Malaysian ECONOMY STRONG SAYS WORLD BANK

The World Bank is upbeat on the Malaysian economy, describing it as strong and doing well but in order to remain competitive the country must address two key factors – regulatory framework and skills – its lead economist, South-East Asia, Kazi M. Matin said.  "We have just done an investment climate survey and discussed it with the private sector and surveyed 1,000 firms here.  The firms basically said these two factors are critical for future growth in productivity," he said.  He said that in order to remain competitive and maintain high level productivity, Malaysia needs to improve its regulatory framework and expand its tertiary education skills.

The country should also improve its vocational education, he said after giving a talk at the World Islamic Economic Forum yesterday on "Strategic Partnership Against Poverty:  Breaking its Vicious Cycle."  The Treasury said that Malaysia is expected to grow by 5 per cent this year on the back of strong demand and sustained commodity prices, supported by a healthy banking system.  In 2006, the economy is expected to maintain its growth momentum, with real gross domestic product (GDP) growth forecast to expand by 5.5 per cent, it said in its 2005/2006 Economic Report released on September 30.  Touching on World Bank's statistics concerning poverty, Matin said that South-East Asia, East Asia and Pacific and Sub-Saharan accounted for 93 per cent of poverty, people living below US$1 and US$2.  In terms of progress in reducing poverty, Matin said that East Asia led the way, followed by South Asia while Sub-Saharan the least.

(Source:  Business Times, 4 October 2005)

2005 GROWTH TO TOP 5%

Malaysia's economy is expected to grow faster than the official forecast of 5 per cent this year after expanding by a better-than-expected rate of 5.3 per cent in the third quarter, thanks to the robust private sector and a rebound in the global electronics cycle.  With economic growth averaging 5.3 per cent in the three quarters of the year, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said that full-year growth should come in at between 5 per cent and 6 per cent, which was the central bank's original forecast earlier in the year.  "There is greater clarity of the outlook, going forward, in respect of the impact of higher oil prices.  The global economy has shown a greater degree of resilience to this and the global electronics industry cycle has shown an upturn.  Malaysia will benefit from this upturn," she said at the release of Malaysia's economic data for the third quarter in Kuala Lumpur. 

During the third quarter, domestic demand grew 9.4 per cent due to stronger consumption and investment.  Private consumption grew 10.4 per cent and gross fixed capital formation expanded at its fastest pace this year at 9.6 per cent, as manufacturers and the services sector ploughed more capital into their businesses.  The services sector grew 7.3 per cent in the quarter and manufacturing, 3.4 per cent.  Mining activity expanded by 3.4 per cent and agriculture by 0.9 per cent but construction sector activity shrank by 1.4 per cent.  The overall scoreboard was, nonetheless, encouraging enough for the governor to say that the prospects for the economy as it moves into 2006 were favourable. 

"Our assessment is that the positive external environment is expected to be sustained going into next year," she said.  Zeti said the electronics sector in Malaysia was expected to benefit from the uptrend in the global electronics cycle and that commodity prices were expected to continue to remain at high levels, which would support export growth as well as private consumption.  She said leading indicators were also showing that the economy would continue to expand into 2006.  "Indicators of investment, such as the import of capital goods, strong financing activities and the purchase of vehicles, show strong underlying investment activity," she said, adding that private investment was forecast to expand as new projects under the Ninth Malaysia Plan come onstream. 

Commenting on the recent big outflow of foreign exchange reserves, Zeti said positions taken by traders and investors were usually squared off or unwound towards the end of the year and the trend would probably continue before new positions were taken at the beginning of 2006.  She said the inflow of investment into Malaysia was of better quality nowadays and much of it was in the higher value-added activity and in the services sector.  The scale of such investments is smaller, ranging from less than RM50mil to RM100mil compared with RM300mil to RM500mil for large manufacturing plants in the 1990s.  Net foreign direct investment inflow during the third quarter was RM900mil. 

