Malaysia and China set trade target of RM511bil, usher new era of strategic partnership

Chinese President Xi Jinping (L) and Malaysian Prime Minister Najib Razak jointly meet the press in Kuala Lumpur, capital of Malaysia, Oct. 4, 2013. (Xinhua/Zhang Duo)



PUTRAJAYA: Malaysia and China have set an astounding bilateral trade target of US$160bil (RM511bil) by 2017.

Datuk Seri Najib Tun Razak and President Xi Jinping discussed this at a closed-door meeting at the Prime Minister’s office here yesterday.

The two leaders also discussed a five-year economic and trade programme and agreed to elevate the current cooperation between both countries into a comprehensive strategic partnership.

Najib and Xi said this in a joint statement issued after the meeting.

Last year, the bilateral trade volume between the two countries reached US$94.8bil (RM303bil).

This makes Malaysia China’s top trading partner among the Asean countries for the fifth consecutive year.

Najib said Xi expressed keen interest in seeing Chinese companies participate in Malaysia’s high-speed rail (HSR) project, the China-Malaysia Qinzhou Industrial Park and the Malaysia-China Kuantan Industrial Park.

“We also would like to see more trade between the countries settled in the renminbi and ringgit,” he said, adding that the information on this should be disseminated to the private sectors of both countries.

Najib said Xi indicated some new areas of cooperation between the two countries, which included information and communication technology, biotechnology, science and space technology.

“We agreed to step up our cooperation in law enforcement, combating transnational crime, cyber security, as well as stronger and deeper military cooperation,” he said.

Najib added that Malaysia would be opening a Consul-General office in Nanning while China would open similar offices in Kota Kinabalu and Penang.

“Malaysia also fully supports Xi’s suggestion, which he made in Indonesia, for the establishment of an Asian Infrastructure Investment Bank which would certainly help in the development of Asean,” he said.

The Prime Minister hoped that the project to develop the Malaysian campus of the Xiamen University, its first outside China, would become a reality in near future.

Najib added that he was also looking forward to visit China next year, at the invitation of the Chinese government and Xi, to celebrate the 40th anniversary of the Malaysia-China diplomatic ties.

Earlier in the morning, Najib and Xi and their spouses attended a welcoming ceremony at Dataran Parlimen in the presence of the Yang di-Pertuan Agong Tuanku Abdul Halim Mu’adzam Shah and Raja Permaisuri Agong Tuanku Sultanah Hajah Haminah Hamidun.

Sources: The Star/Asia News Network

 Xi's visit ushers in new era in China-Malaysia ties

Chinese President Xi Jinping left Kuala Lumpur Saturday after concluding his first state visit to Malaysia, which helps usher in a new era in China-Malaysia relations.

During his stay in Malaysia, Xi met Supreme Head of State Abdul Halim Mu'adzam Shah and Prime Minister Najib Razak, and attended a China-Malaysia economic summit. He also witnessed the signing of a series of cooperation agreements.

Both sides agreed to upgrade bilateral ties to a comprehensive strategic partnership, and make efforts to expand annual bilateral trade to 160 billion US dollars by 2017. The first Chinese university outside China, Xiamen University Malaysia Campus, will also be set up in the Southeast Asian country.

The visit by President Xi marks another great leap forward of bilateral relationship between Malaysia and China.

"In fact, the achievements of the visit are well beyond my expectation. It's a miracle that so many achievements have been made within such a short period of time," said Tan Khai Hee, secretary general of Malaysia-China Friendship Association.

Upgrade of bilateral ties

During their talks on Friday, Xi and Najib agreed to upgrade bilateral ties to a comprehensive strategic partnership.

"China highly values its relationship with Malaysia, which is taking the lead in China's relations with ASEAN members," Xi said, urging the two sides to enhance strategic cooperation to make their relationship a fine example in the region.

ASEAN stands for the Association of Southeast Asian Nations, which consists of Malaysia and nine other Southeast Asian countries.

Xi said the upgrade to a comprehensive strategic partnership will draw a more "beautiful" blueprint for bilateral ties.

For his part, Najib said his country hopes to enhance the comprehensive strategic partnership with China.

"China is a trustworthy friend of Malaysia," he said. "Our bilateral relations enjoy vast prospects."

The single most significant achievement of Xi's visit is of course the upgrade of the bilateral relationship to comprehensive strategic partnership, which China only accords to its most valued neighbors and friends, said political analyst Oh Ei Sun, a former political secretary to Najib.

While the economic collaboration will continue to prosper in gigantic leaps, the comprehensive nature of the relationship will see more technological, cultural and educational exchanges, which are crucial for the ever closer relationship between the two countries, he said in an interview with Xinhua.

Win-win cooperation

China has been Malaysia's biggest trading partner for the last four years, while Malaysia has been China's largest in the 10-member ASEAN for five years in a row.

Two-way trade soared to a record high of 94.8 billion dollars last year, while trade in the first seven months of 2013 jumped 14.9 percent to 59.72 billion dollars.

The Qinzhou Industrial Park in China and the Kuantan Industrial Park in Malaysia, noted Xi, should be built as flagship projects of investment cooperation between the two countries.

Beijing encourages Chinese enterprises to participate in the development of northern Malaysia and the high-speed railway construction linking Kuala Lumpur and Singapore, which will promote regional inter-connectivity, said Xi.

When addressing more than 1,000 business people and officials at the China-Malaysia Economic Summit on Friday, Xi proposed that the two countries boost bilateral trade and investment, deepen cooperation in the sectors of finance, agriculture and fishery, and jointly improve regional cooperation.

The Chinese president and the Malaysian prime minister witnessed the signing of the five-year program for economic and trade cooperation, which emphasizes the sharing of knowledge, technological resources and investment in the service of sustainable economic development and maps out mutually beneficial initiatives.

The two leaders have set an ambitious target that by the end of the fifth year of this program, bilateral trade between China and Malaysia will hit 160 billion dollars.

The program covers many areas of cooperation, including agriculture, energy and mineral resources, information and telecommunication, manufacturing, infrastructure, engineering, tourism, logistics and retailing.

Pheng Yin Huah, president of the Federation of Chinese Associations Malaysia, said the program shows that China values its relations with Malaysia and President Xi wants more Chinese businessmen to invest in Malaysia.

"I believe that Malaysia and China will have more exchanges in politics, business and education," he added.

Regional cooperation

During his visit to Malaysia, Xi called for further cooperation between Asian countries.

