20120905 1008 Local & Global Economy Related News.

Fresh graduates looking for their first job will find it tougher, as more employers expect to reduce hiring or not to hire at all in the next 12 months, according to the Job Outlook Report for the 3Q12 released by JobStreet.com. The report shows that 33% of the respondents felt that general job outlook would be “slightly worse” or “much worse” in 3Q12 (vs. 22% in 2Q12 and 23% in 3Q11). Only 31% of the respondents felt the general job outlook would be “slightly better” or “much better for the next 12 months (vs. 44% in 2Q12 and 47% in 3Q11). Hiring has been slower, especially in the manufacturing sector, as global economic conditions deteriorate, particularly in Europe and the US, it said. In the next 12 months, major industries such as manufacturing, wholesale and retail trade, and finance are likely to experience the slowest job growth while the construction industry expects a robust growth. Some 43% of employers  surveyed said they are either expanding or maintaining their hiring rate while 46% said they will be hiring fewer people, replacing or filing essential positions only, while 11% said they will not be hiring in the foreseeable future. (Financial Daily)

The construction industry is expected to secure RM120bn worth of projects next year, the Construction Industry Development Board (CIDB) said. Its general manager (corporate division), Ahmad Asri Abdul Hamid, said the projects would be mainly in the oil and gas and transportation sectors. "We estimate the Petronas Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang would bring in RM60bn and the Mass Rapid Transit project, RM40bn. If we add all these and other ongoing projects, it will accumulate to RM120bn," he said. (BT)

The  1Malaysia Broadband Affordable Package, ranging from RM20 to RM25 per month for a wireless connection and RM38 for a wired one, will be made available in Sabah, Sarawak, Terengganu, Kelantan and Pahang from 16 Sep. Information Communication and Culture Minister Datuk Seri Dr Rais Yatim said the package was being introduced as the five states had yet to reach the national broadband penetration rate of 64%. He said if the package received a favourable response, it would also be introduced to other states. (Bernama, BT)

The  outlook  for the  US banking system remains negative in the face of macroeconomic challenges even as most banks have returned to profitability since 2010, according to a report from Moody's Investors Service. (WSJ)

The US ISM manufacturing index fell to 49.6 in Aug (49.8 in Jul), worse than consensus of 50.0. (Bloomberg)

The final reading of the US Markit manufacturing PMI stood at 51.5 in Aug (51.4 in Jul). (Bloomberg)

US construction spending fell 0.9% mom in Jul (+0.4% in Jun), worse than consensus of +0.4%, whilst on a yoy basis, the measure gained 9.3% (7.0% in Jun). (Bloomberg)

The  Thomson Reuters/PayNet Small Business Lending Index, which measures the overall volume of financing to small American companies, rose to 103.8 in Jul from 100.5 in Jun, PayNet said. (Reuters)

Moody's lowered the EUs long-term issuer rating outlook from stable to negative, saying the move reflected the negative outlooks of the bloc's key budget contributors. (AFP)

European Central Bank President Mario Draghi said the bank’s primary mandate compels it to intervene in bond markets to wrest back control of interest rates and ensure the euro’s survival. (Bloomberg)

The European Central Bank is willing to take on a supervisory role for the European banking system only if certain conditions are met,  ECB executive board member Joerg Asmussen said. (AFP)

Slower growth in energy and food prices despite some tough climate conditions trimmed 12-month inflation in advanced economies to 1.9% in Jul from 2.0% in Jun, the OECD said. (AFP)

The  United Nations warned of a possible repeat of the  2007-2008 food crisis and called on world leaders to act quickly to prevent a catastrophe which would affect tens of millions of people. (AFP)

Japan's cash-starved central government postponed payments worth trillions of yen to local administrations, forcing the Bank of Japan to inject ¥1.9tr into the market to pre-empt any disruptive impact. The ministry had planned to transfer ¥4.1tr in tax grants to municipalities during the day, about a quarter of the annual payments the national government is scheduled to make to the regions. (WSJ)

South Korea’s government was preparing a  new stimulus package to support the economy. Previously, the Seoul government had announced in Jun that it would use existing state funds for a stimulus package of 8.5tr won (US$7.5bn) for the second half of 2012. (WSJ)

HSBC's PMI for Vietnam rose to 47.9 in Aug from Jul's 43.6, indicating only a modest deterioration. (WSJ)

Vietnam is considering a proposal by the Bulgarian Government on a new bilateral co-operation model based on exports of Vietnam's semi-processed goods to Bulgaria. (Vietnam News)

Australian Prime Minister Julia Gillard denied claims that the mining boom was over, saying its benefits would last decades even as a key forecaster warned more projects may be shelved. (AFP)

The Reserve Bank of Australia left its cash rate unchanged at 3.5% even as signs emerge that the nation's mining boom is cooling quicker than expected.  Economists had expected the central bank to keep its cash rate on hold. (WSJ)

Singapore will  cap the number of homes that can be developed in suburban projects as it seeks to curb the increasing trend of so-called shoebox apartments (smaller than 50 sqm). The new rules will be implemented from 4 Nov 2012. (Bloomberg)

China may expand exporters’ tax rebates to help them cope with a slump in trade growth. The government may give a full rebate of the 17% value-added tax on products including furniture, shoes and toys, up from 13% to 15% currently. The policy may be rolled out as soon as this month, depending on whether trade remains weak. (Bloomberg)

Indian banks need to mobilize an additional five trillion rupees (US$90bn) by Mar 2018 to meet the stringent capital requirements of Basel III, the country's central-bank governor Duvvuri Subbarao said. (WSJ)

Indonesia’s money supply growth (M2) slowed to 19.1% yoy in Jul from 20.9% in Jun. (Bloomberg)

Massive global supply will prevent  rice prices from soaring even as Thailand continues its paddy pledging and India restricts its exports, says the Asian Development bank. (Bangkok Post)

Thailand’s consumer confidence index rose to 68.4 in Aug from 68.2 in Jul. (Bloomberg)

Average new home prices in major Chinese cities continued to rise in Aug for the third straight month to Rmb8,738 (US$1378) in Aug, an increase of 0.24% from Jul. (Xinhua)

Singapore’s purchasing managers index (PMI) was 49.1 in Aug, compared with 49.8 in Jul. But the  electronics sector PMI rebounded from a contraction to expand at 50.7 in Aug, up 1.5 points from 49.2 in Jul. (AFP)