20120906 1037 Local & Global Economy Related News.

Malaysia  slipped by four notches to 25th position in the latest  Global Competitiveness Report 2012-2013. The report which was released by the Geneva-based World Economic Forum (WEF) however marked Malaysia as being within the top 20% of the 144 competitive countries in the world.   Korea, Luxembourg, UAE and New Zealand overtook Malaysia this time round although Malaysia's scores slipped marginally compared to the previous report.  The top 10 countries are Switzerland, Singapore, Finland, Sweden, Netherlands, Germany, the US, the UK, Hong Kong and Japan. Among Asean countries, Malaysia has retained its second spot. Among 22 Asia Pacific countries, Malaysian ranked eighth, ahead of China, India and other Asean countries except Singapore. WEF also upgraded Malaysia's stage of development as transition towards Innovation-driven from efficiency-driven previously. (BT, Bernama)

The Ministry of Finance (MOF) has accepted for implementation 24 of the 57 suggestions on the  draft Goods and Services Tax (Amendment) Bill 2012. In a statement, MOF said the suggestions were received during the public consultation exercise held from 2 July to 27 July. They will be incorporated into the revised Goods and Services Tax (Amendment) Bill 2012 or IRAS' e-Tax guides.  The remaining suggestions were not accepted for implementation as they are inconsistent with the policy objectives for the proposed legislative changes or legislative drafting conventions. The draft Goods and Services Tax (Amendment) Bill 2012 proposed legislation to put into effect tax changes announced in Budget 2012, as well as changes arising from the periodic review of the Goods and Services Tax system. The key changes include GST exemption on the import and supply of investment-grade gold and precious metals and a new Approved Refiner and Consolidator Scheme to relieve cashflow for refiners and local consolidators of precious metals, and enable them to claim input tax to make the first exempt supply of investment-grade precious metals after refining. Other changes include extension of the scope of GST zero-rating of prescribed financial services relating to goods situated outside Singapore, allowing the comptroller and minister to set conditions when granting GST remission, extension of the temporary removal scheme to goods that are removed temporarily from approved warehouses for repairs and allowing zero-rating of repair services performed on qualified goods outside the approved specialised warehouse. (Bernama)

Bank Negara Malaysia said the introduction of the Financial Consumer Alert List is to provide the people with a quick  reference and guide to make decisions on various financial services offered by non-licencees. The list essentially refers to the list of unregulated individuals or companies which have been mistaken as being licensed or permitted by regulators, including the Securities Commission, Domestic Trade, Cooperatives and Consumerism Ministry, Companies Commission Malaysia and Cooperative Commission of Malaysia on their business transactions. (Bernama)

The Malaysia Productivity Corp (MPC) hopes the government will increase its allocation under Budget 2013 to enable it to undertake initiatives and steps to boost the nation's competitiveness. Its director-general, Datuk Mohd Razali Hussain, said the nation's competitiveness needed to be further improved so that whatever initiatives and steps would be able to be implemented efficiently and productively. "If the request for higher allocation is approved, it will be used solely for sectors under the National Key Economic Areas (NKEA)," he said. (Bernama)

US total vehicle sales  came in at an annualized rate of 14.5m units in Aug (14.1m in Jul) on the back of gains in domestic cars and trucks. Economists expected a 14.3m reading. (Bloomberg)

US non-farm productivity  rose 2.2% qoq in 2Q12 (1.6% in the initial estimate; -0.5% in 1Q12), better than consensus of 1.9%.  Unit labour costs grew 1.5% qoq (1.7% in the earlier estimate; 6.4% in 1Q12), better than economists’ expectations of 1.4%. (Bloomberg)

US MBA purchase applications index fell 0.8% wow in the 31 Aug week (+1.0% in the earlier week), whilst the  refinance index  declined 3.0% wow (-6.0% in the prior week). (Bloomberg)

The US ICSC-Goldman Store Sales index fell 0.4% wow in the 1 Sep week (+0.5% in the earlier week), whilst on a yoy basis, the measure gained 3.7% (3.4% in the prior week). (Bloomberg)

European Central Bank President Mario Draghi’s bond-buying proposal  involves unlimited purchases of government debt that will be sterilized to assuage concerns about printing money, two central bank officials briefed on the plan said. (Bloomberg)