Although Asia remains the most dynamic and promising region in the world, Asian countries still face the arduous tasks of developing economy and improving people's livelihood amid lingering impact of the international financial crisis, Xi said.

He called on Asian countries to focus on development, carry forward the all-in-the-same-boat spirit of unity and cooperation, and jointly safeguard the long-term stability and development in Asia.

"China supports ASEAN's leading status in East Asia cooperation, and is happy to see Malaysia play a bigger role in the region," Xi said.

Najib said Malaysia also stands ready to advance the development of ASEAN-China relations and promote peace, stability and prosperity in the region.

"Whether on bilateral trade relations or international efforts to build a more sustainable global economy, we are strongest when we work together," Najib said.

In an interview with Xinhua prior to Xi's visit, the Malaysian leader said that as a founding member of ASEAN, Malaysia stands ready to contribute to stronger China-ASEAN ties.

"Not only is China a dialogue partner with ASEAN, but it's also an integral part of the East Asia summit," he said.

"Because of that, the relationship between China and ASEAN is very important and continues to grow particularly in terms of trade and China's involvement in major infrastructure projects in the whole region," he added.

While in Indonesia, the first leg of Xi's maiden Southeast Asia tour since he assumed presidency in March, Xi said China and ASEAN countries should work for win-win cooperation, stand together and assist each other, enhance mutual understanding and friendship to increase social support for bilateral ties, and stick to openness and inclusiveness.

Differences and disputes should be properly handled through equal-footed dialogue and friendly consultation for the overall interests of bilateral ties and regional stability, he said.

Xi arrived here Thursday and left the city Saturday for the 21st informal economic leaders' meeting of the Asia-Pacific Economic Cooperation to be held in Bali, Indonesia. -  Xinhua

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Malaysia grand welcome for China president

The King accompanies Xi after the welcoming ceremony at Parliament Square on Oct 3, 2012. Starpix by AZHAR MAHFOF 

KUALA LUMPUR: Chinese president Xi Jinping and his wife Peng Liyuan were accorded a state welcome at Parliament Square on Friday at the start of their three-day state visit.

They were welcomed by Yang di-Pertuan Agong Tuanku Abdul Halim Mu'adzam Shah and Raja Permaisuri Agong Tuanku Hajah Haminah, Prime Minister Datuk Seri Najib Tun Razak and wife Datin Seri Rosmah Mansor, as well as Cabinet ministers.

Xi, on his first state visit here, received a 21-gun salute and inspected the royal guard-of-honour mounted by by 106 officers and men of the First Battalion Royal Malay Regiment led by Major Nur Fahmi Bassar.
The Regiment band played the Negaraku and the Chinese national anthem.

Xi and his wife were later introduced to ministers, and other VIPs, including Chief Secretary to the Government Tan Sri Dr Ali Hamsa, IGP Tan Sri Khalid Abu Bakar and Army Chief Datuk Raja Mohamed Affandi Raja Mohamed Noor.

Xi aims to bolster Sino-Malaysia relations 

 

Najib and his wife Datin Seri Rosmah Mansor (right) celebrating the arrival of Xi and his wife Peng (left) during a private dinner at Seri Perdana. — Bernama 

SEPANG: It is the aspiration of the people of China and Malaysia and in keeping with the times to deepen strategic cooperation between both countries, said China President Xi Jinping.

Xi said bolstering Sino-Malaysia relations would also be conducive to regional peace, stability and prosperity.

“China and Malaysia are good neighbours, good friends and good partners.

“Since the establishment of our diplomatic ties 39 years ago, Sino-China bilateral relations have enjoyed the harvest of rich fruits and brought benefits to our people,” he said in his arrival statement.

Xi arrived here yesterday on a Boeing 747-400 aircraft with his wife Peng Liyuan, State Councillor overseeing foreign diplomacy Yang Jiechi, Foreign Minister Wang Yi and Commerce Minister Gao Hucheng and other delegates for a three-day state visit.

The president was greeted by Health Minister Datuk Seri Dr S. Subramaniam upon arrival at 6.35pm.

Click on thumbnail for larger image.

Xi’s first visit to Malaysia was at the invitation of the Yang di-Pertuan Agong Tuanku Abdul Halim Mu’ad­zam Shah.

Xi described China and Malaysia as two important countries in the region, saying that both share extensive common interests.

“I hope my visit will help deepen our traditional friendship, upgrade the level of cooperation and make even more breakthroughs in our strategic cooperation,” he said.

According to the Chinese Embassy, the Chinese and Malaysian governments will sign several important agreements such as the cooperation mechanism for the China-Malaysia Qinzhou Industrial Park.

Malaysia-China ties stronger than ever

by chow how ban

 

Razak and his Malaysian delegation being given a rousing welcome upon arrival at the Beijing airport in 1974

KUALA LUMPUR: It has been 39 years since the late Tun Abdul Razak played a crucial role in establishing diplomatic ties with China.

And in all the years since, even after the former Prime Minister’s passing, the Chinese government has maintained a cordial relationship with his widow Tun Rahah Mohd Noah and her family.

Through its embassy here, China has invited Rahah to its functions and to the ambassadors’ official residence and even called on her – all in appreciation of her husband’s mammoth contributions in bringing the two countries closer.

Chinese Ambassador to Malaysia Chai Xi said it had always been a custom for the Chinese to remember the good deeds done for them.

 

Chinese students performing a dance to welcome Malaysian delegates at the airport in Beijing in 1974.

“My predecessor gave me special instructions to send well-wishes and pay visits to Tun Rahah.

“I will tell my colleague the same thing when he takes over office from me,” he said.

Among the notable occasions he cited was when the Chinese government invited Rahah, and others in her family, to join her son Prime Minister Datuk Seri Najib Tun Razak during his official visit to China in 2009.

During the former Chinese Premier Wen Jiabao’s visit to Malaysia in 2011, Rahah attended a welcoming dinner for him.

“Najib is very touched by the friendly gestures of the Chinese government,” he said.

 

Razak visiting a museum in China in 1974.

“He said that this was something which had not been done by other countries, except China,” Chai said.

Yesterday, Chinese President Xi Jinping attended a dinner hosted by Najib and his family, including Rahah, at Seri Perdana for the president after his arrival for a three-day state visit here.

Xi will attend a state banquet at Istana Negara today, followed by bilateral talks, an MoU signing ceremony and a joint press conference with Najib.

Other programmes lined up for the president include attending a luncheon with Malaysian Chinese business leaders, giving a speech at the Malaysia-China Economic Cooperation Summit and meeting former prime ministers Tun Dr Mahathir Mohamad and Tun Abdullah Ahmad Badawi.

