20100426 0951 Malaysian Economic News.

The Consumer Price Index (CPI) for March rose by 1.3% yoy to 113.2 (1.2% in Feb). Compared with the previous month, the CPI remained unchanged at 113.2. Ytd, the inflation increased by 1.3% yoy. Economists had projected it would advance to 1.5% yoy for March. (Bernama, Bloomberg) Please see our Economic Update for further details

The government has agreed to increase by RM150 a month the motorcycle allowance for members of the police volunteer reserve (PVR) serving in hot areas. DPM Tan Sri Muhyiddin Yassin said that the allowance for members of the People's Volunteer Corps (Rela) would also be increased and that a proposal to that effect had been submitted to the Public Service Department. (Bernama)

The Human Resources Ministry has proposed an allocation of RM50m to enable plantation workers to apply for loans to buy houses under the 10th Malaysia Plan (RMK- 10) said its deputy minister Datuk Maznah Mazlan. "Employers have been urged to build comfortable houses for their workers by 2013," she said. (Bernama)

Malaysian Industrial Development Finance Bhd (MIDF) expects to disburse RM200m under Soft Loan Scheme for Small and Medium Enterprises (SMEs) before year-end. So far, RM34m had been disbursed to 44 SMEs. (Bernama)

Terengganu is expected to get a RM1bn investment from China to build an iron factory in the Teluk Kalong industrial zone. Menteri Besar Datuk Ahmad Said said the agreement to build the factory, expected to start early next year. He added that the Chinese investors were expected to invest RM50m to build bird's nests in various places in the state. (Bernama)

Recent liberalisation of terms and conditions in the loan scheme for the Malaysia Kitchen Global Campaign is expected to promote more Malaysian restaurants abroad. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Exim Bank had revised equity conditions owned by Malaysia from 70% to 51%.

• The repayment structure has also been liberalised to a maximum of 5 years inclusive of a 6-month grace period plus 3-month moratorium. 
• The government allocation amounted to RM180m, of which RM20m has been disbursed. The loans are also open to all franchises from Malaysia, at an interest rate of 3%. (Bernama)

PM Datuk Seri Najib Tun Razak announced a RM4m allocation for the Sikh community. Of that amount, RM2m was for upgrading and maintaining the Sikh community's 118 houses of worship or Gurdwara, RM1m for teaching of the Sikh language to the young and RM1m for Siklh cultural programmes. (Bernama)