|
Malaysia News Update - July 2003 |
| May
trade surplus at RM6.344 bln, highest in 17
mths
|
The
country's May trade surplus rose over 73% to RM6.344
billion from the RM3.66 billion a year earlier on the
back of stronger exports while imports slipped,
according to official preliminary data released on
July 1.
The
surplus was the highest in 17 months since January
2002. The second highest surplus was in March when the
trade surplus was RM6.340 billion.
|
| Exports
up 5.7% in April |
Malaysian
exports grew by a faster-than-expected 5.7% in April
compared with a year ago but imports declined by a
bigger magnitude, raising concerns that export
performance over the next few months may slow
down.
The
difference in growth between exports and imports was,
however, more than enough to ensure a trade surplus of
RM5.77bil for April. The trade surplus for April 2002
was
RM2.05bil. |
| IPI
up 11.8% on-year |
The
Industrial Production Index (IPI) for April surged
11.8% to 210.7 from 188.5 a year earlier, the highest
since December 2000, due to stronger-than-expected
growth in the manufacturing
sector.
The
Statistics Department said the manufacturing sector
index expanded by 12.7% to 233.1 from 206.8. The
mining index rose 9.8% to 12.9 (from 117.9) and the
electricity index up 7.0% to 241.5 (from
225.7).
|
| BNM
international reserves at RM138.52
bln |
Bank
Negara's international reserves stood at RM138.52
billion (US$36.5 billion) as at May 31,
2003 - an
increase of RM0.4 billion during the second half of
the month.
The
central bank said the increase was supported mainly by
higher repatriation of export earnings. The outflows
reflected the payments for imports of goods and
services as well as larger dividends repatriation, it
added.
Bank
Negara also said the reserves position was adequate to
finance 5.6 months of retained imports and was 4.4
times the short-term external debt.
|
| May
vehicle sales down 18% as buyers hold back on new
purchases |
Malaysia’s
vehicle sales fell in May as consumers remained
reluctant to purchase automobiles. Sales of
passenger cars and four-wheel drive and commercial
vehicles fell 18.2% to 31,652 vehicles in May from
38,682 the same month a year earlier, the Malaysian
Automotive Association said.
|
| Malaysia
to post 2.2% productivity growth in
2003 |
Malaysia
is expected to achieve a productivity growth of 2.2%
this year despite the unfavourable economic
environment among major trading partners, says
Minister of International Trade and Industry Datuk
Seri Rafidah Aziz.
She said
the manufacturing sector was expected to register a
productivity growth of 2.4%, followed by finance 1.9%,
transport 1.9%, trade 1.0% and construction
0.4%.
|
| Ringgit
for ringgit plan to boost trade on
KLSE |
An
ambitious plan to attract foreign funds to the KLSE,
with the government or government-linked institutions
matching ringgit for ringgit all investments by
foreign fund managers in the capital market, could be
rolled out within the next six months.
|
| Govt
allocates RM 700 mln for technology, branding &
ICT |
The
government launched three new funds with a total
allocation of RM700 million focussing on three areas -
technology, development of local brands and
information and communications technology
(ICT).
Second
Finance Minister Datuk Dr Jamaludin Mohd Jarjis said
the new funds were part of the RM7.30 billion economic
stimulus package unveiled last month. The government
allocated RM500 million for the New Technology
Investment Fund (NTIF) to develop new resource-based
industries. |
| Chips
industry poised for double-digit
growth |
The
semiconductor industry, a major driving force within
the electronics sector, is expected to return to
double-digit growth this year after going through a
severe downturn for more than two years, said
International Trade and Industry Minister Datuk Seri
Rafidah Aziz. |
| SC
comes out with best practices
guide |
The
Securities Commission (SC) has come out with a guide
on effective internal controls, for management
companies and trustees. |
| MTCC
to use new standard |
The
Malaysian Timber Certification Council (MTCC) plans to
use a new standard that has been developed using
principles and criteria of the Forest Stewardship
Council (FSC) as the template for the next phase of
its certification scheme, Primary Industries Minister
Datuk Seri Dr Lim Keng Yaik
said. |
| KLIA
bags two global awards |
KL
International Airport (KLIA) has won two awards at the
Airport World Service Excellence Awards, voted
runner-up Best
Airport
in the World and in the Asia Pacific Region (under 25
million passengers per
annum). |
| Euros:
Bank Negara to decide |
The
Government will let Bank Negara
Malaysia
decide whether it wants to stock its international
reserves with more euros now that the currency has
strengthened against the US dollar. As a result of the
euro appreciating about 25% for the past few weeks,
the central bank’s international reserves have shot up
to about US$36.5 billion as at May
31 2003 |
| PM:
Use euro in trade |
The
private sector has been urged to use the euro in their
export trade as the US dollar is likely to depreciate
further, Prime Minister Datuk Seri Dr Mahathir Mohamad
said.
|
| Asia
must reduce dependency on US
dollar |
Prime
Minister Datuk Seri Dr Mahathir Mohamad says the US
dollar is unstable and Asian countries should rethink
their dependency on it, moving away from the currency
over the longer term.
