GOLD DINAR: THE CAPABILITY OF STABILIZING PRICE

FLUCTUATION

Dziauddin Sharif1, Norliana Atan2

1
Center for Islamic Thought and Understanding, MARA University of Technology, Johor, Malaysia
2
MARA University of Technology graduate, Johor, Malaysia
*Authors to correspond should be addressed via email: dziau646@johor.uitm.edu.my

ABSTRACT: The word “Dinar” refers to gold coins used as a medium of exchange by Muslims
throughout the Islamic history until the fall of the Ottoman caliphate. Islamic Dinar coinage was
first issued in Damascus by Caliph Abdul Malik ibn Marwan in the year 77H. It is reported that
the prophet Muhammad (saw) had said that “A time is certainly coming over mankind in which
there will be nothing (left) which will be use save a Dinar and Dirham” (Musnad of Imam Ahmad
Ibn Hambal). The Muslim scholars Ibn Khaldun (1332-1395 C.E.) claimed that God created the
two precious metals, gold and silver to serve as the measure of all commodities. The value of the
Islamic bimetallic currency has remained surprisingly stable in relation to basic consumable
goods for decades. Unlike paper money, the gold dinar cannot be inflated due to the special
characteristic that it has. In addition, the Gold Dinar can be ideal currency to facilitate; increase
international trade and minimizing speculation in paper currency that lead to the Asian crisis in
1997. By using Gold Dinar, it can regulate naturally the market in stabilizing the price
fluctuation due to the demand and supply activities. This paper concentrated on the imports of
major and selected commodities issued from 1996 until 2005. Gold Dinar and USD was used as
independent variable while oil, utility, transportation and commodity prices will be used as
dependent variables. The analysis for the year 1996 to 2005 is based on Pearson-Product-
Moment Correlation and Descriptive Analysis. This study found that Gold Dinar has strong
correlation with oil and consumer products while USD has strong correlation with consumer
products and construction products.

Keywords: Gold Dinar, Stabilize, Price Fluctuation

INTRODUCTION

The word “Dinar” refers to gold coins used as a medium of exchange by Muslims through out the

Islamic history until the fall of the Ottoman caliphate. Islamic Dinar coinage was first issued in

Damascus by Caliph Abdul Malik ibn Marwan in the year 77H. It is reported that the prophet

Muhammad (saw) had said that “A time is certainly coming over mankind in which there will be

nothing (left) which will be use save a Dinar and Dirham” (Musnad of Imam Ahmad Ibn

Hambal). The Muslim scholars Ibn Khaldun (1332-1395 C.E.) claimed that God created the two

precious metals, gold and silver to serve as the measure of all commodities.

1
With the spread of Islam, the Dinar was minted in large quantities and gradually displaced the

bezant gold as the major international currency, circulating throughout the Muslim world and the

Christian Europe as well. After the two world wars that caused serious trade disruptions, the gold

standard collapsed and was replaced with the Bretton Woods system. In modern history, as a

consequence of currency crisis in Asia, in first of 1997, then Prime Minister of Malaysia

Mahathir bin Mohamad proposed introduction of Islamic gold dinar as currency for international

trade in the Muslim world.

It was supposed to suppress the too overly traded American dollar and ensure that dollar's

instability does not affect international trade because Islamic gold dinar was to be tied to price of

gold and thus provide stable value of the currency. Mahathir announced that Malaysia was to start

using the dinar in mid-2003, but when in 2003 Abdullah Ahmad Badawi replaced him as Prime

Minister of Malaysia, this idea was halted. On the 20 September 2006, Kelantan became the first

state to launch gold dinar coins. It features the Kelantanese state crest, the date of production, as

well as the weight and purity of the gold used on its face. The coins can be bought and sold at the

Kelantan Corporation Bhd (Perbadanan Kelantan Bhd) and all eight Ar-Rahn Islamic pawnshops

in the state.

THEORETICAL FRAMEWORK

• Independent variables: Gold Dinar. US Dollar

• Dependent variables: Oil Price, Price of Consumer Product and Price of Construction

Product.

