (Ebenstein, 2012). Least developed countries face major…show more content…
Certain segments of industry-specific such as computer and communication, there is advanced scientific applications due to the MNCs’ existence. In Malaysia, the MNCs contribution of the service sector started during the East Indies Company operation. Prominent MNCs such as Sime Darby provided huge range of service trades for many years. The current financial and banking sectors too are results of MNC’s advantages in developing nations. Malaysia’s banking sector’s growth is due to considerable contribution of MNC. At present there are over 16 MNCs operating in Malaysia with 30 more MNC banks that placed representative offices in Kuala Lumpur (Elvira & Davila, 2007). MNC banks created more than 10000 employment opportunities for the locals. With effective staff trainings that MNC offer, MNC banks outnumber local banks’ performance in productivity and asset base per each staff. MNC banks made major initiatives to create modern banking business which is an advantage of their entrance. They introduced ATM and retail banking which increased service efficiency and liquidity (Weston,…show more content…
MNC banking sector in developing countries contributed to economic change and social evolution. They have strong international network and innovative climate along with most advanced management system, both financial and accounting (Levi, 2009). Demerits of MNCs Citizens commonly perceive that MNCs in developing nations create huge employment opportunities to the population. It is perceived as an advantage because with the existence of MNC, people receive opportunity to make money without only relying to local companies. But underlying problem in this area is the labour exploitation which means employees given lesser salary, exposed to dangerous work environment with less or no protection and ripped of labour

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