theSun | WEDNESDAY MARCH 18 2009 œ 15

business

China cements
place as top
creditor to US
WASHINGTON: China consoli-
dated its position as the top creditor
to the United States, with US$739.6
billion (RM2.736 trillion) in US
Treasury bond holdings as of late
January, US government data
showed.
The US Treasury Department
released the monthly figure at a
sensitive time, less than a week
after Chinese Premier Wen Jiabao
expressed concern about the fate
of Chinese investments in the US.
It marked growth from US$727.4
billion of Chinese-held Treasury
bonds at the end of December and
was up from the US$492.6 billion
(RM1.822 trillion) China held in
January last year, according to the
Treasury statistics.
While that year-on-year figure
represents a sharp increase, much
of it was down to big rises in Sep-
tember and October.
China has been the biggest
holder of US Treasury bonds since
September last year, when it over-
took Japan for the first time ever,
according to US data.
However, it issued its most
high-level note of alarm yet last
Friday when Wen admitted to be-
ing worried about China’s massive
investments in US debt.
SIA
celebrates
“We have lent huge amounts
of money to the United States. Of millionth
course we are concerned about the A380
safety of our assets,” he told a press passenger
conference here.
US President Barack Obama pg 16
later responded with an assurance
that “not just the Chinese govern-
ment, but every investor can have
absolute confidence in the sound-
ness of investments in the United
States”.
Lawrence Summers, director
of the White House’s National
Economic Council, denied Sunday
that US Treasury bonds might lose
their “AAA” rating from credit
agencies because of the economic
crisis.
Japan remained the second-
largest holder of US debt at the end
of January, with US$634.8 billion
(RM2.348 trillion), up from US$626
billion at the end of December, the
Treasury statistics showed.
US Treasury bonds are a
preferred investment vehicle for
China’s government as it seeks
safe and reliable ways to place its
nearly US$2 trillion (RM7.4 tril-
lion) of foreign exchange reserves.
– AFP

Singapore key exports plunge 24% in February

SINGAPORE: Singapore’s key exports
plunged 24% in February, in a further
sign the city-state is headed for its
worst-ever recession amid plummet-
ing global demand for its products.
It was the 10th straight month
of decline in key non-oil domestic
exports, following a record 35% drop
in January, according to government
figures released yesterday.
February’s fall was roughly in line
with the average 23.6% fall tipped
by analysts in a Dow Jones News-
wires poll.
On a seasonally adjusted
month-on-month basis, however,
exports grew 1.8% from January, the
International Enterprise Singapore (IE
Singapore) trade promotion agency
said.
Total trade in February fell 22.1%
to almost S$54 billion (RM129.6 bil-
lion) as shipments to the city-state’s
top 10 markets, except China, were
down, according to the monthly
data.
Demand from the recession-hit
US shrank the most as shipments
fell 44.4% to S$1.03 billion (RM2.472
billion), following a 50% decline in
January.
Shipments to the European Union
skidded 36.7% to S$1.4 billion, while
exports to Japan plummeted 38.9%
to S$581 million, IE Singapore said.
Last month’s non-oil export figures
were pulled down by continued weak
demand for electronics, pharmaceu-
ticals and petrochemicals, the main
staple of Singapore’s exports.
Overall electronics exports
dropped 31.9% to S$3.5 billion, phar-
maceuticals fell 23.4% to S$1.3 billion
while petrochemicals declined 42.6%
to S$562 million, IE Singapore said.
The NODX data is a closely
watched barometer for the Singa-
pore economy, which is extremely
dependent on external trade.
Analysts said the latest trade data
did not bode well for the city-state in
the next few months. – AFP

SIA reports drop in Economic growth in China is expected

passengers, cargo
SINGAPORE: Singapore Airlines (SIA) yesterday
reported a large drop in passenger numbers and
cargo shipments as the worldwide economic
slump further hit global aviation.
The airline, seen as a bellwether for the
industry, said it carried 1.18 million passengers
in February, down 20.2% from the same month
last year.
The carrier said it filled 69.7% of available
passenger seats during the month, down 7.1
percentage points from a year earlier.
Cargo volumes slipped 16.9% and the airline
filled 56.7% of available freight space, down 5.5
percentage points from last year.
Europe registered the biggest decline in the
passenger and cargo markets for SIA, according
to the airline.
“The prevailing global economic crisis has
significantly dampened travel demand, translat-
ing to weaker uplifts,” the airline said. – AFP
Rio Tinto pins recovery hopes
on China
MELBOURNE: Mining giant Rio Tinto yester-
day predicted the global economy would
remain difficult for two years, pinning hopes
for an upturn on China, which it said may
surprise markets with the strength of its
recovery.
to slow further in 2009 before investment
starts to gain strength in the second half of
the year, the Anglo-Australian firm said in its
annual report, released yesterday.
Company executives also stressed the
importance of a proposed US$19.5 billion
(RM72.15 billion) deal with China’s Chinalco
– Beijing’s largest ever foreign investment.
Chief executive Tom Albanese said de-
mand for Rio’s products collapsed in the final
quarter of 2008 as China’s economy slowed
more rapidly than expected
“However, we hope to see some recovery
in China’s gross domestic product in the
second half of this year,” he said.
Underlining China’s importance to Rio,
Albanese said: “All projects and near-term
capital expenditure will be continuously
reassessed in light of demand from China,
the prevailing outlook for commodity prices
and the falling costs of construction.” – AFP
Asian bull run continues
despite exports warning
TOKYO: Asia’s stock market rally accelerated
yesterday, with Tokyo leaping 3.18%, but a sharp
fall in exports from Singapore underlined the se-
vere problems facing the region’s economies.
Japan’s Nikkei-225 led the charge with its
third straight day of gains while Sydney grew
3.1% and Seoul rose 3.4%. Hongkong was up
0.57% in the afternoon session.
Share prices, especially in financials, contin-
ued to climb despite slight falls on Wall Street,
where a late sell-off ended a four-day rebound
based on cautious hopes of a recovery.
“Whether this is all a bounce in a bear market
or a real move up from the bottom remains to
be seen,” said Bob Dickey, a technical analyst at
RBC Wealth Management in New York. – AFP
Nokia to cut another 1,700
jobs worldwide
HELSINKl: Nokia, the world’s leading mobile
phone maker, said yesterday it planned to
cut another 1,700 jobs worldwide as part of
cost-cutting measures.
“Altogether these plans will affect ap-
proximately 1,700 employees globally. Where
applicable, Nokia will start consultations
with employee representatives about these
plans,” the company said in a statement.
The new lay-offs would affect people
working at the company’s device and
markets units, as well as at its corporate
development and global support divisions,
it added.
Nokia’s head of communications, Arja
Suominen, told AFP the new job cuts were
part of previously announced plans to slash
costs by around €700 million (RM3.36 bil-
lion) or more over the next couple of years.
– AFP