Malaysia expects total trade with fellow members of the Organisation of Islamic Cooperation (OIC) to grow by double digits this year from the RM146.15bn last year (RM115.87bn in 2010), said International Trade and Industry Minister Datuk Seri Mustapa Mohamed. Total exports to OIC member rose 14% to RM76.33bn last year while total imports also increased by 27% to RM69.85bn. (Starbiz)
Based on the latest economic indicators, Malaysia's economy is on a stable foundation and this is expected to continue in 2H12, the Dewan Negara was told Wednesday. Deputy Finance Minister Datuk Dr Awang Adek Hussein said between Jan and Feb this year, exports rose 7.1% yoy while imports grew 10.2% yoy. The industrial production index, meanwhile, expanded by 3.8% yoy in the same period. Awang Adek said on the same date the Kuala Lumpur Composite Index (KLCI) was at a higher level at 1,579 pts against 1,530 pts at end-Dec last year. (Bernama)
The government is looking into raising the minimum threshold of debt for a bankruptcy petition to be issued against someone from RM30,000 to RM50,000. Deputy Minister in the Prime Minister's Department Datuk Liew Vui Keong said these are among amendments that the Insolvency Department proposes towards renewing the existing legislation. Based on Insolvency Department records from 2007 till Mar this year, the department has administered 85,175 bankruptcy cases. Of the total, 20,374 or 23.9% are from private sectors, 10,203 (12%) from the business sector, 7,134 (8.4%) are self-employed people, 2,482 (2.9%) professionals, 2,345 (2.8%) from the public sector, 2,300 (2.7%) were unemployed, 535 (0.6%) government pensioners, 128 (0.2%) from the entertainment sector, 139 (0.2%) students, 36 (0.04%) athletes, and 39,499 (46.4%) were from other sectors, said Liew at the Dewan Negara yesterday. Liew explained that among reasons for bankruptcy were defaulting on car hire purchase loans (21,796 cases), other debts (15,827 cases), personal loans (12,547) and housing loans (12,098). (The Sun)
Malaysia: Exports unexpectedly fall, supporting case to hold rate
Malaysia’s exports unexpectedly fell in March as manufacturers shipped fewer electrical and electronics products, bolstering the case for the central bank to hold off from interest-rate increases. Overseas shipments fell 0.1% to RM61.79bn (USD20bn) from a year earlier after gaining 14.5% in February, according to a Trade Ministry statement yesterday. Malaysia’s imports rose 1.6% in March from a year earlier. The trade surplus narrowed to RM10.45bn from RM10.58bn in February. (Bloomberg)
Indonesia’s government is pessimistic about this year’s economic growth of 6.5%, if exports continue to perform below the target of 10%. (IFT)
Thailand's foreign debt rose to a record high of US$119bn or THB3.6tr in Mar, but the Bank of Thailand insists the country's external exposure is balanced by asset holdings, such as trade receivables or foreign-exchange hedging contracts. (The Nation)
China's ruling Communist Party is seriously considering a delay in its upcoming five-yearly congress by a few months amid internal debate over the size and makeup of its top decision-making body as the party struggles to finalize a once-in-a-decade leadership change. (Reuters)
China will cut fuel prices by 3.6% or Rmb330 to Rmb8,850 a tonne from 10 May, following a retreat in global crude costs and amid concerns over inflation. (AFP)
China: China Investment stops buying European debt on crisis concerns
China Investment Corp has stopped buying European government debt because of an economic crisis on the continent, though it continues to look for new investments there, said CIC President GaoXiqing. “What is happening in Europe right now is of course of concern,” Gao said yesterday in an interview. “We still have our people looking at opportunities in Europe, even though we don’t want to buy any government bonds.”European leaders are struggling to contain a debt crisis that has entered its third year and led to bailouts of Greece, Portugal and Ireland. (Bloomberg)
Japan’s foreign reserves edged up to US$1.290tr in Apr (US$1.289tr in Mar), posting the first rise in 3 months buoyed by higher prices of US Treasuries. (Bloomberg, MNI)