A front page newspaper report in 1974 on Razak’s historic visit to China.

Chai said Najib had fostered close working and personal relationships with the previous Chinese leaders, especially Wen,

He said the people of both nations hoped to see Najib, Xi and their administrations continue this tradition.

On the significance of this visit, Chai said Najib and Xi would discuss the countries’ direction for the next five to 10 years.

“Both governments have agreed on a five-year blueprint on bilateral economic cooperation which we will sign during this visit,” he said.

All eyes on Xi's visit to KL

by tho xin yi

First to host: Najib witnessing Higher Education Minister Datuk Seri Mohamed Khaled Nordin handing over the invitation to the opening of the Xiamen University overseas campus in Malaysia earlier this year to the university president Prof Zhu Chongshi (left).

It’s a packed schedule for China’s President as the two countries explore the many opportunities available.

CHINA’S President Xi Jinping has a packed schedule today after touching down in Malaysia from Jakarta, Indonesia, yesterday.

In his first state visit to Malaysia – and South-East Asia – since he assumed the presidency in March this year, Xi will attend a state welcoming ceremony, meet Prime Minister Datuk Seri Najib Tun Razak and witness the signing of agreements and memorandums of understanding (MoUs).

His programme also includes giving a keynote address at the Malaysia-China Economic Summit, which is co-organised by the International Trade and Industry Ministry, Malaysia-China Business Council and China’s Ministry of Commerce.

Tomorrow, Xi will depart for Bali, Indonesia, to attend the 21st economic leaders’ meeting of the Asia-Pacific Economic Cooperation (Apec) forum.

The People’s Daily, the official paper of the Chinese Communist Party, summed up in a recent news report that his trip will “deepen economic cooperation in Asia and make huge contribution to lasting peace and prosperous development in the Asia-Pacific region”.

For Malaysia, Xi’s visit will lead up to the 40th anniversary of the diplomatic ties between both countries next year.
Both Malaysia and China have a lot to look forward to, as a result of the relations that have seen remarkable growth over the years.

For one, Malaysians are waiting eagerly to coo over the pair of cuddly giant pandas that will be loaned to us from China.

Enterprises in both countries are also looking forward to see the sister industrial parks in Kuantan, Pahang and Qinzhou, Guangxi, come to fruition.

According to statistics in 2012, Malaysia is China’s number one trading partner in Asean for the fifth year running, while China is Malaysia’s top trading partner for the fourth consecutive year.

Xinhua quoted Xi in an interview before his trip that Malaysia stands a chance to be the third Asian country to have its bilateral trade volume with China surpassing the US$100bil (RM322.7bil) mark, after Japan and Korea.

Malaysian businesses operating in China are optimistic that Xi’s visit will raise Malaysia’s profile in China.

Malaysian Chamber of Commerce and Industry in China (Maycham) secretary general Will Fung said the Chinese enterprises would have their attention focused on the visit to sniff out potential business and investment opportunities available following the diplomatic contact.

Maycham, with its presence established in Beijing, Shanghai and Guangdong, has approximately 550 corporate and individual members.

Fung explained that foreign investors had to refer to the Catalogue for the Guidance of Foreign Investment Industries before setting up businesses in China.

The industries are divided into three categories, namely encouraged, restricted and prohibited.

“Local partners are needed for investment in industries in the restricted category, while foreign investment is not permitted altogether in industries that fall in the prohibited category.

“The catalogue is reviewed from time to time. The government sometimes loosens up and removes certain industries from the prohibited category,” he said.

“The sky is the limit when it comes to doing business in China,” observed Fung, “thanks to the massive market and high spending power”.

However, one main hindrance looms – bureaucracy.

“The time needed for a business licence application to be approved is too long in some parts of China.

“It is relatively fast to obtain the green light in first-tier cities, but in provinces where the local authorities are less familiar with foreign investment, it can sometimes take months, even if you follow the guidelines diligently,” Fung said.

He added that Maycham hoped to see the procedures standardised across the board to expedite the approval process.

Meanwhile, on the educational front, Malaysia will be the first country to host an overseas branch campus of a Chinese higher learning institution.

Najib announced in January that Xiamen University had been given the permission by the Chinese government to set up a campus abroad.

The branch in Salak Tinggi, Sepang, is expected to be operational in September 2015.

At the moment, the number of exchange students in both countries exceeded 15,000.

Malaysian Students Association in China said the students were proud to have the Chinese top leader visiting their home country in his maiden trip to South-East Asia.

“We believe that the relationship between the two countries will be taken to new heights, and hopefully it will also translate into more assistance and support for students studying in China.”

> The views expressed are entirely the writer’s own. The Star

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Chinese President Xi Jinping visiting Malaysia and Indonesia to witness signing of pacts   

Chinese President Xi Jinping visiting Malaysia and Indonesia to witness signing of pacts

Bolstering ties: Xi and his wife Peng will visit Malaysia from Oct 2 to Oct 5. — AFP 

BEIJING: China will sign documents to boost cooperation in the fields of outer-space, trade, technology and fishery with Malaysia and Indonesia during Chinese President Xi Jinping’s official visit to the two countries this week.

In a press conference yesterday, Chinese deputy foreign minister Liu Zhenmin said this would be Xi’s first official visit to South East Asia.

“Besides bolstering ties with our neighbours, Xi’s visit from Oct 2 to Oct 5 is also aimed at enhancing mutually beneficial cooperation.

“It not only deepens bilateral relations between China and the two countries, but will also further develop the relations between China and Asean,” said Liu.

Following his visit to the two countries, Xi will be attending the 21st Apec Economic Leaders’ Meeting in Bali, Indonesia.

During his stay in Malaysia, Xi will pay courtesy call on the Yang di-Pertuan Agong, Tuanku Abdul Halim Mu’adzam Shah and attend a meeting with Prime Minister Datuk Seri Najib Tun Razak.

“Both Chinese and Malaysian leaders will exchange views on a wide range of topics, including bilateral relations as well as regional and international issues.

“Should the territorial disputes in the South China Sea be brought up during the meeting, the discussion will be based upon a mutual goal to maintain peace, stability and freedom of navigation on the marginal sea,” said Liu, adding that Xi would not be visiting Sabah.

Last year, the bilateral trade volume between China and Malaysia reached US$94.8bil (RM305.97bil).This makes Malaysia China’s top trading partner among the Asean coun­­­­­­­­tries for the fifth consecutive year.

Contributed by  Tho Xin Yi in Beijing

To Malaysians, time to learn to live without maids!