2
 Figure 1: Schematic Diagram (Relationship Diagram)

Independent Dependent

Oil Price

Gold Dinar Price of Consumer

Products

Price of Construction
Products
Oil Price

Price of Consumer
US Dollar Products

Price of Construction
Products

DATA ANALYSIS AND TREATMENT

The statistical tool used in this study is Pearson Correlation Coefficient. In this subsection, this

paper would develops the empirical method to detect possible correlation of oil price, price of

consumer products and price of construction products between Gold Dinar and USD. Due to

extent regression correlation analysis will show on how to determine the nature capability of the

relationship. In order to determine the strongest relation, the author would construct correlation

analysis.

It is follow by Pearson-product Moment Correlation by implementing the data output into

computer. The methodology is useful in this context as it recognize to correlate dichotomous and

3
continuous variables and is the most common measure the linear relationship. This coefficient has

a rage of possible values from -1 or +1. The values indicate the strength of the relation, where the

sign (+1 or -1) indicates the direction. This method could be analyzed by using the Statistical

Package for Social Science (SPSS).

The Pearson- Product Moment Correlation can evaluate by:-

Ho: p = 0

Hı: p ≠ 0

Where p is the correlation coefficient between Gold Dinar and USD

The second method that has been used is descriptive analysis. This method was used to find the

mean for the price of oil, consumer products and construction products for Gold Dinar and USD.

From this analysis also can give a view about the differences on the fluctuation price oil,

consumer products and construction products in Gold Dinar and USD.

FINDINGS AND ANALYSIS

Overall the analyses a correlation were analyzed by using the Statistical Package for Social

Science (SPSS). The correlation analysis is most versatile and popular statistical procedure. In the

same time, it is a method that trying to looks at the relationship between two variables in linear

fashion. A person product-moment correlation describes the relationship between two continuous

variables.

A person products moment correlation is use to correlate a dichotomous and continuous variables.

This study was address bivariate correlation using Pearson Product Moment Correlation. Simple

bivariate also referred to as zero-order correlation, refers to the correlation between continuous

variables and is most common measure of linear relationship. This coefficient has a range of

4
possible value from -1 to +1. The value indicates the strength of the relationship, while the sign

(+ or -) indicates the direction. Significant of this study are 1% and 55 depends on the factors or

independent variable involved. Significant means there is significant correlation 1 not in order to

determine whether to reject of failed to reject the null hypotheses.

Pearson Correlation Test

This research examined the correlation price of oil, consumer products and construction products

between the gold Dinar and USD for overall period from 1196 until 2005. Pearson Correlation

test used for this research to test the correlation price of oil, consumer products between Gold

Dinar and USD to analyze the data for 10 years and by using the price of imports of major and

selected commodities. This method to evaluate by

Ho: p = 0

Hı: p ≠ 0

Where p is the correlation between oil, consumer products and construction products over period.

Table 1: Dinar, Oil, Consumer and Construction Correlation

Consumer Construction

Dinar Oil Products Products

Oil .706(*)
- - -
.022
Consumer Products -.853(**)
- - -
.002
Construction Products .309
- - -
.384

* Correlation is significant at the 0.05 level (2-tailed).

** Correlation is significant at the 0.01 level (2-tailed).

5
Table 1 shows the results of Pearson Correlation test between Gold Dinar, oil, consumer products

and construction products. This study begins analysis by estimating correlation of the yearly

change in prices. The samples begin from 1996 until 2005.

From the table 1 it shows positive correlation for two from all pairs with the correlation of 0.25 or

higher. As a result, Dinar’s cross correlation with Oil being 0.706 that reveals strong correlation

and the result significant that clarify at 0.022 that below 0.05 level. It shows that there is no

sufficient evidence to support the null hypothesis for Hypothesis 1 and alternate hypothesis of

Hypothesis 1 is accepted.

