Thursday, August 30, 2012

20120830 1005 Local & Global Economy Related News.


Malaysia External Trade Development Corporation (Matrade) is collaborating with Halliburton to provide a platform for Malaysian companies to promote their products and services to  world-class businesses. Halliburton is one of the world's largest providers of products and  services to the energy industry. Matrade will host a programme on business opportunities in the oil and gas industry with Halliburton Malaysia on Sept 6 in Matrade Hall at Menara Matrade in Kuala Lumpur. (Bernama)

Malaysia has shown significant improvement across all consumer confidence indicators with an increase of 17.1 index points according to  MasterCard Worldwide Index of Consumer Confidence. Overall, nine out of 14 Asia-Pacific markets polled recorded positive improvements when compared to 2H11 with a regional rise from 52.1 index points in 2H11 to 57.2 index points in 1H12, said MasterCard Worldwide vice president/senior country manager for Malaysia and Brunei, Jim Cheah. Consumers in the region which remained most optimistic were India (82.1 index points), China (77.4), Vietnam (77.2), and Thailand (75.8), while the least optimistic markets were Japan (23.6), Taiwan (25.7) and Australia (39.2). Hong Kong, which dropped 38.7 index points in the last index, improved by 21.9 index points to lead the region, followed closely by South Korea (+21.4 index points), Malaysia (+17.1) and New Zealand (+15.3), it said. (Bernama)

The Malaysian Investment Development Authority (Mida) has approved the setting up of 54 regional and global operations in Malaysia in 1Q12 with investments of RM5.4bn. Its CEO, Datuk Noharuddin Nordin, said these operations would create over 9,000 jobs, mainly in managerial, professional and technical levels. "Malaysia's world-class infrastructure, good connectivity, strategic location within Asean, attractive investment incentive packages and liberal policies on foreign equity participation are among the compelling reasons cited by the multinational corporations for siting their regional and global establishments in this country," he said. (Bernama)

Foreign investors' perception of Malaysia has improved, a survey by the Economist Corporate Network (ECN) shows. The ECN's Asia Business Outlook Survey 2012 done in Jan this year, revealed that half of the 500 multinational companies polled were planning to raise their investment in Malaysia this year.  “None of the companies said they were reducing their investment in Malaysia. I think it's a pretty positive outlook for Malaysia," said Justin Wood, its chief economist for South and Southeast Asia.  Malaysia ranked 7th of 12 Asian countries in terms of the investment priorities of those companies. Topping their list of priorities were China, India, Indonesia, Vietnam, Singapore and Thailand. In the same survey, Malaysia was ranked fourth after Indonesia, Vietnam and India as markets most attractive to do production and manufacturing.  The ECN expects Malaysia's economy to slow to 4.7% this year, from 5.1% last year in the face of global weakness, particularly from the US and Europe. He said there was a possibility the ECN may raise its 4.7% growth forecast for the country, given the robust growth seen in 1H12. It expects the ringgit to appreciate modestly against the US dollar, averaging RM3.07 this year and RM3.00 in 2013. (BT)

The US economy expanded 1.7% annual rate in 2Q12, from an initial estimate of 1.5%, reflecting an improvement in the trade deficit and a pickup in household spending on utilities. This came in line with the median estimate and follows 2% annualised gain in 1Q12. (Bloomberg)

The US MBA purchase applications index gained 1.0% wow in the 24 Aug week (0.9% in the earlier week), whilst the  refinance index  fell 6.0% wow (-9.0% in the prior week). (Bloomberg)

US after-tax corporate profits gained 13.3% yoy in 2Q12 (a revised 19.1% in 1Q12). (Bloomberg)

The US pending home sales index gained 2.4% mom in Jul (-1.4% in Jun), exceeding consensus of 1.0%. (Bloomberg)

The US economy is growing slowly amid slight improvements in retail sales and the depressed housing market, while hiring held steady, the  Federal Reserve said in a report. (AFP)

European Union lawmakers said they will fight proposals from EU Financial Services Commissioner Michel Barnier that would water down legislation capping banker bonuses. (Bloomberg)

Countering arguments made by the German economics establishment since before the introduction of the euro, ECB President Mario Draghi said it’s in Germany’s interest to consent to extraordinary steps to  preserve the currency shared by 17 nations. (Bloomberg)

China's economy is stabilising slowly as  policy stimulus gains traction while the government's sustained  property curbs  have suppressed speculation,  according to  Zhang Ping, head of the National Development and Reform Commission. (Reuters)

Crude oil sank in Asia as a call by the G7 nations for oil producers to increase output overrode US supply disruptions due to Hurricane Isaac. New York's main contract, light sweet crude for Oct delivery, shed 37 cents toUS$95.96/bbl and Brent North Sea crude for delivery in the same month slipped 36 cents to US$112.22. (CNA)

Rapid economic growth has put pressure on Indochina's infrastructure, and new investment plans are needed, the Asian Development Bank pointed out. (The Nation)

Asean's economic meeting pledged yesterday to support the association's new members in order to narrow development gaps between the member countries. (The Jakarta Post)

South Korea's current account surplus rose to a new record of US$6.1bn in Jul (US$5.88bn in Jun) as falling world oil prices pushed down the value of imports (CNA)

Bank of Thailand Governor Prasarn Trairatvorakul said Thailand’s economic fundamentals are still strong enough to withstand any possible current negative impact of the global economic crisis. But if the impact reaches a critical level, the central bank was ready to use its monetary policy to help ease the damage, including a reduction in the key policy rate. (Bangkok Post)

Thailand’s custom  exports value declined 4.46% yoy while imports rose 13.73% in Jul, resulting in a trade deficit of US$1.74bn. Exports fell more than consensus estimate for a 3.75% decline.  Governor of the Bank of Thailand Prasarn Trairatvorakul said there was  a high risk that Thailand’s latest export growth target of 7% would not be achieved. (The Nation)

Approximately 40% of the  Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI) projects are less viable and requires incentives from the central government, according to Bastary Pandji Indra, Director of Development for Public-Private Cooperation, Ministry of National Development Planning. (IFT)

The  Indonesian government is targeting  FDI in 2013 to reach US$ 30bn from US$22bn in 2012. (IFT)

The  Indonesian government has come up with an idea to raise  base electricity prices by 1% per month until it achieves a 15% hike, starting from Jan next year. (Jakarta Post)

Standard & Poor's Ratings Services believes Vietnam must undertake timely reforms of the country's state-owned enterprises and its banking sector, especially after the recent arrest of one of the founders of Asia Commercial Bank (ACB). (StarBiz)

The Vietnamese Government has agreed to grant tax exemption for farm goods grown in Cambodia by Vietnamese enterprises and individuals and imported for processing. (Vietnam News)

Vietnam raised  retail petrol prices yesterday by VND650 (US$0.033) per litre to VND23,650, while  diesel  rose by VND300 per litter to VND21,850. (Vietnam News)

Myanmar president U Thein Sein announced the second day of government reforms, with three ministers allowed to resign “to accelerate the reform process of the government,” according to Director of President Office spokesperson U Zaw Htay. (The Nation)

Vietnam and Cambodia have agreed to boost  education exchanges and human-resource training for people in the border provinces. (Vietnam News)

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