Buy ringgit against Singapore dollar: ANZ

Investors should buy the ringgit against the Singapore dollar because higher commodity prices will spur Malaysia’s economic recovery over the next six months, according to Australia & New Zealand Banking Group Ltd.

The ringgit may advance 2 per cent to 2.40 per Singapore dollar by the end of the first quarter of 2010 as increases in the prices of crude oil, palm oil and rubber will help Malaysia’s economy expand at a faster pace than its southern neighbour, strategist Yeo Han Sia said in a research note today.

“We expect the base effect in commodity prices to narrow the export gap in Malaysia’s favour, having knock-on effects for portfolio flows and the currency cross rate,” wrote Yeo, who is based in Singapore.

Grade A fish prices in Labuan escalate

Labuan MP Datuk Yussof Mahal has called on the the Fisheries Development Authority Malaysia (LKIM) and the fisherman's association to address the escalating prices of Grade A fish at the Labuan market, which were deemed to be the highest among the states.

Making a surprise check at fish and vegetable markets here, he said that the unacceptable high fish prices should not have happened as Labuan was an island.

The high prices of fish like white fish (RM20 per kilo) had resulted in people in the low-income bracket not being able to afford to eat Grade A fish, he said today. -- BERNAMA

Malaysia may raise tobacco taxes 11pc

The Malaysian government may raise tobacco taxes by at least 11 per cent as it takes steps to discourage smoking and cut its budget deficit, according to Maybank Investment Bank Bhd.

The excise duty on cigarettes may be increased by 2 sen to 20 sen (5.7 cents) a stick when the government unveils next year’s budget on October 23, Khair Mirza, a Maybank analyst in Kuala Lumpur, said in a report today. He kept a “neutral” rating on Malaysia’s tobacco stocks.

Delayed projects in Penang to be completed by end of 2010

Twenty-two delayed projects in Penang under the Ninth Malaysia Plan will be completed by the end of next year.

Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said the implementation of the projects have been stepped up.

PM launches Special Economic Zone

Prime Minister Datuk Seri Najib Tun Razak has launched the country’s first Special Economic Zone that aims to bring in RM90bil worth of investments and create 220,000 jobs by 2020.

The SEZ, which would cover an area measuring 25km by 140km from Kertih in Terengganu to Gambang and Pekan in Pahang, would attract more investments to the East Coast Economic Region (ECER), he said on Tuesday.

The SEZ will focus on high technology, knowledge based activities and the services sector, and will see the creation of four “free zones” covering two sea ports and two airports in the area, with Kuantan port being the main gateway.

Oil jumps above US$70 Monday on optimism demand to recover

Oil prices jumped above US$70 a barrel Monday in Asia on investor expectations a recovering global economy will boost crude demand.

Benchmark crude for September delivery was up 73 cents to $70.18 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange.

Oil spikes above US$70 for first time this year

Oil prices broke through the $70 per-barrel barrier Friday and more forecasters are broadening expectations for an upward swing in crude.

Benchmark crude for July delivery lost 37 cents to settle at $68.44 on the New York Mercantile Exchange, finishing the week with a gain of nearly $2 a barrel.