sector growth

 
 

China's growth data may mask economic risks, says research group

SHANGHAI, Jan 16 — China's GDP growth may be significantly slower than official estimates suggest and its economy more vulnerable to external shocks than widely believed, a global business think tank has warned. Data due next week is expected to…


European stock rally ends amid weak results, trade pessimism

LONDON, Jan 10 ― European shares tumbled today as optimism over US-China trade talks faded and a slew of weak earnings reports hit auto and retailer stocks. The trade-sensitive DAX was down 0.4 per cent by 0950 GMT, while the pan-European STOXX…


US services sector growth hits five-month low

NEW YORK, Jan 8 — US services sector activity slowed to a five-month low in December, but remained above a level consistent with solid economic growth in the fourth quarter. The Institute for Supply Management said yesterday its non-manufacturing…


MEI: Online hiring falls for nine months in a row

PETALING JAYA: Malaysia registered nine straight months of decline in overall online recruitment activity, down 5% year-on-year in November 2018, according to the latest Monster Employment Index (MEI).

The MEI is a gauge of online job posting activities compiled monthly by Monster.com. It records the industries and occupations that show the highest and lowest growth in recruitment activity locally.

The index noted that the banking, financial services and insurance industry, which has been on a plunge since January, recorded double-digit decline in November at 12% year-on-year.

“According to research houses, macro policy uncertainty post-GE14 seems to be having a slight dampening effect on the banking’s sector growth, and analysts also expects the sector’s core earnings growth to come in lower this year,” Monster.com (Asia Pacific and Middle East) CEO Abhijeet Mukherjee said.

Finance and accounts job roles also saw the most-notable annual decline among occupation categories, down 10% year-on-year, which marks the ninth consecutive month of decline for the role.

Meanwhile, the IT, telecom/internet service provider, business process outsourcing/IT-enabled services and oil & gas industries were yet again the only two out of the nine industries monitored by the index that exhibited growth, up 28% and 16% year-on-year, respectively.

On a six month-basis, both sectors also recorded strong growth, up 35% and 16% respectively.

Among occupation categories, customer service roles registered the most notable growth in November, up 6% year-on-year, followed by software, hardware and telecom professionals, up 3%.

Demand for sales and business development professionals was also on the nine-month, double-digit decline wagon as well, down 10% year-on-year in November.

The MEI is based on a real-time review of millions of employer job opportunities culled from a large representative selection of career websites and online job listings across Malaysia.

The index does not reflect the trend of any one advertiser or source, but is an aggregate measure of the change in job listings across the industry.


Malaysia’s overall online hiring down 5% y-o-y in November

PETALING JAYA: Malaysia registered nine straight months of decline in overall online recruitment activity, down 5% year-on-year in November 2018, according to the latest Monster Employment Index (MEI).

The MEI is a gauge of online job posting activities compiled monthly by Monster.com. It records the industries and occupations that show the highest and lowest growth in recruitment activity locally.

The index noted that the banking, financial services and insurance industry, which has been on a plunge since January, recorded double-digit decline in November at 12% year-on-year.

“According to research houses, macro policy uncertainty post-GE14 seems to be having a slight dampening effect on the banking’s sector growth, and analysts also expects the sector’s core earnings growth to come in lower this year,” Monster.com (APAC and Middle East) CEO Abhijeet Mukherjee said.

Finance and accounts job roles also saw the most-notable annual decline among occupation categories, down 10% year-on-year, which marks the ninth consecutive month of decline for the role.

Meanwhile, the IT, telecom/internet service provider, business process outsourcing/IT-enabled services and oil & gas industries were yet again the only two out of the nine industries monitored by the index that exhibited growth, up 28% and 16% year-on-year, respectively.

On a six month-basis, both sectors also recorded strong growth, up 35% and 16% respectively.

Among occupation categories, customer service roles registered the most notable growth in November, up 6% year-on-year, followed by software, hardware and telecom professionals, up 3%.

Demand for sales and business development professionals was also on the nine-month, double-digit decline wagon as well, down 10% year-on-year in November.

The MEI is based on a real-time review of millions of employer job opportunities culled from a large representative selection of career websites and online job listings across Malaysia.

The index does not reflect the trend of any one advertiser or source, but is an aggregate measure of the change in job listings across the industry.


