Download Vol 15, Issue 2, Feb 2010

MONTHLY NEWS SCAN
Tinjauan Berita Bulanan
Compiled by IDS
Vol. 15 Issue 2
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(For internal circulation only)
HIGHLIGHTS
FOKUS
Exclusive:
U.S.
business
investment continues to drop
Global crisis leads I.M.F. experts
to rethink long-held ideas
OECD letak Malaysia dalam
‘senarai putih’
Marked increase in investor
confidence
in
Malaysia
Mukhriz
RM100 mln to give more housing
for poor this year
KKIP can expect RM5.4bil
foreign investment: Musa
INTERNATIONAL
ANTARABANGSA
Exclusive: U.S. business investment
continues to drop: U.S. businesses
continued to postpone financing new
investments in their operations in
January, but delinquencies among
existing borrowers stabilized and
outright defaults fell, according to a
trade group for lenders that finance
half the capital equipment investment
in the United States. The Equipment
Leasing and Finance Association told
Reuters that the overall volume of
financings used to fund equipment
acquisitions fell to $3.4 billion in
January, down 24.4 percent from last
January and down 52 percent from
the previous month. (23 February,
Reuters)
Global crisis leads I.M.F. experts to
rethink long-held ideas: The
International Monetary Fund has long
preached the virtues of keeping
inflation low and allowing money to
flow freely across international
boundaries. But two recent research
papers by economists at the fund
have questioned the soundness of that
advice, arguing that slightly higher
inflation and restrictions on capital
flows can sometimes help buffer
countries from financial turmoil. One
paper has received particular
attention for suggesting that central
banks should set their target inflation
rate much higher — at 4 percent,
rather than the 2 percent that is the
most widely held standard. (21
February, New York Times)
1 – 28 February 2010
1 – 28 February 2010
IDS Online http://www.ids.org.my
Economy and job worries hit stock
markets and oil: Concerns about the
US economy and the potential spread
of debt problems in Europe led to
large stock market falls. On Wall
Street, shares suffered their worst
losses in nine months. Key European
markets lost more than 2% Spain and
Portugal fell about 5%. In the US,
worse-than-expected
levels
of
unemployment benefit claims added
to worries about the pace of recovery.
Analysts said the negative sentiment
was largely behind the price of US
crude oil falling sharply. Brent crude
fell by $3.83 to $73.14 a barrel in
New York having gone as low as
$71.47. In London, Brent crude
slipped by $3.79 to $72.13 a barrel.
(4 February, BBC News)
Japan economic growth exceeds
expectations: Japan’s economy grew
by a better-than-expected 1.1% in the
final quarter of last year, according to
official figures. This is the equivalent
of an annualised increase of 4.6%.
However, despite the growth in
October to December, the economy
contracted by 5% over the whole of
2009. China now rivals Japan for the
rank of the world’s second-biggest
economy, and is on course to
overtake Japan. China’s economy
expanded by 8.7% in 2009. “The
Japanese population has become
quite sober about themselves and
relatively pessimistic about the
country’s outlook,” said Takuji
Okubo, chief economist at Societe
Generale in Tokyo. (15 February,
BBC News)
German investor confidence falls
for a fifth month: German investor
confidence declined for a fifth month
in February as the economic recovery
lost momentum and the Greek fiscal
crisis threatened to spill over into
other euro-area nations. The ZEW
Center for European Economic
Research in Mannheim said its index
of investor and analyst expectations,
which aims to predict developments
six months ahead, slipped to 45.1
from 47.2 in January. Economists
forecast a bigger drop to 41,
according to the median of 38
estimates in a Bloomberg survey. (16
February, Bloomberg)
G7 talk on Greece will not soothe
global investors: Investors are
skeptical of assurances European
finance ministers gave to their Group
of Seven counterparts this weekend
that the euro zone’s debt crisis is
under control. The 16-country
currency bloc is facing its biggest
ever test after concerns about
Greece’s huge public debt and
deficits spread to several other euro
zone countries, pushing the euro to a
near nine-month low against the
dollar. A sell-off of Greek,
Portuguese and Spanish debt last
week, which hurt global stock
markets, pushed Greece’s debt woes
onto the agenda of the meeting of
Group of Seven rich nations’ finance
ministers and central bankers in
Canada’s remote north. (7 February,
Reuters)
Inflation rises above target in
Britain: Inflation in Britain rose
above the Bank of England’s comfort
zone in January, official data showed
Tuesday. But the country’s top
central banker attributed most of the
increase to higher sales taxes and fuel
prices, and said the effect would
likely be temporary. The consumer
prices index rose by 3.5 percent
compared
to
January
2009,
accelerating from the 2.9 percent rate
in December, the Office for National
Statistics said, in line with market
expectations. (16 February, New
York Times)
Australian business investment
rose 5.5% last quarter: Australian
business investment rebounded in the
fourth quarter, a sign the economy is
strengthening enough for the central
bank to raise interest rates next week
for the fourth time in six months.
