20100317 0912 Malaysian Economic News.

Deputy Prime Minister Tan Sri Muhyiddin Yassin said that the New Economic Model (NEM) to be launched soon will be capable of being an important instrument for breaking down racial barriers and prejudices in this country. All races would have a role and opportunity to make full use of their potential, and compete fairly in the economic sector. He believes that when every citizen regardless of race and religion is guaranteed of equal rights, then true racial unity and harmony can be realised. (Bernama)

The government is still competent in luring more foreign investments this year despite stiff competition, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said. He was confident both foreign and domestic investments would continue to increase in Malaysia given the government's transformation announced in January and the various steps taken to strengthen the economy. (Bernama)

Corporate default rate is projected at 3.3% this year in view of the continuous improvement in economic activity going forward, according to Malaysian Rating Corporation Bhd (MARC). This was a drop compared with a 5.6% in 2009. The projected default rate was premised on its recently revised gross domestic product (GDP) growth forecast of 5.2%.

• "Going into 2010, the agency expects the tail risk from corporate defaults to remain, mainly contributed by the 2009 surviving fallen angels. On a positive note, however, with the recovery taking hold in the economy, corporate credit quality should see improvement," it said. (Bernama)

Minister of International Trade and Industry Datuk Mustapa Mohamed said that the participation of bumiputera companies in all the 27 services sub-sectors since they were liberalised in Apr 09 remains small in terms of equity interest. However, he said the level of bumiputera equity interest in the services sub-sectors was not affected at this stage following the liberalisation as foreign investor participation was “not significant” to date. (Financial Daily)