Noting the
dollar's recent fall against the euro, Dr Mahathir
told a seminar in Tokyo on June
5: "The US dollar is not a stable currency at all. We
have to think of some other ways of determining
exchange rates. We need
to rethink whether we can depend on the U.S. dollar or
not," he added. "Initially yes, we have to depend on
the US dollar, but we should move away from the US
dollar." |
| Malaysia
benefits the most from
China’s
WTO entry |
Malaysia will
enjoy the most benefits from
China's entry
into the World Trade Organisation (WTO) compared with
other developing middle-income countries in
East
Asia,
according to the World Bank.
|
| Malaysia
willing to have trade investment framework with
US |
Malaysia
is willing to have a trade investment and framework
agreement (TIFA) with the
United
States
because it is a market-driven initiative,
International Trade and Industry Minister Datuk Seri
Rafidah Aziz said. |
| Bio
Valley
set to benefit all |
The
Bio
Valley
in the Multimedia Super Corridor is set to be a
catalyst in research and development on flora and
fauna, said Science, Technology and Environment
Minister Datuk Seri Law Hieng
Ding. |
| Japan
asked to help in Bio-Valley
project
|
Prime
Minister Datuk Seri Dr Mahathir Mohamad has asked
Japan
to help in the Bio-Valley project, which he said will
benefit not only
Malaysia
but also the rest of the
world |
| Dr.
M: Devise own formula |
Tokyo:
Set against an increasingly unipolar world, and hemmed
in by multiple internal and external distractions,
Datuk Seri Dr Mahathir Mohamad said
Asia
must devise its own formula of governance based on
adapted democratic principles and sound economic
policies and regimes.
The
Prime Minister, addressing a conference on the future
of Asia
here, acknowledged that democracy is the best form of
government, but Asian countries should adopt it
gradually.
|
| Malaysia
seeks better market access |
Malaysia
has made a request for better market access and
national treatment in accounting, auditing, taxation
and services related to management consultancy, said
Minister of International Trade and Industry Datuk
Seri Rafidah Aziz.
The
request was made to the World Trade Organisation
(WTO).
Rafidah said liberalisation in WTO entails some
degree of reciprocity, although the General Agreement
on Trade in Services (GATS) allows flexibility and
progressive
liberalisation. |
| Malaysian
goods set to enter Iraq |
Malaysian
goods and services will soon make inroads into
Iraq
which is undergoing post-war reconstruction, said
International Trade and Industry Minister Datuk Seri
Rafidah Aziz.
She
said the private sector from
Iraq’s
neighbours such as
Turkey
and Jordan
had invited Malaysian businessmen to team up with them
in joint venture
undertakings. |
| Thousands
bid goodbye to their hero |
Much
was expected from the 54th Umno general assembly,
especially since it was the last for Datuk Seri Dr
Mahathir Mohamad as the party president. The crowd at
the Putra World Trade Centre swelled to 90,000 at one
point – the biggest ever seen at the country's premier
convention center
Dato
Seri Dr Mahathir Mohamad, in his last address as Umno
president to the general assembly, has asked members
to give the same kind of support they showed him to
Datuk Seri Abdullah Ahmad
Badawi.
|
| Chan
is new Transport Minister |
Prime
Minister Datuk Seri Dr Mahathir Mohamad announced a
minor Cabinet reshuffle on June 24, appointing Datuk
Chan Kong Choy as the new Transport
Minister.
Dr
Mahathir also announced the appointment of Datuk Dr Ng
Yen Yen as Deputy Finance Minister II. Dr Ng, who was
the Deputy Culture, Arts and Tourism Minister, takes
over from Chan.
The
minor Cabinet reshuffle came after the resignations of
MCA president and Transport Minister Datuk Seri Dr
Ling Liong Sik in late May.
|
|
Ong
to pursue proposal for maximum tenure for MCA
president |
MCA
president Datuk Seri Ong Ka Ting has pledged to work
towards limiting the party presidency to a maximum of
3 consecutive
terms. |
| Moggie’s
Cabinet post not affected |
Datuk
Amar Leo Moggie will remain as Energy, Communications
and Multimedia Minister “as long as he is qualified”
says Prime Minister Datuk Seri Dr Mahathir
Mohamad. He said that Moggie’s resignation as
Parti Bansa Dayak Sarawak president did not affect his
Cabinet
post.
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