MALAYSIA IS NUMBER TWO IN ECONOMIC IMPACT OF THE INTERNET STUDY

Malaysia has come in amongst the top three in a study conducted by McKinsey & Company on the economic impact of the Internet on the Gross Domestic Product (GDP) of nine aspiring countries - Taiwan, Malaysia, Hungary, Argentina, Mexico, Morocco, Turkey, Vietnam and Nigeria.
According to the McKinsey report, Malaysia has also surpassed other developed and developing economies such as France, Germany, China, India and even the United States on McKinsey's internal index. The report also cites, "The total contribution of the Internet to GDP in some aspiring countries, notably Taiwan and Malaysia, is similar to those levels observed in developed countries. While consumption is high, these aspiring countries benefit from being net exporters of ICT goods and services". In addition, the report includes their survey finding in which Malaysia is placed third among the aforementioned aspiring countries in productivity increase for SME's due to web technologies. "We view this positively for Malaysia in view of the collaborative efforts undertaken by the Ministry of Information, Communications and Culture (Ministry), the Malaysian Communications and Multimedia Commission (MCMC) and the communications and multimedia industry towards connecting all Malaysians. It clearly shows the benefits of the Internet on the economy and makes a case for prioritising this aspiration even further," said Dato' Mohamed Sharil Tarmizi, Chairman of the MCMC. He added, "Under the stewardship of Yang Berhormat Dato' Seri Utama Dr. Rais Yatim, the Minister of Information Communications and Culture, we will continue our joint efforts to implement various initiatives to ensure that more Malaysians are connected to the Internet." Under the National Broadband Initiative (NBI), a target of 50% broadband household penetration was to be achieved by the end of 2010. However, the penetration rate surpassed the targeted rate to stand at 55.6% at the end of 2010. As of the beginning of January 2012, Malaysia's broadband household penetration rate is 62.3% The government has dovetailed its efforts to boost the economy by leveraging on these initiatives to increase Internet penetration. The Communications, Content and Infrastructure (CCI) initiative under the Economic Transformation Programme of the National Key Economic Area (NKEA) for example, includes initiatives that make use of access to the Internet to bridge the digital divide such as the one million 1Malaysia Netbooks Programme that is being rolled out in phases. Through the Kampung Tanpa Wayar 1Malaysia (KTW) initiative, approximately 4,000 villages will be connected using WiFi and other broadband technologies. Already, more than 1,400 sites have been completed. In addition, Digital Districts, community broadband centres and broadband enabled libraries have also been created to offer the public more choice in accessing the Internet. "It has come as a pleasant surprise for Malaysia to be recognised in this manner. Nonetheless, there is much more that needs to be done both in terms of increasing broadband service coverage and availability as well as improving the quality of service and user experience. We will have to intensify our joint efforts together with the industry to connect all Malaysians in the spirit of 1Malaysia", concluded Dato' Sharil. The McKinsey report was released on 27 January 2012 on the sidelines of the World Economic Forum in Davos, Switzerland. - BERNAMA

 
MALAYSIA'S INTERNATIONAL TRADE TO INCREASE 88 PER CENT IN 15 YEARS

Malaysia's international trade is expected to increase 88 per cent in the next 15 years in tandem with the government's aspiration to transform Malaysia into a high-income economy, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.
He said international trade rose 29 per cent to US$363.5 billion last year. As a nation that trades in high-valued goods, Ahmad Husni said entrepreneurs required efficient border controls and less non-tariff barriers. Speaking at the 30th International Customs Day celebration here, Ahmad Husni said the customs department was a linking agent in the global trans-border network and helped enhance inter-governmental cooperation with international organisations. This is a complimentary role with regard to the customs department's position as an agent to connect government agencies, non-governmental organisations and the country's private sector, he added. Ahmad Husni said given the increasing complexity of the country's trade direction and movement of international goods, the role assumed by the customs department in the years ahead would become more complex. "The value of cross-border trade will spiral, laws and regulations will become more complex, cheating, forgery, international security and health threats would become more sophisticated. "At the same time, the customs department would have to contend with traditional issues such as smuggling, invoice falsification, preservation and prevention of intellectual properties and health care control," he said. Ahmad Husni, was, however confident with the expertise and ability of the Royal Malaysian Customs department which was well versed with international trade laws, commercial crime eradication and the use of latest technology. -- BERNAMA

