20100405 1131 Malaysian Economic News.

Exports climbed for a third month in February as manufacturers shipped more electronics goods and palm oil to customers in Singapore, China and Europe amid a strengthening global economic recovery. Overseas shipments rose 18.4% yoy to RM46.8bn (37.0% in Jan) while imports rose 27.9% to RM35.2bn (31.0% in Jan). The trade surplus narrowed to RM11.7bn from RM12.9bn in January. Economists forecast the exports and imports would increase by 25.0% and 34.9% respectively for February. (Bloomberg)

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the government was studying the provision of subsidies worth RM73bn through the Subsidy Rationalisation Lab. It is expected to complete the proposal and study before the tabling of Budget 2011 this year. "The study includes all forms of subsidies involving food, services, toll, electricity tariffs, agriculture, education and more. It needs to be done to see if there is any overlap, its rationale and what needs to be improved, reduced and such," he noted. (Bernama)

PM Datuk Seri Najib pledged to implement policies to ensure Malaysia’s investment environment remains conducive ad competitive to attract foreign direct investments (FDIs). On the liberalisation of the financial services, he said the government was in the midst of processing applications from India and the Middle East with a paid-up capital of US$1bn each. (Financial Daily)

The Federal Agriculture Marketing Authority (Fama) will ensure that the effort to enhance agro-based industry will remain successful despite a smaller budget of RM5.3m this year (vs. RM16m allocation in 2009). "We will use the allocation optimally," its senior director Mansor Omar said. (Bernama)

Malaysia’s 1.2m civil servants have been promised an adjustment in their salaries if their productivity increases and the Government’s financial position become stronger. PM Datuk Seri Najib Tun Razak also urged them to be pillars of strengthen to the Government in implementing all the initiatives planned. (The Star)