(Source:  The Star, 1 December 2005)

BANK NEGARA RAISES KEY INTEREST RATE

Bank Negara Malaysia has raised its benchmark interest rate by 30 basis points to 3 per cent, primarily to keep inflation in check.  Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said yesterday the increase was made based on domestic considerations and not concerns of capital outflow.  This was the first time the market-based benchmark overnight policy rate (OPR) was raised since it was introduced in April last year in place of the previous three-month intervention rate.  Since its introduction, the OPR has by the Federal Government contributed to a 0.6 per cent lower fiscal deficit of RM805 million of GDP in the third quarter.

On the external front, the trade balance recorded a large surplus of RM23.9 billion as gross exports grew by 7.5 per cent, led mainly by robust growth in exports of minerals and continued expansion in exports of manufactured goods.  Net foreign direct investment, after adjusting for short-term loan transactions by non-residents controlled companies, recorded an inflow of RM0.9 billion, channelled mainly into the oil and gas, services and manufacturing sectors.  Zeti said overseas investment recorded a smaller net outflow of RM1.3 billion, while portfolio investment recorded a smaller net outflow of RM1.3 billion and portfolio investment (equity and debt flows) recorded an outflow of RM0.2 billion.  Zeti said the financial position of the banking system remained strong as the sector recorded a combined pre-tax profit of MR9.1 billion for the nine months of 2005, mainly due to higher income from interest-related and fee-based activities, as well as trading and investment activities.

(Source:  The Star, 1 December 2005)

OCT EXPORTS BETTER THAN EXPECTED

Malaysian exports in October rose sharply as increased support from the global technology cycle overcame market perceptions that manufacturers in the electrical and electronics (E&E) sector are still cautious about their outlook.  The 12.4 per cent increase in exports year-on-year surpassed market expectations and a Business Times poll of economists who were looking at an average reading of a 10.21 per cent year-on-year rise in exports, a 11.39 per cent year-on-year increase in imports and the month's trade balance to average RM8.32 billion.

Exports in October reached RM49.64 billion, the highest monthly value for exports this year.  they exceeded September exports by 4.1 per cent and boosted total trade to RM88.78 billion while imports were 2.3 per cent lower than in September at RM39.14 billion.  The trade surplus surged by 37.8 per cent to RM10.50 billion in October 2005, registering 96 consecutive months or eight consecutive years of monthly trade surpluses.  Malaysia's total trade for the period January to October 2005 amounted to RM799.93 billion, an increase of 9.8 per cent from the same period in 2004.  The trade surplus for January-October 2005 widened to RM81.69 billion, which has exceeded the total trade surplus for the full year of 2004, or 20.1 per cent higher than the corresponding period of 2004. 

Avenue Securities Sdn Bhd economist Maslynnawati Ahmad noted that while exports are trending higher, she was concerned with the import numbers registered in October.  Imports increased 8.2 per cent from a year earlier after growing 8.1 per cent in September.  "To continue to sustain the double-digit growth in exports in October, the import of intermediate goods needs to be stronger.  Likewise, the import of capital goods (for machinery) has also seen a decrease from September as well as a decrease from a year ago," she said, adding that the import numbers reflected the cautious outlook of manufacturers.  Imports of intermediate goods in October showed a 0.2 per cent increase from September while capital goods (for machinery) saw a decrease of 21.9 per cent compared with the previous month's.  "However, with the brighter outlook for E&E, we're hopeful of a consistent upward trend from now on till the first half of 2006."  Maslynnawati expects the current import numbers to pick up momentum in the first quarter of next year.

Citigroup economist Sim Moh Siong felt the strong exports should help offset the impact of lower oil prices that will likely result in softening of export value for crude oil.  "Despite the modest pullback in capital goods imports, improving export prospects should fuel the need for capacity expansion that will likely continue to nudge up the trend in capital goods imports," Sim said.  With the economy "warming up" gradually, Sim does not expect Bank Negara Malaysia to tighten its monetary policy.  He anticipates the central bank to pause in February before resuming measured rate rises for the rest of 2006.

