Wednesday, November 2, 2011

20111102 1002 Local & Global Economic Related News.

Some RM10bn in  investments  under the  Economic Transformation   Programme (ETP) over the past one year have been realised, constituting 64%   of the RM15bn investments committed for the year, Pemandu CEO Datuk Seri   Idris Jala said. Entry Point projects (EPPs) were progressing well with 70 out of   131 EPPs or 53% have taken off.   In 1H11, private sector investment was up 23.4% to RM51.2bn,   outstripping public investment for the same period, he said.   The first six months also saw the GNI standing at RM288bn,   investment of RM51.2bn and some 344,000 jobs created by 2020.   (Bernama)

Bank Negara Malaysia (BNM) Governor Tan Sri Dr Zeti Akhtar Aziz  said there were improvements in the country's 3Q11 GDP figures, supported by   strong consumption demand, implementation of various government projects   and strong financing patterns. "But we will see to what extent the improvements   are - whether it is more than 4.5% or whether it is closer to 5%," she said.   BNM is scheduled to release 3Q11 GDP figure on 18 Nov.   To a question on whether Malaysia was more concerned with inflation   or growth, Zeti said both were looked at.   "The conditions are highly dynamic, we have to make very careful   assessment. We do not want to undermine our future prospect of   growth because if we have high inflation, it would undermine future   growth," she noted.   So the policies cannot just be for the moment, they would have to be  sustainable over the medium term, she added.  Across Asia, regional economies are still resilient and the region would   still post economic expansion, albeit at a slower rate. She expects Asia’s   GDP growth this year to come in less than the average of 6-7%.  (Bernama, Financial Daily)

Malaysia will face serious traffic congestion if the Mass Rapid Transit (MRT)   is not in place by 2020, said Datuk Seri Idris Jala, CEO of the Performance   Management and Delivery Unit (PEMANDU). He said no number of buses will   solve the city's traffic problem, and Malaysia needs a different modus operandi   as a solution. To reduce cost overruns, Idris said Malaysia has learned lessons in   drafting the MRT development including from South Korea, Japan and   Singapore. (Bernama)

Come  2020, the country needs an additional 8,600 five-star and 31,300   four-star  hotel rooms to achieve the target of 36m tourist for that year.   Tourism Minister Datuk Seri Dr Ng Yen Yen said that even currently, there were   insufficient five-star and four-star hotels as the ministry often received   complaints, especially during peak season.   The location to build these types of hotels however, depends on the   operators, and by looking at the government tourism direction.   On next year's tourist projection, she said it was still under review as the   tourist arrivals for this year, which was forecasted at 25m visitors, had   to be re-adjusted, in view of certain reasons.   It included the regional development in Thailand, as well as the   European and American developments. (Bernama)

The government has spent RM1.97bn to implement 1,089  water supply   projects in rural areas nationwide, which are expected to be fully completed by   year-end, the Dewan Rakyat was told. Deputy Rural and Regional Development   Minister Datuk Hasan Malek said the allocation was an increase from   RM413.4m spent to implement 554 projects last year and RM297.4m to   implement 671 projects in 2009.  Hasan said the government had also spent RM1.36bn to implement 582   electricity supply projects in the rural areas this year (RM703.1m in   2010 and RM410.4m in 2009), which also expected to be fully   completed by year-end.   Between 2009 and last month, 54,374 houses had been built in rural   areas under the Housing Aid programme, involving an allocation of   RM1.36bn (vs.  RM431.6m to build 16,926 houses last year and   RM551.1m to build 19,467 houses in 2009), he added. (Bernama)

The government has allocated RM15.9bn for petrol and diesel subsidies this   year to control the price and reduce burden on the people. Deputy Finance   Minister Datuk Donald Lim Siang Chai told Dewan Rakyat yesterday that   government spending on petrol and diesel subsidies last year amounted   RM9.6bn. (Bernama)