Capital spending advanced 5.5
percent from the previous quarter,
when it fell a revised 5.2 percent, the
Bureau of Statistics said in Sydney
today. The median estimate of 19
economists surveyed by Bloomberg
News was for a 2 percent gain.
Rising
Chinese
demand
for
Australia’s iron ore, coal and gas is
stoking what central bank Deputy
Governor Ric Battellino this week
described as a record boom in mining
investment that will fuel economic
growth. (25 February, Bloomberg)
MONTHLY NEWS SCAN (Tinjauan Berita Bulanan)
1
NATIONAL
NASIONAL
OECD letak Malaysia dalam
‘senarai
putih’:
Pertubuhan
Kerjasama
dan
Pembangunan
Ekonomi (OECD) menyenaraikan
Malaysia dalam ‘Senarai Putih’,
senarai pelaksanaan standard OECD
secara meluas untuk ketelusan dan
pertukaran maklumat antara negara.
Menteri Kewangan Kedua, Datuk
Seri Ahmad Husni Hanadzlah
berkata, Malaysia komited terhadap
piawaian dan amalan antarabangsa
yang mentadbir perkhidmatan dan
transaksi kewangan antarabangsa
yang dipersetujui yang terbukti
menerusi senarai putih itu. (23
Februari, Utusan Malaysia)
Marked increase in investor
confidence in Malaysia - Mukhriz:
There has been a marked increase in
investor confidence among local and
foreign investors to invest in various
economic sectors in Malaysia since
early this year, says Deputy Minister
of International Trade and Industry
Datuk Mukhriz Mahathir. The
investors’ keen interest was a positive
development, signifying that the
country’s economy was well on the
recovery path, he said, but did not
disclose the number of investors who
have expressed interest to invest or
made enquiries. (28 February,
Bernama Online)
Bank Negara likely to raise key
rate next week: Malaysia’s strong
economic recovery in the fourth
quarter will likely mean that Bank
Negara Malaysia (BNM) would raise
the key interest rate as early as next
week. This in turn means that the cost
of borrowing for businesses and
consumers would rise as the central
bank seeks a return to normal
conditions
for
the
economy.
Malaysia, like other countries around
the world, has been trying to revive
its economy by raising government
spending and slashing interest rates to
a record low. However, keeping rates
too low for too long would have
negative
implications
on
the
economy, such as share prices that
are too high, and BNM has hinted
that this is likely to end soon.
Malaysia’s economy grew by 4.5 per
cent in the fourth quarter, much better
than the 2.7 per cent gain that
economists expected. (25 February,
Business Times)
1 – 28 February 2010
Malaysian Jan inflation up 1.3pc,
may grow further: Malaysia’s
consumer price index (CPI), a
measure of inflation, rose by 1.3 per
cent in January, its second
consecutive monthly increase. It rose
1.1 per cent year-on-year in
December last year. The Statistics
Department said yesterday that the
CPI for January increased to 113.2
from 111.7 in January last year. It
came below average expectations of a
Business Times economists poll,
which had expected the index to
grow by 1.44 percent. They said the
CPI growth is likely to continue as
the government decides to cut
subsidies further. When compared
with the previous month, the CPI rose
by 0.2 percent. (25 February,
Business Times)
Malaysia mahu dijadikan rakan
dagang 10 terbaik: Amerika
Syarikat (AS) mahu menjadikan
Malaysia sebagai rakan perdagangan
sepuluh terbaiknya pada masa
hadapan, kata Timbalan Wakil
Perdagangan
AS,
Demetrios
Marantis.
