Compiled by IDS (For internal circulation only)
Vol. 15 Issue 6 IDS Online http://www.ids.org.my 1 – 30 June 2010
1 – 30 June 2010 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1
HIGHLIGHTS
FOKUS
• U.S. economy: Recovery creates few jobs, no inflation
• South Korea’s economy expanded more than estimated last quarter
• Malaysia to achieve 6.7 percent growth this year, says OCBC
• Malaysian exports to China surge 82.2 pct in first five months of this year
• Kekuatan model insan generasi muda faktor penting pacu SDC
• Sabah can expect quantum leap in industries: Tan
U.S. economy: Recovery creates few jobs, no inflation: The world’s largest economy will keep expanding in the second half of the year without stoking inflation or generating many jobs, reinforcing the Federal Reserve’s low-interest-rate policy, reports today showed. The index of leading indicators, a gauge of the outlook for growth over the next three to six months, climbed 0.4 percent in May, according to data from the New York-based Conference Board. Other figures showed the cost of living dropped, claims for jobless benefits unexpectedly increased to the highest level in a month and manufacturing in the Philadelphia Fed region cooled. (17 June, Bloomberg)
South Korea’s economy expanded more than estimated last quarter: South Korea’s economy expanded at a faster pace than initially estimated last quarter as exports and consumer spending strengthened. Gross domestic product rose 2.1 percent from the previous three months, compared with an April estimate of 1.8 percent, the Bank of Korea said in Seoul today. The economy grew 8.1 percent from a year earlier, more than the previous 7.8 percent. (4 June, Bloomberg)
China’s trade rose in May; surplus grows: Unexpectedly strong exports from China in May suggested that international trade remained buoyant despite Europe’s debt troubles. But a $19.5 billion trade surplus for the month indicated by the figures published Thursday was also likely to re-ignite pressure on Beijing to let its currency appreciate against the U.S. dollar. Exports and imports both jumped nearly 50 percent in May from the levels of a year earlier, surprising analysts who had expected more modest increases. (9 June, New York Times)
World Bank: Double-dip recession can’t be ruled out: The World Bank on Wednesday said a double-dip recession could not be ruled out in some countries if investors lose faith in efforts in Europe and elsewhere to tackle rising debt levels. The World Bank’s Global Economic Prospects 2010 report said slower growth in developed economies would deprive developing countries of healthy markets for their goods and would cut into investment. (9 June, Reuters)
UK interest rates kept at 0.5% for 15th month: UK interest rates have been kept on hold at a record low of 0.5% for the 15th month in a row. The Bank of England also decided not to inject any more money into the UK economy under its policy of quantitative easing (QE). Interest rates have now been at 0.5% since March 2009. Meanwhile, a Reuters poll of 61 economists suggested the central bank would not raise rates until next year. Trevor Williams, chief economist at Lloyds Banking Group Corporate Markets, said the decision was “no shock at all”. (10 June, BBC News)
New Zealand economy expanded 0.6% in first quarter from prior three months: New Zealand’s economy expanded for a fourth straight quarter as exports strengthened, adding to the case for the central bank to raise interest rates further. Gross domestic product increased 0.6 percent from the previous three months, Statistics New Zealand said in Wellington today. That matched the median estimate in a Bloomberg News survey of 14 economists and followed a revised 0.9 percent gain in the fourth quarter. (23 June, Bloomberg)
G20 needs to cut budgets without sacrificing economic growth, Gordhan says: Group of 20 nations need to cut their budgets without sacrificing the global economic recovery, South African Finance Minister Pravin Gordhan said. Spending cuts and tax increases should be “growth friendly,” Gordhan told reporters in the capital, Pretoria, today, ahead of his trip with President Jacob Zuma to attend the G-20 meeting in Toronto on June 26-27. U.S. President Barack Obama is pushing G-20 nations to do more to bolster the global economic recovery, while European governments, such as Germany and France, are focusing on slashing budget deficits, setting a course for conflict at the summit. (23 June, Bloomberg)
E.U. faces shortages of key minerals: The European Union is facing shortages of 14 “critical” raw materials needed for mobile phones and emerging technologies like solar panels and synthetic fuels, according to a study by the European Commission that was scheduled for release Thursday. The commission is ringing the alarm bell on raw materials as China again plans to tighten its control over its rare-earth minerals by allowing just a handful of state companies to oversee the mining of the scarce elements. The 14 materials identified by the commission out of 41 minerals and metals it analyzed are antimony, beryllium, cobalt, fluorspar, gallium, indium, germanium, graphite, magnesium, niobium, platinum group metals, rare earths, tantalum and tungsten. (16 June, New York Times)