The Inland Revenue Board (IRB) will issue the forms for the one-off cash   handout of RM500 to households with income of less than RM3,000 in Dec,   said its CEO Datuk Dr. Mohd Shukor Mahfar. Payment are expected to be made   in Jan 12. He noted that the payment would be disbursed by the   Accountant-General through banks, including Bank Simpanan Nasional. (The   Star)    

US construction spending rose in Sep for a second month as gains in private   projects outpaced a drop in government outlays. Building outlays increased   0.2% in Sep after jumping 1.6% in Aug, Commerce Department figures showed.   Economists called for a 0.3% gain. (Bloomberg)

The  US Institute for Supply Management’s  factory index fell to 50.8 in Oct   (51.6 in Sep), the group said. Economists projected the gauge would climb to 52.   (Bloomberg)

A failure by a Congressional  super committee to reach agreement on  deficit   reduction wouldn’t on its own cause the US to lose its top  credit ranking,   Moody’s Investors Service said. (Bloomberg)

Japanese wage earners' total  cash earnings were unchanged on a yoy basis   in Sep (-0.4% in Aug), labour ministry data showed. (Reuters)  Japan’s  automobile sales, excluding 660cc minivehicles, rose 28.3% yoy in   Oct (+1.7% in Sep), due to a low year-ago base when auto sales tanked on the   first full month after government subsidies to replace cars older than 13 years   expired. (Reuters)

Thailand’s inflation held above 4% for the seventh straight month in Oct as   the worst floods in almost 70 years destroyed crops and stoked food costs.   Inflation climbed to 4.19% yoy, compared with a 4.03% pace in Sep. The median   was for a 4.5% gain. (Bloomberg)

Thailand’s government said it may take 45 days to pump water from   inundated industrial estates north of Bangkok once flooding recedes. ―After that   we will send technicians to check out damage to machinery,‖ Industry Minister   Wannarat Charnnukul said. ―For the remaining estates that are not flooded, we   have already prepared measures to protect them and we believe they won’t be   flooded.‖ (Bloomberg)

China's official purchasing managers' index (PMI) fell to 50.4 in Oct   from 51.2 in Sep. HSBC’s China PMI rose in Oct to 51.0 from 49.9 in Sep, the   index's first rise above 50 since June. (Reuters)

Indonesia’s headline CPI rose 4.42% yoy in Oct (+4.61% in Sep), while core   inflation was 4.43% yoy in Oct, easing from 4.93% in Sep. Economists had   expected inflation to rise 4.76%. (Wall Street Journal)

Trade data that showed  Indonesia’s exports rose 46.3% yoy in Sep to   US$17.82bn, while  imports climbed 56.4% yoy to US$15.1bn. The  trade   surplus narrowed to US$2.72bn in Sep from Aug's US$3.76bn. Economists   had expected exports and imports to rise 40.7% and 47.2% respectively. (Wall   Street Journal)

South Korea's Oct exports growth slumped to 9.3% yoy from 18.8% in Sep.   Imports rose 16.4% yoy in Oct (+29.3% in Sep). Economists were expecting exports and imports to rise 10.9% and 22.3% respectively in Oct. (Wall Street   Journal, Bloomberg)

Vietnam’s industrial production rose 5.3% yoy in Oct (+12.0% in Sep).   (Bloomberg)

Vietnam’s retail sales in YTD rose 23.1% yoy in Oct (+22.8% in Sep).   (Bloomberg)

In India, exports in Sep climbed 36.3% yoy (+44.3% in Aug) to US$24.8bn,   while  imports grew 17.2% yoy (41.8% in Aug) to US$34.6bn, helping narrow   the trade deficit to US$9.8bn from US$14.0bn in Aug. (Wall Street Journal).

In  Singapore, the  Electronics Index rose to 52.1 in Oct (47.2 in Sep).   Economists were expecting an index reading of 47.0. (Bloomberg)  Singapore purchasing manager’s index rose to 49.5 in Oct from 48.3 in   Sep. Economists had forecasted  an unchanged reading of 48.3 for Oct.   (Bloomberg)  

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