 

I REFER to the report in “Maids may snub Malaysia” (The Star, Dec 24, reproduced below).

People may wring their hands in despair now but bear in mind a litany of abuse cases and the fact that Malaysian workplace laws regarding maids have been dragged into the 21st century with better wages and conditions is too late.

People have justified for too long the treating of maids as second-class humans by claiming all sorts of benefits that they bring to these women.

In the report, it states “If maids chose not to come here, many women would either have to give up their careers or demand for more childcare centres”.

My sister in Australia has for the last 20 years worked in a full-time job, undertaken part-time university studies, raised three children, seen to my ageing father and ran a house.

All this she has done without a maid, housekeeper or cleaner.

She has not given up her career.

What she has gained from this are children who are emotionally intelligent, responsible, able to undertake tasks such as simple cooking, cleaning their bedrooms, washing the car, walking the dog and discovering that being part of family is learning to be responsible.

I know of countless Malaysian families in the same boat as my sister. The world will not end if maids don’t come.

GORDON REID Kuala Lumpur

Maids may snub Malaysia

By PATRICK LEE patrick.lee@thestar.com.my

PETALING JAYA: Malaysia may soon be the last choice of foreign domestic maids.

With other countries paying higher wages and the current low exchange rate of the ringgit, domestic maids may prefer to go elsewhere, warn economists.

RAM Holdings group chief economist Yeah Kim Leng said that although there would be a greater demand for maids, especially with an ageing population, it would be harder to hire them.

“Unless our income is able to keep up with the rising costs, fewer people will be able to afford maids,” he said.

He said that with improving economies in countries like Indonesia, Malaysia may no longer be viewed as a potential job market.

Yeah said more locals might have to work as maids and predicted a greater demand for outsourcing of domestic chores and daycare.

“The Government will have to look into an alternative for working parents,” he said.

Yeah was commenting on an announcement by Prime Minister Datuk Seri Najib Tun Razak that both Malaysia and Indonesia had agreed to review the cost structure for recruiting maids.

There has been a trickle of Indonesian maids into the country despite the signing of an MoU between Malaysia and Indonesia on May 30 last year which set a RM4,511 agency fee for the hiring of maids.

The Malaysian Maid Employers Association (Mama) has since claimed that the cost structure was not sustainable as agents were reluctant to bring Indonesian maids into the country, leading to a shortage.

MIDF research chief economist Anthony Dass said locals would have to choose between paying more for their maids or not having any at all.

“If another country offers better (fees) for maids and agencies, why should they come here?” he said.

Dass said increased wages for maids would reduce Malaysians' disposable incomes, especially if salaries do not go up.

He said if maids chose not to come here, many women would either have to give up their careers or demand for more childcare centres.

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Engage maids directly instead of costly maid agencies in Malaysia

WHEN put in perspective, if a spouse in a Malaysian household resigns from her job as a substitute for a maid, with a conservative average monthly income of RM3,000, that is RM36,000 less on the household table.

Take into account 300,000 Indonesian maids that used to work here and you have a scenario, where families in this country will be forgoing RM11bil in potential household revenue.

It seems obvious that middlemen are trying to blatantly profit from the urgent need for maids.

On one side of the coin, you have Malaysian maid agencies who used to charge up to RM8,000 for securing a maid and when the Government announced a moratorium on fees chargeable, the Indonesia side immediately claimed the fee was too low (See article below).

Invariably, both the employer and the maid are the victims. In any employment sector, it is very unusual for a potential employee to pay a fee to be employed.

The argument for deductions put forth by maid agencies, that the deduction is for loans given to maids and for training, does not make sense.

Perhaps a holistic solution would be to allow Indonesian agents to open offices in Malaysia and work directly with Malaysian employers.

Create a maid training facility, where maids can arrive and be trained within a short period of 10 working days.

Such a facility can be co-sponsored by the Malaysian Govern­ment. All it should entail is 10 to 20 low- to medium-cost flats that can house 200 to 300 maids, with a common area that allows for training.

Concurrently, increase the maid’s salary to RM800 per month in lieu of any advance payment and no increase in the agent’s fee.

There should be no need for any advance payment with full payment to be made upon final selection, when the employer takes the maid home. Peg the agent’s fee at RM1,500, with reimbursements for other costs, from levy to travel, that must be substantiated with proper receipts.

This is similar to what is charged in Singapore.

The training programme should not cost more than RM1,500. Which means the total cost can be pegged between RM4,500 and RM5,000 at most.

Get agreement with the Indonesian government on the process for direct engagement with maids.

Maids should only be required to go through an orientation programme similar to Singapore’s SIP (Settling-In-Programme) for foreign domestic workers.

Maids should not be allowed to work for more than eight hours a day. If required to work overtime, they should be entitled to a minimum hourly rate of RM8 to RM10 per hour.

Create a toll-free number manned by agencies that will monitor the welfare of maids, to ensure their overall well-being at all times.

Souce: B. J. FERNANDEZ  Shah Alam, The Star views

Maid agencies: Fees are too low?

By YVONNE LIM  The Star

PETALING JAYA: Maid agencies are adamant that the RM4,511 fee imposed by the Government for Indonesian maids is too low, as the actual cost to recruit a maid is double the amount.

Many described the fee, which was agreed to in the Memorandum of Understanding (MoU) between Jakarta and Kuala Lumpur last year, as “impossible to meet” and said that they have been running at a loss while trying to comply with it.

An agency owner, who declined to be named, said that despite demand, his agency had stopped recruiting Indonesian maids as he would spend up to RM10,000.

He said the fees charged by Indonesian maid suppliers started at RM5,500 including training, medical check-up, transport and recruitment fees, as well as duit susu, which is a contribution paid to the families of the maids.

“If we are being charged RM5,500 per maid, how can you expect agencies to comply with a fee of RM4,511, especially now that the cost has gone up for everything, including air travel?” he asked.

He urged the Government to review the amount and consult both Indonesian and Malaysian agency representatives so that a more realistic fee could be set.

Malaysian employers had previously called for Papa to justify the increase in Indonesian maid fees by agencies by up to RM12,000 and asked for a breakdown of costs.

Some had also urged the association to pressure its members to comply with the agreed fee, saying that the high demand for maids would compensate for it.

A spokesman for another agency said her company was now charging RM9,800 per Indonesian maid.

“We have already lowered the fee, but we cannot do much as our Indonesian partners are charging close to RM6,000 per maid,” she said.

