The Malaysia External Trade Development Corporation (Matrade) has set a target to produce 200 new exporters through the Bumiputera Exporters Development Programme (BEDP) and the Women Exporters Development Programme (WEDP) by 2015. Matrade Deputy CEO Datuk Zakaria Kamarudin said the focus was on small and medium scale entrepreneurs whose products and services could be developed further and accepted by the market. It plans to increase bumiputra and women entrepreneurs’ contribution to total exports to more than 20% by 2015. Zakaria also said that Matrade was hopeful that the government, under the Tenth Malaysia Plan, would increase the allocation for the programmes to RM30m annually from RM5m presently so that it could involve more participants. (Bernama, Starbiz)
The Asean Economic Community (AEC) will continue to make headway next year while economic integration will gather momentum in Asean which is projected to see an economic growth of 5-6%. International Trade and Industry Minister Datuk Seri Mustapa Mohamed had said that Asean was on track to realise the AEC by 2015. (Bernama)
The retail industry is expected to grow 6.5% this year (8.4% in 2010) and 6% next year, the Malaysia Retailers Association (MRA) said. For 4Q11, retailers expect their sales to increase by 10.4%, with specialty retail stores anticipated to record biggest sales growth at 15.9%. This is followed by fashion and fashion accessories (+14.9%), department store-cum-supermarkets (+9.4%) and department stores at modest (3.7%). Despite the optimism of these retailers, the association itself estimates the retail sales to grow 5% in 4Q11 (7% in 3Q11). (BT)
Thailand’s industrial output fell the most in more than a decade in Nov due to the floods. The manufacturing production index dropped 48.6% yoy (-30.1% in Oct). The decline came in larger than market consensus for 38% drop. (Bloomberg)
Thailand’s Finance ministry expects the economy will contract by 5% yoy in 4Q11 after flooding slashed production and reduced domestic demand, head of the fiscal policy office, said. The Ministry of Finance expects the economy to expand 1.1% in 2011. The ministry has downgraded its growth forecast twice from earlier estimates of 2.6% and 1.7%- 2.0%. For 2012, the government forecasts growth between 4.5% -5.5%. (Bloomberg)
The Bank of Thailand (BOT) will ask the government to clarify its proposal to transfer public debts left over from the 1997 Asian financial crisis to the central bank. Transferring the debt to the BOT, which already has negative equity of THB400bn, could affect the bank's credibility, as its equity will be negative THB1.5tr. (The Nation)
Chinese Premier Wen Jiabao urged better protection for farmers’ rights to ensure they receive a larger chunk of profits from the conversion of their land to industrial and residential use. “We can no longer sacrifice farmers’ land ownership rights to reduce urbanisation and industrialisation costs,” the official Xinhua News Agency reported Wen as saying. “It’s both necessary and possible for us to significantly increase farmers’ gains from the increase in land value.” (Bloomberg)
China's government will run a smaller fiscal deficit in 2012 of Rmb0.8tr or 1.5% of GDP (from an estimated Rmb0.9tr in 2011), consisting of Rmb550bn by the central government and Rmb150bn shared by local governments. Fiscal outlays will increase 11% to Rmb11.1tr (US$1.75tr) in 2012, against a revenue increase of 9%, according to figures which emerged at the conclusion of the national Ministry of Finance Work Meeting. (Reuters)
China’s leading index was unchanged at 100.18 (100.17 in Oct). (Bloomberg)
China aims to change the government’s role in the economy and reduce microeconomic intervention, said Zhang Ping, chairman of the National Development and Reform Commission. (Bloomberg)
China: Fiscal spending to rise at faster pace in 2012
Chinese Vice Premier Li Keqiang said central government spending will grow at a faster pace next year as officials seek to spur consumption in the world’s second- biggest economy. Fiscal policy will be targeted and “flexible,” Li told a meeting chaired by Finance Minister Xie Xuren. The government aims for an “appropriate” fiscal deficit and issuance of treasury bonds next year, Li said. (Bloomberg)
Philippine imports in Oct grew 2.3% yoy (+10.4% in Sep), as the trade deficit narrowed to US$932m (US$1,238m in Sep). Manila now expects exports to fall 1% this year (5% in previous estimate), and imports to grow 7% (13% in previous estimate). (Reuters)
The Philippines may increase its PP72bn stimulus package approved in Oct by a further PP20bn to boost growth, presidential spokesman Edwin Lacierda said. (Bloomberg)
Vietnam’s export growth in the YTD eased to 33.3% yoy in Dec (34.7% in Nov), while imports increased 24.7% (26.4% in Nov). The trade deficit widened to US$0.7bn (US$0.567bn in Nov). (Bloomberg)
Indonesia’s 4Q GDP may grow 6.5% or higher, said Finance Minister Agus Martowardojo. (Bloomberg)