The international Trade and Industry Ministry, in releasing the data yesterday, said the most significant increases were recorded for E&E products, especially automatic data processing equipment and parts and accessories for office machines, as well as chemicals and chemical products.  The expansion of E&E exports was in line with the higher global demand for such products.  In its latest report, the Semiconductor Industry Association, the leading voice for the semiconductor industry estimated that the new forecast projects that worldwide sales of microchips will reach US$309 billion in 2008 – an increase of 45 per cent from the US$213 billion record level of 2004.

(Source:  Business Times, 6 December 2005)

MEMBER NEWS

a plus for pewter

If there is an early warning system up and running for the design world, Royal Selangor's latest catalogue would have alerted us to the impending daring things which will be sprung on us by this revered Malaysian brand.  Right on page three, a statement boldly announced:  "Pewter has a new attitude."  And to support it:  "It's sassier, sexier and with an attitude like you've never seen before.  It's anything but the same old thing.  This is the future of pewter."

Hmmm.  Pewter with an attitude?  I met Christopher Yong, creative director of Royal Selangor, to dig into the story behind the latest addition to the already mind-boggling array of products parked under its brand, enigmatically named Plus.  Yong is a youthful 42, garbed in chic black as designers are wont to, and has a wealth of graphic design experience in Australia and England.  As such, it is not unusual to hear him refer to concepts or even words as "visually pleasing".  "I have been in graphic design all along till about a year ago.  When I started at Royal Selangor, I headed the graphics department.  But I was and am interested in all aspects of design, especially in the three-dimensional form.  My first love is packaging.  Plus is the first collection I actually designed.  For me, it was an experiment which forced me to think in a different way.  It had its ups and downs but ultimately it was a good experience." 

Now Plus as a name for the range does not tell us much about what the accessories are.  If your were to view them in any of Royal Selangor's showrooms, you're likely to see them as personal accoutrements – pendants, key chains, pocket charms, something to roll about in your hand… or even your personal chopstick rest if it so catches your fancy.  Yong explained that Plus was chosen precisely because it was not precise.  It does not direct your focus to something definite because the items in the range were not designed to be such.  They can be worn, hung, used on a desk, in the car, at home, in college, wherever.  It is what YOU want it to be.  "The traditional Royal Selangor way of naming products is rather literal," says Yong.  For sure, if you were to flip through its catalogue, you would see "Plaques" or "Vases".  The spirit of the new way, as with Plus, is "make of it what your will".  Curiouser and curiouser.  "Plus as a word is also visually pleasing.  It suggests rather than confines itself to a hard meaning.  Essentially it's about having fun and not taking yourself seriously," Yong elaborates with a twinkle in his eye. 

Royal Selangor is generally known for its fine workmanship, its extensive range of houseware, gifts and trophies.  It is, however, NOT associated with personal accessories, being no Malaysian equivalent of Trifari or Monet.  However, in its not-too-long distant past, Royal Selangor keychains were popular buys, being well-made, quintessentially Malaysian since it was made of tin and something which we could present as souvenirs with some modicum of pride… without burning a hole in one's pocket.  For some reason, those items were discontinued.  So customers came back to Royal Selangor to ask:  "Why don't you guys do this anymore?"  Based on this, Yong designed a range of desirables that are thoroughly contemporary, oozing with sensuality and sex appeal, with each piece capable of making a strong statement.  As Yong enthuses:  "They are nice and small, sexy and beautiful and can be used in different ways.  They have tactile appeal."

Of the 16 pieces developed for this first collection, seven are combined with Myanmar ebony for a startling but pleasing contrast of dark and lustrous, cold and warm, wood and metal.  "We were fortunate to find this small stock of ebony to use in our launch pieces.  Once this runs out we will use another type of Malaysian hardwood, most likely sepetir.  Visually, because of the smooth finish of the metal, we felt that dark wood would work best," said Yong.  "Yes, there will be a follow-up to this initial collection, but we can't tell you much right now," he laughs. 

And who or what his inspirations? Yong quickly admits that there is no one in particular.  "Inspirations come wherever you find them. As muses go, there isn't one.  If I am required to fulfil a customer segment, whatever I tend to design are the things I see myself a customer of."  Asked what he found the most rewarding working with pewter and wood, he replied:  "In relation to this material (pewter) it's playing up to the alloy which is soft, curvy and sexy.  We also decided that it was time to do something fun.  The brand Royal Selangor and what in conjures in most people's minds is very traditional.  So, in the last few years we are more visually apparent to our customers."  This has been evident, for in recent years Royal Selangor has delighted its customers with new designs which reflect a refreshing attitude.