US dollar treads water ahead of Trump-Xi meet at G20 summit

SINGAPORE, Nov 30 — The US dollar trod water in nervous trade today ahead of a meeting of US and Chinese leaders that might, or might not, lead to a truce in the Sino-US trade war, which would boost emerging market currencies at the expense of…


Rubber gloves sector growth to slow down but remain resilient

KUCHING: Earnings growth in the rubber gloves sector are expected to slow down but remain resilient as the demand-supply dynamics in the industry normalises. “Given the recovery in vinyl glove supply from China, glove players’ forward orders are now lower from 60 to 70 days previously to 30 to 45 days, hence we expect earnings […]


Govt urged to focus on reducing operating expenses

PETALING JAYA: Local economists, analysts and a think tank have urged Prime Minister Tun Dr Mahathir Mohamad's administration to focus on reducing the government's operating expenditure, which has been persistently high over the years.

The view comes after Mahathir's presentation on the 11th Malaysia Plan's mid-term review in Parliament last week, which saw the government cutting back its development budget by RM40 billion for the 2018 to 2020 period.

The government, which affirmed that the operational budget will not take a hit, lowered its real gross domestic product (GDP) growth target to 4.5-5.5% annually from 5-6% previously.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew, when contacted, told SunBiz that the operating expenditure related to emoluments, pension payments and gratuities rose more than 9% a year in the past 10 years, while nominal gross domestic product rose just more than 4% over the same period.

He noted that the cut in development expenditure is possibly due to the administration's short-term inability to reduce its operating expenditure without public sector layoffs.

CGS-CIMB Research said it believes the government has room to make fiscal adjustments through determined spending cuts without hurting the country's growth prospects unduly if wastages and leakages are curbed.

It opined that operating and development expenditure can be trimmed by RM7 billion in Budget 2019 due to tighter procurement procedures, zero-based budgeting, reviews or deferment of infrastructure projects, more targeted subsidies and cash transfers, and revisions in supply and services contracts, which could limit the need for aggressive revenue-raising measures and steeper cuts to productive areas of spending.

On GDP growth, CGS-CIMB said despite the target being lowered to 4.5-5.5% in the mid-term review, prospects remain supportive of economic activity and labour market conditions.

Disappointed by the government's preoccupation with tax and increasing costs for business, Institute for Democracy and Economic Affairs director of research and development Laurence Todd said “there are indications that the government is moving in potentially the wrong direction”.

“Further reforms to strengthen the oversight and performance of GLCs are of course welcome, but it is disappointing that the government does not seem to be proposing more radical reforms, including significantly reducing its holding of assets and equities, which could raise revenue and stimulate private sector growth.

“At the same time, the government is proposing to reduce development expenditure – we would recommend that the government focus on improving its balance sheet in a way that raises revenue and maintains the overall level of public investment,” Todd added.

On the flip side, Sunway University Business School Professor of Economics Prof Dr Yeah Kim Leng said the mid-term review, with a strong focus on improving governance, institutional reforms and strengthening the government delivery system, should enable the government to reap some “democracy dividends” on increased investor confidence and sustained private investment activities.

He said the review has lent greater clarity on the policy direction of the new government over the next two years as it has established the priorities, policy thrusts, strategies and targets on what the administration intends to do to address the critical challenges facing the country.

“Understandably, the 'how' part needs fleshing out but it suffices that the focus should be on implementation capacity and capabilities, and, importantly, a consultative approach with all stakeholders especially the private sector, industry groups and NGOs.”

However, he pointed out that income gaps, disparities and inequalities across regions, industries and community groups are structural problems, which will require carefully thought-out intervention programmes.

“These are perhaps too 'micro' to be contained in the broad five-year plan and better fleshed out by the implementing agencies that have been streamlined,” Yeah said.


Survey: US service sector growth up in August despite trade concerns

NEW YORK, Sept 6 — Growth in the vital US services sector accelerated in August as businesses activity remained strong despite higher costs due to trade disputes, according to an industry survey today. The Institute for Supply Management said its…


Grand Saudi vision loses lustre after Aramco IPO put on hold

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RIYADH, Aug 24 — The sale of shares in Saudi Arabia’s oil giant was supposed to underpin Crown Prince Mohammed bin Salman’s grand plan to transform an insular, oil-dependent kingdom into a 21st century economy. Floating Aramco abroad would…