Thesun 2009-05-07 Page12 Opr Rate Appropriate Says Bnm Chief

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Stable financial system vital for growth: Zeti KUALA LUMPUR: Continuous functioning of financial system is a vital element in the economic growth and development process, says Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz (pix). “As regulators, the focus is placed in ensuring soundness and stability of the financial system, and thereby provides the platform on which the role of the banking sector in the economy can be enhanced,” she said. For emerging market economies, in particular, the efforts are to be extended to building the financial infrastructure, raising financial literacy and providing the environment for a more inclusive financial system. Although the financial systems in most emerging economies continue to remain sound and provide credit and support the economy, collapse of external demand has, however, adversely affected the more open emerging economies. “Therefore, it becomes more vital given the more adverse implications of the crisis on the poor segments in the economy,” she said in her opening remarks at the Asia Regional Forum on Policy and Regulation of Financial Inclusion. In Malaysia, financial inclusion is a high priority in our national agenda. Since the establishment of the central bank, there has been a conscious policy to have an extensive commercial banking branch network across the country, to ensure the outreach, in particular, to cover the non-urban areas. Malaysia now has 10.2

OPR rate appropriate, says BNM chief

branches for every 100,000 individuals as opposed to the global median of 8.4 branches for every 100,000 individuals, she said. She said more than 80% of the population also have some form of savings account, which has contributed to the financialisation of savings. Deposits as a percentage of gross domestic product is 180%. “This means savings is mobilised including from small savers into the formal financial system. This allows the savings to be channelled

to productive economic activity,” said Zeti. To further drive the provision of basic financial services to the underserved, the National Savings Bank has been mandated to enhance the outreach of deposit services and micro-financing. Their efforts, together with those of commercial banking institutions and government mandated micro-financing agencies, have resulted in a significant expansion of micro-financing. Micro-financing has increased from RM151 million in 2000 to RM1.7 billion in 2008, representing an annual average growth rate of 35%.

Wenger to consider changes after exit pg 31

KUALA LUMPUR: The current overnight policy rate (OPR) is appropriate for the present, said Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz yesterday. “We will review it at every meeting, depending on what the conditions are. But, at this point in time, no change is needed,” she said, when asked if the OPR would stay at the current level. Zeti was speaking to reporters after the opening of the Asia Regional Forum on Policy and Regulation of Financial Inclusion here yesterday. At its Monetary Policy Committee meeting last Wednesday, the central bank retained the OPR at 2%. “Continuously lowering interest rates is not constructive as there are limitations to its impact in terms of promoting growth, she said. Zeti said this when asked about

the call by Princess Maxima of the Netherlands for governments to invest in a level playing field while creating conscious consumers, rather than imposing artificially low interest rates. Maxima’s speech at the forum was read by the director-general of the Aga Khan Agency for Microfinance, Jacques Toureille. “We have also said before that the focus of our policies is to ensure access to financing and liquidity in the financial system,” said Zeti. Maxima said lowering interest rates may enable a temporary increase in access, but would not create a real financially sustainable system in the long term. Asked about the first quarter, Zeti said the country experienced quite a significant contraction in exports. “In January, it declined about

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GEORGE TOWN: The Penang government plans to turn the state into an international destination for trade events and put it on the world map by 2012. State religious affairs, domestic trade and consumer affairs committee chairman Abdul Malik Abul Kassim said many of the business organisations and associations in Penang have become complacent and it is time that they wake up to their full potential by becoming more aggressive. “We want the related business organisations, associations and event management companies to start organising more international-standard trade shows in Penang from now onwards,” he said. He said the state government hopes to gather a complete list of trade shows and events that will be held on an annual basis by September this year so that there will be a complete calendar of events for 2010. “This year, we will kickstart

all the programmes and events and by next year, we will move forward with these organisations and associations so that we could turn these events into international events by 2011,” he said. Abdul Malik said the state government’s target for now is for the trade shows and events in Penang to achieve international level and become part of the international calendar of events by the year 2012. “Now, we are inviting event managers to submit their proposals for trade events and trade shows by the end of this month in our effort to turn Penang into an international destination for trade shows similar to Singapore, Hongkong and Dubai,” he said. He said the state government will act as a facilitator to ensure these events are successfully organised and promoted extensively. “Even though Penang does not have a convention centre, Universiti Sains Malaysia plans to build one in Bukit Jambul and we are working closely with them to help them realise this project within three years.”