Association of Foreign Maid Agencies (Papa) president Jeffrey Foo said that prior to the morato-rium on maids from Indonesia, employers had no qualms about paying up to RM9,000 for domestic helpers.

“We voiced our disagreement on the RM4,511 fee when the Govern-ment consulted us as it is simply too low, and were shocked when they settled on that price in the MoU anyway,” he said.

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Cost of vehicle ownership in Malaysia

MALAYSIA is perceived to be one of the costlier countries in the region when it comes to vehicle prices. But industry observers believe that this is compensated by the fact that the country’s fuel prices are heavily subsidised, and that it also enjoys the lowest interest rates in South-East Asia.

“One should not compare vehicle cost of ownership in the region purely based on the price of the car alone,” says Malaysian Automotive Association president Datuk Aishah Ahmad.

According to data by the Malaysia Automotive Institute (MAI), the average interest rate in Malaysia for a loan tenure of between 60 months and 108 months is between 2.5% and 3.6% - which is the lowest in Asean.

Interest rates in Vietnam is the highest, which has a flat rate of 16% per annum for loans that range between 12 months and 60 months.

“Given the fact that Malaysia’s interest rates are the lowest in the region, as well as the fact that fuel prices are subsidised, the total cost of vehicle ownership is one of the lowest in Asean,” says MAI chief executive officer Madani Sahari. The cost of interest rates used in MAI’s calculations is over 5 years.

The MAI is the think-tank for the Malaysian automotive industry.

Madani notes also that the price of subsidised RON 95 in Malaysia was one of the lowest in the region at RM1.90 per litre. Comparatively, the cost for the fuel in Thailand is RM3.80 per litre, Indonesia (RM3.35 per litre), Singapore (RM5.10 per litre), Vietnam (RM3.60 per litre) and the Philippines (RM3.20 per litre).

“In terms of road tax, we are also quite competitive in Asean. Malaysia is still cheaper compared with countries such as Thailand and Indonesia and comparative to Vietnam and the Philippines,” he says.

Perusahaan Otomobil Kedua Sdn Bhd managing director Datuk Aminar Rashid Salleh says Malaysians are blessed to have their fuel subsidised.

“We have low fuel prices and interest rates. All of these factors have contributed to Malaysia’s low cost of vehicle ownership.”

Madani points out that over a five-year period, the average road tax and insurance in Malaysia was among the lowest in the region, costing RM1,990 and RM15,310 respectively.

The five-year cost of road tax and insurance in Singapore was the highest at RM13,779 and RM39,806 respectively, compared with Indonesia (RM9,186 and RM22,965), Thailand (RM2,297 and RM33,682) and the Philippines (RM1,531 and RM14,238).

When comparing vehicle prices, especially those of popular international marques such as Toyota, Honda and BMW, Madani points out that prices in Malaysia were still lower compared with countries such as Singapore and Vietnam.

According to data from the MAI, a 1.5-litre Toyota Vios (as at September 2012) costs RM87,313 in Malaysia but costs RM88,456 and RM303,136 in Vietnam and Singapore respectively. The Vios is cheapest in the Philippines at RM60,271.

A brand new 1.5-litre Honda City meanwhile retails for RM88,443 locally and costs RM106,090 and RM295,800 in Vietnam and Singapore respectively and lowest in the Philippines at RM61,472.

The BMW 3 series, a popular premium model that is represented in most Asean countries, costs RM238,800 in Malaysia. It costs RM248,200 and RM541,200 respectively in Vietnam and Singapore. It costs the least in Indonesia, retailing at RM191,900.

However, when taking into account the vehicles’ selling price, down payment and loan repayment (including interest rates), road tax and insurance, as well as the fuel prices of the different countries, the total vehicle cost of ownership for a 1.5-litre Toyota Vios is RM130,382, which is the second lowest in the region after Philippines, where the total vehicle cost of ownership is RM128,933.

Total vehicle cost of ownership for the Toyota Camry (2.5-litre) in Malaysia is also second lowest in the region at RM243,182. The total vehicle cost of ownership for the Toyota Altis (1.8-litre) in Malaysia is however the cheapest in the region at RM163,973.

After the Philippines, Malaysia also boasts the second lowest total vehicle cost of ownership for the Honda City (1.5-litre), Civic (1.8-litre) and Accord (2.4-litre) models in the region. Malaysia also has the lowest total vehicle cost of ownership for the BMW 3 series.

By EUGENE MAHALINGAM eugenicz@thestar.com.my

Upbeat views on Malaysian property

Tang: ‘Investors from China are big time property purchasers in Singapore.’

Substantial inflows and outflows of investments expected for this year

GEORGE TOWN: Despite the global economic crisis, property investments coming into the country and going to overseas this year are expected to increase substantially.

The recently introduced 10% stamp duty for foreigners buying properties in Singapore has increased the attraction of Malaysia as a property investment destination.

Property investments flowing to Melbourne, Australia, are expected to increase between 15% to 18% this year from RM125mil in 2011, thanks to new housing loans for the Australian market recently introduced by Malayan Banking Bhd (Maybank).

Property Talk International Sdn Bhd managing director Steven Cheah said that foreigners showing interest in Malaysian properties had increased significantly this year, compared with the last three years, due to the recent 10% stamp duty introduced in Singapore for foreigners buying homes.

“The other reason is that Kuala Lumpur still remain as one of the few South-East Asian cities with attractive property prices.

“Compared to Jakarta, the price for a prime residential in Kuala Lumpur is about 15% lower.

“The buyers are from Indonesia and China and they show preference for Iskandar, Johor Baru and Kuala Lumpur.

“Indonesians prefer Iskandar because it is close to Singapore,” he said.

The Indonesians and China buyers generally go for properties priced between RM600,000 to RM1.5mil in Iskandar and Kuala Lumpur, while in Penang they go for RM1mil above homes, according to Cheah.

The additional direct flights from Jakarta to Penang by Air Asia had also fueled the interest from Indonesia for Malaysian properties, Cheah added.

This year, Property Talk expects to sell about RM55mil worth of properties located in Johor, Kuala Lumpur, and Penang, compared with over RM20mil achieved for 2011.

“Over the past three months, we have sold over RM25mil worth of properties, comprising 35 residential homes located in Kuala Lumpur and Iskandar, Johor Baru.

“We expect to sell another RM30mil worth of properties, comprising 30 to 40 homes, from Iskandar, Kuala Lumpur, and Penang via three more property exhibitions in Jakarta jointly organised by Malaysia Property Inc and private developers before the year ends,” he said.

