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

;AFP; 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

;AFP; 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