ISSN 2394-5125
 

Research Article 


Sectoral effect of oil price, natural gas and LNG prices on Malaysia’s services sector

Nur Surayya bt Mohd Saudi, Ariffin bin Ismail, Saizal bin Pinjaman, Hasan Al-Banna bin Mohamad, Haliza bt Zahari, Aida Nasirah Abdullah.

Abstract
This study investigates on the impact of GDP on services sector towards oil and gas prices. This
study takes account three types of energy prices, namely Brent Crude, Natural Gas and LNG, and explore the
impact of these energies on the services subsectors that was ranked as the higest contibuter for Malaysia’s Gross
Domestic Products (GDP). The study employed an econometrics time series analysis using ARDL estimates with
time series data spanning from 1987 to 2017. The empirical findings depicted a high energy intensity services
subsectors that requires high input production of oil adversely affected with oil price changes. Brent Crude price
shows a negative long-run relationship with storage and communication services subsectors while no relationship
detected on others services subsectors that is less energy intensity namely wholesale services and finance services
with natural gas and LNG prices. The study outcomes are significant for policymakers in planning budget
allocation on specific services subsectors that highly contribute to GDP. An empirical finding that absent on the
highest contributor of Malaysia’s GDP namely wholesale subsectors on the fluctuating energy prices, indicates
that this subsector is not depended on energy prices and potential in generating Malaysia’s GDP. However, a
highly affected subsectors like storage and communication services subsectors could be assisted by providing oil
subsidy and tax exemption on affected industries. This is to ensure that such external impact would not affect the
production performance, as well as to ascertain betterment in aiding policymakers and safeguarding these crucial
sectors.

Key words: oil price, natural gas price, LNG price, Gross Domestic products (GDP)


 
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How to Cite this Article
Pubmed Style

Nur Surayya bt Mohd Saudi, Ariffin bin Ismail, Saizal bin Pinjaman, Hasan Al-Banna bin Mohamad, Haliza bt Zahari, Aida Nasirah Abdullah. Sectoral effect of oil price, natural gas and LNG prices on Malaysia’s services sector. JCR. 2020; 7(17): 1039-1046. doi:10.31838/jcr.07.17.131


Web Style

Nur Surayya bt Mohd Saudi, Ariffin bin Ismail, Saizal bin Pinjaman, Hasan Al-Banna bin Mohamad, Haliza bt Zahari, Aida Nasirah Abdullah. Sectoral effect of oil price, natural gas and LNG prices on Malaysia’s services sector. http://www.jcreview.com/?mno=26071 [Access: April 18, 2021]. doi:10.31838/jcr.07.17.131


AMA (American Medical Association) Style

Nur Surayya bt Mohd Saudi, Ariffin bin Ismail, Saizal bin Pinjaman, Hasan Al-Banna bin Mohamad, Haliza bt Zahari, Aida Nasirah Abdullah. Sectoral effect of oil price, natural gas and LNG prices on Malaysia’s services sector. JCR. 2020; 7(17): 1039-1046. doi:10.31838/jcr.07.17.131



Vancouver/ICMJE Style

Nur Surayya bt Mohd Saudi, Ariffin bin Ismail, Saizal bin Pinjaman, Hasan Al-Banna bin Mohamad, Haliza bt Zahari, Aida Nasirah Abdullah. Sectoral effect of oil price, natural gas and LNG prices on Malaysia’s services sector. JCR. (2020), [cited April 18, 2021]; 7(17): 1039-1046. doi:10.31838/jcr.07.17.131



Harvard Style

Nur Surayya bt Mohd Saudi, Ariffin bin Ismail, Saizal bin Pinjaman, Hasan Al-Banna bin Mohamad, Haliza bt Zahari, Aida Nasirah Abdullah (2020) Sectoral effect of oil price, natural gas and LNG prices on Malaysia’s services sector. JCR, 7 (17), 1039-1046. doi:10.31838/jcr.07.17.131



Turabian Style

Nur Surayya bt Mohd Saudi, Ariffin bin Ismail, Saizal bin Pinjaman, Hasan Al-Banna bin Mohamad, Haliza bt Zahari, Aida Nasirah Abdullah. 2020. Sectoral effect of oil price, natural gas and LNG prices on Malaysia’s services sector. Journal of Critical Reviews, 7 (17), 1039-1046. doi:10.31838/jcr.07.17.131



Chicago Style

Nur Surayya bt Mohd Saudi, Ariffin bin Ismail, Saizal bin Pinjaman, Hasan Al-Banna bin Mohamad, Haliza bt Zahari, Aida Nasirah Abdullah. "Sectoral effect of oil price, natural gas and LNG prices on Malaysia’s services sector." Journal of Critical Reviews 7 (2020), 1039-1046. doi:10.31838/jcr.07.17.131



MLA (The Modern Language Association) Style

Nur Surayya bt Mohd Saudi, Ariffin bin Ismail, Saizal bin Pinjaman, Hasan Al-Banna bin Mohamad, Haliza bt Zahari, Aida Nasirah Abdullah. "Sectoral effect of oil price, natural gas and LNG prices on Malaysia’s services sector." Journal of Critical Reviews 7.17 (2020), 1039-1046. Print. doi:10.31838/jcr.07.17.131



APA (American Psychological Association) Style

Nur Surayya bt Mohd Saudi, Ariffin bin Ismail, Saizal bin Pinjaman, Hasan Al-Banna bin Mohamad, Haliza bt Zahari, Aida Nasirah Abdullah (2020) Sectoral effect of oil price, natural gas and LNG prices on Malaysia’s services sector. Journal of Critical Reviews, 7 (17), 1039-1046. doi:10.31838/jcr.07.17.131