An aerial view of Melbourne. Property investments flowing to the Australia’s city are expected to increase between 15% to 18% this year.

 

On investments from Malaysia to Australia, Cheah said the loan interest from Maybank was between 4% to 5% per annum compared with 5.7% to 6% per annum by Australian banks.

“This is why we can expect more Malaysians to take up the loan to invest in Melbourne, Australia this year,” Cheah said, adding that the Maybank housing loan was for Melbourne only.

According to Cheah, Melbourne is the top investment destination for Malaysian property investment funds.

“This is because many Malaysians have relatives who have migrated to Melbourne, where you can find a variety of Malaysian food restaurants.

“According to the latest research from Australian Property Monitors (APM), over the last five years, Melbourne has been the standout performer among the major capital cities for house price growth, with prices increasing almost 30% in just 15 months,” he added.

Meanwhile, Henry Butcher Marketing Sdn Bhd chief operating officer Tang Chee Meng said Henry Butcher had recently set up a property show gallery in Beijing, following the imposition of the 10% stamp duty by the Singapore government for foreigners buying properties in Singapore.

“The gallery, set up two to three months ago, showcases residential properties from Klang Valley, Malacca, and Penang.

“Investors from China are big time property purchasers in Singapore.

“With the 10% stamp duty introduced, Malaysian developers are now trying to attract them over.

“We still need to do a lot of education work in China to promote Malaysia as a property destination, as the awareness is still lacking,” he said.

Tang added there were many enquiries from China investors to buy vacant land to develop residential projects in Malaysia.

“We hope they will undertake development in Malaysia and promote the properties in China.

“This will help to increase more awareness for Malaysian properties in China,” he said.

According to Tang, the global financial crisis which erupted in 2008 and 2009 saw foreign interest for local properties dropped significantly. ”In 2010, we see a return of foreign interest, but the volume and value of property transactions involving foreigners still have not not recovered to anywhere near its peak prior to 2008.

“We believe the pace of investment from overseas will remain flat against last year.

“Besides tapping into traditional sources like Singapore, Hong Kong and Indonesia, Malaysian developers are moving into markets such as South Korea and China.

“China is a vast market and if Malaysian developers are able to educate the investors on the attraction of Malaysian real estate, we may see a surge in foreign interest,” Tang added.

Henry Butcher Marketing director for international marketing Jazmine Goh meanwhile said the global economic crisis had created favourable conditions and opportunities for Malaysians to invest in overseas real estate.

“The economic slowdown in Britain has caused property prices to plunge and coupled with the drop in the value of the pound sterling against the ringgit, properties in the United Kingdom have become more affordable and within reach of middle income Malaysians.

“The mortgage defaults in the United States have also resulted in a lot of opportunities to pick up properties foreclosed by the banks at a fraction of the original price.

“Of course, the fear of the prolonged debt woes in Europe has at the same time resulted in a more cautious attitude being adopted by investors,” Goh said.

The popular investment destinations for Malaysians are Australia, mainly Melbourne and to a lesser extent, Sydney, Perth, Brisbane and Gold Coast as well as London, and Singapore, and more recently, the United States, according to Goh.

By DAVID TAN davidtan@thestar.com.my

The rising K-economy in Asia

HOW big is the impact of the Internet potential on Asia, including the impact on development of the knowledge economy in Asia?

We all have a sense that the Information and Communications Technology (ICT) industry has transformed social media, education and the way business is done. But we are not sure what is the best way to use the Knowledge economy to propel our future growth.

In 1973, American sociologist Daniel Bell predicted the arrival of the Post-Industrial Society by 2000 with a world dominated by service industry, high value professional and technical employment and innovation driven by scientific research.

In 2000, the number of global Internet users was only 360 million, rising to 2.3 trillion with an annual growth rate of 528% between 2000-2011, of which 45% reside in Asia. The highest penetration of Internet is in North America (78.6%), whereas penetration in Asia is only 26.2%, pointing towards huge potential for Asian growth.

According to Internet World Statistics, the top Internet country in Asia is China, with 513 million users, followed by India (121 million), Japan (101 million) and Indonesia (55 million).

Within Asia, the highest penetration is South Korea (82.7%), Japan (80%), Singapore (77.2%), Taiwan (70%) and Hong Kong (68.7%). China has 38.4% Internet penetration.

However, the highest number of Facebook users in Asia is India (45 million), Indonesia (43 million) and the Philippines (27 million). Asia has 195 million Facebook users as at March 2012, or 23.3% of 835 million worldwide, compared to 44.8% penetration in Internet usage. The reason is of course Facebook is not used in China, but even then, there are 447,000 recorded users, less than the number in Cambodia (449,000).

Did you realise that 26.8% of Internet users are English-speaking (565 million), and 24.2% are Chinese speaking (510 million). The third most important language is Spanish (165 million). The Malay language, which is common to Indonesia and Malaysia, is not counted yet among the top 10 languages, mainly because the penetration of the Internet in Indonesia (245 million people) is only 22.4%.

Malaysia has a web usage rate of 61%, with over 17 million people online. The Post-Industrial Society has already arrived in the advanced countries, with the service sector accounting for 76.7% of US GDP, compared with only 1.2% for agriculture and 22.1% in industry. Employment in the service sector already accounted for 77% of total employment in the United States, with the increase in the service sector employment driving employment growth in the coming years.

Within the service sector, three sectors - education services, healthcare and professional and business services (all knowledge industries) are expected to grow at double the speed of employment of the US employment as a whole. In contrast, manufacturing employment is only 10% of total employment in the United States, compared with 28% employed in manufacturing in China. But the service sector in China accounts for only 43% of GDP, compared with 55.2% for India.

What is the relationship between information, knowledge and value creation?

In 1991, one of the pioneers on information theory, Robert Lucky, argued that the information value chain is a pyramid, with the bottom data having no value, classified data becoming valued information, with applied knowledge (technology) having more value, and wisdom, the highest value, being learnt, experienced and useful not only to understand but perhaps predict events.

What the Internet revolution has achieved is to distribute information and knowledge very quickly to the masses across the world. Indeed, the main benefit of the Internet is that it broke down “silos” of specialised information and data that could be shared and used by everyone with access to it.

Indeed, the Internet has enabled “Wiki-knowledge production”, which has produced a huge public good, available to all, with free input by thousands of anonymous volunteers. Public goods are no longer produced by governments, universities or firms, but by the collaboration of thousands of empowered individuals.

There is no doubt that as Asia ponders its own Post-Industrial Society, how it adapts to the new knowledge economy will make a difference between future success or failure.