Katanya, ia dapat
dilakukan dalam beberapa langkah
termasuk
melalui
Perjanjian
Kerjasama Trans-Pacific (TPP).
“Malaysia sebelum ini merupakan
rakan dagangan kesepuluh terbesar
untuk AS pada 2006 tetapi pada masa
ini, ia berada di kedudukan ke-17,”
kata beliau pada taklimat media
sempena kunjungannya di Malaysia,
disini hari ini. “Kami ingin
mengukuhkan hubungan AS dengan
Malaysia. TPP
akan menjadi
kenderaan untuk berbuat demikian,”
katanya.
(5
Februari,
Utusan
Malaysia)
December IPI up 8.9% on recovery
in exports: Malaysia’s December
industrial production index (IPI)
registered the highest year-on-year
rise in 22 months as a recovery in
exports
boosted
orders
for
manufactured goods. The IPI in
December increased 8.9% compared
with the same month last year,
following a revised 0.8% year-onyear decline in November. Month-onmonth, the IPI increased 4.6%, the
Statistics Department said in a
statement yesterday. (11 February,
The Star)
Mukhriz: New economic model will
give
due
consideration
to
bumiputras: The new economic
model to be unveiled by Prime
Minister Datuk Seri Najib Tun Razak
next
month
will
give
due
consideration to bumiputras. Deputy
International Trade and Industry
Minister Datuk Mukhriz Mahathir
said this was in line with previous
policies, particularly the New
Economic Policy (NEP). “I have
received many visits by Malay nongovernmental
organisations
representing various sectors and
industries who raised concern that the
new economic model will be too
open to the extent that it reduces
opportunities
for
bumiputra
entrepreneurs,” he said. Speaking to
reporters after opening a forum at
Sekolah Kebangsaan Langgar on
Saturday, he said the Government
would give due consideration to all
quarters in whatever policy. (22
February, The Star)
Bank
Negara’s
reserves
at
RM322.1 bln as at Feb 12: Bank
Negara Malaysia’s international
reserves decreased marginally to
RM322.1 billion (US$96.9 billion) as
at February 12 from RM332.2 billion
(US$97 billion) as at January 29. The
reserves position is sufficient to
finance nine months of retained
imports and is 4.1 times the shortterm external debt, the central bank
said in a statement on Friday. The
gross
international
reserves
comprised foreign currency reserves
of US$87.3 billion, IMF Reserves
position (US$400 million), special
drawing rights (US$2.1 billion), gold
(US$1.3 billion) and other reserve
assets (US$5.8 billion). Bank
Negara’s assets and liabilities stood
at RM363.953 billion. (19 February,
Bernama Online)
Government to further develop
aerospace
industry:
The
Government will further develop the
aerospace industry in preparation for
the high-income economic era, says
Deputy Prime Minister Tan Sri
Muhyiddin Yassin. He said the
industry has the potential to generate
more
revenue
and
stimulate
economic growth. The industry’s
investment value swelled by 300 per
cent to RM991.6 million in 2008
from RM113.3 million in 2006,
marking a giant leap in cumulative
investments, he said. The industry,
which created 50,000 jobs in 2008, is
poised to grow at 11 per cent every
year, he told reporters after chairing a
meeting of the cabinet committee
specially set up to study impartment
aspects
of
human
capital
development for the New Economic
Model era. (19 February, Bernama
Online)
MONTHLY NEWS SCAN (Tinjauan Berita Bulanan)
2
LOCAL
TEMPATAN
RM100 mln to give more housing
for poor this year: The state
government will build more houses
for the poor this year with the RM100
million allocated by Rural &
Regional Development Ministry
under the Housing Assistance
Programme. Chief Minister Datuk
Seri Musa Haji Aman said a total of
2,500 houses will be built in 2010
which is nearly 1,000 units more than
the 1,165 built last year. He stressed
on the urgency of completing poverty
eradication projects under the Ninth
Malaysia Plan (9MP) which ends this