27% and for the subsequent months of February and March, about 15%. “This kind of contraction would be partially offset by domestic demand, which is still holding steady. There is also tourist arrivals with good numbers. I believe it was 1.9 million in March and this is very encouraging in generating demand for services products. “It reinforces consumption demand in the domestic sector.” She reiterated that while the first half of the year would see a contraction, the impact of the fiscal stimulus package would take effect in the second. “It will support the improvement in the domestic economy. We have also seen loan growth in the region of 10% so far and that is very encouraging, as it supports the domestic economy”, Zeti said. – Bernama

Celcom announces new corporate structure KUALA LUMPUR: Celcom (Malaysia) Bhd, in its move towards high performance transformation, yesterday announced its new corporate structure including the appointment of several key officers. Celcom’s chief executive officer Datuk Seri Shazalli Ramly said the changes are in line with the process of adapting the company’s structure to a continuously evolving competitive environment. The new organisation structure will support the company’s mission towards high performance transformation, said Shazalli, who will spearhead Celcom for another three years.

In a statement here yesterday, he said there will be three focus areas in the transformation process namely business strategic direction, human capital and talent management and organisational development. Under the organisational development, Celcom will move towards becoming an organisation based on five pillars. The five pillars are to become a complete end-to-end consumer organisation, a unit that is focused on wholesale and enterprise business, a strong finance and procurement organisation, a technology group and towards high-performing culture through transformation unit.

Penang plans to be trade shows destination by Opalyn Mok

| THURSDAY MAY 7 2009

Mohamed Adlan ... now chief corporate officer

Chee ... now chief marketing officer

briefs Penang halal hub signs MoUs on partnerships GEORGE TOWN: Penang made more inroads into the halal industry when Penang International Halal Hub (PIHH) signed six memorandums of understanding (MoUs) with investors at the World Halal Forum 2009 recently. With the signing of the MoUs, PIHH forged strategic collaboration and smart partnerships with 10 local and international corporations. PIHH Development Sdn Bhd signed MoUs with Asian Finance Bank Berhad, Unicorn International Islamic Bank, Al-Jawhara Group of Hotels, Hotel Seri Malaysia (Pulau Pinang) Sdn Bhd, D’Ferringghi Hotel & Restaurant, Global Livestock Corporation Sdn Bhd, Fresh Frozen Resources Sdn Bhd and Intan Farm (M) Sdn Bhd. Meanwhile, Penang Development Corporation formed partnership with Halagel (M) Sdn Bhd and Penang Port Sdn Bhd signed MoU with Century Total Logistics Sdn Bhd.

Shazalli ... leads Celcom for three more years

Two M’sian firms win UN World Summit Award KUALA LUMPUR: Two local companies, Sarawak Information System (Sains) and Les’ Copaque Productions won awards at the recent United Nation’s World Summit Award. Sains was named the Best Entry in the e-government and institutions category while Les’ Copaque received “Regional special mention for Asia” in the e-entertainment and games category. The two companies were also previous winners in the Multimedia Super Corridor Malaysia Asia Pacific ICT Award 2008. In a statement, Multimedia Development Corporation (MDeC) chief executive officer Datuk Badllisham Ghazali said the awards were yet another testimony that Malaysia produced credible, world class content and solutions for the world. “This will boost confidence in MSC Malaysia products and solutions as well as inspire other companies to strive for the best,” he said. – Bernama

Under the new corporate structure, Celcom has appointed five officers effective May 1. Former Celcom chief financial officer Mohamed Adlan Ahmad Tajudin has been promoted to be chief corporate officer, who will look after seven portfolios including business development, partnership and mobile network virtual operator (MNVO) and international business. Meanwhile, Anuar Rozhan, formerly director of Hay Group Malaysia, has been appointed as the chief transformation officer, to lead the three transformation related divisions. Chari TVT, 53, will assume responsibility as chief financial officer and will lead various portfolio including corporate finance and treasury, facilities and procurement. Celcom’s current chief operating officer of new business Chee Pok Jin will now be chief marketing officer, to oversee marketing, sales, customer service and business innovation portfolios. Meanwhile, Noor Kamarul Anuar Nuruddin, who is currently the mastermind behind the widest coverage and best network, is entrusted to continue his current role as chief technology officer. – Bernama

MDeC is the organiser of MSC Malaysia Asia Pacific ICT Award, which is the sole platform for local companies entering the biennial World Summit Award. – Bernama

Financial crisis far from over: Dutch bank chief KUALA LUMPUR: A top European central banker has cautioned against optimism that the global economy will recover soon, saying the situation is far from true. President of Netherlands Bank, Nout Wellink, said the market should not read too much into slight improvements in some economic indicators being reported of late when in fact there were still immense challenges such as access to credit. “Challenges in this area (global financial system) are just as relevant as they were last November, maybe they are even more relevant nowadays,” he said. Wellink said this in his keynote address at the Asia Regional Forum on Policy and Regulation of Financial Inclusion here yesterday. – Bernama