KUALA LUMPUR: Bank Negara has maintained the overnight policy rate (OPR) at 3% after the monetary policy committee (MPC) meeting yesterday, a move widely expected by economists.
Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/7/6/business/11613238&sec=business
Published: July 06, 2012
Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/rup05bb/Article/
Published: July 06, 2012
The central bank said headline inflation was expected to remain moderate for the remainder of 2012. Alliance Investment Bank Bhd chief economist Manokaran Mottain said Bank Negara’s move to maintain the OPR was expected.
He said the last time the central bank reviewed the OPR was in May 2011, with a 25-basis point hike. Since then, the benchmark policy rate has been maintained at 3%.
In a statement, the central bank said the pace of the global recovery had moderated in the recent months. It added that the latest data pointed to slower economic activity and more challenging growth prospects in several regions around the world.
Bank Negara said although pressures in the international financial markets have receded following the recent policy announcements to address the European crisis, a number of important policy issues remain unresolved and continue to unsettle financial markets.
“Economic activity in several of the advanced economies continues to be affected by ongoing fiscal consolidation, impaired financial intermediation and weak labour market conditions. In emerging economies, while domestic demand remains an important source of growth, exports are affected by weak external demand.”
In the domestic economy, recent data and surveys of business conditions suggest that consumption and investment activity remains resilient.
Looking ahead, Bank Negara said domestic demand would continue to be the anchor of growth.
“Household spending continues to be supported by stable employment conditions and income growth. The strong investment activity is mainly led by the domestic-oriented industries, the oil and gas sector and the steady progress in the construction of infrastructure projects,” it said.
adding that headline inflation was expected to remain moderate for the remainder of 2012.
The central bank said with some excess capacity in the economy, the strength of domestic demand was not expected to result in inflationary conditions.
“Global energy and commodity prices are likely to be contained given the weak global conditions. However, upside risks to inflation could emerge should disruptions to global supply result in higher global prices for these commodities,” it added.
In the MPC’s assessment, there continues to be considerable uncertainties in the global economic and financial environment. The MPC will continue to carefully assess these evolving conditions and their implications on the overall outlook for inflation and growth of the Malaysian economy.
Going forward, Manokaran expects the central bank to keep the rate steady, as long as growth remains healthy coupled with low inflation based on several assumptions.
Firstly, he said, at least a break-up of the Eurozone was avoided for now after the recent Greece elections and EU Summit, but a deeper recession appears certain. “Our outlook for a base-case for Malaysia is fitting – we are now projecting a slower gross domestic product (GDP) growth of 4.2% for this year, decelerating from 5.1% last year.”
“In the short-term, we expect real GDP growth to stay around 4% in second quarter 2012, moderating from 4.7% in first quarter – in line with the recent slowdown in economic activities and increasing vulnerability to the major industrial economies. The growth is still supported by strong domestic demand, though moderating from 10.4% in the final quarter of last year, to 7.4% in second quarter,” Manokaran said.
“With regard to inflation, we expect further moderation in prices ahead, at least for the next one quarter, on account of the impact of easing global commodity prices, global economic slowdown and weakening domestic demand. We expect price growth to moderate to between 1.4%-1.6% in this quarter, from 1.7% in May. Overall, we are now forecasting the consumer price index to hit 2% in 2012, moderating sharply from 3.2% last year.”
Friday, July 6, 2012
Thursday, July 5, 2012
Alliance Research expects OPR to remain at 3% for rest of 2012
KUALA LUMPUR: Alliance Economics Research expects Malaysia's monetary
policy to continue to remain accommodative of growth, while also
ensuring adequate levels of price stability in recent months.
Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/7/5/business/20120705154241&sec=business
Published: July 05, 2012
In its report on Thursday, it expected the monetary policy to remain unchanged due to falling inflation rates since the beginning of the year.
Bank Negara's monetary policy committee, which is meeting on Thursday, would announce its policy after market close.
Alliance Research said it also took note of the central bank's assertion that there was ample room for policy adjustment, in the event of a deeper economic slowdown impacting the domestic economy.
"The BNM governor has also repeatedly said that the overnight policy rate (OPR) is at an accommodative level and will remain steady for the rest of the year. As such, we expect the OPR to remain unchanged at the current level of 3% for the rest of the year," it said.
As for the second half of 2012, the research house said given the continued uncertainties in the global economy, it is doubtful of a meaningful recovery in the second half of the year.
Alliance Research said any recovery would only be minimal, adding that it forecasts economic growth to remain stagnant at 4% in 3Q and 4.3% in the final quarter of the year.
While the projected GDP growth of 4.2% for Malaysia was based upon the assumptions of a global economic moderation with some resolution to the debt crisis (with Greece remaining in the EU) as well as timely and full implementation of measures announced in the 2012 Budget and Economic Transformation Programme, it noted several downside risks to growth.
