20120410 1103 Local & Global Economy Related News.

The government is considering raising the minimum floor price of houses foreigners are allowed to buy to RM1m from the current RM500,000, in an effort to control the rise in property prices, sources said. They said such a decision was "in the pipeline" and the implementation would be made by the economic planning unit. Another source said the revised guidelines would also consider a slightly lower base price threshold of RM800,000 for residential properties in selected economic corridors such as Johor's Iskandar Malaysia to ensure the development and success of these corridor hotspots. (Starbiz)

A comprehensive evaluation report on the review of the country's education system would be ready in three months, said DPM Tan Sri Muhyiddin Yassin. The first dialogue session on the review was held with heads of the Education Ministry, and would be followed by a series of dialogues with other stake holders, including members of the public and experts, he said. Apart from the review and dialogue sessions, the views of foreign experts in the field of education, from Canada, Singapore and South Korea would be considered, he added. (Bernama)

China’s consumer price index rose to 3.6% yoy in Mar from 3.2% in Feb, slightly higher than analysts' expectations of 3.4%, as bad weather pushed up food prices and authorities raised the price of fuel. (AFP)

China’s producer price index fell 0.3% yoy in Mar (0% in Feb), in line with expectations, showing deflationary pressures are still at work on prices. (AFP)

China's current account surplus for 2011 had decreased by 15% compared to that of 2010 and it accounted for 2.8% of the GDP, down 1.2% pt and setting the lowest record since 2005. (People‟s Daily)

The China Banking Regulatory Commission began an investigation into bank fees on 1 Apr, warning that banks found to be charging high fees for routine services will be punished. (WSJ)

Singapore Trade and Industry Minister Lim Hng Kiang says the Monetary Authority of Singapore is "very concerned" that inflation has remained stubbornly high despite slowing economic growth. (AP)

Singapore’s foreign reserves dipped to US$243.64bn in Mar from US$247.01bn in Feb. (Bloomberg)

Thailand is ranked 52nd on the inaugural World Happiness Report compiled for the United Nations Conference on Happiness by Columbia University‟s Earth Institute. (Thai Financial Post)

Thailand’s National Water and Flood Committee is set to request an advance budget of THB50bn baht to carry out flood solution projects. (Thai Financial Post)

Thailand’s Bureau of the Budget has revised upward the cost estimate of constructions by 1.5-2% after an ongoing increase in fuel prices. (Thai Financial Post)

Thai exports to China in Feb expanded at a positive rate for the first time in four months at 3.4% following China‟s urgent stockpiling of crude oil amid soaring global gas price. (Thai Financial Post)

Thailand has requested that the South Korean government and its private sector raise the import value of Thai products and lift the ban on frozen chicken meat. (Thai Financial Post)

Indonesia has allocated Rp30tr in 2012 (Rp25tr in 2011) for micro-credit loans to small and medium businesses. (Antara News)

Rice prices in Indonesia are expected to climb 5-10% this year, induced by higher commodity prices in the global market and potential domestic fuel oil price hike. (IFT)

Filipino business confidence has slipped back 6 pts to 136 since Sep, according to the global Regus Business Confidence Index. Companies reporting revenue growth decreased, reaching 56% compared to 63% six months ago. Companies reporting profit growth (50%) also fell 7% pts. (Philippine Daily Inquirer)

Vietnam’s domestic vehicle sales declined 21.4% yoy in Mar, compared to the 24% fall in Feb. (Bloomberg)

Despite the reserve-purchase programme and larger rice export contracts won by exporters in 1Q12, Vietnamese paddy price fell to VND100-150/kg last week. (Vietnam News)


Japan: Current account moving to surplus adds support for Yen
Japan swung to a current-account surplus in February after a record deficit in January, lending support to a currency that officials have sought to weaken to aid exporters and economic growth. The excess in the widest measure of trade was JPY1.18trn (USD14.5bn) the Ministry of Finance said in Tokyo yesterday. The median estimate of 25 economists surveyed by Bloomberg News was for a surplus of JPY1.12trn. The yen is rebounding even after interventions by the finance ministry and monetary easing by the Bank of Japan helped to bring the currency down from October’s post World War II high against the dollar.. (Bloomberg)

Russia: Holds interest rates as inflation pressures increase
Russia’s central bank refrained from cutting interest rates for a fourth month after signaling that “medium-term” inflation risks are increasing. Bank Rossii left the refinancing rate at 8%, as predicted by 21 of 22 economists in a Bloomberg News survey. The overnight auction-based repurchase rate was kept at 5.25% and the overnight deposit rate will remain at 4%. The world’s largest energy exporter is keeping borrowing costs unchanged even after the inflation rate fell to the lowest in two decades. Current market interest rates are “acceptable for the coming months,” Bank Rossii said. China may ease policy to boost faltering growth and Brazil has cut its benchmark rate five times since August. (Bloomberg)

China: Cautious on easing after inflation pickup
China’s inflation accelerated more than forecast in March on a pickup in food prices, signaling that policy makers may exercise caution in adding stimulus to boost growth. Consumer prices rose 3.6% from a year earlier, the National Bureau of Statistics said yesterday. That was more than the median 3.4% estimate in a Bloomberg News survey of 33 economists. Food-related costs gained 7.5%. Premier Wen Jiabao’s officials may need to remain alert to the risk of inflation bouncing back even after price increases stayed below the government’s 4% target for a second month. China’s economy may have expanded last quarter at the slowest pace in almost three years, showing the limits of the nation’s contribution to global growth as US job growth weakens and concern mounts about Europe’s sovereign-debt crisis. (Bloomberg)

EU: ECB financing for Portuguese banks rose to record in March
The European Central Bank’s financing for Portuguese lenders rose to a record in March, the Bank of Portugal said. ECB financing climbed to EUR56.3bn (USD74bn) from EUR47.6bn in February, the Bank of Portugal said yesterday on its website. ECB financing previously peaked at EUR49.1bn in August 2010. In April last year, Portugal became the third euro-area country after Greece and Ireland to require aid and will receive EUR78bn under its agreement with the International Monetary Fund and the European Union. The aid plan earmarks EUR12bn for Portugal’s lenders, if needed. As part of the plan, those lenders were required to raise core Tier 1 capital ratios to 9% by the end of 2011 and 10% by the end of 2012. (Bloomberg)

US stocks decline as employment report misses estimates
US stocks fell, dragging the Standard & Poor’s 500 Index lower following its worst week of 2012, after employers added fewer jobs than forecast in March. The S&P 500 slumped 1.1% to 1,382.20 after losing 0.7% last week. The Dow Jones Industrial Average dropped 130.55pts, or 1%, to 12,929.59. Equity markets were shut for Good Friday on 6 April, when the employment report was released. Equities slumped last week after the Federal Reserve signaled it will refrain from further monetary stimulus and concern about Europe intensified. The US Labor Department said 6 April that employers added 120,000 jobs, the fewest in five months and less than the median economist forecast of 205,000 in a Bloomberg survey. (Bloomberg)