Leading economies like Singapore and South Korea have devoted tremendous resources into education, research and development in key areas. South Korea even revived its Five-Year Plans to transform itself into a high growth, high knowledge green economy.

Both the Chinese and Indian 12th Five-Year Plans have ambitions to become creative and innovative economies.

In this regard, it is useful to compare and contrast the IBM way towards innovation and value creation versus the Indian approach. In the IBM book Making the World Better (2011), it uses a methodology insiders call SMUBA, an acronym for Seeing, Mapping, Understanding, Believing and Acting.

It is a process to master complex systems and to move from data, analytics and implementation.

Multinationals like IBM now realise that it is impossible to innovate alone by having centralised research laboraties the work is shared and done through key research labs spread throughout the world, through connecting research to product development, academic and government collaboration, internal collaboration across departments and labs, collaboration with clients, innovation by acquisition and open innovation.

In contrast, the Indian model of innovation and value creation is distinct in three ways producing frugal, affordable solutions for the masses without compromising quality, innovation in organisational and process models that improve quality and service delivery, and innovations in the process of innovation (frugal cost solutions through frugal cost of innovation).

The race is already on to produce Asian multinationals and create products to compete with Apple, Amazon, Google or Facebook.

The setback that Samsung faced recently will probably accelerate that process of innovation and competition across Asia.

THINK ASIAN By ANDREW SHENG

Tan Sri Andrew Sheng is president of Fung Global Institute.

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Malaysian car prices to drop gradually?

Revised NAP likely to include policy to reduce car prices over next 3-4 years

PETALING JAYA: The revised National Automotive Policy (NAP) will include a policy that will address the gradual reduction of car prices in the country, said an industry source.

What happens to second-hand cars? Naza Group of Companies joint executive chairman SM Nasarudin SM Nasimuddin was quoted in a recent report as saying: if prices dropped, the resale value of a car would then plummet but the loan amount owed to banks (on cars already bought) would be unchanged.

“The Government, through the Malaysia Automotive Institute (MAI), had engaged us in the past few months to discuss on the matter,” he told StarBiz.

“There will be a policy that will tackle the gradual reduction of car prices in Malaysia. Details of this policy are expected to be made public in the near future,” he added.

The source said the policy would outline a structure to gradually reduce car prices over the next three to four years.

The Government has been considering it (the reduction of car prices) in the revised NAP and it was only a matter of time for this issue to be addressed,” said the industry source.

It is a known fact that the prices of cars are high in Malaysia compared with Thailand.

However, it has been argued that the cost of vehicle ownership in Malaysia is still among the most competitive in the Asean region, primarily due to the subsidised fuel prices, cheaper road tax and insurance premiums.

In a recent news report, MAI chief executive officer Madani Sahari was quoted as saying that Malaysia had the second lowest cost of vehicle ownership in the region after the Philippines.

According to him, the cost of vehicle ownership in Malaysia, compared to Thailand and Indonesia, was lower by 39% and 12% respectively.

In terms of petrol prices, Thailand was the highest, followed by Singapore, Indonesia, Vietnam and the Philippines, Madani said in the news report.

Meanwhile, on the point of car prices being slashed overnight via the reduction of vehicle excise duties, industry observers argue that the impact would be negative for existing buyers rather than first-time ones.

“If you're a first-time buyer, it would be like a dream come true as it means you can now afford to buy a car that was too expensive previously,” said one industry observer who requested anonymity.

“For the existing buyer, it would mean that the resale value of the car would have diminished overnight,” he added.

It is also argued that the sudden drop in vehicle prices would have a severe impact on second-hand car dealers.

Those servicing existing car loans will also be severely affected.

In a local news report recently, Naza Group of Companies joint executive chairman SM Nasarudin SM Nasimuddin was quoted as saying that if taxes were scrapped, consumers would have to overpay bank loans taken for their vehicles.

In the report, Nasarudin claimed that if prices dropped, the resale value of a car would then plummet but the loan amount owed to banks would be unchanged.

By EUGENE MAHALINGAM  eugenicz@thestar.com.my/Asia News Network 

Related post:
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Honey, I spoiled the kids!

We raise our children with the best of intentions but somehow end up mollycoddling them, to their detriment.

THE shortage of domestic servants in Malaysia gets worse every year, driving people urgently needing their services crazy with exasperation.”

That was the opening sentence in a report in The Star published on March 4, 1976. As the song goes, “The more things change, the more they stay the same.” Uh huh.

Thirty-six years on, we are still facing a shortage, although “domestic servants” have morphed into “domestic workers” a.k.a. “maids” of foreign origin.

Let’s see, in 1976, I was in secondary school and sharing household and cooking chores with my sisters. We had long dispensed with the services of a servant/maid. When the last local woman who did our laundry became unreliable, my parents bought our first washing machine and that was it.

Going further back, we had a mother-and-daughter team who did the laundry and cleaned house as well. Actually the daughter, Bedah, was more our playmate. We had fun playing hide-and-seek and masak-masak in the wooden doll-house my dad built.

And when I was a very little girl living in Penang, my mum had a young live-in servant. Poor Ah Hong had a hard time managing my unruly brother, who slashed her arm with a butter knife after a nasty spat. After we moved to Kuala Lumpur, we lost touch with her.

For most of my growing years, my family was fortunate enough to have domestic help who did the heavy-duty stuff. But we kids still had our chores: washing our school shoes, taking out the garbage, weeding the garden and mowing the lawn. One chore which I really hated was peeling and cleaning prawns as I would always end up with bleeding fingers.

When we were in-between servants (we never called them maids in those days), we did the sweeping, mopping, windows, fans, bathrooms and, the most back-breaking of all, the laundry by hand.

I also learned how to hammer nails, saw wood, change light bulbs, use an electric drill, paint walls and fences, build chicken coops, dig wells and even mix cement from my extremely clever handyman dad.

So where did I go so wrong with my own kids?

Do I blame it on the fact that both my husband and I work and we had no time nor the energy to mend and clean on the weekends, leaving it all to the maid, thereby setting a poor example to my kids?

Do I excuse myself that middle class families mollycoddle their children in these prosperous times?

Whatever the reason, I stand guilty of raising children who are inadequately skilled in a lot of things my generation took for granted or were expected to know.

Mind you, they are great kids. They never did drugs nor partied excessively; never got me summoned to school over their grades or discipline problems. As adults, they are articulate and interesting individuals. They are respectful and caring towards their grandparents who live with us.