Malaysia to achieve 6.7 percent growth this year, says OCBC: Malaysia will achieve a 6.7 percent growth this year with higher exports earnings expected to boost investment further towards year-end, according to OCBC Ltd. OCBC economist Gundy Cahwadi said Malaysia was on track to achieve the target as exports were now growing at the fastest pace since 1998, although private investment growth was disappointing in the first quarter. He said the export of major commodities had almost returned to the level seen before the collapse of global demand at the end of 2008. (25 June, Bernama Online)
Malaysian exports to China surge 82.2 pct in first five months of this year: Malaysia’s exports to China in the first five months of this year rose by 82.2 percent to US$19.1 billion (US$1 = RM3.19) compared with the same period last year. Malaysia External Trade Development Corp’s Sabah director, Syed Zahirulldin Syed Ali, said with the implementation of the Association of South-East Asian Nations (Asean)-China Free Trade Area (ACFTA), where tariffs of over 90 percent of the products were cut to zero, Malaysia’s trade with China was expected to continue to grow. (28 June, Bernama Online)
Malaysia scores better in economic freedom: Malaysia has been ranked as the 59th freest economy out of 179 countries, according to an independent 2010 Index of Economic Freedom. Its score of 64.8 this year, a tad 0.2 point better than last year’s, reflects improvements in four out of 10 economic freedoms gauged by the US-based Heritage Foundation. Malaysia was ranked ninth out of 41 countries in the Asia-Pacific region and its overall score was above the world and regional averages, foundation research fellow James M. Roberts said. (28 June, Business Times)
Halal Industry to contribute significantly to Malaysia’s development: The halal industry will significantly contribute towards the country’s economic development, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed. “Malaysia has been in the forefront of developing standards for the halal industry that meets international best practices,” he said during the World Halal Research 2010 Awards and Recognition dinner here in Kula Lumpur Wednesday night. While saying that Malaysia had a competitive edge in the development of the halal industry, he added that it was the only country which provided full support for the promotion of halal products and services. (23 June, Bernama Online)
RM100j bantu penduduk miskin: Perdana Menteri, Datuk Seri Najib Tun Razak hari ini melancarkan Program Amanah Saham Wawasan 2020-Bandar (ASW-2020-Bandar) dengan peruntukan RM100 juta untuk membantu menjana pendapatan tambahan kepada keluarga miskin tegar dan miskin bandar. Sempena pelancarannya, 4,976 daripada 8,439 ketua keluarga dari golongan miskin tegar dan miskin bandar menerima bantuan melalui pelaksanaan daftar e-Kasih fasa pertama dan kedua yang dikelolakan Jabatan Perdana Menteri. (25 Jun, Utusan Malaysia)
‘Malaysia steel consumption may grow 5pc’: Domestic steel usage is projected to grow at only 5 percent to 7.5 million tonnes this year - lower than an earlier forecast of 8-10 per cent growth, an industry body said. Malaysian Iron and Steel Industry Federation (MISIF) president Chow Chong Long said Malaysia is estimated to consume 7.5 million tonnes of steel this year compared with 7.1 million tonnes last year. “There will be growth but the rate will be subdued. In the last two months, the government has been indicating of impending rise in natural gas and electricity prices,” he said. (24 June, Business Times)
Malaysia’s A3 sovereign credit rating stronger through global crisis; Malaysia’s A3 sovereign credit rating has been underpinned through the global crisis by its strong external position, deep and liquid domestic capital markets as well as a well managed financial system, says Moody’s Investors Services in its annual sovereign report. In a statement here in Kuala Lumpur Thursday, Moody’s said the sovereign credit outlook is stable and is adequately supported by favorable expectations for economic performance and policy management. This also includes the government’s efforts to liberalise investment laws and foster competition so as to improve the country’s growth model. (17 June, Bernama Online)
Kerajaan sasar PKN AS$504 bilion menjelang 2020: Datuk Seri Najib Tun Razak berkata, kerajaan bermatlamat meningkatkan Pendapatan Kasar Negara (PKN) negara ini kepada US$504 bilion menjelang 2020, daripada AS$187 bilion sekarang ini. Perdana Menteri berkata, sehingga ini, 12 Bidang Ekonomi Utama Negara (NKEA) telah mengenalpasti 118 projek baharu (EPP) dan 35 peluang perniagaan dengan anggaran PKN tahunan menyumbang kira-kira US$156 bilion pada 2020. (30 Jun, Utusan Malaysia)
KWSP, kerajaan bangun tanah LGM: Kerajaan secara prinsipnya telah meluluskan cadangan pembangunan tanah Lembaga Getah Malaysia (LGM) di Sungai Buloh oleh Kwasa Land Sdn. Bhd. iaitu syarikat usaha sama antara Kumpulan Wang Simpanan Pekerja (KWSP) dan pihak kerajaan. Datuk Seri Najib Tun Razak berkata, penglibatan secara langsung melalui usaha sama dengan KWSP itu membolehkan kerajaan mengawal selia pembangunan dan menyelaras agenda pembangunan negara termasuk pembangunan kluster sektor industri tertentu selaras dengan Model Baru Ekonomi (MBE). (30 Jun, Utusan Malaysia)
