20100512 1628 Malaysian Economic News.

The Industrial Production Index (IPI) increased 14.1% yoy in March (4.8% in Feb). This growth was due to the increases in two indices, namely manufacturing (20.3%) and electricity (24.9%). The index of mining posted a decrease of 0.5%. On a mom basis, it was up 15.1% (-11.2% in Feb). Economists had projected it would increase 13.4% in March, (BT, Bloomberg)

Total manufacturing sales rose 27.7% yoy to RM46.6bn in March (16.8% in Feb). On a mom basis, the sales value also increased by 16.0%. Total employment in the manufacturing sector increased 0.9% yoy or 8,407 persons to 962,833 persons in March (952,189 persons in Feb). Total salaries and wages paid in March upped 17.9% yoy to RM2.18bn (RM2.16bn in Feb). (Department of Statistics)

The guarantee on all cash deposits in banks will be raised to RM250,000 from RM60,000, effective 1 Jan 11. It’s a new proposal that is being worked out by the Ministry of Finance (MoF) together with the Malaysia Deposit Insurance Corporation (PIDM).

• Another measure being proposed as part of a package to further enhance consumer protection is an insurance compensation scheme (ICS) for general and life insurance policy holders. The plan is for this legislation package to be tabled in Parliament, for debate and enactment before the end of this year. (BNM, Financial Daily)

The productivity of Malaysian workers, the highest in Asia, could grow as much as 4.0% this year (2.3% in 4Q09), helped by a recovering economy, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

• Trade, transport and finance sub-sectors are to lead the growth with more than 4.5% expansion, while the services sector will grow by more than 4.1% due to the liberalisation measures and broadband initiatives. The manufacturing sector’s productivity is expected to grow 2.3% supported by higher domestic consumption and a recovering exports market.
• However, this target requires efforts by all sectors, especially under the New Economic Model (NEM). (BT, Bloomberg)