Japan’s leading index rose to 96.6 in Mar from 96.3 in Feb. Economists had forecast the reading to rise to 96.9. The coincident index improved to 96.5 in Mar (95 in Feb), ahead of market expectations of 96.2. (Bloomberg, RTT News)
The Mortgage Bankers Association’s seasonally-adjusted index of mortgage application activity gained 1.7% in the week ended 4 May. Refinance applications rose 1.3% in the week with the four-week average up 1.8%. Rates moved mostly lower with 30-year conforming loans down 4bp to 4.01%. (Bloomberg, Reuters)
The eurozone has blocked €1bn out of €5.2bn in bailout loans for Greece until 14 May amid uncertainty over the country's political future, a European government source said. (Reuters)
The head of the European Commission said that there would be no re-negotiation of a pact that would oblige 25 EU states to aim for balanced budgets. Asked whether there could be a re-negotiation of the fiscal treaty, as demanded by incoming French president Francois Hollande, Jose Manuel Barroso replied "No." A meeting of European Union leaders has been called for May 23, at which debate on how best to boost growth is expected to feature heavily. (Channel News Asia)
EU: Greece Euro-exit debate goes public as officials air concerns
From the monetary fortress of the European Central Bank to the pro-European duchy of Luxembourg, policy makers are beginning to air their doubts that Greece can stay in the euro. Post-election tumult in Athens has put the once-taboo subject of an exit from the 17-country currency union on the agenda, lifting the veil on possible scenario planning afoot behind the scenes. After EUR386bn (USD499bn) in aid pledges for Greece, Ireland and Portugal, EUR214bn in ECB bond purchases and another trillion euros in low-interest loans for banks, plus 17 high-level crisis summits, Greece’s political chaos thrust Europe into a perilous new phase. (Bloomberg)
UK: Retail sales plunge as BOE begins crucial meeting
UK retail sales fell the most in more than a year last month as poor weather and consumer caution on spending curbed demand at stores. Sales at stores open at least 12 months, measured by value, declined 3.3% from a year earlier, the London-based British Retail Consortium said yesterday. That’s the biggest monthly drop since March 2011. Including stores open less than 12 months, sales decreased 1%. With Britain suffering its first double-dip recession since 1975, the Bank of England’s Monetary Policy Committee will decide tomorrow whether to add more stimulus to its existing GBP325bn (USD524bn) of bond purchases. (Bloomberg)
US: Job openings rise to highest level since 2008
Employers in the US were seeking to fill more jobs in March than at any time in almost four years, showing growing confidence in the US economy. The number of open positions increased by 172,000 to 3.74m, the most since July 2008, from a revised 3.57m the prior month that was larger than previously estimated, the Labor Department said yesterday. Another report showed small companies were more optimistic on their outlook. More vacancies are a sign American companies were planning to expand at the end of the first quarter, undaunted by the jump in fuel costs or concerns that global economic growth will slow. (Bloomberg)
US wholesale inventories increased 0.3% mom to a record US$480.4bn in Mar (+0.9% in Feb), that suggested a downward revision to the initial first-quarter growth estimate. (Reuters)
Dow Falls 6th Day in longest slump since August on Greece
The Dow Jones Industrial Average declined for a sixth straight day amid concern Greece’s debt crisis is worsening as the nation struggles to form a coalition government. The Standard & Poor’s 500 Index fell 0.7% to 1,354.58, a two-month low while the Dow slid 97.03 pts, or 0.8%, to 12,835.06. It had the longest slump since August last year, three days before S&P stripped the US of its AAA credit rating. Global stocks fell as Greece’s political turmoil looks set to enter a fourth day with coalition talks deadlocked. The standoff has reignited concerns over its ability to hold to the terms of its two bailouts negotiated since May 2010. With Parliament split and policy makers in Berlin and Brussels urging Greece to stay the course, the country at the epicenter of the debt crisis is again facing the risk of an exit from the euro. (Bloomberg)
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