Title: Malaysian Economy-Update

Malaysian Economic Outlook 4rd Quarter 2009

Published on Tue, 02 Feb 2010 06:34:28 PST

Malaysian Economic Outlook 4rd Quarter 2009 Executive Summary Various economic indicators continued to show improvement ahead, albeit being subjected to occasional pullbacks. This progress is brought about by the efforts of numerous national policy stabilisation. Some countries may start to normalise their policies first, while others, depending on their economic conditions among things, may opt to do so later. In October 2009, the IMF anticipated the global economy to expand read more..

Bank Negara Kept OPR at 2%

Published on Thu, 28 Jan 2010 16:40:59 PST

Bank Negara Kept Interest Rate (OPR) at 2% On January 26, 2008 Bank Negara announced that the Bank kept Overnight Policy Rate (OPR)i.e the benchmark interest rate, at 2%. The OPR has been unchanged since March 2009. The low rate is in line with the "accomodative monetary policy" to ensure economic recovery was well entrenched. But, many economists believe that the OPR will be raised sooner, but it depends on the economic recovery in the next few months. According to BNM, recent e read more..

New Act for Bank Negara Malaysia

Published on Sat, 05 Dec 2009 21:36:51 PST

I kept my old newspapers and found an information related to the new Central Bank of Malaysia Act 2009 (New Straits Times, Thursday November 26, 2009). The new Central Bank of Malaysia Act 2009 has come into force and has a more robust governance framework that provides for a higher degree of accountability and transparency. Bank Negara Malaysia said the Act will enable it more effectively manage emerging risks and challenges. The new act makes the central bank's mandate clearer read more..

Budget 2010 Proposals At A Glance

Published on Fri, 23 Oct 2009 19:15:52 PDT

Budget 2010 Proposals At a Glance By: Mansid 2010 Budget Strategies On Friday, 22 October 2009, Prime Minister announced 2010 Budget. The 2010 Budget will be the foundation for the development of the new economic model and the formulation of the 10MP. The Budget focuses on three strategies, namely: 1. Driving the nation towards a high income economy; 2. Ensuring holistic and sustainable development; 3. Focusing on well-being of the rakyat. On EDUCATION... ----- read more..

Malaysian Economic Outlook

Published on Tue, 20 Oct 2009 04:07:37 PDT

Third Quarter 2009 Malaysian Economic Outlook Executive Summary Although it may be too early to say that the global recession has ended, numerous indicators are suggesting that the downturn is somewhat subsiding. Massive national fiscal stimuli and monetary expansions have largely aided the gradual recovery. Questions have been raised as to whether economic activities can be sustained once these measures are withdrawn. In October 2009, the IMF anticipates that the global economy read more..

Signs of Recovery

Published on Sun, 27 Sep 2009 06:54:28 PDT

Signs of Recovery in Domestic Demand? Dr Zeti Akhtar Aziz, Bank Negara governor, said that Malaysia domestic demand is showing clear signs of recovery boosted by the fiscal stimulus and an accommodative monetary policy! Nevertheless, I am not convinced enough with the above statement. It is a premature statement.... Facts and figures do not show enough evident. Let see what she reported! According to the governor, domestic demand in the second quarter (2Q) of this year (200 read more..

Malaysian Economic Outlook 2nd Quarter 2009

Published on Sun, 27 Sep 2009 06:59:35 PDT

Executive Summary The road to global recovery appears to be sluggish and uneven, facing many daunting challenges along the way. Both the World Bank and the IMF are projecting the world economy to slide into a deeper recession in 2009. In July 09, the IMF revised its global economic forecast to -1.4% in 2009 (2008:3.1%), while the global contraction in 2009 is estimated at -2.9% by the World Bank. According to the latest IMF revision, the US (2009: -2.6%) will experience a less sever read more..

Liberalisation Najib’s New Economic Model and 1Malaysia

Published on Sun, 27 Sep 2009 07:02:45 PDT

Keynote address by Prime Minister Datuk Seri Najib Razak at Invest Malaysia 2009 in Kuala Lumpur on June 30, 2009 Introduction 1. First of all, let me thank the organisers of Invest Malaysian 2009 for their kind invitation for me to speak at the Fifth Invest Malaysia conference. I am delighted to see such a large turnout of investors and would like to extent a warm welcome to our international visitors. Invest Malaysia has become the most important annual for read more..

Malaysian Economy Reforms

Published on Sun, 27 Sep 2009 06:29:35 PDT

Prime Minister Malaysia, Datuk Seri Najib Abdul Razak unveiled bold measures to further liberalise the economy, including repealing Foreign Investment Committee (FIC)guidelines that have long hampered efforts to attract foreign investors. Highlights Of Reform 1. FIC Deregulation Deregulation of FIC guidelines encompasses: i) Acquisition of equity stakes, mergers and takeovers; With immediate effect, FIC guidelines covering the acquisition of equity stakes, mergers and ta read more..

