MALAYSIAN GOVT MONITORING HOT MONEY INFLOW INTO THE REGION, SAYS PM-

PUTRAJAYA, Dec 6 (Bernama) -- The Malaysian government is monitoring hot
money inflow into the region, said Prime Minister Najib Tun Razak Monday.

He said Bank Negara Malaysia (central bank) was specifically keeping tab on
the situation while other governments in the region were also doing the same.

"We are monitoring (the situation). Hot money inflow has not reached an
alarming level," said Najib, who is also Finance Minister, to reporters after
launching Talent Corporation here Monday.

Najib was asked on the huge amount of investment funds seeking higher
returns in the region that could destabilise the economy.

US Federal Reserve Chairman Ben Bernanke recently said it could expand a
programme to buy US$600 billion in Treasury securities beyond the initial
target it announced a month ago.

The comments came after the release of a weaker-than-expected US employement
report on Friday.

Bankers expect Asia's asset bubble to further exacerbate if the United
States fails to channel extra liquidity from a new wave of quantitative easing
into actual employment.

Earlier, Najib announced new policy initiatives to address the
need for world-class talents pursuant to Malaysia's economic transformation.

He said selected students under the Public Service Department's scholarship
programme would be able to serve their bond of service with a broader range of
organisations including government-linked companies and private sector
corporations in the country.

The detailed mechanism would be developed by the government next year, the
Prime Minister said.

Meanwhile, a resident pass will be introduced to highly-qualified
expatriates and Malaysians who no longer hold citizenship but wish to reside
and work in Malaysia.

Najib said the Immigration department was expected to implement the new
initiative by the middle of next year while the employment pass conditions would
be relaxed.

The requirement for an understudy, the need to advertise an executive
position and the 10-year limit for key expatriate executives will also be
removed.

The changes will take effect next year, said Najib.

-- BERNAMA