29 January 2009 Newz Bits

January 29, 2009 at 2:30 am 3 comments


On Malaysia

· HL Bank and RHB Bank also reduce BLR by 55bps to 5.95%
· Gulf Petroleum Ltd has no intentions to shelf US$5bn oil and gas complex development in Malaysia
· Malaysia’s palm oil exports fall 24% in first 25 days of January
On The Global Front
· US House passes US$819bn stimulus package
· Indonesia proposes IDR71.3tn stimulus package
· Bank of England may need to buy assets and print money within next six months
· World Bank forecasts China’s GDP growth at 7-8% in 2009

Hong Leong Bank group (HLBK MK, Hold, TP: RM5.80) and RHB Bank group will reduce their base lending rates (BLR) and Islamic financing rates (IFR) by 55 basis points to 5.95% from 6.5% with effect from Feb 3. Hong Leong Bank said in a statement the reduction in the BLR/IFR would translate into lower cost of financing for its customers and businesses and support Bank Negara’s objective of promoting domestic economic activities. (StarBiz)
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Malaysia Airlines (MAS) (MAS MK, Under review) is contemplating using the low-cost carrier terminal (LCCT) in Sepang, in the event that AirAsia Bhd moves out. And the likely user of the budget terminal will be the national carrier’s wholly-owned subsidiary, FlyFirefly Sdn Bhd. Business Times has learnt that Firefly, which currently operates turbo-propeller planes from its
Subang and Penang hubs, is likely to expand its scope of flights by using jets to fly out of LCCT. (BT)
* * * * *
Time dotCom Bhd (TdC) needs a complete revamp in both business plan and also mindset shift to turn things around, CEO Afzal Abdul Rahim said. A new business turnaround plan, which was approved by the board on Jan 21, is divided into four sections: a business plan, turnaround initiatives, divisional initiatives and quick win labs. As for the business plan, the company will still focus on the wholesale, corporate and enterprise markets but what will change is the way products offered are packaged and the quality of service. Afzal has also flattened the organisational structure and de-coupled TdC from the United Engineers (M) Bhd group. Capital expenditure had been slashed from over RM100m to RM40m this year he said. (StarBiz)
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Bank Negara Malaysia announced yesterday it will issue the first of two three-year Merdeka Savings Bond series slated for 2009 amounting to RM1bn each on March 18. The bond will be offered to Malaysians aged 56 years and above and those who have retired on medical grounds. The bond offers a return of 5% per annum. (Financial Daily)
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The 1% fall in palm oil purchase from Malaysia does not necessarily imply China is a saturated market, says Malaysian Palm Oil Council. Malaysia’s 23-year record of rising palm oil exports to China ended last year when shipments dipped by 1% to 3.8m tonnes. However, there is no need to be alarmed, said Malaysian Palm Oil Council (MPOC) chief executive Tan Sri Yusof Basiron. He explained that last year’s dip was caused by extreme market volatility as prices fell for seven months from April. (BT)
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Gulf Petroleum Ltd said it has no plans to cancel or defer the development of a US$5bn (RM18bn) integrated oil and gas complex in Malaysia despite the global financial crisis and the plunging oil price. President Ir Abdulaziz Hamad Al-Delaimi said the global financial meltdown will not affect its decision on this long-term project. He said a number of financiers and investors, particularly from the Arabian Gulf countries, are still keen to finance the project due to its viability. Gulf Petroleum has reached an agreement with an identified EPCC contractor, who will conduct the environmental impact assessment study on the proposed location, its director Nor Azmi Abdullah said. (BT)
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Malaysia’s palm oil exports fell 24% in the first 25 days of January compared with the same period the previous month, Societe Generale de Surveillance (SGS), an independent cargo surveyor, estimated yesterday. A total of 1.02m tonnes of palm oil were tracked January 1-25, SGS said in an e-mailed report. Malaysia exported 1.34m tonnes of palm oil in the same period in December, according to the surveyor. (Bloomberg)
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More than 10,000 Malaysians have lost their jobs since Jan 1, Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan disclosed yesterday. He told Bernama that more were expected to be jobless in the days ahead as companies particularly in the manufacturing sector struggle to keep their businesses afloat. (Financial Daily)