Malaysian Economy Contracts By 6.2%

Published on Sun, 27 Sep 2009 06:49:22 PDT

Bank Negara Malaysia (BNM) announced that Malaysia's first quarter gross domestic product (GDP)this year (2009) contracted by 6.2% from a growth of 0.1% in the fourth quarter last year (2008) but the prognosis for improved economic conditions look brighter in the second half of the year. Tan Sri Dr Zeti Akhtar Aziz said attributed the contraction to the deterioration in external demand following the deepening recession in advanced economies. Export demand continues to be weak and th read more..

Bank Negara Leaves OPR at 2%

Published on Wed, 29 Apr 2009 19:49:35 PDT

BNM Leaves OPR Unchanged at 2%Bank Negara Malaysia has left the key overnight policy rate uncganged at 2%.BNM felt that the accumulated monetary policy measures are sufficient to provide support to domestic demand.The implementation of the fiscal stimulus measures, and the accommodative monetary environment following the previous reductions in the OPR will provide support to domestic economy activity.BNM would monitor closely and assess the evolving developments in setting future monetary and fi read more..

Liberalisation of Malaysia Financial Sector

Published on Thu, 06 Aug 2009 17:45:51 PDT

Good news for the Malaysian economy...Yesterday (theSun April 28, 2009)the government announced a slew of measures to liberalise the financial sector, including allowing foreigners to take a controlling stake in investment and Islamic banks and insurance and Takaful firms.9 new licences will be issued to foreign participation in both conventional and Islamic banking from now to 2012. The announcement comes a week after the government liberalised 27 services sub-sectors to throw open the door for read more..

Malaysian Economic Outlook 1st Quarter 2009

Published on Thu, 06 Aug 2009 17:47:34 PDT

Malaysian Economic Outlook 1st Quarter 2009Executive SummaryThe global growth prospects are reviewed almost every month in reaction to the release of grim data. Both the World Bank and the IMF are projecting the world economy to slide into a deeper recession in 2009. The US Federal Reserve stated that until the financial sector malaise is resolved, it is unlikely that the US economy will show improvement. In March 08, the IMF has slashed its global growth forecast to between -0.5 to -1.0 per cen read more..

Malaysia Takes Measures If Global Economy Worsens

Published on Fri, 03 Apr 2009 16:48:22 PDT

Malaysia to Take Extra Measures if Global Economy WorsenIn theSun today (Thursday, 26 March 2009), Tan Sri Zeti, Governor Bank Negara Malaysia said Malaysia has the capacity to take additional measures if the global economy worsens and financial conditions fail to stabilise after the second half of the year.She commented that most of the measures are in place and Malaysia has further measures that she can undertake in promoting growth in new areas as well as entering into arrangements with other read more..

CIMB Say KLCI May Hit Bottom?

Published on Wed, 18 Mar 2009 17:48:52 PDT

I read today (March 19, 2009) theSun and found an interesting news about Malaysian economy: "KLCI may hit bottom in second half: CIMB".According to the news, the Kuala Lumpur Composite Index (KLCI) may go down to 700 points in the second half of this year (2009) before staging a mini-rally by year-end. CIMB said it was not impossible for the local bourse to take a dip from the current level because the market volume has also fallen a great deal. CIMB was forecasting a contraction of 0.5% of the read more..

RM600 Billion Mini-Budget For Stimulus Package

Published on Mon, 16 Mar 2009 08:22:00 PDT

At last, the government announced a RM60 billion mini-budget to save the economy from recession.FUNDS TO BE SPENTThe second stimulus package will have 4 thrust:>>1. REDUCING unemployment and increasing employment (RM2 billion)>>2. EASING the burden of the Rakyat (people), in particular vulnerable groups (RM10 billion.)>>3. ASSISTING the private sector in facing the crisis (RM29 billion.)>>4. BUILDING capacity for the future (RM19 billion)WHERE THE FUNDS COME FROM>>1. Fiscal injection --> RM15 bi read more..

KPMG Says Malaysia Needs Policy on Spending

Published on Tue, 10 Mar 2009 10:06:15 PDT

There was a statement made by KPMG that Malaysia needs a more direct policy to encourage consumer spending to help the economy ride out the current global financial crisis (NST: Thursday, March 5, 2009). I totally agreed with the statement as I have made several comments on the same issue.KPMG said the upcoming mini-budget should focus on avenues for consumers, especially those in lower income bracket, to spend. Among the areas are by providing low-cost housing and food vouchers. Slashed interes read more..

