BNM - Liberalisation of the Foreign Exchange Administration Rules

Liberalisation of the Foreign Exchange Administration Rules

As part of Bank Negara Malaysia's continued effort to enhance flexibility of the economy, the Bank wishes to announce the further liberalisation of administrative rules on foreign exchange transactions. This aims to promote greater efficiency in the conduct of international trade and a conducive business environment in Malaysia so as to strengthen the linkages with the regional and global economies.

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Highlights of the 10th Malaysia Plan (15 June 2010)

Following are the highlights of Prime Minister Datuk Seri Najib Tun Razak's speech when tabling the Tenth Malaysia Plan (10MP) at the Dewan Rakyat:

* Theme: Towards Economic Prosperity and Social Justice
* The 10MP (2011-2015) is critical for the continuation of the national agenda to realise Vision 2020

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Hire purchase interest rates are up by about 0.25%!

June 2, 2010 at 2:11 pm By Paul Tan 

According to a report by StarBiz, hire purchase interest rates have gone up by about a quarter of a percent early this week. An EON Bank officer told the StarBiz reporter that hire-purchase loans are now at the following rates:

The previous rates were between 3.25% to 3.5% for non-national cars and between 3.75% to 4% for national cars. These rates are a good 1% higher than that of the rates not too long ago where you could get a loan for a new non-national car for 2.8%. For example, taking a loan from Public Bank for BMW 5 series E39 two years ago for just 3.75% and that’s for a (then) 11 year old non-national European marque. Another case buying the same model of E39 last year and paying nearly 6% of interest!

A 1% hike could cost a user an extra installment amount of between RM50 to RM100 a month, with the upper end not seeming like a significantly amount when you are taking a loan for over RM100,000 and paying over RM1,500 a month although it is still money.

Malaysia - Subsidy Rationalisation Lab

A research report from Maybank IB research on the rationalization on subsidy removal. Click here to read the report.

Government think tank proposes fuel hikes – 15 sen this year and RON95 to cost RM2.60 by 2015

May 27, 2010

PEMANDU, a government think tank led by Minister in Prime Minister’s Department Idris Jala tasked with formulating proposals to reduce the country’s government subsidy budget has recommended a petrol price hike of 15 sen for RON95 and 10 sen for diesel.

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Malaysia - National Key Economic Areas 2010 -2020

A must read to have some understanding where and how Malaysia is to grow into a develop nation by 2020. On the macro level, Malaysia must achieve 6% to 6.5% GDP growth every year consistently to achieve high income economy by 2020. Measured in Gross National Income, from current ~USD7,000 (2008) to threshold target of ~USD17,000 (2020). Read the rest of presentation.

Malaysia Raises Rate as Faster Growth Eclipses Europe Threat

www.bloomberg.com | By Shamim Adam and Ranjeetha Pakiam

May 14 (Bloomberg) -- Malaysia’s central bank raised interest rates for the second time this year as growth accelerated, judging that risks stemming from low borrowing costs are greater than any impact from Europe’s debt crisis. 

Bank Negara Malaysia increased its benchmark overnight policy rate to 2.5 percent from 2.25 percent, it said in Kuala Lumpur yesterday, a decision that was predicted by 21 of 22 economists surveyed by Bloomberg News. Gross domestic product increased 10.1 percent in the three months ended March 31 from a year earlier, the most in a decade, a separate report showed. 

Asian central banks are pulling back monetary stimulus as the region’s growth outpaces the rest of the world. Malaysia will be able to absorb increased volatility in its markets as a result of the turmoil in Europe, and has the “policy flexibility” to act should global conditions worsen, Bank Negara Governor Zeti Akhtar Aziz said yesterday. 

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Inflation Fears May Slow Malaysia Subsidy Cuts, Economists Say

www.bloomberg.com | By Barry Porter

May 10 (Bloomberg) -- Malaysia may cut subsidies slowly to prevent triggering record inflation as it prepares to revamp a system that’s hampered efforts to reduce the budget deficit, Standard Chartered Plc and Citigroup Inc. said.

A taskforce is exploring ways to revamp the government’s entire portfolio of subsidies that keep the cost of essential items from flour to highway tolls low for consumers. An attempt to reduce the amount the state pays to cap fuel prices caused inflation to surge to a 26-year high in 2008 as gasoline became more expensive.

The government will learn from past experience and ensure its subsidy cuts will be a “very tempered, gradual process,” Alvin Liew, an economist at Standard Chartered in Singapore, said May 7. “They still have time on their hands. It’s not a Greek situation where they need a bailout, not yet anyway.”

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