U.S. Economy: GDP Contracts 1% as Recovery Approaches

The U.S. economy took a first step toward recovering from the worst recession since the 1930s in the second quarter as companies reduced inventories, spending started to climb and profits grew.

Gross domestic product shrank at a 1 percent annual rate from April to June, less than the 1.5 percent decline projected by economists in a Bloomberg News survey, a Commerce Department report showed today in Washington. Corporate earnings rose by the most in four years, the department also said.

Government programs, including the “cash-for-clunkers” and first-time homebuyer incentives, are boosting manufacturing and housing, indicating the gain in sales that began last quarter will be sustained in the second half of the year. Another report showed unemployment may jeopardize the strength of the economic rebound.

“We’re on a pretty decent recovery path,” said Bruce Kasman, chief economist at JPMorgan Chase & Co. in New York. “There was a better mix last quarter with almost every major component of final demand being revised up and inventories being revised down. That puts us in a pretty decent position going into the third quarter.”

Stocks rose, propelled by a late rally in commodities. The Standard & Poor’s 500 Index rose 0.3 percent to close at 1,030.98. Treasury securities fell as stocks climbed, pushing up the yield on the benchmark 10-year note to 3.46 percent at 5:12 p.m. in New York from 3.44 percent late yesterday.

ECONOMIC AND FINANCIAL DEVELOPMENTS IN MALAYSIA IN THE SECOND QUARTER OF 2009

Growth declined at a slower pace in the second quarter

The Malaysian economy contracted at a slower rate of 3.9% in the second quarter of 2009 (1Q 09: -6.2%), due mainly to higher public spending and positive growth in private consumption. Nonetheless, growth continued to be affected by weak external demand and private investment activity. Reflecting continued sluggish global economy, real net exports of goods and services declined by 0.7%. On the supply side, all economic sectors registered improved performance.

Slower pace of contraction in the second quarter

During the quarter, domestic demand registered a slower decline of 2.3% (1Q 09:  -2.9%) following expansion in public sector spending and private consumption. Private consumption recorded a positive growth of 0.5% (1Q 09:

-0.7%), as stabilisation in labour market conditions and lower price levels provided further support to consumer spending. Consumer sentiments improved in the second quarter as reflected by MIER Consumer Sentiments

Index, which increased to 105.8 points from 78.9 points in the previous quarter. Meanwhile, public consumption expanded by 1% due to higher expenditure on supplies and services and emoluments. Gross fixed capital formation contracted by 9.8% (1Q 09: -10.8%) following continued decline in private investment activity, particularly in the manufacturing sector due to prevailing excess capacity amidst weak external demand. Nevertheless,higher public sector spending on development projects in the education, trade and industry as well as agriculture and rural development sectors provided some support to the overall investment activity.

All key sectors of the economy recorded better performance during the quarter. The services sector registered a positive growth of 1.6% (1Q 09: – 0.2%) due mainly to better performance of the finance and insurance sub- sector. The manufacturing sector declined at a slower pace of 14.5% (1Q 09: – 17.9%) following improvements in the export-oriented industries, particularly the E&E industry, as a result of increasing inventory replenishment activity after the massive cut in production and large inventory drawdown undertaken during the first quarter. Growth in the construction sector strengthened to 2.8% (1Q 09: 1.1%) as the industry benefitted from the increased implementation of the stimulus package. Meanwhile, the agriculture sector turned around to grow by 0.3% (1Q 09: -4.3%) supported by continued strong production of food crops and a smaller decline in industrial crops, while growth in the mining sector declined at a moderate pace of 2.6% (1Q 09: -5.2%) due to a smaller contraction in the  output of natural gas and crude oil.

