Sunday, May 29, 2011
Wednesday, May 11, 2011
Govt Likely to Keep Price of RON 95 Petrol Stable
Wednesday May 11, 2011
By JAGDEV SINGH SIDHU
jagdev@thestar.com.my
KUALA LUMPUR: The increase in the price of sugar signalled the resumption of the subsidy rationalisation programme many thought was put on hold given the inflationary pressures felt by countries globally.
Economists said although prices for selected goods might rise, they expected the key determinant of inflation - the price of RON 95 petrol - to remain stable as efforts to keep a lid on inflation.
“It will be on a gradual basis,” said CIMB Investment Bank Bhd head of economics Lee Heng Guie on the subsidy rationalisation programme.
The price of coarse and fine sugar increased by 20 sen to RM2.30 per kilo yesterday, reducing the Government's subsidy for sugar to RM116.6mil from RM400mil per year.
If the Government maintains the price of RON 95, it will mean it is concerned about inflationary pressure, according to an economist
The increase yesterday was the first for this year but the fourth overall since the Government's subsidy rationalisation programme was put into effect. Sugar prices saw three increases last year of 20 sen in January, 25 sen in July and 20 sen in December.
Economists feel the move to cut subsidies was still needed given the use of such interventionist policy to keep prices and cost low during a time when inflation has become a thorn in the flesh for many countries.
Inflation in Malaysia hit 3% in March but was among the lowest in Asia where it had been the focus of many central banks. Interest rates have been raised in a number of Asian countries in recent months to stave off inflationary pressures.
For Malaysia, the consequence of cutting the subsidy on sugar and letting prices go up is not expected to have a direct impact on inflation.
Sugar is a constituent in the basket of goods which inflation is calculated from but does not have a big weightage.
Economists, however, wondered if the secondary effect from the higher price of sugar would filter through to a larger food segment should retailers and restaurants push up the price of drinks.
Economists said the willingness of the Government to keep RON 95 prices constant was commendable as fuel and energy costs will have a bigger impact on the rate of inflation.
“If the Government maintains the price of RON 95, it will mean it is concerned about inflationary pressure,” said Affin Investment Bank Bhd economist Alan Tan.
The price of RON 95 petrol, which is the preferred choice of fuel among motorists, have been kept steady at RM1.90 a litre in recent months despite global crude oil prices punching well above US$100 per barrel.
The Government has nonetheless matched the price of RON 97 petrol with that of international crude oil prices. The Government raised the price of RON 97 petrol by 20 sen a litre to RM2.90 a litre on May 5
http://biz.thestar.com.my/news/story.asp?file=/2011/5/11/business/8657461&sec=business
By JAGDEV SINGH SIDHU
jagdev@thestar.com.my
KUALA LUMPUR: The increase in the price of sugar signalled the resumption of the subsidy rationalisation programme many thought was put on hold given the inflationary pressures felt by countries globally.
Economists said although prices for selected goods might rise, they expected the key determinant of inflation - the price of RON 95 petrol - to remain stable as efforts to keep a lid on inflation.
“It will be on a gradual basis,” said CIMB Investment Bank Bhd head of economics Lee Heng Guie on the subsidy rationalisation programme.
The price of coarse and fine sugar increased by 20 sen to RM2.30 per kilo yesterday, reducing the Government's subsidy for sugar to RM116.6mil from RM400mil per year.
If the Government maintains the price of RON 95, it will mean it is concerned about inflationary pressure, according to an economist
The increase yesterday was the first for this year but the fourth overall since the Government's subsidy rationalisation programme was put into effect. Sugar prices saw three increases last year of 20 sen in January, 25 sen in July and 20 sen in December.
Economists feel the move to cut subsidies was still needed given the use of such interventionist policy to keep prices and cost low during a time when inflation has become a thorn in the flesh for many countries.
Inflation in Malaysia hit 3% in March but was among the lowest in Asia where it had been the focus of many central banks. Interest rates have been raised in a number of Asian countries in recent months to stave off inflationary pressures.
For Malaysia, the consequence of cutting the subsidy on sugar and letting prices go up is not expected to have a direct impact on inflation.
Sugar is a constituent in the basket of goods which inflation is calculated from but does not have a big weightage.
Economists, however, wondered if the secondary effect from the higher price of sugar would filter through to a larger food segment should retailers and restaurants push up the price of drinks.
Economists said the willingness of the Government to keep RON 95 prices constant was commendable as fuel and energy costs will have a bigger impact on the rate of inflation.
“If the Government maintains the price of RON 95, it will mean it is concerned about inflationary pressure,” said Affin Investment Bank Bhd economist Alan Tan.
The price of RON 95 petrol, which is the preferred choice of fuel among motorists, have been kept steady at RM1.90 a litre in recent months despite global crude oil prices punching well above US$100 per barrel.
The Government has nonetheless matched the price of RON 97 petrol with that of international crude oil prices. The Government raised the price of RON 97 petrol by 20 sen a litre to RM2.90 a litre on May 5
http://biz.thestar.com.my/news/story.asp?file=/2011/5/11/business/8657461&sec=business
Ringgit Higher on Strong Buying Interest
Published: 2011/05/11
The ringgit was traded higher against the US dollar in the early session today on strong buying interest for the domestic currency, dealers said.
At 9.04am, the ringgit was quoted at 2.9780/9811 per US dollar compared with 2.9880/9911 at yesterday's close.
The uptrend was in line with other Asian currencies as sentiments in the region were boosted by some positive earnings report from Japan and firming commodity prices, he said.