More to the point, the results of correlation of Gold Dinar’s with Consumer products that explains

at positive correlation at -0.853 and significant at 0.002 that below 0.01 level. For the result, the

alternate hypothesis of Hypothesis 2 is accepted and there is no sufficient evidence to support the

null hypothesis of Hypothesis 2.

Except for the result Gold Dinar’s cross correlation with Construction products show the weak

correlation which is 0.309 and not significant at 0.384 which is above 0.01 or 0.05 level. For the

result, the null hypothesis of Hypothesis 3 is accepted and there is no sufficient evidence to

support the alternate hypothesis of Hypothesis 3.

From the result of correlation between Gold Dinar and prices of oil, consumer products and

construction products show that Gold Dinar and price of oil and consumer products have strong

correlation. It also shows that Gold Dinar can influence the price of oil and consumer products.

6
If looks to current situation oil prices is most important factor to influences the other prices of

goods. This is because when the prices of oil increase, the other price of goods also increases.

When there is strong relationship between oil and Gold Dinar, it can help to hedge our price to

remain stable since the value of Gold Dinar is stable and has intrinsic value.

Besides that, it also same goes with the relationship between Gold Dinar and price of consumer

products. When there is a strong correlation between Gold Dinar and the price of consumer

products, it can help to hedge the fluctuation of consumer products since the value of Gold Dinar

is stable and has intrinsic value for a long time.

Table 2: USD, Oil, Consumer Products and Construction Products Correlation

Consumer Construction

USD Oil Products Products

Oil .507

.135
Consumer Products -.770(**)

.009
Construction Products -.657(*)

.039

** Correlation is significant at the 0.01 level (2-tailed).

* Correlation is significant at the 0.05 level (2-tailed).

Table 2 gives an idea about the results of Pearson Correlation test between USD, Oil, Consumer

Products and Construction Products. This study estimate correlation of the yearly changes in

price. As result, it shows positive correlation has correlation 0.25 or higher. For the USD’s cross

correlation with Oil is being 0.507 that shows the correlation and the outcome is not significant

which is at 0.135 which is above 0.01 or 0.05 level. Because of that, the null hypothesis of

7
Hypothesis 4 is accepted and there is no sufficient evidence to support the alternate hypothesis of

Hypothesis 4.

Besides that, the additional cases of correlation are USD with consumer products explains a

correlation at -0.770 and significant at 0.009 that below 0.01 level. Thus, there is no sufficient

evidence to support the null hypothesis of Hypothesis 5 and as the result the alternate hypothesis

of Hypothesis 5 is accepted. Moreover, USD and Construction Products as well consist strong

correlation at -0.657 and significant at 0.39 that below 0.05 level. For the result, the alternate

hypothesis of Hypothesis 6 is accepted for this study and there is no sufficient evidence to support

the null hypothesis of Hypothesis 6.

From the correlation between the price of Gold Dinar and the price of oil, consumer products and

constructions products can see that USD have strong correlation between price of consumer

products and construction products. But, USD did not have strong correlation with the oil price

which is mostly influence the price of the other goods or products. As for first result (see table1)

it shows that Gold Dinar with Oil and Gold Dinar with consumer products have significantly

positive relationships. For the second result (see table 2) it shows that USD with consumer

products and USD with construction products have significantly positive relationships. Because

of that, this study has no sufficient evidence to support the null hypothesis for the hypothesis 1, 2,

5 and 6.

From the result of this study also can find that Gold Dinar have strong relationship with oil price.

It also shows that oil price will be influence by the Gold Dinar. Compared to USD, it shows that

there is no relationship between oil price and USD. Because of that we can say that Gold Dinar is

more efficient as a medium of exchange when we use for import crude oil from the foreign

country. In the real life, increasing in oil price will influence the increasing in all other price of

8
goods and commodities. This means that despite the increase in the price of oil is because we are

actually earning less due to the devaluation of the dollar (Mahathir, 2007)

It same goes with the strong relationship between Gold Dinar and consumer products. Because

of that the Gold Dinar also can influences the price of consumer products and also can help to

hedge the fluctuation of prices in order to reduce risk. As said by Mohd Dali (2003), the OIC

countries are also encourage using Gold Dinar as an alternative international payment settlement

through the Bilateral Payment Arrangement Mechanism (BPA) with cooperation from central

banks to avoid the currency crisis from recurring.