The research house said these included a further deterioration in global investor confidence, the increasing likelihood of a prolonged Euro debt crisis as well as a steeper slowdown experienced in the larger regional economies such as China.
As for the Malaysian economy, it added one of the key risks wa the rising level of fiscal deficit (from the estimated 4.7% of GDP in 2012) due to the potential increase in subsidies as a result of high global crude oil prices and lower GDP growth.
Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/7/5/business/20120705154241&sec=business
Published: July 05, 2012
In its report on Thursday, it expected the monetary policy to remain unchanged due to falling inflation rates since the beginning of the year.
Bank Negara's monetary policy committee, which is meeting on Thursday, would announce its policy after market close.
Alliance Research said it also took note of the central bank's assertion that there was ample room for policy adjustment, in the event of a deeper economic slowdown impacting the domestic economy.
"The BNM governor has also repeatedly said that the overnight policy rate (OPR) is at an accommodative level and will remain steady for the rest of the year. As such, we expect the OPR to remain unchanged at the current level of 3% for the rest of the year," it said.
As for the second half of 2012, the research house said given the continued uncertainties in the global economy, it is doubtful of a meaningful recovery in the second half of the year.
Alliance Research said any recovery would only be minimal, adding that it forecasts economic growth to remain stagnant at 4% in 3Q and 4.3% in the final quarter of the year.
While the projected GDP growth of 4.2% for Malaysia was based upon the assumptions of a global economic moderation with some resolution to the debt crisis (with Greece remaining in the EU) as well as timely and full implementation of measures announced in the 2012 Budget and Economic Transformation Programme, it noted several downside risks to growth.
The research house said these included a further deterioration in global investor confidence, the increasing likelihood of a prolonged Euro debt crisis as well as a steeper slowdown experienced in the larger regional economies such as China.
As for the Malaysian economy, it added one of the key risks wa the rising level of fiscal deficit (from the estimated 4.7% of GDP in 2012) due to the potential increase in subsidies as a result of high global crude oil prices and lower GDP growth.
Wednesday, July 4, 2012
Bank Negara ambil tindakan isu saman H & I Niaga
Bank Negara Malaysia akan mengambil tindakan yang sewajarnya terhadap H & I Niaga Sdn Bhd, bekas kontraktor pembinaan Pusat Sumber Perkhidmatan Kewangan Bank Negara Malaysia.
Source from (Berita Harian): http://www.bharian.com.my/bharian/articles/BankNegaraambiltindakanisusamanH_INiaga/Article
Published: July 04, 2012
Source from (Sinar Online): http://www.sinarharian.com.my/bisnes/bank-negara-ambil-tindakan-wajar-ke-atas-h-i-niaga-1.63683
Published: July 04, 2012
Bank Negara Malaysia akan mengambil tindakan yang sewajarnya terhadap H & I Niaga Sdn Bhd, bekas kontraktor pembinaan Pusat Sumber Perkhidmatan Kewangan Bank Negara Malaysia.
Pada 20 Jun, H & I Niaga mengemukakan tuntutan saman bernilai RM131.9 juta terhadap bank pusat itu sebagai ganti rugi dan bayaran yang belum lunas berkaitan pembinaan bangunan itu. Kontraktor Kelas A Bumiputera yang diberikan kontrak bernilai RM320.3 juta pada September 2005 itu mendakwa kontraknya ditamatkan secara salah pada 2010 setelah kerja pembinaan itu siap lebih daripada 90 peratus.
Dalam satu kenyataan semalam, Bank Negara berkata, H & I Niaga pada awalnya merujuk pertikaian kontrak itu untuk timbang tara.
Namun begitu pada hari pertama sebutan kes itu di mahkamah, H & I Niaga menarik diri daripada proses timbang tara berkenaan.
Bank Negara berkata, ia memiliki proses tadbir urus yang mantap dalam semua perkara yang dilaksanakannya.
"Bank Negara juga mempunyai dokumen terperinci bagi setiap peringkat pembinaan bangunan itu, termasuk rekod bagi keputusan yang sudah dibuat," katanya. - BERNAMA
Source from (Berita Harian): http://www.bharian.com.my/bharian/articles/BankNegaraambiltindakanisusamanH_INiaga/Article
Published: July 04, 2012
Source from (Sinar Online): http://www.sinarharian.com.my/bisnes/bank-negara-ambil-tindakan-wajar-ke-atas-h-i-niaga-1.63683
Published: July 04, 2012
Bank Negara Malaysia akan mengambil tindakan yang sewajarnya terhadap H & I Niaga Sdn Bhd, bekas kontraktor pembinaan Pusat Sumber Perkhidmatan Kewangan Bank Negara Malaysia.