Headline inflation rate, as measured by the change in the Consumer Price Index (CPI), was 1.3% in the second quarter of 2009 (1Q 09: 3.7%). As with the previous quarter, the moderation in inflation was largely explained by lower inflation in the food and non-alcoholic beverages and transport categories. Inflation in the food and non-alcoholic beverages category moderated to 5.3% (1Q 09: 9.2%). Meanwhile, prices in the transport category fell by 8.2% compared to their levels a year ago (1Q 09: -2.1%), reflecting mainly the high base effect of the sharp rise in the price level in June 2008 arising from fuel price adjustments.

In the external sector, the trade surplus narrowed but remained large at RM26.5 billion, as gross imports contracted at a slower pace compared to gross exports. Gross exports registered a sharper contraction of 26.3% (1Q 09: -20.0%) as demand for manufactured products from major trading partners remained weak, while commodity exports contracted significantly by 40.6% (1Q 09: -23.8%) due primarily to lower prices compared with the same period of 2008. Meanwhile, improved manufacturing output and the restocking of inputs for production led to a smaller contraction in imports of intermediate goods, and thus a lower decline of imports of 23.7% (1Q 09: -29.0%).

7 wasiat raja Melayu

Raja Muda Perak, Raja Dr. Nazrin Shah hari ini mengingatkan rakyat khususnya orang Melayu mengenai tujuh wasiat raja-raja Melayu yang menjanjikan kesejahteraan, kedamaian dan keamanan jika mereka bersatu dan berpegang teguh kepadanya.

Wasiat yang disampaikan semasa raja-raja Melayu menurunkan tandatangan persetujuan pembentukan Perlembagaan Persekutuan Tanah Melayu pada 5 Ogos 1957 itu ialah:

• Kami namakan dan kami panggil akan dia, bumi yang kamu pijak dan langit yang kamu junjung Persekutuan Tanah Melayu (sekarang dikenali dengan nama Malaysia).
• Kami isytiharkan dan kami simpan untuk kamu dan kami benarkan kamu isytihar dan simpan untuk anak cucu kamu, selain gunung-ganang, tasik dan hutan simpan, Tanah simpanan Melayu sehingga nisbah 50 peratus, selebihnya kamu rebutlah bersama-sama kaum lain.
• Bagi menjaga kamu dan bagi melindungi anak cucu kami serta harta milik kamu, kami tubuhkan Rejiman Askar Melayu selain untuk membanteras kekacauan dalam negara dan ancaman dari luar negara.
• Kami kekalkan dan kami jamin kerajaan dan kedaulatan raja-raja Melayu memerintah negara ini.
• Kami isytiharkan Islam adalah agama Persekutuan.
• Kami tetapkan bahasa kebangsaan ialah bahasa Melayu.
• Kami amanahkan dan kami pertanggungjawabkan kepada raja-raja Melayu untuk melindungi kedudukan istimewa orang Melayu dan kepentingan sah kaum-kaum lain (kemudian ditambah kedudukan istimewa anak negeri Sabah dan Sarawak).

-Source: Utusan Malaysia-

Jalan Menuju KEMERDEKAAN

Dalam pembantukan dan memerdekakan sesebuah negara, peperangan dan keganasan tidak dapat dielakkan. di negara kita, Malaysia sebelum kemerdekaan banyak berlaku keganasan demi untuk kemerdekaan. Semenjak Melaka dijajah pada 24 ogos 1511, kita tidak dapat lari daripada melakukan penentangan, pemberontakan dan keganasan untuk menghalau penjajah. Tujuannya hanyalah satu, kebebasan / kemerdekaan. Bermulanya campur tangan British di Tanah Melayu sejak 1874, ia telah memberikan pelbagai perubahan sama ada baik atau tidak. Hasil daripada perubahan ini, ia telah menimbulkan kebangkitan di kalangan penduduk supaya menantang British. Ia kemudiannya telah menggalakkan perkembangan semangat kebangsaan dan semangat nasionalisme kepada masyarakat di Tanah Melayu. Jelasnya, dalam membentuk kemerdekaan terdapat dua kaedah yang telah dipraktikkan oleh pemimpin pada zaman tersebut. Peperangan dan perundingan.