theSun | MONDAY JANUARY 12 2009 15

business

M’sian economy could rebound

in six months, says don
KUALA LUMPUR: The Malaysian economy
could rebound from the current slowdown
within the next three to six months with
the support of the government and sound
policies.
The head of department, professor of
economics, of the London School of Eco-
nomics and Political Science, Prof Danny
Quah said Deputy Prime Minister Datuk
Seri Najib Abdul Razak has the ability to
take Malaysia into the next stage of its
economic development.
“The government should not be too
obssessed with budget deficits. It is
important to develop policies that can
increase the country’s competitiveness in
order to sustain economic growth and mo-
mentum,” Quah said during a dinner talk
of the London School of Economics and
Political Science (LSE) Alumni Association
of Malaysia last week.
Quah delivered a talk titled Malaysia’s
response to the global economic crisis –
what’s being done right and what’s wrong.
Inspite of the gloomy global economy
outlook, Quah gave a strong message of
assurance. “Dont’ panic. The world has not
come to an end yet. Asia is not expected
to enter into a drastic slowdown although
there is to be expected some contagion
spillover effects of the financial crisis in
the United States,” he said.
He advocated an expansion of fiscal
and a losening of monetary policies in
order to boost economic growth during
this slowdown.
He said China and India will still be the
growth stories of the global economy as
the US grapples with a high budget deficit.
“South East Asia has also shown remark-
able growth after the Asian financial
crisis,” Quah said.
Asia, he said, would play a bigger role
in the global economy. “While Asia has
been able to retain a high savings rate,
US consumers have been spending ag-
gressively, living on credit cards and high
borrowings,,” he said. – Bernama
Bull run over for Singapore’s property sector
SINGAPORE: The Year of the Ox
begins later this month but the bull
run is already over for Singapore’s
property sector, described as the
world’s hottest market just two years
ago.
Prices of private homes fell 5.7%
in the fourth quarter, following a
2.4% drop in the preceding period,
according to the latest data from
the Urban Redevelopment Authority
(URA), the state agency responsible
for land use planning.
The fourth quarter marked the
sharpest drop in home prices in a
decade, the URA said.
“Further contraction is on the
way,” analysts from the Hongkong-
based CLSA brokerage and invest-
ment group said in their outlook for
the property sector. “We continue to
expect the URA index to see an ac-
celerated fall in the next quarter.”
Analysts said the duration of the
current property slump was difficult
to predict but they agreed it will
hinge on when Singapore pulls out
of the recession. – AFP

Malaysia disturbed over

Satyam fiasco
CHENNAI: Malaysia has expressed
concern over Indian computer giant
Satyam’s financial fraud issue, as it
could affect its worldwide opera-
tions, including that in Malaysia.
Satyam Computer Services, a soft-
ware outsourcing firm, has a sizeable
number of workers in Cyberjaya.
“Things are just unfolding, the
company is unsettled and unable to
give a clear picture on its direction
but its current status is definitely an
issue.
“We are concerned of the subse-
quent direction of the company as it
will affect its presence in Malaysia,”
Human Resources Minister Datuk
Dr S. Subramaniam told Malaysian
reporters on the sidelines of the 7th
Pravasi Bharatiya Divas conference
which ended here last Friday.
Satyam, India’s fourth largest
software company, built single-hand-
edly by entrepreneur B. Ramalinga
Raju, plunged into a financial quag-
mire last week, after he confessed
to fudging figures to the tune of
Rs7,000 crores (RM3.5 billion) over
the last five years.
In a dramatic move on Friday
night, Ramalinga and his brother B.
Rama Raju were arrested by police
for the billion dollar scam. It is also the
worst financial scandal to hit India.
“When I get back to Malaysia, I
will discuss with Satyam there to
see whether they have any instruc-
tions on the future direction of the
company,” said Subramaniam.
“But we will definitely take up the
issue seriously to ensure that the
company’s customers in Malaysia
and the welfare of the workforce is
taken into consideration.”
Meanwhile, in Kuala Lumpur,
Satyam Computer Services Ltd on
Saturday received notification from
India’s Company Law Board to ap-
point 10 nominees as directors to
replace its current board.
In view of this decision, a board
meeting originally scheduled for Sat-
urday has been cancelled, Satyam
said. – Bernama

Papa
John’s
Pizza
opens first
outlet
pg 16