year and programmes under the
National Key Result Areas which aim
to improve the quality of living
among the poor. (24 February, New
Sabah Times)
KKIP can expect RM5.4bil foreign
investment: Musa: Four major
foreign investors are expected to
invest about RM5.4 billion in the
Kota Kinabalu Industrial Park
(KKIP) in the next three years. Chief
Minister Datuk Seri Musa Aman said
the investors, from the United States,
Italy, Germany and Finland, are
interested to invest in kaca solar
(solar glass panels). At the moment,
the matter is still being negotiated
between the group of investors and
the KKIP to purchase 300 acres at the
industrial park, he said. “This is very
encouraging as Malaysia is facing
increasingly tough competition with
neighbouring countries for foreign
investments,” he said at the KKIP
Riang Ria Gong Xi Fa Cai-cumofficial launching of the Salut
Commercial Centre and KKIP Sdn
Bhd’s website, Sunday. (22 February,
Daily Express)
Sabah mohon peruntukan RM200j
daripada Pusat aspal lebuh raya
Sapulut-Kalabakan:
Kerajaan
negeri melalui Jabatan Kerja Raya
(JKR) Sabah telah memohon
peruntukan sebanyak RM200 juta
daripada Kerajaan Pusat bagi
membiayai projek pengaspalan lebuh
raya
Sapulut-Kalabakan,
yang
dijangka akan dilaksanakan dalam
Rancangan Malaysia ke-10 (RMK10). Pengarah JKR Sabah Ir. John
Anthony berkata, cadangan untuk
mengaspal jalan berkenaan telah
dimasukkan dalam RMK-10 dan
1 – 28 February 2010
diharap peruntukan untuk tujuan itu
dapat dipertimbangkan. “Kita jangka
kelulusan untuk projek pengaspalan
itu diperolehi tahun ini,” katanya
kepada pemberita, di sini (Kota
Kinabalu), kelmarin. (12 Februari,
New Sabah Times)
Sabah government urged to create
more jobs for locals: The Sabah and
Labuan Consumer Movement (Cash)
has called on the state government to
focus on creating more job
opportunities for the locals. Pointing
out that employment for locals as one
of the main thrusts of the Sabah
Development Corridor (SDC), Cash
said this would reduce the number of
Sabahans seeking jobs in Peninsular
Malaysia. Its president, Datuk Patrick
Sindu, said although SDC was
successfully transforming Sabah into
a regional gateway for trade,
investment and tourism, there was
still much room for improvement in
respect of job opportunities. (17
February, Bernama Online)
Pelan pembangunan berterusan
akan dilaksana di Kinabatangan,
kata
Bung
Moktar:
Pelan
pembangunan secara berterusan terus
dilaksanakan di daerah ini, Ahli
Parlimen Kinabatangan, Datuk Bung
Moktar Radin. Beliau berkata ia akan
diselaraskan bersama Pejabat Daerah
Kinabatangan dan Pejabat Parlimen
Kinabatangan demi kepentingan
rakyat di kawasan berkenaan. “Pelan
pembangunan
ini
meliputi
kemudahan asas seperti jalan raya,
bekalan air bersih dan bekalan
elektrik serta kemudahan lain,”
katanya kepada pemberita selepas
menyaksikan Majlis Angkat Sumpah
Ahli-Ahli
Majlis
Daerah
Kinabatangan bagi di Dewan Sri
Lamag, pagi Khamis. (19 Februari,
New Sabah Times)
20,000 low-cost houses needed:
Hajiji: At least 20,000 low-cost
houses are needed in Sabah over the
next five years if the State’s perennial
problem of squatters is to be
addressed. Local Government and
Housing Minister, Datuk Hajiji Noor,
said this number of houses, which
would also shelter thousands of
families under the low-income
bracket, was proposed to the Federal
Government for implementation
under the 10th Malaysia Plan. “The
demand for affordable housing is
acute in major towns, including
Tawau and Sandakan, apart from
Kota Kinabalu. (7 February, Daily
Express)
Tawau getting RM35mil health
centre under 10MP: The Health
Ministry will set up a Health Clinic
Type 2 costing RM35 million in this
township under the Tenth Malaysia
Plan (10MP). Health Minister Datuk
Seri Liow Tiong Lai said the clinic
carrying polyclinic status would be
built on a 15-acre site and
accommodate up to 700 outpatients.
