KL's trade surplus surges 39%

KL's trade surplus surges 39%

KUALA LUMPUR: Malaysia's trade surplus jumped 38.9 percent in
January to 6.3 billion ringgit (US$1.7 million), the largest
monthly surplus since March 2000, the government said Wednesday.

The Ministry of International Trade and Industry (MITI) said
exports increased 6.4 percent to 30.4 billion ringgit while
imports rose marginally by 0.4 percent to 24.1 billion ringgit.

Exports of most products rose in January, with electrical and
electronic goods accounting for 15.2 billion ringgit or 49.9
percent of the total, it said.

Economists said the sharp rise in exports was above
expectation.

It reflects the turnaround in global demand for electrical and
electronic goods along with a steady demand for palm oil despite
a higher price.

But others said the coming months may see a decline in exports
due to external geopolitical uncertainties, in particular the
looming war in Iraq. -- AFP

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ANPAf..r..
MoneyMatter-HK-deficit
HK budget deficit forecast at $9b
JP/MALAYSIA

HK budget deficit forecast at $9b

HONG KONG: Financial secretary Antony Leung said Wednesday Hong
Kong's deficit for for the current year to March is estimated at
HK$70 billion (US$8.99 billion) .

"The persistent problem of huge deficits is a reflection of
four changes that Hong Kong is facing -- cyclical economic
adjustment, economic restructuring, population aging and
evolution of government policies," Leung said in his budget
report.

Leung said the rise in the deficit, which is 5.5 percent of
gross domestic product (GDP) and some HK$ 24.8 billion more than
originally estimated, was mainly due to government revenue coming
in 19.2 percent less than originally forecast.

Capital revenue was also forecast to be HS$29.1 billion less
than originally forecast. This is related to the government's
decision in November last year to suspend land sales for a year,
which resulted in a HK$13.9 billion drop in land revenue.

In addition, the government was studying a merger of the
territory's two railway corporations and had postponed the sale
of the second tranche of MTR Corporation shares, reducing revenue
by a further HK$15 billion, he said. -- AFP

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ANPAf..r..
MoneyMatter-China-budget
China to unveil budget deficit
JP/MALAYSIA

China to unveil budget deficit

BEIJING: China will announce a record 319.8 billion yuan (US$38.6
billion) budget deficit this year, with government officials
citing the need to address ongoing difficulties in raising
incomes and spurring domestic demand.

Finance Minister Xiang Huaicheng will announce the record
deficit in his budget report to the National People's Congress on
Thursday, sources with knowledge of the report told AFP.

The deficit will mark a 3.2 percent increase over 2002's
record 309.8 billion yuan record deficit, which itself was 25
percent higher than the 2001 figure.

Xiang is expected to cite uncertainties in the global
situation, especially over oil prices, insufficient domestic
demand, an irrational supply structure and lagging problems in
the reform of state-run enterprises as the reasons to continue
the fiscal pump priming.

The finance minister will also announce that only 140 billion
yuan in special government construction bonds would be issued
this year, a slight retreat from the 150 billion yuan in special
T-bills allotted in each of the last five years as the government
pumped funds into the economy. -- AFP