Descriptive Analysis

The second method that has been used is descriptive analysis. This method was used to find the

mean for the price of oil, consumer products and construction products for Gold Dinar and USD.

From this analysis also can give a view about the differences on the fluctuation price oil,

consumer products and construction products in Gold Dinar and USD.

Figure 2: Fluctuation of oil price in Gold Dinar and USD

9
 Price ('000,000)
Oil
4000

3500
3393

3000

2500

2000 2033
Dinar
1550
1659 USD
1500
1316 1257

1000

500
357
185 164 179
0 4 4 4 9 35 42 30 33 36 56

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year

Mean
USD: 1,209 million
Dinar: 25 million

From the above graph, the mean for oil price in USD is 1,209,000,000 while the mean for Gold

Dinar is 25,000,000. The graph also shows the fluctuation of oil price in Gold Dinar and USD.

From 1996 until 2005 we can see the price of oil in USD is still increasing from year to year. It

also shows that the price of oil in USD also not stable and always fluctuate with current situation.

Compared price of oil in Gold Dinar, it shows that the price of oil in Gold Dinar is remain stable

from 1996 until 2005. The fluctuation of Gold Dinar is minimal if compared to price of oil in

USD. In addition, it also shows that Gold Dinar can hedge the fluctuation of oil prices.

Graph 2: Percentage Differences between Price of Oil in USD and Gold Dinar

10
 (%)
98.60

98.40
98.35
98.20 98.19

98.00 98.00

97.80 97.84 97.87

97.65
97.60
97.54
97.45
97.40 97.37
97.32
97.20

97.00
Year
96.80
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

This graph shows the percentage differences between the price of oil price in Gold Dinar and

USD which is continue from the graph 1. From the graph also we can find that there are big

differences percentage between price in Gold Dinar and USD. The percentage differences of Gold

Dinar with USD are strong which is above 97% from year 1996 until 2005. When the difference

between Gold Dinar with USD is bigger, it shows that the Gold Dinar is strong and it can hedge

the fluctuation of price compared to USD.

Graph 3: Price of Consumer Products in USD and Gold Dinar

11
 Prices ('000,000)

1800

1600
1,537

1,411 1,429
1400

1,249
1200 1,169 1,157 1,137 1,130
1,081
1000 1,003
Dinar
USD
800

600

400

200

0 29 31 29 30 30 31 26 20 22 24
Year
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Mean
USD=1230 million
Dinar= 27 million

From the above graph, the mean for price of consumer products in USD is 1,230,000,000 while

the mean for price of consumer products in Gold Dinar is 27,000,000. From 1996 until 2005 we

can see the price of consumer products in USD is still increasing and continuous fluctuate from

year to year. It also shows that the price of consumer products in USD also not stable since there

is big fluctuation of it with the current situation.

Compared to price of consumer products in Gold Dinar, it shows that the price of consumer

products in Gold Dinar is remains stable from 1996 until 2005. The fluctuation of Gold Dinar is

minimal if compared to price of consumer products in USD. In addition, it also shows that Gold

Dinar can hedge the fluctuation of consumer product’s prices.

Graph 4: Percentage Differences between Price of Consumer Products in USD and

Gold Dinar

12
 (%)
99
98 98.32
98.24
98 98.11
98.01
98
97.80
98
97.59
98 97.52
97.41
97 97.36
97.26
97
97
97
97 Year
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

This graph shows the percentage differences between the price of construction products in Gold

Dinar and USD which is continue from the graph 4.2.3. From the graph also we can find that

there are big differences percentage between price in Gold Dinar and USD. It shows that the Gold

Dinar can hedge the fluctuation of consumer products price since the percentage differences of

Gold Dinar is strong which is above 97% from year 1996 until 2005.

