April 2008 ~ Edwin Too's Market

Tuesday, April 29, 2008

Bank Negara leaves OPR unchanged at 3.5%

9:22 PM No comments

PETALING JAYA: Bank Negara Malaysia’s monetary policy committee meeting has decided to leave the overnight policy rate (OPR) unchanged at 3.5% after evaluating the evidence on the downside risks to growth and the upside risks to inflation.

In a statement issued Tuesday, it said latest available data from major industrial economies indicated a moderation of economic activity in these countries and this was likely to lead to slower global growth in the months ahead.

“While the slower external demand will have some moderating impact on the Malaysian economy, growth continues to be supported by an expansion in domestic demand,” it said.

The central bank said the strong imports of capital goods, manufacturing investment approvals and foreign direct investment inflows indicated sustained investment activity.

Bank Negara said despite the global financial turmoil, domestic credit conditions were still favourable as demand for financing was underpinned by ample liquidity in the financial system.

However, it expressed concern that global energy and food prices have risen sharply since the beginning of the year from their already high levels.

It added a big uncertainty at this stage was the extent of the moderation in global economic activity and the impact it would have in reducing global price pressures.

Bank Negara said domestic food prices had risen due to the increase in global prices. It added the increase in food prices was a structural phenomenon that required measures to ensure adequate supply, creation of appropriate incentive structures to promote higher food production, and make the production and distribution chain more efficient.

To ensure a smooth transition to market prices, adjustments to administered prices need to be gradual, it said.

“The bank’s forecast of 2.5% to 3% average inflation in 2008 has built in some administered price adjustments,” it said.

However, the upside risks to this projection would hinge on the degree to which the increase in global prices have an impact on domestic prices and the extent to which administered prices are adjusted, it said.

E-payment system from July

12:21 AM No comments

PETALING JAYA: By July 1, all payments to the Government will be made e-payable but counter services will still be available to those who prefer it.

Pemudah, the Government’s task force for facilitating businesses, said that this was a major initiative to make transactions with the Government agencies more efficient through the streamlining of e-payment systems.

The e-payment process will “convert” the facilities in a total of 106 agencies in three stages.

“Of that, 21 agencies will be ready by May 1, followed by 55 agencies by June 1, and the remaining 30 agencies by July.

“The debit card will come on stream by the end of 2008,” Chief Secretary to the Government Tan Sri Mohd Sidek Hassan said in a press statement yesterday.

He added that currently, 83 counters in 72 branches of the Road Transport Department (JPJ) accepted credit card payment for renewal of road tax.

JPJ also accepts payments via e-Services at 111 approved sites for booking of theory tests, issuance/ renewal of learners’ driving licences, renewal of competent driving licences and settling traffic summons.

Pemudah said it would spend the next six months streamlining several processes and measures related to public procurement, making it more transparent and accountable.

This comes in the wake of Prime Minister Datuk Seri Abdullah Ahmad Badawi’s call during the Asean Integrity Dialogue recently for transparency and accountability in all such matters.

Another key improvement stated was on deferred payment and pre-clearance of cargo based on Expected Time of Arrival (ETA) of vessels, which would take effect from July 1.

“Customs will also be working with the Federation of Malaysian Manufacturers (FMM) to expand its Customs Golden Client and Authorised Economic Operator facilities to companies endorsed by FMM.

“ETA information will be made available to all Government agencies ahead of time to facilitate clearance at any time of the day and on weekends and public holidays,” he said.

Mohd Sidek also reminded the private sector that it had to assume its due role.

“Delays as experienced in the past are not always attributable to government processes but are caused by the private sector.

“The construction industry for example feeds into the lives of many of us in its various forms and facets.

Therefore the private sector must assume greater responsibility and accountability when implementing these projects,” he said.

“Delays and non-compliance from some of these projects have resulted in abandoned projects with its associated problems, as well as unacceptable levels of disruption and disturbance to the lives of people who live and work in the vicinity.

“Sub-standard quality of work by developers and contractors alike has also affected buyers of properties,” he reaffirmed.