Tuesday, 2 July 2013

CIMB Malaysian Economic News - 02 July 2013

The government is looking into a suitable amount of increase for the 1Malaysia People's Aid (BR1M) by taking into account the country's financial projections, said Deputy Finance Minister Datuk Ahmad Maslan. This is also in line with the government's intention to restructure subsidies towards providing targeted subsidies, he said in the Dewan Rakyat, yesterday.

  • There is no problem with the government's ability. Details of the BR1M would be given at the tabling of the 2014 Budget, followed by the 2015 to the 2018 Budget, he said. 
  • On whether the government would increase the eligibility limit for the aid from households with incomes of below RM3,000 to RM5,000, he said the government was looking into the matter. 
  • The government was also reviewing the mechanism of distributing the BR1M to households, with suggestions from various quarters for it to be divided equally for the husband and wife. (Bernama)

Minister in the Prime Minister's Department Datuk Seri Shahidan Kassim said RM400m was spent for the 13th general election (GE13). The amount included overtime payment of RM5.081m and RM98.465m for logistics, which included vehicle rentals, ICT equipment and lease line, he said. It also included service and token payment for workers, totalling RM204.1m and other expenses RM92.354m, he added. (Bernama) 

The government has agreed to fix the cost of hiring Indonesian maids to RM8,000 after considering the costs incurred by both countries, said DPM Tan Sri Muhyiddin Yassin. The costs cover 200 hours of training, travel documents, meals and lodging, transportation fees, medical check-up as well as payments to agents in both countries.

  • The change in cost structure would be brought for negotiations between both governments so that it could be implemented quickly. 
  • The details would be announced by the human resources ministry after a consensus was reached, he added. 
  • Besides that, the committee also decided that the Minimum Wage Order 2012 not be used for foreign workers holding the Temporary Work Visit Pass. (Bernama)

The country's sustainable economic growth over the past 20 years has kept the unemployment rate at below 4%, which based on economic definition, is considered as full employment, Dewan Rakyat heard Monday. Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar said the good economic growth since 2011, from 5.1% to 5.6% last year saw the creation of 438,800 jobs in 2012, compared to 385,000 previously. This means that the unemployment rate declined from 3.1% in 2011 to 3% in 2012, he said. (Bernama)

The Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) expects to be able to reduce government spending by 20% following the mandate given as the driver for Entry Point Project Two-One (EPP2-1) -- Information and Communications Technology (ICT) Shared Services. The project is under the National Key Economic Area Business Services which is responsible for implementing the EPP for the Government ICT Shared Services component.

  • The Government ICT Shared Services for implementation included Public Sector ICT Network Services, Putrajaya Campus Network (PCN), 1Malaysia One Call Centre (1MOCC), 1Malaysia One Training Centre (1MTC), Public Key Infrastructure and Public Sector Data Centre. (Bernama)

More Malaysian companies are involved in the global and regional supply and value chains, reflecting greater regional economic integration, said Ministry of International Trade and Industry (Miti) Secretary-General Datuk Dr Rebecca Sta Maria. More than 600 Malaysian companies are operating in Asean countries, capitalising on the robust growth and economic integration that has been laid out by Asean, she said.

  • "For Malaysia, the Asean Economic Community (AEC) is our priority. We have met 93% of our phase one targets, and 84.5% and 85% of phases two and three targets respectively," she said. 
  • The AEC is premised on a practical and realistic target for integration, she added. (Bernama)

The Financial Services Act 2013 (FSA) and Islamic Financial Services Act 2013 (IFSA) come into force yesterday, said Bank Negara Malaysia (BNM). The FSA and IFSA is the culmination of efforts to modernise the laws that govern the conduct and supervision of financial institutions in Malaysia to ensure that these laws continue to be relevant and effective to maintain financial stability, support inclusive growth in the financial system and the economy, as well as to provide adequate protection for consumers.

  • The laws also provide BNM with the necessary regulatory and supervisory oversight powers to fulfill its broad mandate within a more complex and interconnected environment, given the regional and international nature of financial developments. (BNM) 

The human resources ministry will not allow any company to defer the application of minimum salary which ended 30 Jun. Minister Datuk Richard Riot said as of yesterday, a total of 743 deferred applications were being processed, and expected to be completed in the near future.

  • After 1 Jan next year, the ministry will not allow exemption to any company requiring to pay minimum salary of RM800 per month in Sarawak, Sabah and Labuan; and RM900 per month in Peninsular Malaysia, in accordance with the Minimum Salary Order 2012 for private sector, he said. (Bernama)

The government is ready to assist those who are yet to own homes through the scheme managed by Syarikat Jaminan Kredit Perumahan Bhd. Deputy Finance Minister Datuk Ahmad Maslan said the company, owned by the Finance Minister Incorporated, will provide the financial guarantee for loans provided by the financial institutions involved in the scheme. The financial guarantee will be given to those who do not have a fixed income such as fishermen, taxi drivers and petty traders, to buy low and medium cost homes for the first time through Bank Simpanan Nasional and Bank Islam, he added.

  • Meanwhile, he said 1.9m of 6.3m households of all income levels, were yet to own their own homes. 
  • There are also 2.45m households with an income of less than RM3,000 and of this figure, 1.7m already owned a home, he added. 
  • On the other hand, 627,000 families are still renting homes, while 140,000 live in squatter areas or squatting in homes of relatives, he said. (Bernama)

Efforts to further enhance Malaysia-Britain trade to help achieve the target of RM26bn will be top on the list when the two premiers meet on Thursday. PM Datuk Seri Najib Tun Razak is also expected to touch on the topic Global Movement of Moderates (GMM). Britain is Malaysia's fourth largest trading partner in Europe with total trade in goods valued at RM15bn in 2011, from RM13bn in 2010. (The Star)

Source: CIMB Daybreak - 02 July 2013

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