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Category: Malaysia In The News
Malaysia Approves MYR22.6 Billion Manufacturing Investments In 1Q
By Benjamin Low,  Dow Jones
June 05, 2008


KUALA LUMPUR -(Dow Jones)- Malaysia approved MYR22.6 billion ($6.94 billion) of investments in 192 manufacturing projects in the first quarter, the Ministry of International Trade and Industry said Friday.

In its quarterly report, the ministry said foreign investors accounted for MYR15.9 billion, or 70%, of total investments, with domestic sources making up the rest.

It said MYR15.8 billion of total investments were in new projects while the remaining MYR6.8 billion were for expansion or diversification.

The ministry didn't provide comparative numbers for the first quarter of 2007, but said it approved 949 projects worth MYR59.9 billion for all of last year.

It said the basic metal products industry received the largest amount of investments, accounting for MYR16.6 billion, or 74%, of the total investments in the first quarter.

- Dow Jones Newswires
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Category: Malaysia In The News
India, Malaysia cut subsidies, increase gas prices
By MarketWatch
Last update: 10:33 p.m. EDT June 4, 2008
 
HONG KONG (MarketWatch) -- Governments in India and Malaysia have boosted motor-fuel prices in an effort to ease the burden of fuel subsidies on national finances.
 
India increased prices of gasoline and diesel by about 10% Wednesday, the second such move this year, while Malaysia increased gasoline prices by 41% and said there would be increases for diesel and electricity.
 
Officials in Kuala Lumpur said their move was part of a plan to use global market rates for pricing fuel to contain a subsidy burden on the nation's budget. Malaysia said its fuel subsidies will cost 56 billion ringgit ($17.2 billion) this year based on current crude-oil prices.
 
The moves follow similar revamps of the energy price systems in Indonesia last month, which raised prices by 29% and Sri Lanka, which boosted prices by 14% to 47%.
 
The decision by India's ruling coalition government comes as inflation is soaring. Official data released Friday showed that India's inflation, as measured by the wholesale price index, jumped 8.1% in the week ended May 17 from the year-ago period.
The Bombay Stock Exchange's 30-constituent Sensitive Index, or Sensex, ended sharply lower Wednesday, tumbling 2.8% to 15.514,79, its lowest close since April 4.
 
Malaysia's KLSE Composite Index was down 2.2% in early trading Thursday, extending a 0.4% slide in the previous session.
 
The latest price increases are expected to ease losses at India's state-controlled oil-refining and marketing firms like Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp, which have been selling petroleum products at below cost as the government tried to control inflation. The Financial Times reported India's fuel subsidy burden is expected to rise to $57.8 billion this year, accounting for more than 3% of gross domestic product.
 
Indian refiners lifted prices of gasoline by five rupees ($0.12) a liter, diesel prices by three rupees a liter and cooking gas prices by 50 rupees a cylinder of 14.2 kilograms, effective from midnight Wednesday. Separately, the government cut duties on crude-oil imports and lowered the excise duty on gasoline and diesel.
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Category: Malaysia In The News
US keeps Mideast allies on trafficking blacklist, removes Malaysia
AFP
Wed Jun 4, 10:55 AM ET

The United States on Wednesday kept Middle East allies Kuwait, Oman, Qatar and Saudi Arabia on a blacklist of countries trafficking in people, but removed ally Bahrain and trading partner Malaysia.

Fiji, Moldova and Papua New Guinea were added to the 2008 blacklist of the State Department annual "Trafficking in Persons Report," which analyzed efforts in more than 150 countries to combat trafficking for forced labor, prostitution, military service and other purposes.

Also remaining on the "Tier 3" list for another year as the worst offenders in human trafficking were Sudan, Syria, Algeria, Iran, Myanmar, and Cuba, according to the Congressionally-mandated report.

US Gulf Arab ally Bahrain and trading partner Malaysia as well as Venezuela, Uzbekistan and Equatorial Guinea were all elevated from the blacklist last year to the "Tier 2" watch list this year.

Countries on the blacklist could face sanctions, including the withholding by the United States of non-humanitarian, non-trade related foreign aid.

Countries that receive no such assistance would be subject to withholding of funding for government officials to participate in educational and cultural exchange programs.
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Category: Malaysia In The News

Malaysia's PM clings to power but subsidy cuts a new blow
by Romen Bose, AFP

Wed Jun 4, 10:13 PM ET

Malaysia's premier is clinging to power after disastrous polls, but disarray in the ruling party, a strong opposition and deep subsidy cuts make his future highly uncertain, analysts say.

Prime Minister Abdullah Ahmad Badawi has been beset by calls to resign since general elections in March when he was punished by voters, largely over rising prices of food and fuel.

