ID :
30405
Sat, 11/15/2008 - 22:59
Auther :

INADEQUATE GAS SUPPLY, HIGH POWER TARIFF AMONG MANUFACTURERS & EXPORTERS'

KUALA LUMPUR, Nov 15 (Bernama) -- Insufficient gas supply, high power tariff and
migration of experienced Malaysian professionals to other countries are among
challenges faced by manufacturers, exporters and the service sector.

Increase in raw materials' cost due to 8.6 percent appreciation of the US
dollar between January and October, sustaining and expanding export market or
domestic market, difficulties in securing financing and lack of safeguard
measures against the influx of low quality products into the domestic market are
among the other challenges.

International Trade and Industry Minister Muhyiddin Yassin said challenges
of the services industry include lack of experienced human resource, "brain
drain" with many experts or experienced Malaysian professionals attracted
by lucrative offers in other countries such as in China and in the Middle
East.

Restrictive policies and movement of talents that discouraged foreign
investments to bring in new technology and know-how to local service providers
are also problems of the industry, he told a media conference.

Muhyiddin said sectors that faced skilled manpower shortage are tourism,
transportation, health and construction, adding that effects of the economic
slowdown had not materially affected Malaysia's external trade and investment
performance.

Between January and September, he said, Malaysia's total trade increased by
12.8 percent to RM915.4 billion compared to the same period last year.

During the period, exports rose by 16 percent to RM512.2 billion compared
to
the corresponding period in 2007, while imports expanded by 9.1 percent to
RM403.2 billion, he said.

He said Malaysia recorded 131st consecutive month of trade surplus since
November 1997.

On investments, Muhyiddin said 643 manufacturing projects were approved,
with investments totalling RM53.9 billion, in the first three quarters of 2008.

He, however, said the global financial and economic crisis are expected to
pose major challenges to woo investments.

The weak economic climate in developed countries is also making it
difficult for many companies to secure credit for their projects, he said.

The World Economic Outlook Report published by the International Monetary
Fund (IMF) on Oct 8 pronounced that the world economy is entering a major
slowdown with global growth projected to slow substantially to 3.9 percent in
2008 and three percent in 2009.

The IMF further revised downwards the global growth prospect on Nov 6 to
3.7 percent in 2008 and 2.2 percent in 2009 due to falling producer and
consumer confidence as a result of the continued financial sector de-leveraging.

Malaysia's developed country trading partners -- the US, Japan and European
Union -- are expected to be in -0.7 percent, -0.2 percent and -0.2 percent
contraction in 2009, respectively.

Emerging developing economies including China, India and Brazil are
expected
to register 8.5 percent, 6.3 percent and three percent growth in 2009,
respectively.

The Asean 5 (Indonesia, Thailand, the Philippines, Malaysia and Vietnam) is
expected to expand by 5.4 percent this year and 4.2 percent next year.
(US$1= RM3.59)
-- BERNAMA

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