A suitable site is being identified for
the project. Liow was speaking after
he officiated the opening of a Klinik
1Malaysia at Bandar Sri Indah (BSI)
at Mile 10, Jalan Apas, Monday. He
hoped the clinic would ease the
burden of the Tawau General
Hospital. (2 February, Daily Express)
500 more housing units in Pekan
Muhibbah: Another 500 units of
houses
under
the
Housing
Programme for the People (PPR) will
be constructed at Pekan Muhibbah in
Rancangan Sungai Manila off Mile
12 Jalan Labuk, Sandakan. “The
National Housing Department has
given the approval for the project and
the people in this constituency are
thankful to the Department for
providing housing to them,” Chief
Minister Datuk Seri Musa Haji Aman
told reporters after visiting the newly
completed PPR in Gum Gum on
Sunday. Musa said the houses under
the PPR are built for the people
especially those who have no homes
or whose homes are dilapidated or
have no land to build houses. (8
February, New Sabah Times)
Jalan baru: penantian 5,000
penduduk berakhir: Penantian lebih
5,000 penduduk dari 10 buah
kampung di pedalaman daerah ini
untuk menggunakan jalan yang
sempurna bakal berakhir apabila
projek menaik taraf tiga jalan utama
di Kampung Sungai Eloi dekat sini,
siap hujung tahun ini. Ahli Dewan
Undangan Negeri (ADUN) Pitas,
Datuk Bolkiah Ismail berkata,
pembinaan jalan tersebut yang sudah
pun
bermula
melibatkan
kos
sebanyak RM21 juta. Beliau yang
juga Pembantu Menteri Pelancongan,
Kebudayaan dan Alam Sekitar Sabah
berkata, sebelum ini semua laluan
tersebut berada dalam keadaan daif,
tidak selesa dan merbahaya. (22
Februari, Utusan Malaysia)
MONTHLY NEWS SCAN (Tinjauan Berita Bulanan)
3
SELECTED FACTS AND FIGURES
FAKTA MUTAKHIR
CONSUMER PRICE INDEX
Consumer Price Index
( 2005 = 100)
( % Change )
Jan
2008 / 2007
2009/2008
Malaysia
Peninsular Malaysia
Sabah
Sarawak
5.4
5.4
6.0
6.0
0.6
0.5
1.7
0.2
2010/2009
1.3
1.3
1.1
1.3
(Source: 24 February, Department of Statistics Malaysia)
JAPAN GDP GROWTH RATE
(Source: 12 February, http://www.tradingeconomics.com/)
GROSS DOMESTIC PRODUCT / GROSS NATIONAL INCOME
Gross Domestic Product /
Gross National Income
Gross Domestic Product (GDP):
Current Prices
(RM Million)
Gross Domestic Product (GDP):
Constant 2000 Prices
(RM Million)
GDP Growth Rate
Constant 2000:
Prices (%)
Gross National Income (GNI):
Current Prices
(RM Million)
Per Capita GNI:
Current Prices (RM)
2008p
2009p
3 Quarter
2009p
4 Quarter
738,677
173,256
184,617
528,311
134,162
137,112
4.6
-1.2
4.5
714,970
171,678
n.a
25,784
24,131
n.a
rd
th
(Source: 24 February, Department of Statistics Malaysia)
1 – 28 February 2010
MONTHLY NEWS SCAN (Tinjauan Berita Bulanan)
4
AUSTRALIA GDP GROWTH RATE
(Source: 12 February, Tradingeconomics)
MALAYSIA EXTERNAL TRADE 2009-2010
External Trade
(RM Million)
Total Exports
Total Imports
Balance of Trade
Jan-Dec
2009p
553,295
434,940
118,355
January
2009p
2010
52,447
39,516
12,932
38,270
30,161
8,109
(Source: 28 February, Department of Statistics Malaysia)
SINGAPORE UNEMPLOYMENT RATE DEC 1998-DEC 2009
4.5
4
3.7
3.7
3.5
3.9
3.4
3.2
3
2.6
2.7
2.5
2.5
2.4
2
2.3
2.1
1.5
1.7
1
0.5
0
'98
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
(Source: 27 February, http://www.mom.gov.sg)
1 – 28 February 2010
MONTHLY NEWS SCAN (Tinjauan Berita Bulanan)
5