14 theSun | MONDAY JANUARY 12 2009

business

Shares prices KL market summary

expected to be INDICES
JANUARY 9, 2009
CHANGE

higher this week FBMEMAS

COMPOSITE
INDUSTRIAL
6018.49
919.07
2127.02
+58.98
+8.55
+9.06
SHARE prices on Bursa Malaysia are likely to CONSUMER PROD 289.42 +0.37
be higher this week ahead of Chinese New Year INDUDTRIAL PROD 69.04 +0.51
CONSTRUCTION 168.14 +0.50
and bolstered by improved consumer sentiment
TRADING/SERVICES 121.02 +1.13
along with a potential upside to commodity FINANCE 7288.43 +83.92
prices, analysts said. PROPERTIES 548.39 +6.74
Jupiter Research Sdn Bhd head of research PLANTATION 4561.01 +19.95
Pong Teng Siew said the local bourse had started MINING 249.25 -2.03
to pick up this week amid mixed signals from the FBMSHA 6224.17 +58.70
United States. FBM2BRD 3981.48 -14.31
TECHNOLOGY 13.46 +0.02
“I think the market will reach around 1,000
points in the second quarter. We expect some TURNOVER VALUE
recovery in the global economy as we approach 415.429mil RM605,934mil
the middle of the year and this will restore some
confidence to the market,” he told Bernama.
He said several foreign houses had stated that recover soon.
commodities would show some recovery after On Friday, the market ended firmer, supported
being badly hit at the end of last year. by gains mostly in Tenaga. The local bourse had
For the week just ended, he said certain started its rally for this year from Jan 2 but tum-
foreign funds had shown support by buying bled on Thursday on expectations of a weaker
heavyweights, particularly plantation stocks, US job data released late Friday. However, it
on expectations that commodities price would recovered some of the losses on Friday.

Boycotting US goods akin

to shooting one’s own foot
by Tim Leonard
newsdesk@thesundaily.com
PETALING JAYA: Local econo-
mists have described calls
to boycott US products to
pressure an end to the Gaza
conflict as similar to shooting
one’s own foot.
Malaysian Institute of
Economic Research executive
director Prof Emeritus Datuk Dr
Mohamed Ariff Abdul Kareem
did not mince his word when
he said the idea was “stupid”
and that politicians and those
promoting it are just “playing to
the gallery”.
Mohamed told theSun al-
though both Malaysia and the
US could be hurt to a certain
extent by a boycott, Malaysia
stood to lose more.
“We should express disgust
and anger over the Gaza conflict
in a different way. Certainly not
through boycotts,” he said.
He said many Malaysians
employed by US companies will
be affected by a boycott.
“It (boycott) is a double-
edged sword … there is bound
to be chain reactions and
ramifications. The timing is also
awkward due to the current
global economic slowdown. It
will also hurt many potential
investors,” he said.
Mohamed said Malaysians
should not “play a fool” on the
economic front by promoting a
boycott but instead, use other
platforms to protest the Israeli
invasion in Gaza.
“I think we are just shooting
ourselves in the foot. This mat-
ter has to be approached in a
proper manner,” he added.
Former prime minister Tun Dr
Mahathir Mohamad had taken
the lead in calling for a boycott
of US products. On Friday, he
led more than 500 people in
condemning the Israeli invasion
of Gaza after Friday prayers and
repeated his calls for a boycott
of US products and currency.
He even urged Malaysians
working with American firms to
quit their jobs.
PAS spiritual leader Datuk
Nik Abdul Aziz Nik Mat also
called on Malaysians to support
a boycott of goods from the US
and stop using the US currency
in business dealings.
Domestic Trade and Con-
sumer Affairs Minister Datuk
Shahrir Samad did not outward-
ly support a boycott but instead
launched a “Buy Malaysia” drive
to spur the domestic economic
growth. His initiative was sup-
ported by MCA president Datuk
Seri Ong Tee Keat.
Tan Sri Ramon Navaratnam,
chairman of the Asian Strategy
and Leadership Institute’s (Asli)
Centre of Public Policy Studies,
described a boycott as counter
productive to the economy.
“I think what the Prime
Minister (Datuk Seri Abdullah
It (boycott) is a
double-edged
sword … there
is bound to be
chain reactions
and ramifications.
The timing is also
awkward due
to the current
global economic
slowdown. It will
also hurt many
potential investors.”
– Prof Emeritus Datuk Dr
Mohamed Ariff Abdul Kareem
Ahmad Badawi) did by writing
to the United Nations to con-
vene a special assembly was
the right thing to do. That’s the
way forward, not boycotts.
“Boycotting US products is
not going to solve the problem
(in Gaza), neither will it have
any effect. Unless the whole
world boycott US products,”
said Ramon.
“We must also remember
the looming recession and it
is at this time that we must
stimulate economic growth,
not stifle it. Our stand must be
more pragmatic,” he said.
Other economists raised
several questions on the logic
of a boycott and its effects on
the local economy.
“Is boycott good or bad in-
ternational economics?” asked
C.K Hiew, an economist with a
local investment bank.
He also questioned the
“non-economist” stand of poli-
ticians and leaders who openly
called for a boycott without
realising the possible backlash
on domestic economy.
“We have to ask ourselves,
will the boycott hurt our
economy and us much more
than it will hurt the US and its
ally Israel. A boycott could be
nobly motivated because we
want to drive a message to the
US to force Israel to ceasefire
and stop killing innocent lives.
But is it practical for us?”
Mariam Abdullah, an
economist with a local research
house, said the practical issue
and the economic viability of a
boycott on US goods might do
more harm than good.
“The US is the world’s
largest economy and they are
our largest trading partner.
Their products are literally
everywhere and we are, to a
certain extent, dependable on
US products.
“How are we going to find
a replacement to some of their
products when we don’t have
much choice or many alterna-
tives,” she said.
“We can perhaps replace
Coca-Cola with teh-tarik or
some other drinks, and L’Oreal
cosmetics with homegrown
brands. But what about other
products like our computer
software, hardware, machiner-
ies and industrial goods that
are only manufactured by
Americans.
“What are the alternatives if
we boycott them?” she added.
While some strongly oppose
a boycott after studying the
matter wisely, not all Malaysians
are on the same wave-length.
Some restaurants have
already stopped selling Coca-
Cola and Pepsi.
SMS messages and emails
are circulating around the
country listing the brands that
should be boycotted.
Some politicians have also
used the opportunity to call for
a week’s closure of restaurants
linked to US and some even
urged Malaysians working with
American companies to quit
their jobs.