Graph 5: Price of Construction Products in USD and Gold Dinar

13
 Price ('000,000)

2500

2049
2000 1983 2008

1733

1500
Dinar
1297 1312
USD
1096
1058
1000 951
992

500

0 37 45 26 34 34 26 24 22 31 33
Year
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Mean
USD: 1448 million
Dinar: 31 million

From the above graph, the mean for price of construction products in USD is 1,448,000,000 while

the mean for price of construction products in Gold Dinar is 31,000,000. From 1996 until 2005

we can see the price of construction products in USD is still increasing and continuous fluctuate

from year to year. It also shows that the price of oil in USD also not stable since there is big

fluctuation of it with the current situation.

Compared price of construction products in Gold Dinar, it shows that the price of construction

products in Gold Dinar is remain stable from 1996 until 2005. The fluctuation of Gold Dinar is

minimal if compared to the price of construction products in USD. In addition, it also shows that

Gold Dinar can hedge the fluctuation of construction product’s prices.

14
Graph 6: Percentage Differences between Price of Construction Products in USD
and Gold Dinar

(%)
98.60
98.40 98.35

98.20
98.20 98.09
98.00 97.94
97.80
97.80
97.66
97.60 97.53

97.40 97.37 97.37

97.25
97.20
97.00
96.80
96.60 Year
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

This graph shows the percentage differences between the price of construction products in Gold

Dinar and USD which is continue from the graph 4.2.5. From the graph also was found that there

are big differences percentage between price in Gold Dinar and USD. The percentage differences

of Gold Dinar with USD are strong which is above 97% from year 1996 until 2005. It shows that

the Gold Dinar is strong and can hedge the fluctuation of price.

15
CONCLUSION

Several conclusions can be made after conducting a thorough analysis of the output and the result

from tests. As for first result (see table 4.1.1) it shows that Gold Dinar with Oil and Gold Dinar

with consumer products have significantly positive relationships. For the second result (see table

4.1.2) it shows that USD with consumer products and USD with construction products have

significantly positive relationships. Because of that, this study has no sufficient evidence to

support the null hypothesis for the hypothesis 1, 2, 5 and 6.

From the descriptive analysis, the mean price for oil price for USD is 1,209,000,000 while the

mean for Gold Dinar is 25,000,000. Besides that, the mean for price of construction products in

USD is 1,448,000,000 while the mean for price of construction products in Gold Dinar is

31,000,000. Furthermore, the mean for price of construction products in USD is 1,448,000,000

while the mean for price of construction products in Gold Dinar is 31,000,000.

From the graph also we can find that the fluctuation of price in Gold Dinar for oil, consumer

products and construction products is minimal if compared to the price in USD. The differences

between Gold Dinar with USD also big because it above 97% from the year 1996 until 2005. This

shows that the Gold Dinar can hedge the fluctuation price of oil, consumer products and

construction products. For this study is tried to simplify the issues of fluctuation in prices that will

affect our economic stability. This research was concentrate in the issues of the Gold Dinar and

USD as medium of exchange that will influences the price of oil, consumer products and

construction products.

The objective of this research was to examine the relationship of between price of oil, consumer

products and construction products with the Gold Dinar and USD. This lesson was also give

16
valuable information, education and experiences to student, as it would be useful for researcher as

a guideline and reference in order to make or conduct similar research in the future. The data set

includes observations in the period 1996-2005 which is the time series basis analyzed by yearly

on price of oil, consumer products and construction products.

All the data used in this research are collected from Statistic Department. The variables that being

collected are price of oil, consumer products, construction products, value of one USD and Gold

Dinar that concentrates by yearly data on period 1996 until 2005. This research begins with

analysis by estimating correlation coefficient of the Gold Dinar and USD with price of oil,

consumer products and construction products. For the result for Gold Dinar with oil and Gold

Dinar with consumer products have significantly correlation effect. But, for the result for Gold

Dinar with construction products did not have significant correlation effect. Consequently, there

is no sufficient evidence to support the null hypothesis of Hypothesis 1 and 2 but the null

hypothesis of Hypothesis 3 is accepted.

