The global recession, Mohamed said, has led the country’s exports to shrink by 23 per cent, unemployment rate to rise to 4.8 per cent and negative Gross Domestic Product (GDP) growth. In response, he said, the country has taken several measures such as amending monetary and fiscal policy. “Interest rates were cut as well as lower reserve ration. The government also provided the first stimulus package of RM7 billion in November 2008, and the second stimulus package of RM60 billion in March 2009. “Apart from that, the government also implemented the liberalisation of 27 services sub-sectors like computers and related services, health and social services, tourism services, transport, recreational, business services and shipping,” he said, adding that there was now a glimmer of hope for recovery. Mohamed revealed that a survey by MIER, indicating the Business Condition Index (BCI), which tracks domestic manufacturing activities, finally rose above its threshold level to settle at 105.2 points in the second quarter of this year (2Q09). “That is up by 44.1 points quarter-on-quarter but still down by 8.8 points year-on-year,” he said, adding that the index had spent the last three quarters below the 100-point threshold. A reading above 100 points indicates an expanding manufacturing sector. On the automotive industry, Mohamed said a MIER survey showed the Automotive Industry Index (AII) had increased by 38 points to 68.3 points in 2Q09, from 30.3 points in 1Q09. “Year-on-year it is still down by 60.4 points from 128.7 points in 2Q08,” he said. Although improving, he said, the AII is still below the 100-points threshold. “The auto industry has seen the worse part of the crisis but recovery would be gradual and tough,” he added. Yesterday’s briefing aimed to update participants on current global business conditions, consumer sentiments as well as automotive industry, residential property, retail trade and tourism market perspectives. Chaired by Custodev Sdn Bhd managing director Datu Abang Helmi Ikhwan, it provided the latest updates on the Malaysian economy to over 50 members of the corporate sector in Sarawak. They were from Cahya Mata Sarawak (CMS) Cement Sdn Bhd, Trienekens (Sarawak) Sdn Bhd, Transnational Insurance Brokers (M) Sdn Bhd, Kuwait Finance House, Doyon Development Sdn Bhd, Kenanga Investment Bank Bhd, Custodev Sdn Bhd, ASSAR Asset Mana-gement Sdn Bhd, Assar Senari Holdings Sdn Bhd, Amanah Saham Sarawak Bhd, Kuching Port Autho-rity, Brooke Dockyard and Engineering Works Corporation, Harwood Timber Sdn Bhd, Kumpulan Parabena Sdn Bhd, PSB Properties Sdn Bhd, Maybank Trade Finance Centre, United Overseas Bank (M) Bhd, CH Williams, Talhar, Wong and Yeo Sdn Bhd, Faradale Media, Sarawak Tourism Board, Tabung Baitumal Sarawak, State Library, Kuching City North Commission (DBKU), Padawan Municipal Council, as well as various government agencies.


Slowdown not over but easing: MIER
Released Date : 21 July 2009
Posted By: Conference Division

The global recession, Mohamed said, has led the country’s exports to shrink by 23 per cent, unemployment rate to rise to 4.8 per cent and negative Gross Domestic Product (GDP) growth. In response, he said, the country has taken several measures such as amending monetary and fiscal policy. “Interest rates were cut as well as lower reserve ration. The government also provided the first stimulus package of RM7 billion in November 2008, and the second stimulus package of RM60 billion in March 2009. “Apart from that, the government also implemented the liberalisation of 27 services sub-sectors like computers and related services, health and social services, tourism services, transport, recreational, business services and shipping,” he said, adding that there was now a glimmer of hope for recovery. Mohamed revealed that a survey by MIER, indicating the Business Condition Index (BCI), which tracks domestic manufacturing activities, finally rose above its threshold level to settle at 105.2 points in the second quarter of this year (2Q09). “That is up by 44.1 points quarter-on-quarter but still down by 8.8 points year-on-year,” he said, adding that the index had spent the last three quarters below the 100-point threshold. A reading above 100 points indicates an expanding manufacturing sector. On the automotive industry, Mohamed said a MIER survey showed the Automotive Industry Index (AII) had increased by 38 points to 68.3 points in 2Q09, from 30.3 points in 1Q09. “Year-on-year it is still down by 60.4 points from 128.7 points in 2Q08,” he said. Although improving, he said, the AII is still below the 100-points threshold. “The auto industry has seen the worse part of the crisis but recovery would be gradual and tough,” he added. Yesterday’s briefing aimed to update participants on current global business conditions, consumer sentiments as well as automotive industry, residential property, retail trade and tourism market perspectives. Chaired by Custodev Sdn Bhd managing director Datu Abang Helmi Ikhwan, it provided the latest updates on the Malaysian economy to over 50 members of the corporate sector in Sarawak. They were from Cahya Mata Sarawak (CMS) Cement Sdn Bhd, Trienekens (Sarawak) Sdn Bhd, Transnational Insurance Brokers (M) Sdn Bhd, Kuwait Finance House, Doyon Development Sdn Bhd, Kenanga Investment Bank Bhd, Custodev Sdn Bhd, ASSAR Asset Mana-gement Sdn Bhd, Assar Senari Holdings Sdn Bhd, Amanah Saham Sarawak Bhd, Kuching Port Autho-rity, Brooke Dockyard and Engineering Works Corporation, Harwood Timber Sdn Bhd, Kumpulan Parabena Sdn Bhd, PSB Properties Sdn Bhd, Maybank Trade Finance Centre, United Overseas Bank (M) Bhd, CH Williams, Talhar, Wong and Yeo Sdn Bhd, Faradale Media, Sarawak Tourism Board, Tabung Baitumal Sarawak, State Library, Kuching City North Commission (DBKU), Padawan Municipal Council, as well as various government agencies.

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