Category: General

GEORGE TOWN, Penang is set to become a catalyst for Malaysia to move up the chip value chain and solidify its position as the preferred investment destination for electrical and electronics and semiconductor production in the region, said Chief Minister Chow Kon Yeow.

He said with over 50 years of industrial excellence and leadership, Penang can contribute to Malaysia’s goals as envisioned in the New Industrial Master Plan 2030 (NIMP 2030).

Chow noted that Penang, dubbed the ‘Silicon Valley of the East’, has always championed back-end chipmaking processes within the country and the region while the state has consistently played a pivotal role in contributing to Malaysia’s annual gross domestic product (GDP) growth.

‘However, for Penang to contribute further to Malaysia’s attainment of a high-income nation, bold and innovative ideas are required not just from foreign firms but from the grassroots.

‘Therefore, local tech startups that hone skills in integrated circuit design and research and development ar
e capable of pushing Malaysia further up the value chain,’ the chief minister said in a Facebook post today.

Earlier, Nikkei Asia published an article, titled ‘Malaysian ‘Silicon Valley’ seeds homegrown chip startups’, highlighting that the time is ripe for Malaysia to move upstream into chip designing.

Chow, who is also the state Finance, Economic Development, Land and Communications Committee chairman, pointed out that Penang’s growth trajectory looks promising with Penang International Airport expansion and Silicon Island in the pipeline.

Touching on the Penang Light Rail Transit (LRT) Mutiara Line project, he said that from boosting the property market to potentially attracting foreign direct investments, the long-awaited LRT project signifies a significant step towards more equitable development across all states.

‘The LRT project is not only a relief for those who battle traffic congestion during festive seasons but also holds promising economic benefits, as highlighted by analysts,’ he noted.

The
federal government officially took over the LRT project from the state government following the Cabinet’s decision to approve the suggested development of the project on March 22, 2024.

Source: BERNAMA News Agency

MANILA: The local stock barometer dropped on Friday due to last-minute selling while the peso closed flat.

The Philippine Stock Exchange index (PSEi) shed 18.26 points to 6,659.39 while the broader All Shares declined by 8.47 points to 3,517.40.

Philstock Financials, Inc. assistant research manager Claire Alviar said investors sold shares at the last minute amid uncertainties on policy rates.

“It has already been anticipated that the Bangko Sentral ng Pilipinas and Federal Reserve would cut interest rates this year,” she said.

“However, given the increasing risks to inflation, this could lead to a more cautious approach from both central banks.”

Alviar said that despite the market decline, most sectors posted gains, with the Miners having the biggest gain, up by 0.74 percent.

Meanwhile, the property sector and Holdings joined the PSEi in the red, losing 1.14 percent and 0.53 percent, respectively.

Decliners led advancers at 108 to 77, while 51 shares were unchanged.

Meanwhile, the peso closed flat at
56.53 to a US dollar on Friday from Thursday’s 56.5 finish.

The local currency opened the day at 56.4, and traded between 56.39 and 56.55.

The weighted average level for the day stood at 56.47.

Volume of trade went down to USD1.08 billion from USD1.31 billion on Thursday.

Source: Philippines News agency

ISTANBUL: International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday warned against weak global economic growth.

“The sobering reality is global economic activity is weak by historical standards,” she said during her speech at the Atlantic Council.

“Prospects for growth have been slowing since the global financial crisis.”

Georgieva said inflation is not fully defeated, adding that fiscal buffers have been depleted, and rising debt levels pose a major challenge to public finances in many countries.

“The scars of the pandemic are still with us. The global output loss since 2020 is around USD3.3 trillion, with the costs disproportionately falling on the most vulnerable countries,” she said.

The IMF chief said the US has seen the strongest rebound among advanced economies since the pandemic helped by rising productivity growth, but activity in the euro area is recovering more gradually due to effects of high energy prices and weaker productivity growth.

She emphasized that the mai
n driver of weaker economic growth is “a significant and broad-based” slowdown in productivity, adding: “Our analysis shows it accounts for over half of the growth slowdown in advanced and emerging economies, and nearly all in low-income countries.”

Source: Philippines News agency

MANILA: Vehicle dealerships and importers will soon face higher penalties for fraudulent vehicle registration following an amendment of an administrative order by the Land Transportation Office (LTO).

In a statement on Friday, LTO Chief Assistant Secretary Vigor Mendoza said the amendment, approved by Department of Transportation (DOTr) Secretary Jaime Bautista, would add more teeth in imposing sanctions against manufacturers, assemblers, importers, rebuilders, dealers, and other entities (MAIRDOEs) that are authorized to import motor vehicles and its components.

These higher penalties will be imposed against those who commit fraud and misrepresentation in the filing of the application and its operations, including stock and sales reporting; and the submission of fraudulent, fake, or falsified stock/sales periodic reports as required by law.

The first offense for both violations would merit the suspension of their Certificate of Accreditation (COA) for not more than six months, a fine of PHP500,000, and ca
ncellation of their Certificate of Stock Reported (CSR), sales report, and the registration of the involved vehicles.

For the second offense, violators will face cancellation of their COA, blacklisting for a year from the finality of the order of cancellation, and the cancellation of their CSR, sales report, and vehicle registrations.

‘The LTO reserves the right to institute criminal actions against the concerned person or entities who committed the above serious offenses,’ Mendoza said.

Since both offenses are classified as ‘serious,’ he said the penalty also includes a 90-day preventive suspension that will start upon receipt of a show cause order from the LTO.

