Editor’s Picks: 10 October 2017

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  • Malaysia To Benefit From Global Economic Recovery
  • Domestic Demand Remains Key Driver For Growth In Malaysia, Asia
  • Sarawak Will Continue To Facilitate Private Investments: CM
  • Sarawak’s Economy To Grow At 4 % This Year
  • Malaysian Companies Clinched 7 Awards at World Congress on IT
  • China central bank boss calls for reform
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Malaysia To Benefit From Global Economic Recovery

Malaysia is well-positioned to benefit from the recovery in the global economic cycle, while the domestic market is backed by adequate monetary policy as well as a credible central bank to navigate changes faced by the market, said Wellington Management Singapore Pte Ltd Vice President and Investment Director, Andrew Sharp-Paul. “Malaysia is a small component of the United Global Income Focus Fund (UGIFF) and as for the market, we will continue to be in the equity market as it is better,” he said, when asked about the local asset class that was attractive to the company. He said this at the launch of multi-asset weather fund, UGIFF, which is sub-managed by Wellington Management. The fund will invest a minimum of 90 per cent of its net asset value in the United Income Focus Trust managed by UOB Asset Management Ltd in Singapore.

Domestic Demand Remains Key Driver For Growth In Malaysia, Asia

Domestic demand remains the primary driver of Malaysia and Asia’s growth even though exports continue to play a significant role, said The Institute of Chartered Accountants in England and Wales (ICAEW). In its Economic Insight Report for Q3 2017, ICAEW said the rise in importance of internal factors in supporting the region’s growth was the result of a long period of subdued global demand and limited opportunities for export gains. “With an important growth driver weakening, domestic macro policies have turned more expansionary, bolstering consumption and investment. “This strategy has been broadly successful, as Asia has continued to outperform other regions, in spite of the sluggish external environment and we expect policy makers to retain an accommodative stance, both in terms of fiscal and monetary policy, in the foreseeable future,” it said. Nevertheless, ICAEW cited exports still matter greatly to Asia’s growth, as healthy foreign trade remains vital for underpinning domestic consumption and investment, particularly in East Asia.

Sarawak Will Continue To Facilitate Private Investments: CM

The Sarawak State government will continue to facilitate private investments, acknowledging the fact that the private sector has the necessary ingredients, namely, capital, latest technology and management expertise, as proven in many developed economies. “This is also in line with the state’s Socio-Economic Transformation Programme objectives,” said Sarawak Chief Minister, Datuk Patinggi Abang Johari Tun Openg. He said the state government has implemented many transformation initiatives in major sectors of the economy, namely, agriculture, manufacturing, tourism, urban development, entrepreneurship and environment. He said the agriculture sector would be transformed through modernisation, commercialisation and application of digital technology.

Meanwhile, Datuk Patinggi Abang Johari said Sarawak’s economy is expected to grow at four per cent this year in tandem with the growth of the Malaysian economy. He said the state’s nominal gross domestic product (GDP) had expanded from RM119.1 billion in 2015 to RM121.4 billion last year, and GDP per capita had increased from RM44,100 to RM44,300 in the same period. The positive growth, he said, was mainly driven by the services and manufacturing sectors.

Malaysian Companies Clinched 7 Awards at World Congress on IT

At the recently held World Congress of IT (“WCIT”) in Taiwan, Malaysian companies and organisations continued to be recognised for technological leadership and innovation at the global stage – clinching several awards at the 2017 WITSA Global ICT Excellence Awards (“WITSA-GIEA”) and the Asian-Oceanian Computing Industry Organization (“ASOCIO”) awards. Both award ceremonies were held in conjunction with the 21st World Congress on IT Summit (WCIT) 2017. WITSA is the leading, recognised international voice of the global ICT industry, whose members from over 80 countries and economies represent more than 90 percent of the world ICT market. Themed “Building and sharing the digital dream”, the ASOCIO Summit 2017 is one of the region’s high-powered IT forums, providing platforms for government and industry to exchange information and develop closer relationship and most importantly, identifying new business opportunities. It is a C-level, thought leadership event that is specially designed to cover the highest leadership trends and insights with the intent to spur innovation and adoption of new technologies and business models to drive ICT growth in the region.

China central bank boss calls for reform

People’s Bank of China Governor Zhou Xiaochuan made a fresh call to open up the nation’s financial sector, and warned that reform will become more difficult if the window of opportunity is missed. In an interview with the Chinese financial magazine Caijing, the central bank chief defined a “troika” of three drivers needed to further open up the economy, citing greater foreign trade and investment, a more market-based foreign-exchange rate mechanism with a “reasonable and balanced” yuan rate, and the relaxation of capital controls to allow use of the yuan to be gradually freed. While China has ambitions to make its currency a global means of exchange, the world’s second-largest economy still operates behind a barrier of exchange controls and restrictions on foreign investment. “There isn’t a single country in the world that can achieve open economy with strict foreign exchange controls,” Zhou said in the wide-ranging interview, which looked back at the country’s financial and currency reforms over decades and marked one year since the International Monetary Fund added the yuan as the fifth component of its reserve-currency basket. “The time window is very important for reforms, an appropriate window must be seized. Once missed, the cost of reform will be higher in the future.”

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