Industri makanan negara berkembang: Penyertaan negara luar dalam Pameran Perdagangan Makanan dan Minuman Antarabangsa Malaysia ke-11 (MIFB 2010) pada Julai ini membuktikan industri makanan negara antara yang terbaik di dunia dan mampu berkembang lebih luas. Menurut peserta luar yang telah mengesahkan penyertaan mereka, keterbukaan industri makanan di Malaysia menjadikannya sangat kompetitif dan popular. (27 Jun, Utusan Malaysia)
Kekuatan model insan generasi muda faktor penting pacu SDC: Kekuatan model insan kalangan generasi muda rakyat Sabah menjadi faktor penting dalam memacu Koridor Pembangunan Sabah (SDC) yang melibatkan keperluan keseluruhan rakyat negeri ini. Menurut Ketua Menteri, Datuk Seri Musa Haji Aman, SDC yang dirancang kerajaan meliputi semua daerah bertujuan memacu pembangunan rakyat tanpa meminggirkan mana-mana kaum. Sebab itu menurut beliau, Barisan Nasional memberikan keutamaan dalam program pembangunan model insan khususnya di bidang pendidikan bagi melahirkan generasi muda Sabah yang berkemahiran dan mempunyai keupayaan membangunkan negeri ini. (16 Jun, New Sabah Times)
Sabah can expect quantum leap in industries: Tan: Sabah expects to see a quantum leap in industries’ contribution to the economy under the 10th Malaysia Plan (10MP). The increase in industrialisation activities will translate into greater demand for services, creation of more high-wage jobs and wider business activities, said Industrial Development Minister Datuk Raymond Tan. He said the 10MP unveiled by Prime Minister Datuk Sri Najib Tun Razak in Parliament on June 10 has identified 12 national key economic areas (NKEAs) to drive the national economy from middle-income to high-income. (16 June, Daily Express)
Pembangunan projek PPR Kiansom positif: Selepas beberapa kali tertangguh, usaha menyiapkan baki pembinaan Projek Perumahan Rakyat (PPR) Kiansom, Inanam dekat sini (Kota Kinabalu), mula menampakkan tanda-tanda positif. Keadaan itu sekaligus menggembirakan Timbalan Menteri Perumahan dan Kerajaan Tempatan, Datuk Lajim Ukin yang melakukan lawatan mengejut kali kedua dalam tempoh tiga bulan tahun ini. (16 Jun, Utusan Malaysia)
SLDB diversifying agro-based economic sectors: The Sabah State Land Development Board (SLDB) is diversifying its agro-based economic sectors, said Corporate Service Head Syaheddrul Joddari today. He said the move was in line with the agency’s effort to enhance the socio economic status of people, especially its settlers, based on the suitability of land under its purview. “Previously, SLDB relied on oil palm for source of income. Our long term vision is to develop rural land with crops other than oil palm. (26 June, Bernama Online)
Lebih RM100,000 sebulan bantu sara hidup nelayan Beaufort: Kerajaan memperuntukkan lebih RM100,000 sebulan bagi membantu masyarakat nelayan di Parlimen Beaufort melalui bantuan elaun sara hidup. Timbalan Menteri Perumahan dan Kerajaan Tempatan, Datuk Lajim Ukin berkata, peruntukan elaun bulanan tersebut melibatkan kira-kira 634 nelayan di daerah Beaufort dan Kuala Penyu. “Elaun sara hidup nelayan berjumlah RM126,800 sebulan ini merupakan antara usaha kerajaan membantu masyarakat nelayan menampung kos sara hidup keluarga mereka. (28 Jun, Utusan Malaysia)
Projek BELB siap hujung tahun ini: Projek Bekalan Elektrik Luar Bandar (BELB) di Pulau Sebatik dekat sini (Tawau) yang menelan kos RM120 juta dijadual beroperasi sepenuhnya hujung tahun ini. Ahli Dewan Undangan Negeri (ADUN) Sebatik, Abdul Muis Picho berkata, projek tersebut akan memberi manfaat kepada kira-kira 7,500 penduduk dari 14 kampung di pulau itu. “Setakat ini kerja-kerja penyambungan kabel melalui dasar laut dari tanah besar di Kampung Pasir Putih ke Kampung Sungai Tongkang di Pulau Sebatik telah siap. “Selepas ini pihak kontraktor akan melakukan kerja-kerja pendawaian ke rumah-rumah penduduk sebelum kemudahan itu dapat dinikmati sepenuhnya,” katanya kepada pemberita di sini hari ini. (23 Jun, Utusan Malaysia)
Kolej Islam di Sabah di bawah RMK-10: Sebuah kolej Islam akan dibina di negeri ini bagi menampung keperluan pembelajaran lepasan Sijil Pelajaran Malaysia (SPM) dan Sijil Tinggi Persekolahan Malaysia (STPM) yang berminat melanjutkan pengajian dalam bidang agama. Menteri di Jabatan Ketua Menteri, Datuk Nasir Tun Sakaran berkata, kerajaan negeri sudah menyediakan tanah seluas 40 hektar berhampiran pekan Beaufort untuk pembinaan kolej berkenaan. (30 Jun, Utusan Malaysia)
Devt blueprint for Pensiangan being drafted, says Kurup: The development blueprint for Pensiangan, one of the most remote and underdeveloped areas in Sabah, is being drafted to boost development in the area, said Deputy Natural Resources & Environment Minister Tan Sri Joseph Kurup. He said the blueprint, which is a supporting programme for the 10th Malaysia Plan, was aimed at alleviating poverty in the area. (9 June, New Sabah Times)