Eurozone Purchasing Managers Index (PMI) came in at a final 46.3, down from an initial estimate of 46.6 and the 46.5 figure in Jul. Any reading below 50 indicates contraction in activity. (CNA)

Eurozone producer prices gained 0.4% mom  in Jul, reversing the  -0.5% recorded in Jun, whilst on a yoy basis, the measure gained 1.8%, matching Jun’s pace. (Bloomberg)

The  HSBC China Services PMI weakened to 52 in Aug from 53.1 in Jul. (Bloomberg)

China revised up its 2011 gross domestic product to 9.3%, from an initial reading of 9.2%, the statistics bureau said, adding that the world's No. 2 economy was worth Rmb47.3tr last year. (Reuters)

Japan’s labour cash earnings  fell 1.2 yoy in Jul (-0.4% in Jun), whilst manufacturing overtime  hours worked gained 1.4% yoy (6.1% in Jun). (Bloomberg)

Japan’s monetary base was up 6.5% yoy in Aug (8.6% in Jul). (RTTNews)

Russian President Vladimir Putin said the country's future depended on Asia  and promised to showcase "a nation of opportunities" at this week's Asia-Pacific Economic Cooperation summit. (AFP)

Chile wants to strike new free trade deals with Hong Kong, Indonesia and Russia at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Vladivostok, its president Sebastian Pinera said. (AFP)

Singapore has maintained its ranking as the  second most competitive economy behind Switzerland, according to the  World Economic Forum Global Competitiveness Report 2012-2013. The US fell to seventh position from fifth in the global ranking, whilst Thailand's ranking rose one place to 38th to break a six-year streak of declines. (AFP, WSJ, Bangkok Post)

The Bank of Thailand has kept its benchmark interest rate unchanged for a fifth straight month after the economy rebounded, resisting calls from the government for lower borrowing costs. (Bangkok Post)

Thailand’s Central Wage Committee will implement the  THB300 minimum daily wage across the country from Jan 2013. (Bangkok Post)

Thailand’s unemployment rate for 2Q12 has risen to 0.92%, or 360,000 people,  the Labour Ministry reported, from 0.66% or 260,000 in 1Q12. (Bangkok Post)

Indonesia’s consumer confidence index improved to 115.7 in Aug from 113.5 in Jul. (Bloomberg)

Indonesia’s Ministry of Trade projects  2013 export to grow 5% to 10% from this year, if there is a recovery of global economy. (IFT)

Bank Indonesia has warned commercial banks not to use  non-collateral loans, locally known as KTA, as a method to finance customers who were unable to pay the required downpayment. It will soon verify whether banks have complied with the rules of disbursing loans. (Jakarta Post)

Indonesia will raise renewable energy prices for electricity to encourage overall renewable energy production. The price of geothermal electricity is now up to between 10 and 18.5 US cents per kWh from 9 cents per kWh, biomass electricity to Rp975 (10 cents) and Rp1,050 per kWh, from Rp656 per kWh. It is drafting another regulation that will similarly increase the price of hydro electricity from Rp656 per kWh to between Rp975 and Rp1,050 per kWh. (Jakarta Post)

Indonesia's central bank governor forecast 2012 full year economic growth at 6.4%, rising to 6.6% the following year. Inflation will stand at 4.7% in 2012, edging up to 4.8% in 2013, while the rupiah would maintain a range of Rp9,200-9,400 until the end of 2012 and between Rp9,300-9,500 in 2013. (Reuters)

Vietnam's ICT sector earned a revenue of US$13.7bn in 2011, registering a 79% yoy increase, according to the Ministry of Information and Communication (MIC). (Vietnam News)

Inflation in the Philippines quickened to 3.8% yoy in Aug (3.2% in Jul), faster than market expectations of a 3.5% rise. (Bloomberg)

South Korea's economy grew a seasonally adjusted 0.3% qoq in 2Q12, revised data showed, slightly worse than previously estimated and down from a 0.9% rise in the first quarter. (Reuters)

Details of rules on private investment in State-monopolized sectors in China will be published before the end of Jun, with a focus to widen market access to stimulate the vitality of private capital. (China Daily)

Soufun reported new home sales in 34 out of 40 large cities monitored across China have seen a mom increase from Apr to May. (China Daily)