 
PETRONAS INK RM37B DEAL

Petroliam Nasional Bhd (Petronas) and Shell Malaysia have signed a deal worth RM37.
3bil that will see the implementation of the world's largest enhanced oil recovery (EOR) projects off the shores of Sabah and Sarawak over 30 years. Prime Minister Datuk Seri Najib Tun Razak said the project was expected to extend the lifespan of the oil fields beyond 2040 and also lead to increased oil production. “The project will include the building of local capabilities in a niche technology area as well as increasing the average recovery factor in Baram Delta and North Sabah fields from 36% to about 50%,” he said after witnessing the signing of two new production sharing contracts for the EOR projects yesterday. “The improvement in the recovery efficiency of the oil fields is expected to positively impact Malaysia's oil reserve,” Najib said. He said the Government had identified the rejuvenation of existing fields through EOR as one of the 19 Entry Point Projects in order to provide additional supplies for the country's power and industrial needs. “The team will also undertake joint research and development in the area of EOR technology. “This is a radical shift in our development strategy and serves as an opportunity for Malaysia to be at par with other high-performing Asean countries,” he said. - The Star

 
EU-MALAYSIA FTA WILL BE INKED BY YEAR-END, SAYS PIKET

The European Union (EU) is optimistic that its free trade agreement (FTA) with Malaysia will be inked by year-end, as per the timeline set by Prime Minister Datuk Seri Najib Tun Razak, during his visit to Brussels, Belgium in 2010.
Ambassador and Head of the Delegation of the EU to Malaysia, Vincent Piket said the two governments must work together in all areas pertaining to the agreement, and across all economic sectors to realise the timeline. He added that the FTA upon enforcement, would increase Malaysia's gross domestic product by eight per cent in 2020. "The conclusion of the FTA would be a landmark step in the fostering of bilateral trade between the two partners and deepen economic integration. "By year-end, both governments will be setting up a joint-cooperation framework to bring the relationship to a much higher level," he told reporters after delivering a talk on, "Whither Malaysia-EU Relations: A Perspective", organised by the National Press Club (NPC) here, yesterday. Piket said an FTA would create extra growth as closing borders, reduces growth, while opening it, promotes growth. On trade this year, he said it was on a growth trend as has been the case for the past several years, and did not expect anything to change this. "Trade is on an uptrend. For the first nine months of 2011, it recorded a growth of between six-eight per cent, compared to the corresponding period of 2010. "However, I cannot reveal any figures as the official data, has yet to be furnished," he added. In 2010, total trade between the EU and Malaysia stood at 31.9 billion euros (1 euro = RM3.96). Exports from the EU to Malaysia was at 11.2 billion euros, while Malaysia's exports to the EU stood at 20.7 billion euros. When asked about the EU's stand on the restriction imposed on Malaysian palm oil in respect of the issue of sustainability, Piket said it is likely to be resolved soon. "This is a huge topic. The dispute is between the scientists from our member countries and the Malaysian Palm Oil Board and the Malaysian Palm Oil Council. "However, both sides have now taken initiatives to resolve the issue. Both parties have always been in contact and have taken a clear stand that sustainability is very vital to creating biofuels," he added. Piket also disclosed that over 95 per cent of Malaysian palm oil exports to the EU did not face any restriction, other than an import duty of three per cent. "Only five per cent of the exports face restrictions as it is used to create renewable energy. But I stress that our (EU) policies are not discriminatory, especially where, the palm oil issue is concerned," he said. In a related development, Piket said both the EU and Malaysia have consented to conclude negotiations on the Voluntary Partnership Agreement (VPA) soon. "This is in order to facilitate Malaysian timber companies meeting legality requirements in the EU. "The VPA will create important benefits for Malaysia's timber industry as well as create a green lane for legally-approved timber into the EU market," he added. The EU is considered a huge market for Malaysian timber with over one billion euros spent yearly by the grouping's member states in importing it. "Upon conclusion of negotiations, the timber trade will definitely grow. The timber industry is a very important one for both the EU and Malaysia," Piket said. -- BERNAMA