Indonesia’s finance ministry projected Dec CPI inflation to accelerate faster than the 0.34% mom in Nov, due to food prices. Nevertheless the 2011 forecast is expected to remain below 4%. (Xinhua)
Japan and India renewed a bilateral swap agreement that will make available US$15bn to India to help it battle this year’s more-than-16% decline in the rupee. The first such accord was signed in June 2008 to the tune of US$3bn, and this recent one proffers Japan another avenue to use its US$1.2 tr of currency reserves, bolster its presence in international finance and foster a closer trade relationship with Asia’s third-largest economy. (Bloomberg)
Japan’s industrial output fell 2.6% mom in Nov (a 2.2% gain in Oct) that exceeded all forecasts in a Bloomberg survey. The biggest seasonally adjusted monthly drops in industrial production were in the information electronics industry, with overall output contracting 23.7%. Passenger-car output lost 12.6%, whilst iron and steel production fell 1.2%. (Bloomberg)
Japanese consumer prices (excluding fresh food) fell 0.2% yoy in Nov (0.1% decline in Oct), the second straight monthly decline as energy cost increases decelerated whilst prices of televisions and other durable goods continued their losing streak. (The Mainichi Daily News)
Japan’s retail sales fell 2.3% yoy in Nov (a 1.9% gain in Oct), according to the Ministry of Economy, Trade and Industry. Forecasts were for an increase of 0.1%. On a monthly basis, the gauge was down 2.1% in Nov after rising 1.4% in Oct and falling 1.4% in Sep. (RTT News)
The European Central Bank’s balance sheet ballooned to a record 2.73 tr euros (US$3.55tr) after it extended more credit to financial institutions last week to maintain liquidity conditions in the economy during the debt crisis. Lending to euro-area banks gained 214 bn euros to 879 bn euros in the week ended 23 Dec. The balance sheet rise of 239 bn euros in the week makes it 553 bn euros higher than three months ago. (Bloomberg)
Indonesia’s Business Competition Supervisory Commission (KPPU) says the state lost Rp240tr (US$26.16bn) in 2011 due to inflated contracts for goods and services. The state allocated Rp800tr of its Rp1,435tr budget for goods and services in 2011 that should have been procured through fair and transparent tenders, commission chief Nawir Messi said, inflating prices by as much as 30%. (Jakarta Post)
The Association of Indonesian Automotive Industries (Gaikindo) said that car sales this year were likely to reach 880,000 units, exceeding an earlier target of 850,000. The Indonesia Motorcycle Industry Association (AISI) forecast motorcycle sales to reach 8.2m units in 2011, up 10% from last year. (Jakarta Globe)
A record 7.6m tourists are expected to have visited Indonesia by the end of the year, up 0.6m from last year’s numbers but less than the government’s optimistic target of 7.7m, the Ministry of Tourism and Culture has said. At 11M11, the number of tourists had reached 6.27m, up 8.47% yoy from 5.78m in 11M10. (Jakarta Globe)
Indonesia’s government agencies and departments have been in a late-season rush to meet spending targets, data from the Ministry of Finance showed. On 7 Dec, the government had spent 51% of the targeted Rp140.95tr (US$15.5bn) set in the revised 2011 budget. But by 27 Dec, that had risen to 76.5%. In 20 days, the government accounted for 25.5% of its allotted annual spending. (Jakarta Globe)
UK: Shop traffic falls on second sales day after Christmas
UK shopper numbers fell yesterday as discounting and mild weather failed to entice cost-conscious Britons to spend, according to market researcher Experian Footfall. Visits to shops and malls fell 0.7% on 27 Dec compared to the Tuesday after Christmas last year. Shopper numbers surged 21.5% on Boxing Day with extended hours helping boost business limited last year by Sunday trading restrictions. (Bloomberg)
EU: ECB balance sheet increases to record EUR2.73trn
The ECB’s balance sheet soared to a record EUR2.73tn after it lent financial institutions more money last week to keep credit flowing to the economy during the debt crisis. Lending to euro-area banks jumped EUR214bn to EUR879bn in the week ended 23 Dec. The balance sheet increased by EUR239bn in the week and was EUR553bn higher than three months ago. (Bloomberg)
US stocks hit as Italy’s debt sale spurs worry
The Dow Jones Industrial Average fell 139.94 pts, or 1.1%, to 12,151.41 with all of its 30 components ending in the red. US stocks suffered significant losses with the S&P 500 retreating to the loss column for 2011, on concern about Italy’s next auction of government debt. The Dow held a 5% gain for the year, with two sessions remaining. Back in negative terrain for 2011, the S&P 500 Index, shed 15.79 points, or 1.3% to 1,249.64, with natural-resource and energy shares hardest hit among its 10 major industry groups. The Nasdaq Composite declined 35.22 pts, or 1.3%, to 2,589.98, leaving the index in the red by 2.4% for the year. (Market Watch)
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