Pada 20 Jun, H & I Niaga mengemukakan tuntutan saman bernilai RM131.9 juta terhadap bank pusat itu sebagai ganti rugi dan bayaran yang belum lunas berkaitan pembinaan bangunan itu. Kontraktor Kelas A Bumiputera yang diberikan kontrak bernilai RM320.3 juta pada September 2005 itu mendakwa kontraknya ditamatkan secara salah pada 2010 setelah kerja pembinaan itu siap lebih daripada 90 peratus.
Dalam satu kenyataan semalam, Bank Negara berkata, H & I Niaga pada awalnya merujuk pertikaian kontrak itu untuk timbang tara.
Namun begitu pada hari pertama sebutan kes itu di mahkamah, H & I Niaga menarik diri daripada proses timbang tara berkenaan.
Bank Negara berkata, ia memiliki proses tadbir urus yang mantap dalam semua perkara yang dilaksanakannya.
"Bank Negara juga mempunyai dokumen terperinci bagi setiap peringkat pembinaan bangunan itu, termasuk rekod bagi keputusan yang sudah dibuat," katanya. - BERNAMA
Monday, July 2, 2012
Bumiputra firm files RM131.9mil lawsuit against Bank Negara
KUALA LUMPUR: A Bumiputra company has filed a RM131.9mil lawsuit against Bank Negara Malaysia for damages and outstanding payment over the construction of its financial services resource centre here.
Source from (The Star Online): http://thestar.com.my/news/story.asp?file=/2012/7/1/nation/20120701193627&sec=nation
Published: July 02, 2012
Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/hni/Article/
Published: July 04, 2012
H&I Niaga Sdn Bhd, a Class A Bumiputra contractor who was awarded the RM320.3mil contract in September 2005, claimed that their contract was wrongfully terminated after the work was 97% completed.
At a press conference on Sunday, the construction company's managing director Datuk Ismail Mohd Hashim and executive director Amerudin Ismail claimed that the non-payment of money allegedly owed could result in the winding-up of the company and them being declared bankrupt.
They are seeking to claim RM81.9mil in outstanding payment including costs for project delays, retention sum and out-of-pocket expenses and RM50mil for financial and reputational damages to the 14-year-old company.
They claimed to have invested almost RM16mil of their own money into the project.
BNM terminated their contract in April 2010 and appointed another to complete the project, Amerudin said.
Amerudin said the termination was allegedly for the progress and milestones of the building's facade which he claimed was the responsibility of a sub-contractor.
Ismail said the company had met their milestones, adding that they had lodged a police report and complaint with the Malaysian Anti-Corruption Commission on June 27.
DAP's publicity secretary and Petaling Jaya Utara MP Tony Pua, who was also present, said the company had no choice but to initiate a legal suit against BNM as it has exhausted all means to settle the matter in an amicable manner, including a failed arbitration process.
“We call on BNM to negotiate a fair settlement for outstanding sums due. The dispute has caused a complete collapse of H&I,” he said.
The suit was filed on June 20. The case is set for mention on July 4, he said.
Source from (The Star Online): http://thestar.com.my/news/story.asp?file=/2012/7/1/nation/20120701193627&sec=nation
Published: July 02, 2012
Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/hni/Article/
Published: July 04, 2012
H&I Niaga Sdn Bhd, a Class A Bumiputra contractor who was awarded the RM320.3mil contract in September 2005, claimed that their contract was wrongfully terminated after the work was 97% completed.
At a press conference on Sunday, the construction company's managing director Datuk Ismail Mohd Hashim and executive director Amerudin Ismail claimed that the non-payment of money allegedly owed could result in the winding-up of the company and them being declared bankrupt.
They are seeking to claim RM81.9mil in outstanding payment including costs for project delays, retention sum and out-of-pocket expenses and RM50mil for financial and reputational damages to the 14-year-old company.
They claimed to have invested almost RM16mil of their own money into the project.
BNM terminated their contract in April 2010 and appointed another to complete the project, Amerudin said.
Amerudin said the termination was allegedly for the progress and milestones of the building's facade which he claimed was the responsibility of a sub-contractor.
Ismail said the company had met their milestones, adding that they had lodged a police report and complaint with the Malaysian Anti-Corruption Commission on June 27.
DAP's publicity secretary and Petaling Jaya Utara MP Tony Pua, who was also present, said the company had no choice but to initiate a legal suit against BNM as it has exhausted all means to settle the matter in an amicable manner, including a failed arbitration process.
“We call on BNM to negotiate a fair settlement for outstanding sums due. The dispute has caused a complete collapse of H&I,” he said.
The suit was filed on June 20. The case is set for mention on July 4, he said.
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