Yet, they have never toiled at anything in the house and won’t even wash their own cups simply because they grew up with maids who did everything for them.

But to be fair to them, the rot started earlier. By “rot”, I mean the diminishing ability to be self-reliant in keeping one’s house in order without external help.

Because Dad could build, mend and repair just about anything and Mum was an excellent cook and extremely house-proud, between them, my siblings and I were taught a lot of skills.

My husband, on the other hand, isn’t as handy. His answer to fixing anything is super glue. Despite my childhood training, I haven’t applied my skills much either. I quite happily gave up gardening when my lawn-mower broke down,

Fortunately, we can enlist the services of a gardener, plumber or electrician to fix whatever stuff that goes on the blink because they are affordable.

And for now, a maid.

With all these support services, our lives are really easy and comfortable. The downside is today’s convenient ways have made us soft, lazy and wasteful.

Yet, things are changing. If 36 years ago, we moaned the extinction of local servants, now we moan about the availability of foreign maids.

The news isn’t good. No matter how hard our Government is trying to re-establish the supply line from Indonesia, the fact remains that Malaysia is not the first choice for such workers.

What’s more, the countries that have long supplied us with cheap labour are enjoying economic growth and with it better job opportunities for their people.

For now, we can take pride that almost any middle class family can hire a maid. In the not-too-distant future, it may not be the case any more. Already, the agency fees and the salaries are getting painfully high.

Ironically, the richer and more developed a country, the more expensive hired help is. So in countries like Australia, the United States and Britain, DIY stores are huge business because there they don’t call in the plumber or electrician at the slightest trouble. Live-in maids are only for the wealthy.

In all likelihood, the time my daughters marry, they will have to figure out how to keep house and raise kids without a live-in maid.

My son? He sheepishly admitted he didn’t know how to sew a loose button or a tear in his pants. For the sake of my future daughter-in-law and grandchildren, I have decided he’s going to start becoming a bit more like grandpa.

It starts this Saturday when my Indonesian maid goes on home leave for Hari Raya. As they say, “Necessity is the mother of invention” so this mother who has been terribly remiss with her children’s basic life skills, is going to invent some necessity on the home front.

More importantly, better late than never, especially when we still have clever grandpa to teach the kids a handy tip or two. No super glue for them.

So Aunty, So What? By JUNE H.L. WONG

 > The writer, if she could turn back time, would certainly have done some things differently in the way she raised her kids. On a more cheerful note, Selamat Hari Raya Aidil Fitri!

Straits International School (SIS) coming up in Penang

PENANG has been chosen by Charter Sdn Bhd as the site of their first educational centre called the Straits International School

SIS Charter Sdn Bhd chief executive officer Lita Nasyitah Goh Abdullah said they decided on Penang as their first education hub in Malaysia as they believed Penang was one of the most developed states.

“We look forward to nurturing and guiding young Penangites towards greater success and a lifetime of achievement.

“We choose Bayan Lepas specifically as it is a free industrial zone and a destination for plenty of multinational companies.

“The locality also has great accessibility, infrastructure and logistics,” she said.

She was speaking before the signing of a memorandum of agreement (MoA) between Oztek (M) Sdn Bhd and SIS Charter Sdn Bhd at the Eastin Hotel recently.

“We see that Penang is gearing up to be an education hub. Hence, the setting up of our campus here is a decision which will defi-nitely benefit all concerned,” she added.

Oztek (M) Sdn Bhd managing director Datuk Alex Ooi, who is the developer, said that his company was currently finalising the building plan with the Penang Municipal Council.

The company is clearing a 0.809 ha plot of land in Jalan Tun Dr Awang.

“The build-up area of the school is about 200,000sq ft (about 18580sq m) and the building costs about RM20mil to RM25mil.

“Construction will start in January next year and is scheduled to be completed in the third quarter of 2014.”

Ooi added that the building will be able to host about 1,500 students.

“We are looking to lease the building to SIS Charter Sdn Bhd for 20 years,” he said.

SIS will begin its academic programme from its temporary campus at 1-Square, Penang Cyber City, which is at Tingkat Mahsuri 1, Bayan Lepas,

The new term will start on Aug 27.

Witnessing the MoA followed by the launching of the temporary campus was Chief Minister Lim Guan Eng.

Lim said that the new five-storey building of the school would be a state-of-the-art facility.

“The incorporation of the SIS underlines the growing importance of providing quality curriculum.

“This move will help place Penang as an educational hub of choice for not only the locals but the expatriate communities living in Thailand and Indonesia.”

The Star/Asia News Network

Malaysia's Days in the Sun - WSJ

New York, Hong Kong, London...Kuala Lumpur? Malaysia is going gangbusters. Now, it must sustain the momentum.



The Southeast Asian nation is home to the world's second and third largest initial public offerings this year—the $3.3 billion listing of Felda Global Ventures 5222.KU 0.00% and IHH Healthcare's $2 billion IPO. Meanwhile, the benchmark KLCI hit a record Wednesday after rising almost 7% this year.

State backing for Malaysian equities is a factor. Felda's IPO was largely bought by government-backed investors such as individual Malaysian states. Mandatory retirement savings boosts domestic pension funds that typically invest a lot in the local market too.

The economy is also performing well. Unemployment is low. Inflation is benign at about 2%. Gross domestic product growth is around 5%. That is important because the Malaysian stock market is mainly comprised of domestically focused companies.

Diverse exports are also relatively robust. Commodities like palm oil, petroleum and gas make up about a quarter of exports, while electronics and manufactured goods make up the rest. HSBC notes that Malaysia's exports are down just 2% since last August, compared to a 13% aggregate decline for shipments from Singapore, Thailand, Indonesia and the Philippines.

The country's banks look healthy too. Asset quality is strong and deleveraging by European banks isn't a big threat, says Moody's. "Their claims on the Malaysian economy amount to a mere 5% of GDP," notes the rating company.

Still, there are risks that warrant caution. A prolonged slump in global trade would hurt. Net exports are equal to about 16% of GDP—much higher than the ratio for neighbors such as Indonesia and the Philippines.

Politics is a wildcard too. Prime Minister Najib Razak wants to improve infrastructure and boost investment in sectors including oil and gas and tourism. Investors must hope that agenda stays on track regardless of the outcome of an election expected by early 2013.

Much of the good news may be priced in. Malaysia's benchmark stock index trades at about 15 times current earnings. Some analysts say that is rich. Malaysia has momentum. But much now depends on domestic politics and the depth of the weakness in global trade.

Write to Cynthia Koons at cynthia.koons@wsj.com