Duty Slash Will Increase Agriculture Productivity

KUALA LUMPUR, Aug 30 (Bernama)- The abolishment of import duty on fertilizers and pesticides, as announced in the 2009 Budget, will contribute towards higher productivity at the farm and lower the price of agriculture products, says University Malaya Faculty of Economics & Administration Prof Dr Pazim Fadzim Othman.Prime Minister Datuk Seri Abdullah Ahmad Badawi, when tabling the 2009 Budget in the Dewan Rakyat yesterday said the 5-25 percent import duty on fertilizers and pesticides will be scrapped."Our research on 600 odd farmers shows that only a small percent produce nine tonnes per hectare, compared with four to five tonnes per hectare (by the rest) because they use less fertilizer," he said at the 2009 Post-Budget Dialogue here, Saturday.The programme was jointly organised by Malaysian Economic Association and Standard Chartered Bank Malaysia Bhd.Citing the high price of fertilizers and pesticides as the cause for the low productivity, Pazim said, "Everybody must understand that pesticides and fertilizers are not produced in the country and it must be imported."The import duty slash will encourage farmers to use more fertilizers and increase productivity and this will lower food price, he said.Pazim said the government's measures towards exploration of new areas for cultivation, optimisation of the usage of available resources, encouragement of private sector participation and investment were all good moves towards the goal of increasing domestic food production.The government is projecting an annual growth of 6.2 percent for the food crop sub-sector for the rest of the Ninth Malaysia Plan (2006 to 2010).

Rate move to consider Malaysia's best interest: Zeti

WHATEVER decision Bank Negara Malaysia makes today on the direction of interest rates will be in the country's best interest, its governor Tan Sri Dr Zeti Akhtar Aziz said.Bank Negara's monetary policy committee meets today to decide on the Overnight Policy Rate, which effectively determines interest rates.Economists have said that the central bank is under pressure to raise rates in response to the sharp increase in inflation to a 26-year high of 7.7 per cent last month, from 3.8 per cent in May.Zeti told reporters in Kuala Lumpur yesterday that Bank Negara was monitoring the situation to gauge the impact of rising inflation.
She also said that the ringgit cannot be used as a monetary tool to stem inflationary pressures as its exchange rate is not static.The ringgit is a mechanism to facilitate international transactions, both trade and financial, Zeti said-www.btimes.com.my

Takaful Malaysia eyes 33% share of govt loan scheme

SYARIKAT Takaful Malaysia Bhd (STMB) aims to capture one-third market share of the government housing loan scheme for the financial year ending June 30 2009.STMB group managing director Hassan Kamil said up to June 30 2008, STMB had collected about RM25 million to RM30 million in premium for the scheme, for a 20 per cent share. Yesterday, the company opened its new Treasury Business Centre to cater for the government employees who took housing loan under the scheme at the Ministry of Finance, Putrajaya.To widen its reach to customers, Hassan said, the company is undertaking an initiative to set up a takaful "desk" within Bank Islam's branches nationwide.
STMB will also sell Bank Islam products in all their branches. STMB and Bank Islam are sister companies under BIMB Holdings Bhd.STMB hopes to finalise the consolidation of its branches with those of Bank Islam Malaysia Bhd's by year-end.

Malaysia Has Potential To Be Herbal Hub

KUALA LUMPUR, Aug 21 (Bernama) - Malaysia has the potential to achieve its aspiration of becoming a global herbal hub as more people are turning away from modern medicines, says Minister of Science, Technology and Innovations, Datuk Dr Maximus Johnity Ongkili.Therefore, local herbal entrepreneurs must ensure good practices in business and produce safe and clean natural products in accordance with international health safety regulations and standards.This will be important for Malaysia to achieve greater success in the medicinal plants, health and herbal product sector.It will also enhance its image as a catalyst for providing good business opportunity for the global communities, he said in his speech at the soft launch of Herbal World 2008 here, Thursday.His speech was read by the ministry's director general, Prof Datuk Dr Mohamed Isa Abd Majid.Ongkili said the development of the Malaysian herbal industry has undergone phenomenal changes and has grown by leaps and bounds over the past few years. In terms of herbal products registered in Malaysia with the Drug Control Authority, the number has increased to more than 10,000 products at present from only 339 products in 1995."As Malaysian-made health and herbal products are fast gaining international recognition, local companies and entrepreneurs must take bold measures to willingly invest and develop their brand in order to remain competitive," he said.Meanwhile, the inaugural Herbal World 2008 to be held in November this year is being organised by Cynrix Innovations Sdn Bhd and is expected to pull in over 1,000 participants with 250 exhibitors from 30 countries and 23 renowned international speakers in respective fields.Cynrix Innovations chairman, Tan Sri Dr Sulaiman Daud said he also expects the participation of many international and regional trade bodies and United Nations organisations at the event.It is estimated that the global herbal products market has been growing 15 percent annually with its market size expected to swell to US$5 trillion by 2050.Currently, the medicinal plants market worldwide is worth US$62 billion.

Slower economic growth to cool inflation:Malaysia

MALAYSIA'S slowing economic growth and recent falls in the prices of commodities will help cool inflation, especially in the second half of 2009, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said."The moderation in growth, as we see it, will have some dampening effect on inflation," Zeti told reporters yesterday on the sidelines of the Malaysian Islamic Finance Issuers and Investors Forum 2008.Malaysia's inflation rate stood at a 26-year high of 7.7 per cent in June after a fuel price increase led to a general rise in prices of goods and services.Zeti said the adjustment in prices was just the first-round effect.
"What we need to monitor is the second-round effect. With the moderation in growth, we expect that inflation will moderate next year, particularly in the second half," she said.Zeti stressed that while there would be a moderation in growth, the country must avoid slipping into a fundamental economic slowdown.A fundamental economic slowdown is said to occur when there is "increased unemployment", she explained.On the ringgit, Zeti said its recent fall reflected the movements of other major currencies worldwide."This is just an inter-national development and we will monitor it closely," she said.On whether Bank Negara has been intervening in the foreign exchange market, as has been speculated by dealers, Zeti said that any intervention it undertakes is to maintain orderly market conditions."We will not be intervening to affect the underlying trend of the currency," she stressed.The ringgit fell against the US dollar to 3.3160/3180 yesterday from last Friday's closing of 3.3000/3030. On issues pertaining to Malayan Banking Bhd's purchase of an Indonesian bank, Zeti declined comment. -www.btimes.com.my