20100308 1147 Malaysian Economic News.

The country’s new economic model (NEM), which is expected to be unveiled at the end of this month, could have eight key initiatives aimed at achieving a high-income economy, source said. As expected, among the proposed actions plans, which are being firmed up, are strategies:

• To move towards a high-income economy 
• The phasing out of subsidies, which may follow Indonesia’s model of subsidy reforms
• The continued gradual removal of affirmative action policies
• To restrict the employment of foreign workers across all sectors in order for local workers to have more job opportunities
• The measures of “Green” or environmental initiatives The new model is expected to be announced by Prime Minister Datuk Seri Najib Razak at the annual Invest Malaysia conference on 30-31 Mar, will likely pick up where last year’s sweeping reforms left off. (Financial Daily)

Malaysia’s exports surged 37.0% yoy to RM52.5bn in January (18.7% in Dec 09), marking the highest increase in more than 11 years as manufacturers shipped more goods to China and Europe amid a global economic recovery. Imports rose 31.0% yoy (23.3% in Dec 09), resulting in a trade surplus of RM12.9bn in January (RM12.1bn in Dec 09). Economists forecast both exports and imports would increase by 31.3% and 32.0% respectively in January. (Bloomberg)

The international reserves of Bank Negara Malaysia amounted to RM331.8bn (US$96.8bn) as at 25 Feb 10, from RM332.1bn (US$96.9bn) as at mid-Feb. The reserves position is sufficient to finance 10 months of retained imports and is 4.3 times the shortterm external debt. (BNM) Please see our Economic Update for further details

The Domestic Trade, Cooperative and Consumerism Ministry will table a new proposal on the restructuring of the fuel subsidy to the Cabinet soon. Its minister, Datuk Seri Ismail Sabri Yaakob, said the ministry, with cooperation from the Subsidy Rationalisation Lab, would propose the best implementation mechanism to channel all subsidies including fuel, food or infrastructure. "We will also propose to the Cabinet the best suitable methods to curb the purchase of subsidised fuel by foreign nationals," he added. (Bernama)

The government will give emphasis on the development of local manpower so that they can be utilised in the employment sector in efforts to reduce the dependency on foreign labour. Deputy Minister of Human Resources Senator Datuk Maznah Mazlan said that in 2008 there were 2m foreign labourers registered in the country. However, she said the figure dropped to 1.6m in 2009 following the world economic crisis which also affected Malaysia.

• "We see that there are about 6.5m local labour force with potentials for employment comprising housewives. Of this number, only about 46.0% are involved in the employment sector. If we can raise the figure to 60.0%, we will have potential manpower of more than 1.2m comprising women," she said. (Bernama)