One dealer said the ringgit was also riding on the weakening of the greenback across the board.
Against other major currencies, the ringgit was traded higher.
The ringgit appreciated against the Singapore dollar to 2.4204/4248 from 2.4230/4274 yesterday, was higher against the British pound to 4.8741/8801 from 4.8899/8958 on Tuesday and rose against the euro to 4.2886/2934 from 4.2893/2949 yesterday.
However, the ringgit weakened against the Japanese yen to 3.6815/6863 from 3.7031/7083 yesterday. - Bernama
Read more: Ringgit higher on strong buying interest http://www.btimes.com.my/Current_News/BTIMES/articles/20110511102114/Article/index_html#ixzz1M19KWcP1
The ringgit was traded higher against the US dollar in the early session today on strong buying interest for the domestic currency, dealers said.
At 9.04am, the ringgit was quoted at 2.9780/9811 per US dollar compared with 2.9880/9911 at yesterday's close.
The uptrend was in line with other Asian currencies as sentiments in the region were boosted by some positive earnings report from Japan and firming commodity prices, he said.
One dealer said the ringgit was also riding on the weakening of the greenback across the board.
Against other major currencies, the ringgit was traded higher.
The ringgit appreciated against the Singapore dollar to 2.4204/4248 from 2.4230/4274 yesterday, was higher against the British pound to 4.8741/8801 from 4.8899/8958 on Tuesday and rose against the euro to 4.2886/2934 from 4.2893/2949 yesterday.
However, the ringgit weakened against the Japanese yen to 3.6815/6863 from 3.7031/7083 yesterday. - Bernama
Read more: Ringgit higher on strong buying interest http://www.btimes.com.my/Current_News/BTIMES/articles/20110511102114/Article/index_html#ixzz1M19KWcP1
Saturday, May 7, 2011
Takaful optimistic of sustaining 12pc growth
By Zurinna Raja Adam
Published: 2011/05/06
KUALA LUMPUR: Syarikat Takaful Malaysia Bhd (Takaful Malaysia) is optimistic of sustaining its average growth of between 12 per cent and 15 per cent this year, despite increased competition due to Bank Negara Malaysia issuing new takaful licences to four financial institutions in September last year.
Group managing director Datuk Hassan Kamil said Takaful Malaysia is a pioneer in the business and its objective has always been clear - to promote Islamic insurance.
"The new licences were given to players that are focused on conventional side. We have always been dedicated to takaful and that is our competitive edge," he said after the group's annual general meeting here yesterday.
Hassan said he is confident that its 15 per cent Mudharabah payment rate for group family takaful product will continue to propel the country's oldest takaful group to make further inroads in the industry.
Malaysia's takaful industry still lags behind its conventional peers in terms of total insurance market penetration and share. It is understood that the penetration rate for takaful industry in Malaysia is around 10 per cent, compared with 40 per cent for conventional insurance.
"We will launch at least two new products this year, namely investment-linked and retirement scheme products. We also aim to increase our agents to 2,000 by end of the year from about 1,000 now," he added.
Takaful Malaysia currently has about one million policy holders and it aims to increase its customer base by another 25 per cent by end of the year.
The group's assets stand at RM4.9 billion at group level against RM4.4 billion as at June 2009.
Hassan said Takaful Malaysia is currently not in talks with any foreign parties for a strategic tie-up but will gauge if potential partners are able to provide value added services to the company.
For the 18 months ended December 31 2010, the company posted RM57.7 million in net profit or a 42.7 per cent jump against RM40.5 million during the same period the year before.
Read more: Takaful optimistic of sustaining 12pc growth http://www.btimes.com.my/Current_News/BTIMES/articles/takiy/Article/#ixzz1LYlSLTQc
Published: 2011/05/06
KUALA LUMPUR: Syarikat Takaful Malaysia Bhd (Takaful Malaysia) is optimistic of sustaining its average growth of between 12 per cent and 15 per cent this year, despite increased competition due to Bank Negara Malaysia issuing new takaful licences to four financial institutions in September last year.
Group managing director Datuk Hassan Kamil said Takaful Malaysia is a pioneer in the business and its objective has always been clear - to promote Islamic insurance.
"The new licences were given to players that are focused on conventional side. We have always been dedicated to takaful and that is our competitive edge," he said after the group's annual general meeting here yesterday.
Hassan said he is confident that its 15 per cent Mudharabah payment rate for group family takaful product will continue to propel the country's oldest takaful group to make further inroads in the industry.
Malaysia's takaful industry still lags behind its conventional peers in terms of total insurance market penetration and share. It is understood that the penetration rate for takaful industry in Malaysia is around 10 per cent, compared with 40 per cent for conventional insurance.
"We will launch at least two new products this year, namely investment-linked and retirement scheme products. We also aim to increase our agents to 2,000 by end of the year from about 1,000 now," he added.
Takaful Malaysia currently has about one million policy holders and it aims to increase its customer base by another 25 per cent by end of the year.
The group's assets stand at RM4.9 billion at group level against RM4.4 billion as at June 2009.
Hassan said Takaful Malaysia is currently not in talks with any foreign parties for a strategic tie-up but will gauge if potential partners are able to provide value added services to the company.
For the 18 months ended December 31 2010, the company posted RM57.7 million in net profit or a 42.7 per cent jump against RM40.5 million during the same period the year before.
Read more: Takaful optimistic of sustaining 12pc growth http://www.btimes.com.my/Current_News/BTIMES/articles/takiy/Article/#ixzz1LYlSLTQc
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