MIER Says Malaysia In Recession

Published on Thu, 05 Mar 2009 03:14:36 PST

I read in theSun today (March 5, 2009)about "Malaysian on brink of recession, says MIER".Malaysia stands on the brink of recession as falling demand hits exports and manufacturing with growth expected to reach 0.5% this year (09). MIER forecast the economic growth for first half of 2009 will be nagative which will put Malaysia in a technical recession, but show positive figures in the second half of 2009.Mohamaed Ariff (MIER boss) said "overall, it will be 0.5% growth for this year (2009) in the read more..

BNM Announced Monetary Policy Decision

Published on Thu, 05 Mar 2009 16:54:05 PST

Malaysian economy is getting or expecting to get worse if no monetary and fiscal policy changes.Bank Negara has taken fast decision by taking another round of rates cut. BNM announced yesterday that OPR (Overnight Policy Rate) will be reduced by 50 basis points to 2.00%. The ceiling and floor rates of the OPR are correspondingly reduced to 2.25% and 1.75% respectively. The Statutory Reserve Requirement (SRR) is adjusted downwards from 2% to 1% effective 1 March 2009 to reduce further the cost of read more..

Stop Excessive Politiking and Help the Economy

Published on Thu, 05 Mar 2009 03:16:19 PST

Stop Excessive Politicking and Help the EconomyI read the above tittle in today The New Sunday Times (February 15, 2009). That was a brave statement made by a politician who understand about the current scenario of Malaysian economy today.Datuk Seri Chia Kwang Chye, Gerakan Vice President that Gerakan has called on all the Barisan Nasional component parties as well as the opposition to stop excessive politicking and instead work together to help the economy.He said many issues had cropped up aft read more..

4th Quarter 2008 Peninsular Malaysia Voter Opinion Survey

Published on Thu, 05 Mar 2009 03:17:08 PST

Economy Tops List of Concerns, Survey RevealsThe biggest concerns of the Peninsular Malaysia voters are economic, ethnic and governance-related issues, an opinion poll carried out by the Merdeka Centre for Opinion Research revealed.A total of 1,018 respondents were interviewed in the “4th Quarter 2008 Peninsular Malaysia Voter Opinion Survey” conducted between December 26 last year and January 2 2009, before the Kuala Terengganu by-election.“Economic concerns” were the most quoted respon read more..

Bank Negara Cut OPR and SRR

Published on Thu, 05 Mar 2009 03:17:48 PST

Good news for Malaysian economy!I theSun today(January 22, 2009), it mentioned that, with immediate effect, BNM cut OPR (Overnight Policy Rate)by 75 basis points to 2.5% from 3.25% previously. As result of that the ceiling and floor rates of the corridor for the OPR are correspondingly reduced to 2.75 percent and 2.25 percent respectively.And, SRR (Statutory Reserve Requirement is also lowered from 3.5% to 2% effective February 1, 2009. The reductions of OPR and SRR would be reflected in lower b read more..

Malaysian Economic Outlook 4th Quarter 2008

Published on Thu, 05 Mar 2009 03:18:31 PST

EXECUTIVE SUMMARYDespite concerted interest rate cuts and massive liquidity injection, the global credit crisis continues to deepen with little signs of abating. In November, the IMF has revised its global outlook to be even grimmer, taking into account the deteriorating economic trends. The IMF has slashed its global growth forecast to 2.2% in 2009 (2008: 3.7 %), from 3.0% in the earlier projections. The latest revision projects the three major economies of US, Europe and Japan heading into rec read more..

Malaysia in Technical Recession

Published on Thu, 05 Mar 2009 03:19:15 PST

I read theSun this morning (January 14, 2009) on the remarks made by Mr Choong Wai, Citigroup Global Market director. He said taking into account the current economic scenario, Malaysia has likely gone into a technical recession beginning the 4th quarter of 2008 and continuing in the 1st quarter 2009.Factors leading to this recession could be attributed to the decrease in consumer loan applications and approvals; a Bank Negara data showing about 11,500 workers losing jobs in the 3rd quarter 2008 read more..

Time for A New Stimulus Package

Published on Thu, 05 Mar 2009 03:20:02 PST

It appears from the data released by the Statistics Department in the 3rd quarter 2008 that we are heading for a major economic slowdown, if not a recession this year.The overall balance of payments in the 3rd quarter showed a drastic change to a deficit of RM31 billion, from a surplus of RM26 billion registered in the 2nd quarter.There has also been a large net capital outflow. Thus Bank Negara’s international reserves have also declined by RM31 billion in the 3rd quarter compared to a increa read more..