20100322 1123 Malaysian Economic News.

Inflation remained at a low level with the Consumer Price Index (CPI) for February up 1.2% yoy (1.3% in Jan) but unchanged as compared to preceding month. This came below the market consensus of a 1.4% yoy gain in February. For the Jan-Feb 09, the CPI rose 1.3% yoy. (Bernama, BT) Please see our Economic Update for further details

Bank Negara Malaysia’s international reserves amounted to RM331.7bn (US$96.8bn) as at 15 Mar 10, against RM331.8bn (US$96.8bn) as at end-Feb. The reserves position is sufficient to finance 9.2 months of retained imports and is 4.3 times the short-term external debt. (BNM)

Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said that there is an investment imbalance between Malaysian and Thailand at the moment, with Malaysians investing a total of RM3bn in Thailand while Thailand's investment in Malaysia is about RM500m.

• Malaysia would like to see Thailand increase its investment in Malaysia in the area of agriculture, "halal" sector, small and medium enterprises, chemicals and food. "We expect the size of Thailand's investment in Malaysia to increase with the three important trade visits within the next three months. We also look forward to an increase in the number of joint-venture projects," Mustapa said. (Bernama)

PM Datuk Seri Najib Tun Razak said that the government will not neglect the rural sector in formulating the New Economic Model (NEM). The government had also allocated RM750m in additional fund to the Rural and Regional Development Ministry to implement rural development programmes. "The government will continue with the agenda to transform the rural community so that they can become self-sufficient and not relying too much on the government,” Najib said. (Bernama)

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said that the government decision to postpone the tabling of the Goods and Services Tax (GST) Bill for a second reading in parliament is not due to lack of political will. The government’s political will is putting the people first by providing adequate information before the GST is implemented to replace the Sale and Service Tax (SST). (Financial Daily)

Agriculture and Agro-based Industry Minister Datuk Seri Noh Omar said that the Federal Agriculture Marketing Authority (Fama) should play a more aggressive role in ensuring the country's agricultural products are marketed more successfully. "If they are successful, the agricultural sector's contribution to the country's economy will also increase," he said. (Bernama)

Malaysia needs to boldly reform economic policies to stay ahead of the competition and realise the aspiration of achieving the status of a high-income nation, said Koong Lin Loong, Deputy Chairman of the Associated Chinese Chamber of Commerce and Industry (ACCCIM) Small & Medium Enterprises and Human Resource Development Committee.

• “As to the consequences of staying on the current course, we will pay a high price if our economy is not reformed now. As part of ASEAN, Malaysia has today been almost overtaken by Indonesia and Vietnam. If we remain as we are, Malaysia will be able to only compare itself with countries such as Myanmar and Cambodia,” he said. 
• “The current policy focuses on aspects relating to the industrial sector which has benefited only foreign manufacturers, with local SMEs being excluded. If Malaysia intends to push towards a high-income status, the country must not rely on labour intensive industries, as we are unable to compete with those countries that have cheap labour resources," he noted. (Bernama)

At least 12 JobsMalaysia centres are to be opened nationwide to help job-seekers secure employment, Human Resource Minister Datuk Dr S. Subramaniam said. The other centres are in Port Klang and Kelana Jaya in Selangor, Johor Baharu (Iskandar Malaysia) and Segamat in Johor, Sungai Petani (Kedah), Kota Baharu (Kelantan), Ipoh (Perak), Georgetown (Penang), Kuching (Sarawak), Kota Kinabalu (Sabah) and Kuala Terengganu. (Bernama)