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Malaysia

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Thank you for the Padlet submission.  The articles are interesting and analysis insightful.  You may want to mention about Youth unemployment in Malaysia, i.e. fresh graduates that are unable to find jobs upon graduation.  Another problem is inflation, where government has reduced subsidies and implementation of GST, which may have aggravated the inflation in the country. ( EDITED ) 

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Thank you for the Padlet submission.  The articles are interesting and analysis insightful.  You may want to mention about Youth unemployment in Malaysia, i.e. fresh graduates that are unable to find jobs upon graduation.  Another problem is inflation, where government has reduced subsidies and implementation of GST, which may have aggravated the inflation in the country. ( EDITED ) 

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INFLATION

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The consumer price index in January rose 3.5 per cent from a year earlier, the largest annual increase since March 2014.

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KUALA LUMPUR: Malaysia's inflation rate in January surged to the fastest level in nearly two years, but this is not expected to lead to any hike of the country's benchmark interest rate.

The consumer price index in January rose 3.5 per cent from a year earlier, the largest annual increase since March 2014. In December, the annual rate was 2.7 per cent. A Reuters poll had forecast a January level of 3.7 per cent.

Fuel prices fell in January but a low base from a year earlier plus increased food and cigarette prices contributed to a higher inflation rate last month, economists said.

In November, the government raised excise taxes on tobacco products by 40 per cent.

Inflation climbed following the introduction of a 6 per cent goods and services tax in April 2015, but had been below 3 per cent since September.

The weakening of the ringgit in 2105, the worst performing currency in the region last year, has also boosted prices of imports.

The central bank has an inflation target this year of 2.5-3.5 per cent. It said in January it expected inflation to peak in the first quarter before moderating, as low energy and commodity prices persist.

Malaysia's central bank has kept its overnight policy rate at 3.25 per cent since July 2014.

The rise of headline inflation to above 3 per cent isn't seen as worrying Bank Negara Malaysia, whose longtime governor Zeti Akhtar Aziz will complete her term in late April.

"We don't foresee any changes to overnight policy rates since growth expectations have already been tuned down, and inflation is not really a concern," said Jeff Ng, an economist at Standard Chartered in Singapore.

Weiwen Ng of ANZ said that for Malaysia, inflation pressures "are of secondary concern notwithstanding the uptick today. The balance of risks in 2016 are skewed towards growth disappointment and fiscal slippage."

Poor global oil prices have hurt Malaysia, which exports liquefied natural gas.

In January, the government revised its annual budget, with a total of 9 billion ringgit (US$2.13 billion) in planned spending cuts. It also trimmed the 2016 economic growth target to 4.0-4.5 per cent, from 4.0-5.0 per cent earlier.

The central bank's next policy meeting is on Mar 9.

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Malaysia January inflation rate rises, but rates seen on hold

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The consumer price index in January rose 3.5 per cent from a year earlier, the largest annual increase since March 2014. Share on Facebook Share on Twitter Share via E-Mail KUALA LUMPUR: Malaysia's inflation rate in January surged to the fastest level in nearly two years, but this is not expected to lead to any hike of the country's benchmark interest rate.

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INFLATION

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Moderation in Malaysia's GDP growth may persist: Economists

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KUALA LUMPUR: Bank Negara Malaysia (BNM) is confident that the Malaysian economy will perform better in the second half of the year, to achieve at least 4% full-year gross domestic product (GDP) growth, but economists caution that the moderation in growth, as seen in the first quarter numbers, may persist due to uncertainties in the external enviro

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KUALA LUMPUR: Malaysia's unemployment rate was steady at 3.4% for the third consecutive month in February 2016, but remained the highest since November 2013.

Seasonally-adjusted rate was also stable at 3.2% (January 2016: 3.2%).

Maybank IB Research expects unemployment rate to average 3.5% in 2016, from 3.2% last year.

Total labour force increased at a slower pace +1% year-on-year to 14.7 million while employment growth moderated slightly to +0.7% year-on-year to 14.2 million.

The rise in the number of unemployed decelerated to +9.7% year-on-year to 506,000 in February compared with +11.4% year-on-year in January.

On a month-to-month basis, all the numbers of labour force, employment and unemployed increased by +0.4%, +0.3% and +1.0% respectively.

The Labour Force Participation Rate moderated slightly to 67.6% in February 2016 from 67.7% last month.

Workers retrenchment in March-April 2016 were dominated by the manufacturing sector. Intel Malaysia plans to cut about 10% of the 13,500 workers in both Penang and Kulim manufacturing plants, in line with Intel US' announcement on plans to reduce its global workforce by 11% of its entire workforce of about 107,000.

Megasteel Sdn Bhd (subsidiary of Lion Group) issued 200 factory workers a 24-hour notice of termination on April 1, 2016. In March 2016, British American Tobacco (BAT) announced the closure of its manufacturing plant, affecting 230 employees.

The freeze on new foreign workers intake has caused concerns for various employers and business associations, especially from the manufacturing, construction and plantation/agriculture sectors.

The Federation of Malaysian Manufacturers (FMM) reported that 84% of manufacturers were facing shortage of labour. Also, operating costs has increased for manufacturers as some have to run on overtime or even outsource parts of their operations due to lack of manpower.

The Malaysian Fruit Farmer Association said that drought and shortage of manpower had caused fruit production to fall and indirectly driving up local fruit prices. Members of the Free Industrial Zone, Penang Companies' Association (Frepenca) which consists of 70 local and multinational corporations in the semiconductor and electronics industries are considering lowering investments in Malaysia due to the freeze on foreign labour.

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Unemployment rate in Malaysia stable at 3.4% - Business News | The Star Online

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KUALA LUMPUR: Malaysia's unemployment rate was steady at 3.4% for the third consecutive month in February 2016, but remained the highest since November 2013. Seasonally-adjusted rate was also stable at 3.2% (January 2016: 3.2%). Maybank IB Research expects unemployment rate to average 3.5% in 2016, from 3.2% last year.