The gestation period for the Plus collection was not very lengthy.  Yong started putting this thoughts down as drawings this January "but the ideas have long been in my head before that."  From this creative outpouring, 16 designs made it to the production line and, eventually, the showrooms.  Launched last month in what was dubbed "a hot and steamy affair", it featured models brandishing the collection in ways one would not have imagined initially Multiple strung-up pieces of Leaf became a bold choker and a lavish row of Wheels was assembled into a funky belt. 

The response so far?  Yong beams:  "It's been doing phenomenally well.  It's early days yet as it has not been launched widely in Asia.  We've had a smaller launch in Singapore and we'll catch the spring season for the British market.  "Royal Selangor, as a company, has never tried this (personal accessories) category before.  We'd like to see how well it can perform.  All in all, it's heartening to see how the Malaysian perception of the brand is changing.  And we'll keep on doing this consistently.  Our home market is important and we'd like to present new challenges, break new ground, sprout new attitudes so that it will keep changing its perceptions.  We don't want to end up an anachronism."  It became more and more apparent that Yong, in more ways than one, represented the future of pewter.  He is the new attitude that we were reading about, not only in spirit but in the passion with which he pushes the envelope of creativity in pewter.

(Source:  Business Times, 20 October 2005)

A TINGE OF TIN

Royal Selangor has introduced a selection of new, exciting accessories that maximises the charm of its world-renowned pewter with contemporary designs.  Every piece in the Plus accessories collection makes a strong statement.  The designs are versatile enough to be worn as a pendant, turned into a hairpiece or brooch, as a key fob or to jazz up a bag or a belt.  With its range of uses limited only by imagination, getting creative with Plus could be interesting.  The collection offers 16 designs to choose from.  Some of the accessories are completely in pewter, and some are combined with wood, the Burmese Ebony.  The designs are available at all Royal Selangor stores and dealers.  The Eclipse collection, meanwhile, consists of 12 stylish travel accessories.  There are lipstick holders and compact mirror for the ladies and for everyone else, there are luggage tags, money clips and key chains.

(Source:  Sunday Mail, 20 November 2005)

PEWTER MAKER TREATS VISITORS TO POTPOURRI OF ART, CULTURE

Royal Selangor, the leading pewterware maker in the country, recently played host to over 200 women lawyers and judges attending the international convention of the International Federation of Women Lawyers in Kuala Lumpur at its visitors' centre.  The delegates took time off their tight schedule to gain first-hand knowledge in pewter making – from casting and filling to soldering, hammering, polishing and engraving. 

At Royal Selangor's famous School of Hard Knocks, the delegates were given the opportunity to try their hand at creating their very own signature pewter bowls using traditional tools.  The women were also exposed to other forms of Malaysian art such as a demonstration on sarong tying by representatives of fashion designer Tom Abang Saufi and an exhibition of artworks by Harris Ribut and Fauziah Ismail.  "We are committed to the promotion of Malaysian culture and the rich heritage of Malaysian art.  We welcome visitors, local and foreign alike, such as the delegates, for whom we staged a wide variety of activities," Royal Selangor's communication manager Anne Leong said. 

The school holidays make it a perfect time for children and adults to visit the Royal Selangor Visitors' Centre.  Interesting and interactive cultural programmes have been lined up to keep visitors occupied.  Until Dec 25, henna and batik painting, wau making and distinctive Malaysian art are featured.  Visitors can meet husband-and-wife artists, Harris Ribut and Fauziah Ismail, who are well-known for their affectionate interpretations of the female form.  Don't miss out on the batik demonstration by TMS Art Gallery and artworks by Yusof Gajah, famous for his whimsical elephant-themed paintings, in an exhibition scheduled to open on Monday and run till Dec 11.

(Source:  The Sun, 25 November 2005)