The pump price of RON95 will remain at RM1.90 per litre despite the government having to increase its subsidy by 10 sen per litre. Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the subsidy was now RM0.93 per litre, up from 82 sen due to the global oil price rise. The government continues to bear additional subsidy on the fuel as the government was aware that any increase in the fuel prices would cause an increase in the price of other consumer products and hence, increase the cost of living faced by the people, he said. “If the upward trend continues, we may have to adjust the subsidy accordingly,” he said. (The Star)
The federal government yesterday tabled a bill for a RM10.29bn supplementary budget from the consolidated fund for expenditure on the services and not provided for or not fully provided for by Budget 2011. This will be the second request for supplementary funding for 2011 after the first in Jun 2011 involving a sum of RM13.19bn. Among expenditure asked for include RM4.05bn for Treasury general services, RM2.83bn for contribution to statutory funds, RM782.52m for the Public Services Department, RM621.87m for Ministry of Health, according to the Supplementary Supply (2011) 2012 Bill, tabled for the first hearing at the Dewan Rakyat yesterday. It also includes RM353.76m for the Prime Minister’s Department and RM48.77m in expenditure for the Election Commission. In immediate comment, opposition MP Sivarasa Rasiah said while the government has the power to resort to the supplementary supply bill for funds, it is not good financial practice because it messes up the nation’s deficit. Although the country’s deficit was slightly narrowed last year, with these supplementary requests, it brings the country back to the same level, he said. (Malaysian Reserve)
Indonesia’s government and the Budget Committee of the House of Representatives agreed on the inflation assumption of 6.8% in the 2012 State Revenue and Expenditure Budget Revision by setting the energy fiscal risk at Rp23tr (US$2.51bn). The initial inflation assumption proposed was 7%. (IFT)
Massive protests in Indonesia against a proposed fuel price increase failed to materialize in Jakarta on Tuesday, but smaller rallies, some of them violent, took place across the country. The National Police reported 127 demonstrations, most of them peaceful, across the archipelago involving more that 88,200 protesters. East Java and Jakarta saw the highest number of protests, with 24 each. (Jakarta Globe)
Vietnam’s Prime Minister Nguyen Tan Dung has called a halt to additional planning and development of new economic zones and industrial parks across the country as several shortcomings have emerged. (The Saigon Times)
The State Bank of Vietnam announced that insolvent banks unable to cover payment demands from depositors will receive support from the central bank or other commercial banks if their defaults were likely to have a negative impact on the entire banking system. (Vietnam News)
Vietnam will have to spend up to US$12bn yearly on imported cars until 2025 if the automobile industry's meagre development continues its current state, according to the Viet Nam Business Annual Report 2011. (Vietnam News)
Vietnamese companies are expected to win contracts to export some 3.2m tonnes of rice in 1Q12, a yoy increase of 15%, according to the Viet Nam Food Association (VFA). (Vietnam News)
FDI inflows to Vietnam’s property sector have regained lead position in terms of fresh capital in 1Q12, after a long period of sharp decline due to market woes. (The Saigon Times)
Thailand’s Fiscal Policy Office revised 2012 GDP growth up from the earlier estimation of 5% to 5.5% as a result of a better economic recovery. (Thai Financial Post)
The IMF confirmed that the Thai economy will stage a sharp recovery from last year's devastating floods, with growth of 5.5% this year and 7.5% next year, thanks to reconstruction and fiscal stimulus. (The Nation)
The Indian government may resume stake sales in state-run companies through auctions in the new fiscal year beginning 1 Apr, Disinvestment Secretary Mohammad Haleem Khan said. (WSJ)
China has made it easier for foreign banks to bring money into the country, according to people familiar with the matter, with the move involving raising the banks' long-term foreign debt quotas. (WSJ)
China: Industrial profits fall 5.2% in first two months
Chinese industrial companies had their first January-February profit decline since 2009 as slowing exports and a government campaign to cool property prices damped earnings. Net income dropped 5.2% from a year earlier to RMB606bn (USD96bn), the National Bureau of Statistics said. That compared with a 34.3% gain in the first two months of 2011. (Bloomberg)
Japan’s corporate service price index fell 0.6% yoy in Feb (a revised -0.4% in Jan), whilst on a mom basis, the measure expanded 0.1% (-0.6% in Jan). (Reuters)
Japanese small business confidence rose to 48.7 in Mar from 45.3 in Feb. (RTTNews)
South Korea: Manufacturer confidence climbs to 6-month high
South Korean manufacturers’ confidence rose to the highest level in six months on signs that the outlook for global growth is improving. An index measuring expectations for April climbed to 85 from 84 for March, the Bank of Korea said in a statement in Seoul. A measure of expectations at non-manufacturing companies advanced to 82 from 80. (Bloomberg)
France: French consumer confidence unexpectedly jumped in March
French consumer confidence unexpectedly jumped by the most in almost five years in March as the euro region’s second-largest economy prepares for a possible change of government. A measure of sentiment rose to 87 from 82 in February, national statistics office Insee said. Economists forecast an unchanged reading, according to the median of 16 estimates in a Bloomberg News survey. The gain was the biggest since May 2007, when Nicolas Sarkozy won France’s presidency promising to bolster household purchasing power. (Bloomberg)
US: Improving US job market bolsters confidence
An improving job market helped keep consumer confidence close to the highest level in a year in March as a growing number of Americans said they planned to buy cars, homes and appliances. The Conference Board’s index was 70.2 this month, in line with the median forecast in a Bloomberg News survey, down from a revised 71.6 reading in February, according to the New York- based research group. (Bloomberg)
US: Home prices in US cities fell at slower pace in January
Home prices in 20 US cities dropped at a slower pace in January, pointing to stabilization in the real estate market. The S&P/Case-Shiller index of property values in 20 cities fell 3.8% from a year earlier, matching the median forecast of 32 economists surveyed by Bloomberg News, after decreasing 4.1% in December, a report from the group showed in New York. Prices were little changed in January from the prior month, the best performance since July. (Bloomberg)
US Treasury Secretary Timothy Geithner urged Congress to keep up financial support for the IMF and World Bank to help further US economic and security interests. (AFP)
US Federal Reserve Chairman Ben Bernanke said it is too soon to declare victory on the US economy, warning against complacency in policymaking as the outlook brightens. (Reuters)
White House Council of Economic Advisers chairman Alan Krueger said private economists have gone overboard in attributing some of the job market's recent strength to good weather and quirks in government data, when there was evidence of broad-based recovery taking hold. (Reuters)
The S&P Case-Shiller house price index was unchanged on a mom basis in Jan (a revised -0.5% in Dec), better than consensus expectations of -0.2%. On a yoy basis, the index contracted 3.8% (a revised -4.1% in Dec), matching the median estimate. (Bloomberg)
ICSC-Goldman US store sales moderated to 2.7% yoy in the week ended 24 Mar (3.3% in the previous week), but contracted 0.5% wow from the prior week’s 0.9% gain. (Bloomberg)
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