News in Brief

Bank Negara: More signs of recovery

Our economy is set for full recovery and more resources are saying so. According to the media report, Malaysia’s central bank (Bank Negara) has become more confident the South-East Asian nation is recovering from the global recession

It was quoting Credit Suisse Group said citing a meeting with deputy governor Datuk Ooi Sang Kuang.

The central bank’s “view is that the signs of an economic recovery seem evident,” Danny Goh, an analyst at Credit Suisse was quoted in the report.

He added that it is only unsure on whether the economic rebound will be modest or sharp.

Malaysia’s economic contraction eased to 3.9% last quarter from a 6.2% decline in the first three months, and policy makers expect gross domestic product (GDP) to resume growth at the end of the year.

The report also noted that the country’s export and manufacturing slump has abated as economies from Singapore to China emerge from the world’s deepest recession since the Great Depression.

RM2bil Projects From Iskandar

As economy recovers from crisis, good news comes a calling and one positive announcement is RM2 billion project over the next 12 months from Iskandar Investment Bhd (IIB) that would mean more employement.

IIB is the devleloper of Iskandar Malaysia. According to its president and chief executive Arlida Ariff the tenders would comprise projects under the Ninth Malaysia Plan (9MP), of which RM1bil had been allocated, and those investment committed by IIB.

The tenders to be awarded under the 9MP allocations are mainly infrastructure projects.

Meanwhile, 80% of the investment committed by IIB will be for infrastructure and the balance for mixed development,” Arlida was reported as saying.

She said the tenders would involve infrastucture in Medini and EduCity as well as accommodation units for students at Newcastle University Medicine Malaysia.The duration of contracts ranged from six to 24 months, depending on the job scope.

Malaysia not business friendly?

Apparently the World Bank and the International Finance Corp think so. The belief is based on a report titled Doing Business 2010: Reforming Through Difficult Times, where Malaysia dropped two places to 23rd from 21st this year.

This is especially depressing when our neighbour, Singapore was ranked top in ease of doing business.

However, according to media report, it is still an achievement for the country which manages to retain its place in the top 30 of 183 countries or economies surveyed, owing to its transparent and efficient regulatory environment for businesses.

The report said Malaysia, alongside China, South Korea and Russia, had included reforms of regulations in economic recovery plans due to the global financial crisis.

“This is because these governments recognise the importance of companies, especially small and medium enterprises, for creating jobs and revenue

“Regulatory environment for businesses can influence how well companies cope with the crisis and are able to seize opportunities when recovery begins.

“Where business regulation is transparent and efficient, it is easier for companies to re-orient themselves and for new companies to start up,” it said.

Socso: More Erring Bosses

It's fine galore at Social Security Organisation (SOCSO) when it noted that 4,173 employers have been slapped with RM500 compound notices since it launched its latest operation to identify those who fail to register with it.

The News Straits Times reported that they were among the 21,370 employers checked so far under the operation codenamed "Ops Kesan Perkeso 2009" which was launched last month.

Socso chief executive officer K. Selvarajah was quoted in the report as saying that the errant employers were given two weeks to settle the compound fine, failing which they would be charged in court.

If found guilty, they can be sentenced to two years' jail or a fine of RM10,000 or both under the Employees' Social Security Act 1969.

"The operation is also aimed at protecting employees under the Employment Injury Insurance Scheme (EIIS) and the Invalidity Pension Scheme (IPS)," he added.

The report also noted that many of the errant employers were identified through their employees who came to Socso offices to make claims under either the EIIS or IPS.

"Some employers deduct the money from the workers' pay for Socso but do not remit it to Socso," he said, adding many times employees lose out on their benefits due to their employers' failure to remit the contributions.