One problem that they have stated is that while comparing GDP between countries, we had to convert their GDP according to exchange rates. However, it's mentioned that exchange rates do fluctuate a lot, and currency may go up (for example, 30% as mentioned in the video), this means GDP will also go up, which implies that standard of living increases? NO. So that is the problem when dealing with GDP, it's quite implausible to imagine standard of living increase in such a short amount of time.
The other problem is more obvious, where they mention exchange rates are more relevant to exchangeable goods, so this will lead to data-inaccuracy when converting GDPs according to rates, some goods maybe more affected than others.
So if you were to compare GDP for Malaysia against Singapore, Singapore has a much higher for the reasons:
1)Singapore has a much stronger and progressive currency, unlike Malaysia, whose currency has dropped quite abit these days
2) Singapore probably has better law enforcements than Malaysia, there are many unreported trades in Malaysia such as selling copied DVDs in night market, or hawker stores that are not properly licence, etc, which many Malaysians do still consume them any ways, which reflects that our GDP is not accurate.
The other problem is more obvious, where they mention exchange rates are more relevant to exchangeable goods, so this will lead to data-inaccuracy when converting GDPs according to rates, some goods maybe more affected than others.
So if you were to compare GDP for Malaysia against Singapore, Singapore has a much higher for the reasons:
1)Singapore has a much stronger and progressive currency, unlike Malaysia, whose currency has dropped quite abit these days
2) Singapore probably has better law enforcements than Malaysia, there are many unreported trades in Malaysia such as selling copied DVDs in night market, or hawker stores that are not properly licence, etc, which many Malaysians do still consume them any ways, which reflects that our GDP is not accurate.