In the same administrative order approved by Bautista, less serious offenses were identified as failure to comply with standard requirements and other laws relating to MAIRDOE business operations, and allowing the use of its accreditation by non-accredited persons or entities.

The penalty for a first offense is PHP100,000, a second offense is PH
P500,000 and for a third offense is PHP1 million.

A fourth offense will merit the cancellation of their COA and a blacklisting period of one year.

These stricter penalties, he said, would help compel MAIRDOEs to follow rules and regulations.

He cited the fraudulent transactions involving two Bugatti Chiron that served as an ‘eye-opener’ to review existing policies and correct penalties that were found too low.

Source: Philippines News agency

MANILA: The Philippines’ Gen Eslapor and Kly Orillaneda got off to a good start in the 2024 Volleyball World Beach Pro Tour Futures, beating Malaysia’s Mashitah Muhamad Nasir and Shamsulrizal Nur Auni Maisarah, 21-11, 23-21, at the Nuvali Sand Courts by Ayala Land in Santa Rosa City, Laguna on Friday.

The Philippine Air Force spikers will next meet New Zealand’s Danielle Quigley and Olivia MacDonald, who survived Japan’s Mayu Kikuchi and Harumi Sakai, 21-16, 16-21, 18-16.

The other Filipino pair of Alexa Polidario and Jen Gaviola, meanwhile, bowed to Germany’s Chenoa Christ and Anna-Lena Grne, 10-21, 5-21.

The Germans will be next take on Japanese Shion Tsubouchi and Maho Yabumi, who defeated Lithuanians Urte Andriukaityte and Marjia Karaliute, 21-19, 21-16.

Local hopes Ran Abdilla and AJ Pareja also absorbed a 12-21, 18-21 loss to Germans Robin Sowa and Lukas Pfretzschner in the men’s division.

Americans Alaina Chacon and Mariah Whalen downed Latvia’s Rezija Puskundze and Loreta Cabule, 21-11, 21-14; wh
ile Sweden’s Malin Bergholm and Louise Månesköld conquered New Zealand’s Katie Sadlier and Meile Rose Green, 21-16, 21-17, in the tournament supported by the Philippine Sports Commission and Philippine Olympic Committee.

Other winners were Israel’s Anita Dave and Ronni Rivka Lavie over Thailand’s Charanrutwadee Patcharamainaruebhorn and Woranatchayakorn Phirachayakrailert, 21-19, 21-19; and Japan’s Riko Tsujimura and Takemi Nishibori over Canada’s Devon May and Kaitlin Lomas, 21-13, 21-11.

Source: Philippines News agency

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim said he is confident in the ability of Malaysians to realise the country’s potential in economic development, especially in high-value investments.

Sharing a video report from the World Economic Forum Facebook page on Malaysia’s growing potential in the semiconductor industry today, Anwar said the MADANI government is committed to building a new, high-tech and innovation-driven future for the country.

‘With high-value investments from global firms, resulting in high-paying jobs for more Malaysians.

‘I have absolute confidence in the potential of every Malaysian, in the bright prospects for our economy, and our shared future as a nation,’ Anwar posted on his Facebook account.

The World Economic Forum video report highlighted that Malaysia, especially Penang, is emerging as a new semiconductor powerhouse, after the state secured US$12.8 billion (US$1 = RM4.76) in foreign direct investment in 2023.

Source: BERNAMA News Agency

MANILA: The additional income and availability of more jobs helped improve consumer sentiment in the first quarter of the year but business confidence turned less upbeat due to persistent inflationary pressures, results of a Bangko Sentral ng Pilipinas (BSP) survey showed.

In a virtual briefing on Friday, BSP Department of Economic Statistics Senior Director Redentor Paolo Alegre Jr. said results of the first quarter 2021 Consumer Expectations Survey (CES) and Business Expectations Survey (BES) showed that consumer sentiment improved as the overall confidence index (CI) became less negative at -10.9 percent from -19 percent in the fourth quarter of 2023.

Alegre attributed the improved outlook to expectations of higher income, availability of more jobs and permanent employment, and additional working family members.

He said that in the first quarter, consumers were less hesitant about buying big-ticket items.

The percentage of households with loans and savings also increased.

However, Alegre said consumer
sentiment in the second quarter and the next 12 months was weaker as the CI declined to 2.7 percent and 13.4 percent from 5.6 percent and 15 percent, respectively, in the fourth quarter 2023 survey round.

The weaker outlook was attributed to consumers’ anticipation of a faster increase in the prices of goods, fewer available jobs, and lower income.

For the BES, the CI declined to 33.1 percent from 35.9 percent in the fourth quarter of 2023.

The firms’ less optimistic sentiment in the first quarter is due to expectations of a post-holiday decline in demand for goods and services and a slowdown in business activities, persistent inflationary pressures from higher food and oil prices and its impact on the economy, stiff competition, and the adverse effects of a strong El Niño on the agriculture sector.

“However, business sentiment is more buoyant for the second quarter of 2024,” Alegre said.

He also traced the more optimistic outlook to firms’ expectations of higher demand for products and services, complet
ion of more projects due to a more conducive business environment, seasonal uptick in business activities in the tourism and fisheries sector during the open fishing season, business expansions and development of new products, and easing inflation.

Alegre said the business sentiment for the next 12 months is also more upbeat.

In terms of select economic indicators, firms and consumers expect that inflation and interest rates may rise in the first half of 2024 and the next 12 months.

Businesses expect that the peso may appreciate against the United States dollar but consumers see the local currency to depreciate.

Alegre said hiring intentions of firms may be favorable in the second quarter and the next 12 months.

Source: Philippines News agency