In the transformed political landscape, opposition figurehead Anwar Ibrahim says he could seize power as soon as September with the help of defectors from government ranks in Sabah and Sarawak states on Borneo island.

And now Abdullah has made the extremely unpopular decision to dismantle fuel subsidies, sending pump prices up 40 percent from Thursday in a move applauded by economists but condemned by the public.

"God willing I hope Malaysians will not demonstrate over this," Abdullah said Wednesday after announcing the price hike, and warning it could suppress economic growth and drive inflation as high as 5.0 percent this year.

"It is not an attempt to be popular, we have to think in the best interests of the people," he said, sending countless motorists rushing to fill their tanks on the last of the heavily subsidised fuel.

The three-party opposition alliance seized control of five states and a third of parliamentary seats in the March 8 elections, in the worst ever result for the multi-racial coalition that has dominated Malaysia for half a century.

Anwar, a former deputy prime minister who spent six years in jail on sex and corruption charges, needs to swing just 30 government lawmakers in order to seize power.

In a move to shore up his shaky support base, Abdullah recently promised 1.0 billion ringgit (309 million dollars) for rural development in Sabah, plus 1.0 million ringgit in constituency funds for each federal lawmaker.

"Abdullah is still reeling from attacks on his leadership and whether his government will collapse internally from defections," said Ibrahim Suffian from the Merdeka Centre opinion research firm.

"He needs to stabilise his position first by buying the loyalty of lawmakers," he told AFP.

Former premier Mahathir Mohamad, who handed over to Abdullah in 2003 but quickly fell out with his successor, has added fuel to the fire by campaigning for his resignation.

Mahathir has deployed strategies including resigning from the ruling United Malays National Organisation (UMNO) and urging disgruntled government lawmakers to declare themselves independents.

For now, Abdullah is being protected by rules introduced under Mahathir which require would-be challengers to have the support of a third of the ruling party's divisions -- a formidable barrier.

But political observers say the big test will be at UMNO party elections in December when he must win the support of members who have been deeply shaken and disillusioned by the electoral setback.

The premier has repeatedly insisted he has a mandate to rule and that he will only discuss a transition of power to his heir apparent, deputy prime minister Najib Razak, after the party polls.

One factor in Abdullah's favour is the lack of dynamic and popular leadership candidates, in a party which even insiders say is in desperate need of reform to prevent total oblivion in the next elections.

Najib is his heir apparent, but he is seen as an old-guard figure while Trade Minister Muhyiddin Yassin, a respected and rising figure in the party, is another name commonly touted.

In a bid to boost his credentials, Abdullah has appointed critics to his cabinet, announced anti-corruption plans and signed up several disaffected members of Anwar's Keadilan party.

"Abdullah has now gone on the offensive," said Tricia Yeoh from the Centre for Public Policy Studies.

"Right now no one can predict what the nature of UMNO and the country's political make-up will be," she said. "But as we get nearer the party elections, we will be able to see how far Abdullah is willing to go to continue ruling this country."

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Category: Malaysia In The News
Malaysia Requires Foreign Workers To Take Induction Course For Visa
Associated Press
June 04, 2008
 

KUALA LUMPUR, MALAYSIA: Malaysia has made it compulsory for all foreign workers to take a course to learn about Malaysia before coming to the country, a minister said Tuesday (3 June).

Human Resources Minister S. Subramaniam said the induction course became mandatory this month to ensure workers know the country's customs, culture, language and laws before getting a work visa.

Indonesians are exempt from the language requirement because the two dialects spoken in the neighboring countries are similar, he said.

The course is aimed at familiarizing foreign workers with "what they should and shouldn't do (and) to reduce the risk of them getting into trouble when they are here," Subramaniam told The Associated Press.

Malaysia, a country of 27 million people, relies heavily on more than 2 million foreign laborers for mostly menial tasks, such as plantation, construction, and restaurant and domestic work.

But Malaysians also complain that foreign workers are ill-equipped for working here and are responsible for the rising crime, an unsubstantiated claim from statistics. Several highly publicized cases of foreign worker abuse have further marred the issue.

Subramaniam said the courses would take place in the workers' home countries, but Malaysia would supply the materials and train instructors.

Indonesian Embassy spokeswoman Shanti Utami criticized the new ruling, saying it would scare off Indonesian workers, who make up more than half of the foreign labor force.

She said Indonesian employment agencies were "very reluctant" to deal with the new regulation and pay the course fees of at least 120 ringgit.

"It is a very high price," she told the AP. "We have a common culture so I don't think this should be compulsory." (AP)

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