20121003 1050 Local & Global Economy Related News.

Malaysia is well-prepared to handle the  current global economic crisis due to its experience in addressing the Asian economic crisis in the late 1990s, PM Datuk Seri Najib Tun Razak said. The government had responded positively with better governance, capitalisation and liquidity in handling the crisis during that time, he said. "The risk still remains. But thankfully, the government's successful management of the economy meant that Malaysia was fortunate to emerge from the credit crisis in a position of relative strength," he said. (Bernama)

The Malaysian economy is going strong and is set to pass the trillion-ringgit milestone next year, said  PM Datuk Seri Najib Tun Razak yesterday. He said that the strength of the country’s economy had allowed him to craft a Budget that was responsive to the “people’s needs” and that was also fiscally responsible. (Malaysian Insider)

Domestic demand continues to spur  Asia’s economic growth on the backdrop of slowing external demand and uncertainties in the financial markets. Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said that the growing importance of domestic demand in Asia was creating a huge cumulative domestic market and a case for greater regional integration. Greater regional and intra-regional integration of the emerging economies through the proliferation of interlocking networks of trade, investment and finance, have contributed to support economic activity in the emerging economies, she said. The decline in external demand from the advanced economies had been partially offset by stronger domestic demand to spur economic activities in Malaysia, she added. This was due to robust resumption of private consumption and investment activities and the diversification of exports to the regional economies in new product segments, she said. (Starbiz)

Higher energy prices forced annual inflation in advanced economies to rise to 2.0% in Aug from 1.9% in Jul, the OECD said. (AFP)

The  global economy will need to have created  600m new jobs  between 2005 and 2020 to absorb young people entering the work force, spur development, empower women and prevent unrest, the World Bank said. (Bloomberg)

The US ICSC-Goldman Store Sales index  gained 2.4% yoy in the 29 Sep week (2.9% in the earlier week), whilst on a wow basis, the measure fell 0.3% (+0.6% in the prior week). (Bloomberg)

US total vehicle sales rose to an annualised 15.0m rate in Sep (14.5m in Aug), overshooting consensus of 14.5m. (Bloomberg)

Federal Reserve Chairman Ben Bernanke is increasingly aiming for gains in stock prices as the Federal Reserve reaches for new tools to spur the three-year recovery and reduce unemployment stuck above 8%. (Bloomberg)

The European debt crisis could weigh on the world economy for years, forcing policy makers to rethink their approaches to restoring growth and boosting job creation, the World Bank's new chief economist Kaushik Basu said. (WSJ)

Consumer spending in emerging market powerhouses China and  India is expected to triple by 2020 to a combined US$10tr a year, and will spend a combined total of US$64tr on goods and services in the decade leading up to 2020. (Reuters)

Japanese economic growth is set to slow as the boost from reconstruction-related demand fizzles, ratings firm Standard & Poor's said. (WSJ)

Japan's new finance minister Koriki Jojima said he would be concentrating on passing a key debt-financing bill for now and will make a decision on further stimulus for the flagging economy at a later date. (AFP)

South Korea's inflation  rate accelerated to 2.0% yoy in Sep (1.2% in Aug), but remained below the central bank's 3.0% target ceiling. (Channel News Asia)

Singapore's Purchasing Managers Index slipped deeper into negative territory last month, dropping to 48.7 points from Aug's 49.1. In the electronics sector, the index posted a marginal fall of 0.7 point over the previous month to moderate at a reading of 50.0. (CNA)

Vietnam’s exports are expected to total US$113bn this year, US$4bn over the target earlier in the year, said the director of the Ministry of Industry and Trade's planning department, Nguyen Tien Vy.The department added that the  total retail sales of goods and services is estimated to grow 18-19% against 2011 inclusive of price hikes, much lower than the rates in previous years as the market is now affected by many factors, including consumption decline. (Vietnam News, Saigon Times)

Vietnam’s  HSBC manufacturing PMI rose from 47.9 in Aug to a five-month high of 49.2 in Sep. (Saigon Times)

Cooking gas prices in Vietnam spiked by VND16,000 (0.77 US cent) to an average price of VND434,000 (US$21) per 12kg canister, nearly 4% mom higher. (Vietnam News)

The Ministry of Industry and Trade will not increase  Vietnam’s electric prices this month as scheduled, pending an investigation on the cost of electricity production. (Vietnam News)