20100408 0946 Malaysian Economic News.

The international reserves of Bank Negara Malaysia (BNM) amounted to RM311.7bn (US$95.3bn) as at 31 Mar 10 (US$96.8bn as at 15 Mar 10). This reserves level has taken into account the quarterly adjustment for foreign exchange revaluation loss, following the strengthening of the ringgit against all major currencies during the quarter. The reserves position is sufficient to finance 8.8 months of retained imports and is 4 times the short-term external debt. (BNM)

Malaysia is expected to receive investments amounting to RM2.3bn in the next 2-4 years from French investors, particularly in the aerospace field, Deputy Prime Minister Tan Sri Muhyiddin Yassin said. Among the industries in which the French investors are keen to invest are aerospace where there are 4 interested companies, information communication technology (3 companies) and electronics (2 companies). The biotechnology, automotive, engineering, hotel, defence and private business industries have attracted one investor each.

• A company has also offered its expertise in halal product certification and forensic DNA identification, which it is expected to set up a laboratory in Malaysia with an initial investment of about €500,000 to €1.0m to identify halal contents, especially food products. (Bernama)

The sugar subsidy will be withdrawn in stages as part of the government's drive to encourage the public to consume less sugar, said Domestic Trade, Cooperatives and Consumerism Deputy Minister Datuk Tan Lian Hoe. She said however,

• if there was any further increase in sugar price, it would be minimal and would not burden the people. The government was expected to spend RM1.008bn to subsidise sugar this year or 80 sen per kg to ensure that the retail price remained at RM1.65 per kg. (Bernama)

The Employees Provident Fund (EPF) General Manager for Public Relations, Nik Affendi Jaafar annnounced a revision on the minimum withdrawal quantum for accounts in excess of RM1m. The minimum quantum that can be withdrawn each time has now been reduced from RM100,000 to RM50,000. "Members having at least RM1.05m in their accounts are eligible to withdraw RM50,000 and above once every three months subject to there being sufficient savings," he said. (Bernama)

The Employees Provident Fund (EPF) can consider application by members to withdraw money from account two to rebuild houses destroyed by fire after verification by the Fire Department and police, Dewan Rakyat was told. Deputy Finance Minister Datuk Dr Awang Adek Hussin said the withdrawals allowed will be based on the value of houses destroyed by fire. Destruction must be total as it will not be allowed if only the kitchen has been destroyed. (Bernama)

The National Higher Education Fund Corporation (PTPTN) still has RM6bn to cover its expenses for this year and next, Higher Education Minister Datuk Seri Mohamed Khaled Nordin said. The unused fund was part of the allocation received by the corporation under the Ninth Malaysia Plan (9MP). To date, PTPTN had spent RM32bn to provide study loans for students, of which 52% had been repaid. Last year alone, it only managed to collect over RM400m from the total RM1.07bn loans disbursed. (Bernama)

The Asean economic integration is set to advance this year, with the coming into force two key agreements, hence liberalising trade and investment in the region soon, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

• Asean Eonomic Ministers pledged to implement the Asean Trade in Goods Agreement (ATIGA) by next month following the readiness by Thailand and the Philippines to sign the pact on 8 Mar 10. The Asean Comprehensive Investment Agreement (ACIA) would be enforced by October after Indonesia signed the agreement soon. (Bernama)

Cuepacs has urged the government to reduce the interest rate on housing loans from 4% to 2% in keeping with the market rates. Its secretary-general, Ahmad Shah Mohd Zin, said many commercial banks were charging less than 4% and the government should also adjust the rates which were first introduced in the early 70s. (Bernama)

The Department of Statistics will carry out a nationwide population and household census from 6 Jul to 22 Aug. The census exercise would involve 29m people, including about 7.3% foreigners. (Bernama)

A Unesco-Malaysia Co-operative Trust Fund has been set up to help poor nations achieve the Education For All (EFA) target by 2015. Deputy Prime Minister Tan Sri Muhyiddin Yassin, who announced this yesterday, said Malaysia would contribute US$5m (RM16.5m) for the launching grant and an additional annual grant of US$1m (RM3.3m). The fund will be utilised to organise capacity-building courses for participants from leastdeveloped countries, small island states and Africa, he added. (The Star)

The lower income group will pay less tax for goods and services under the proposed Goods and Services Tax (GST), Prime Minister Datuk Seri Najib Tun Razak said. He said these people would need to pay an average of RM79.57 monthly in tax for goods and services although they were exempted from paying income tax. (The Star)