Thursday, 18 July 2013

CIMB Malaysian Economic News - 18 July 2013

The Dewan Rakyat Wednesday passed the Supplementary Supply Bill (2012) 2013 after it was debated at the committee stage. The Bill provides for an additional allocation of RM513,469,560 to several ministries and departments for development expenditure. Among the ministries and departments involved are the Election Commission, Prime Minister's Department, Finance Ministry , Foreign Ministry, Agriculture and Agro-based Industry Ministry, Rural and Regional Development Ministry, Works Ministry, Energy, Green Technology and Water Ministry, Tourism Ministry, Education Ministry, Communications and Multimedia Ministry and the Home Ministry. (Bernama) 

Malaysia's petrol and diesel price for its motorists is the eighth lowest out of the 227 countries in the world, said Deputy Finance Minister Datuk Ahmad Maslan when winding up the debate on the Supplementary Supply Bill (2012) 2013 yesterday. The cheaper price was due to the significant subsidy given by the government for petrol and diesel besides cooking gas, he said.
  • The government had given a subsidy of 90.4 sen for each litre of diesel and 90 sen for each litre of RON95 petrol, he added. 
  • He said the people had only to pay RM1.80 for one litre of diesel instead of RM2.74 while for the RON95 petrol, they also had to pay only RM1.80 per litre instead of RM2.80. 
  • Cooking gas too enjoyed substantial subsidy where the price of a cylinder weighing 14 kilograms was RM26.60 instead of the actual price of RM47.46 per cylinder. (Bernama)

PM Datuk Seri Najib Tun Razak said the government will study the payment of a bonus for civil servants for the Hari Raya Aidilfitri to be celebrated soon. "We will look into it, there is still time," he said. (Bernama) 

The Deputy Minister of Domestic Trade, Cooperatives and Consumerism, Senator Datuk Ahmad Bashah Md Hanipah said the ceiling price for chicken would be fixed in the middle of the Ramadan month. The determination of the price which would be applicable for 15 days under the Festive season price control scheme was to prevent the price from being raised arbitrarily. However, he did not give the actual date of the enforcement of the controlled price for chicken. (Bernama) 

Outsourcing Malaysia is partnering the International Association of outsourcing Professionals (IAOP) to bring the International Asia-Pacific Outsourcing Summit (APOS) to the Asia-Pacific region over the next five years. In this regard, Iskandar Malaysia will host its first ever APOS from 21-24 Oct.
  • The APOS in Iskandar will also kick-start the five year partnership between OM and the IAOP. 
  • OM Chairman David Wong said in a statement that the theme for the Iskandar conference is, "Creating Sustained Value for Regional Integration". (Bernama)

The Trans-Pacific Partnership Agreement (TPPA) should include China in the negotiations in order to build a promising free trade environment in Asia-Pacific. In a statement Wednesday, the Associated Chinese Chamber of Commerce and Industry of Malaysia (ACCCIM) said TPPA should complement other free trade agreements to develop a favourable trade ecosystem in the region.
  • TPPA could interfere with the efficient supply chain developed in Asia if China remained excluded, it said. 
  • The TPPA should also include the provision of special and differential treatment as provided in the World Trade Organisation to increase trading opportunities for developing countries, it said. (Bernama)

The Trans-Pacific Partnership (TPP) promotes a secure and mutually beneficial trade environment, bringing greater opportunities for participating countries. The American Malaysian Chamber of Commerce (AMCHAM), the Malaysia Canada Business Council (MCBC), and Malaysia New Zealand Chamber of Commerce (MNZCC) in a joint statement yesterday also said governmental commitment to promoting free trade, while ensuring the success of the Trans-Pacific Partnership (TPP) negotiations in the current economic climate, is more crucial than ever.
  • A firm and increasing commitment to the Asia-Pacific region via the TPP negotiations will allow companies to eliminate duplicative and unnecessary barriers.
  • The companies will also be able to streamline their operations across the board, and disseminate regional and international best practices, thereby, fostering an efficient and mutually beneficial trade environment. 
  • Obtaining such an outcome is important to ensure that the TPP lays an effective foundation for future regional integration and international trade, they said in the joint statement in support of the TPP Agreement.

The three business bodies said foreign companies investing in TPP-participating countries will also benefit from the eased process of foreign direct investments. (Bernama)

The Northern Corridor Implementation Authority (NCIA) has roped in RM1.96bn as a result of its collaboration with the private sector in four projects in each of the states under its purview. Among the projects are the development of the first mall cum four-star hotel in Taiping, Perak, and a luxury boutique hotel in Langkawi.
  • NCIA Chief Executive Datuk Redza Rafique said the four projects were aimed at ensuring the local communities in the northern region would be able to benefit through job creation. 
  • The projects are expected to generate 3,650 jobs and business opportunities. 
  • Memoranda of agreements were signed between NCIA and JPB Asia Pacific Sdn Bhd, UWC Industrial Sdn Bhd, Unifortune Holdings Sdn Bhd, Seri Chenang Resort and Spa Langkawi for the projects. (Bernama)

Syarikat Prasarana Negara Bhd plans to sell RM4bn (US$1.3bn) of sukuk as it extends a rail network in Kuala Lumpur, part of the government¡¦s 10-year development plan. "We hope to sell RM1bn in tenors of 10 to 15 years early next month as we need the money for the line extension," Mohd Zahir Zahur Hussain, group finance director at the state-owned company, said.
  • "We will look into selling the second portion of RM1bn in Sep and another RM2bn toward the end of the year," he said. 
  • Prasarana last sold Shariah-compliant notes in Aug 2012, raising RM2bn. (BT)

PM Datuk Seri Najib Tun Razak yesterday announced "duit raya" of RM32.3m for 112,635 Felda settlers throughout the country. Settlers who were directly under Felda would each receive RM300 and those not, RM150 each. (Bernama) The Prime Minister's office has spent a total of RM44.071m on overseas trips over the past five years. Minister in the Prime Minister's Department Datuk Seri Dr Shahidan Kassim said the sum was recorded between 2008 and May this year. (The Star)

Source: CIMB Daybreak - 18 July 2013

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