For the result for USD with oil did not have significant correlation effect and the null hypothesis

of Hypothesis 4 is accepted. Besides that, for the result for USD with consumer products and

USD with construction products have significantly correlation effect and thus there is no

sufficient evidence to support the null hypothesis of Hypothesis 5 and 6.

Oil, consumer products and construction products are being chosen for this research since it will

give a major implication in our life. For example oil price. As we know the world market price of

oil in this world is still increasing especially after the war in Iraq. But, even though there is

increasing in oil price we still can hedge it so that it will not to fluctuate very much.

17
This situation can be resolved by using gold as our medium of exchange. When we use Gold

Dinar, we only deal with small amount and standard values in transactions. This situation will

bring the benefits to all country regardless of currencies in poor or rich countries. Unlike USD as

a single currency in international trading, the poor country are forced to pay more due to the

value of currency that they have are much cheaper than others.

RECOMMENDATION

The analysis of oil, consumer products and construction products reaction toward Gold Dinar and

USD provide opportunity to test possible theories. The process of analyzing the reaction of

correlation is based on the uses of yearly in studies. Therefore the researchers can find different

data could be performed such a monthly data for ten years. Besides that, more previous literature

review should be added to catch more understanding and information.

Moreover, the number of selected commodities to become subject’s research should be extended

such as copper, machinery and equipment that have been used for particular industries and part,

etc. The further research on the issues of Gold Dinar in others areas is still crucial to be explored

especially in banking industry. This is because, more researches on this topic will result new

inventions and systems to be founded. It also could spread out more information about the

benefits of using Gold Dinar compared to the paper currency especially in the international

trading.

Finally, people should know the important of using Gold Dinar since it is more stable compared

to USD. It has the ability to hedge the fluctuation of price and gradually being capable to avoid

the economic crisis such as inflation or recession. Moreover, it also provides the platform to

ensure the economic stability in a longer duration.

18
 REFERENCES

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Ahamed Kameel Mydin Meera & Moussa Larbani (2004). Seigniorage of Fiat Money
and the Maqasid Shariah: The compatibility of the Gold Dinar with the Maqasid.
Department of Business Administration, faculty of economics and Management
Sciences, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala
Lumpur, Selangor, Malaysia.

Ahamed Kameel Mydin Meera and Hassanuddeen Abdul aziz (2002). The Islamic Gold
Dinar: Socio-economic Perspectives. Proceeding of the 2002 International
Conferences on Stable and Just Global Monetary System at International Islamic
University Malaysia 2002.

Ahamed Kameel Mydin Meera (2002). The Islamic Gold Dinar, 1st Edition, Pelanduk
Publications (M) Sdn Bhd.

Abdul Halim Abdul Hamid and Norizaton Azmin Mohd Nordin (2002). Dinar and
Dirham Effect on the Banking Business and Its Solution. Proceedings of the 2002
International Conference on stable and Just Global Monetary System at
International Islamic University Malaysia 2002.

Dato’ Dr. Mahathir Bin Mohammad (2002). Seriousness of the Gold Dinar.

Evans, Abdalhamid. The Gold Dinar- A Platform For unity. Proc. Of The International
convention on Gold Dinar As An Alternatives International Currency. July 1,
2003 Putra World Trade Centre, Kuala Lumpur

Hj. Muhammad Nasri Hj. Md Hussain and Azizi Abu Bakar (2004). Potensi Dinar Emas
Sebagai Mata wang Utama Dunia: Teori & Strategi. Universiti Utara Malaysia.

James Turk and John Rubino (2004). The Coming Collapse Of The Dollar and How To
Profit From It, 1st Edition, Doubleday.

J.Kent Willis (2004). Resurrection of The Islamic Gold Dinar: The Moral Imperative
From The Muslim Perspective As Perceived In The West.

