Tuesday, March 30, 2010

20100330 1013 Malaysian Economic News.

The highly anticipated New Economic Model (NEM) to be unveiled today aims to transform the country into a high-income nation. The framework of the NEM will recommend action on: (i) reducing subsidies, (ii) providing a wider safety net to cover more people, (iii) improving the skills of the locals, (iv) addressing the question of affirmative action, and (v) redefining the poor and how to help them. Today’s unveiled framework is the first part of the NEM. (The Star)

The 'Impact of Foreign Workers on the Malaysian Economy' study by the National Economic Action Council (NEAC) cost RM1.16m, the Dewan Rakyat was told. Prime Minister Datuk Seri Najib Tun Abdul Razak said based on the study, seven new initiatives were implemented among them the establishing of a special task force by the Home Ministry to review policies and procedures in the hiring of foreign workers. (Bernama)

Malaysia's banking system remains strong and well capitalised to provide loans to anyone especially for running and expansion of businesses, the Dewan Rakyat was told. Deputy Finance Minister Datuk Chor Chee Heung said Bank Negara's decision to shorten the non-performing loan (NPL) classification period to 3 months from 6 months did not adversely affect the country's banking system. It also did not change the way banks handle the NPL issue. (Bernama)

Total trade in the Multi-Level Marketing (MLM) industry is expected to reach RM10bn by the end of the 10th Malaysia Plan (10MP) (estimated RM5bn in 2009), Minister of Domestic Trade, Cooperatives and Consumerism, Datuk Seri Ismail Sabri Yaakob said. Sabri added that the MLM industry had the potential to expand even faster if it was regulated closely by an effective Act. (Bernama)

Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, has invited Thai companies to invest more in Malaysia. He said the companies could leverage on Malaysia's conducive investment environment through establishing joint ventures with local companies. "The New Economic Model (NEM) will present exciting opportunities for business collaborations," he said. (Bernama)

Thai entrepreneurs are seeking Malaysian joint venture (JV) partners to enhance cooperation in trade and investment to benefit from the establishment of an Asean Economic Community (AEC) in 2015. Thailand Chamber of Commerce chairman, Dusit Nontanakorn, said AEC aimed to turn the region into a single market with over 500m people, into a community where goods, production assets, people and capital could move across borders freely. (Bernama)

The Employees Provident Fund (EPF) plans to increase its overseas investment to 10.0% over the next one to two years (vs. current 6.0-7.0%). Its CEO Tan Sri Azlan Zainol said the focus would be on investing further in equity of public-listed companies. (Financial Daily)

A new Employees Provident Fund scheme to enable contributors to get higher housing loans based on their Account II savings will be implemented this year. Its CEO Tan Sri Azlan Zainol said several banks had expressed interest in the scheme and were willing to help contributors obtain higher financing. (NST)

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