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Stocks surged Wednesday as investors took comfort in reports that the Obama administration and the Federal Reserve are taking steps to get credit flowing again and help staunch the economic slowdown. The DJIA gained 200 points, or 2.5%. The S&P 500 index added 28 points or 3.4% and the Nasdaq composite added 53 points or 3.6%. The Dow has now gained for three sessions in a row, while the S&P 500 and Nasdaq have gained for four sessions in a row. U.S. light crude oil for March delivery rose 58 cents to settle at $42.16 a barrel on the New York Mercantile Exchange. (CNNMoney)
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The House of Representatives passed an US$819bn economic stimulus package Wednesday on a party-line vote, despite President Obama’s efforts to achieve bipartisan support for the bill. The Senate is likely to take up the bill next week. Congress has put the legislation on a fast track, as many lawmakers on both sides of the aisle agree that fast action is needed to help pull the economy out of a deep recession. Both Democratic and Republican leaders have said they aim to get the bill to Obama’s desk for him to sign before Congress’ Presidents Day recess in mid-February. (CNNMoney)
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Indonesia’s government has proposed an economic stimulus package worth 71.3trn rupiah ($6.32bn) in a bid to sustain growth in Southeast Asia’s biggest economy, the finance minister said. Details of the package, which needs to be approved by parliament, have been announced previously in bits and pieces. It includes tax incentives for companies and individuals, cuts in
fuel and electricity prices and infrastructure spending. The government has forecast economic growth will slow to 4.5-5.5% in 2009, down from an estimated 6.2% last year. (Reuters)
* * * * *
The Bank of England may need to buy assets and print money within the next six months as the U.K. Treasury works to rescue the economy from recession, according to Barclays Plc economist Simon Hayes. The forecast also suggests Chancellor of the Exchequer Alistair Darling may add to the £20bn (US$29bn) stimulus program of tax cuts and spending increases announced in December. Darling and Bank of England Governor Mervyn King may detail as soon as today a
framework for policy makers to buy £50bn of assets, which the Treasury authorized on Jan. 19. (Bloomberg)
* * * * *
China’s economy will probably grow by between 7 and 8% this year, as the government’s fiscal stimulus policies take hold, the World Bank’s chief economist said yesterday. The world’s third-largest economy will probably grow by 6 to 7% in the first quarter from a year earlier and average 7% in the remaining quarters, Justin Lin said on the sidelines of the annual meeting of the World Economic Forum. (Reuters)
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Up to 51m jobs worldwide could disappear by the end of this year as a result of the economic slowdown, the International Labour Organisation said yesterday. Under its most optimistic scenario, this year would finish with 18m more unemployed people than at the end of 2007, with a global unemployment rate of 6.1%. More realistically, it said 30m more people could lose their jobss if the financial turmoil persists through 2009, while the worst-case scenario would be 51m jobs lost, pushing up the unemployment rate to 6.5%. (Reuters)
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The International Monetary Fund (IMF) yesterday forecast the world economy would slow to a near standstill this year, warning that deflation risks were rising and saying toxic assets need to be removed from the banking system. It cut its forecast for global growth in 2009 to a slight 0.5%, the weakest since World War Two, from a November estimate of 2.2%. (Reuters)
* * * * *
Germany’s inflation rate unexpectedly dropped to the lowest in almost five years in January, increasing pressure on the European Central Bank to cut borrowing costs. The rate, when calculated using a harmonized European Union method, fell to 0.9% from 1.1% in December, the Federal Statistics Office in Wiesbaden said today. Economists expected inflation to hold steady, according to the median of 21 forecasts in a Bloomberg News survey. (Bloomberg)
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28 January 2009 Newz Bits 8 April 2009 : Newz Bits

3 Comments Add your own

  • 1. » 29 January 2009 Newz Bits  |  January 29, 2009 at 3:10 am

    […] Payday Pundit wrote an interesting post today onHere’s a quick excerpt29 January 2009 Newz Bits HIGHLIGHTS On Malaysia · HL Bank and RHB Bank also reduce BLR by 55bps to 5.95% · Gulf Petroleum Ltd has no intentions to shelf US$5bn oil and gas complex development in Malaysia · Malaysia’s palm oil exports fall 24% in first 25 days of January On The Global Front · US House passes US$819bn stimulus package · Indonesia proposes IDR71.3tn stimulus package · Bank of England may need to buy assets and print money within next six months · World Bank forecasts C […]

  • 2. 29 January 2009 Newz Bits  |  January 29, 2009 at 4:30 am

    […] posted here: 29 January 2009 Newz Bits Category : Others […]

  • 3. 29 January 2009 Newz Bits | No Brainer Profits  |  January 29, 2009 at 10:33 am

    […] Source:29 January 2009 Newz Bits […]

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