Khaled Hanafi ( 2003). Islamic Gold Dinar Will Minimize Dependency on US Dollar.
Cairo-IslamOnline.

Mohd Dali at el. (2003) Gold Dinar. Using Bilateral Payment Arrangement system or
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Michael O. Billington (2002). Gold Dinar: An Economic and Strategic. Executive

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Rose, Peter s. (2000). “Money and Capital Markets: Instruments in a Global
Marketplace”, 7th Edition, Irwin-McGraw Hill, Boston.

Uma Sekaran (2005). Research Methods for Business: A Skill-Buildind Approach, 4th
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www.e-dinar.com.

www.Islamonline.com

www.kitko.com

www.wikipedia.com

20
 APPENDIX 1(a)

1 Dinar
Year RM/USD Gold (RM/oz) Gold (RM/g) (4.25g)
1996 2.52 976.31 31.39 133.40
1997 2.88 954.73 30.69 130.45
1998 3.80 1118.11 35.95 152.77
1999 3.80 1060.12 34.08 144.85
2000 3.80 1060.62 34.10 144.92
2001 3.80 1029.95 33.11 140.73
2002 3.80 1176.97 37.84 160.81
2003 3.80 1380.84 44.39 188.67
2004 3.80 1556.94 50.05 212.73
2005 3.78 1681.12 54.05 229.70

1) Milk& Cream, Powder

Year RM USD Dinar
1996 741,500,000 294,538,232.37 5,558,581.12
1997 738,400,000 256,015,532.90 5,660,481.26
1998 760,000,000 200,000,000.00 4,974,730.51
1999 772,400,000 203,263,157.89 5,332,451.01
2000 868,800,000 228,631,578.95 5,995,178.17
2001 938,200,000 246,894,736.84 6,666,835.19
2002 765,200,000 201,368,421.05 4,758,273.13
2003 732,100,000 192,657,894.74 3,880,315.74
2004 1,008,100,000 265,289,473.68 4,738,862.74
2005 1,102,100,000 291,560,846.56 4,798,044.66

2) Wheat
Year RM USD Dinar
1996 679,300,000 269,831,181.73 5,092,305.00
1997 607,200,000 210,526,315.79 4,654,718.61
1998 734,300,000 193,236,842.11 4,806,506.07
1999 818,200,000 215,315,789.47 5,648,642.43
2000 710,900,000 187,078,947.37 4,905,584.90
2001 783,300,000 206,131,578.95 5,566,118.10
2002 766,400,000 201,684,210.53 4,765,735.14
2003 653,000,000 171,842,105.26 3,461,065.67
2004 1,090,300,000 286,921,052.63 5,125,267.38
2005 1,121,700,000 296,746,031.75 4,883,374.19

3) Rice
Year RM USD Dinar
1996 537,500,000 213,505,461.77 4,029,315.38
1997 701,300,000 243,152,347.27 5,376,077.34
1998 910,500,000 239,605,263.16 5,959,858.07
1999 718,900,000 189,184,210.53 4,963,100.76
2000 689,300,000 181,394,736.84 4,756,533.51
2001 529,700,000 139,394,736.84 3,764,040.29

21
 2002 510,100,000 134,236,842.11 3,171,974.81
2003 398,700,000 104,921,052.63 2,113,211.15
2004 548,100,000 144,236,842.11 2,576,501.01
2005 688,700,000 182,195,767.20 2,998,288.14
APPENDIX 1 (b)

4) Maize
Year RM USD Dinar
1996 1,130,100,000 448,897,715.99 8,471,682.44
1997 1,144,300,000 396,747,798.35 8,772,059.46
1998 987,500,000 259,868,421.05 6,463,876.82
1999 1,114,300,000 293,236,842.11 7,692,840.70
2000 1,088,400,000 286,421,052.63 7,510,533.98
2001 956,300,000 251,657,894.74 6,795,453.52
2002 1,088,600,000 286,473,684.21 6,769,284.02
2003 1,131,800,000 297,842,105.26 5,998,827.15
2004 1,148,200,000 302,157,894.74 5,397,442.91
2005 1,368,200,000 361,957,671.96 5,956,523.65

5) Raw Beet & Cane Sugar

Year RM USD Dinar
1996 781,100,000 310,268,123.14 5,855,438.59
1997 878,600,000 304,625,199.36 6,735,236.77
1998 1,051,100,000 276,605,263.16 6,880,183.21
1999 972,300,000 255,868,421.05 6,712,509.21
2000 963,800,000 253,631,578.95 6,650,728.27
2001 1,087,200,000 286,105,263.16 7,725,626.96
2002 976,900,000 257,078,947.37 6,074,695.54
2003 898,100,000 236,342,105.26 4,760,157.85
2004 949,600,000 249,894,736.84 4,463,866.74
2005 1,119,100,000 296,058,201.06 4,872,054.97

6) Crude Petroleum
Year RM USD Dinar
1996 464,600,000 184,548,162.86 3,482,827.77
1997 473,500,000 164,170,307.19 3,629,791.27
1998 680,200,000 179,000,000.00 4,452,383.81
1999 1,357,400,000 357,210,526.32 9,371,140.60
2000 5,000,300,000 1,315,868,421.05 34,504,706.97
2001 5,891,400,000 1,550,368,421.05 41,864,200.41
2002 4,777,500,000 1,257,236,842.11 29,708,115.40
2003 6,305,300,000 1,659,289,473.68 33,419,689.70
2004 7,723,600,000 2,032,526,315.79 36,306,993.62
2005 12,825,500,000 3,392,989,417.99 55,836,423.05

7) Steel
Year RM USD Dinar
1996 4,991,100,000 1,982,562,065.54 37,415,285.56
1997 5,910,500,000 2,049,268,427.99 45,309,147.45

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 1998 4,021,000,000 1,058,157,894.74 26,320,251.83
1999 4,928,200,000 1,296,894,736.84 34,023,025.72
2000 4,985,200,000 1,311,894,736.84 34,400,509.00
2001 3,611,800,000 950,473,684.21 25,665,396.86
2002 3,770,800,000 992,315,789.47 23,448,113.35
2003 4,162,900,000 1,095,500,000.00 22,064,426.16
2004 6,584,200,000 1,732,684,210.53 30,950,917.62
2005 7,589,600,000 2,007,830,687.83 33,041,683.86

APPENDIX 2

Correlations

Consumer Construction
Oil Products Productc USD
Oil Pearson Correlation 1 -.052 .106 .507
Sig. (2-tailed) . .887 .770 .135
N 10 10 10 10
Consumer Products Pearson Correlation -.052 1 .910(**) -.770(**)
Sig. (2-tailed) .887 . .000 .009
N 10 10 10 10
Construction Pearson Correlation .106 .910(**) 1 -.657(*)
Productc Sig. (2-tailed) .770 .000 . .039
N 10 10 10 10
USD Pearson Correlation .507 -.770(**) -.657(*) 1
Sig. (2-tailed) .135 .009 .039 .
N 10 10 10 10
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).

Correlations

Prices of
consumer
Oil Prices Products Construction Dinar
Oil Prices Pearson
1 -.555 -.419 .706(*)
Correlation
Sig. (2-tailed) . .096 .228 .022
N 10 10 10 10
Prices of consumer Pearson
-.555 1 .508 -.853(**)
Products Correlation
Sig. (2-tailed) .096 . .134 .002
N 10 10 10 10

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 Construction Pearson
-.419 .508 1 -.309
Correlation
Sig. (2-tailed) .228 .134 . .384
N 10 10 10 10
Dinar Pearson
.706(*) -.853(**) -.309 1
Correlation
Sig. (2-tailed) .022 .002 .384 .
N 10 10 10 10
* Correlation is significant at the 0.05 level (2-tailed).
** Correlation is significant at the 0.01 level (2-tailed).

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