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International Business News
Asia leading world out of downturn: Bush
AFP, Seoul
Former US president George W. Bush praised Asian econ omies Wednesday for leading the global economy out of its slump, while warning against a rise in trade protection ism.
"One thing I am certain of is that the Asian economies are leading the world out of the economic duress. That's an amazing statement to make," Bush said in a keynote speech to the World Knowledge Forum in Seoul.
China. South Korea, Singapore, Hong Kong, Taiwan, Japan and Thailand were performing well thanks to clever stimulus policies, he said.
"The Asian economies are going to be a powerful engine for growth for the future,'" Bush said. "I'm optimistic that things are getting better."
But he cautioned against a rise in protectionism.
"In times of economic difficulties... people tend to want to throw up walls and barriers to trade. I'm deeply concerned about protectionism," he said.
"I believe strongly that the best way to not only encourage growth but deal with global poverty is free trade."
Bush repeated his support for US free trade accords with South Korea and Panama, which were both signed under his leadership but have yet to be ratified by Congress.
Malaysia's economy to shrink 3.3pc in 2009: Think tank
AFP, Kuala Lumpur
Malaysia's economy is showing signs of a slow recovery, a leading think tank said Wednesday as it raised its 2009 forecast to a 3.3 percent contraction from 4.2 percent tipped earlier.
However, the Malaysian Institute of Economic Research (MIER) said Southeast Asia's third-largest economy may need a third stimulus package worth 8.0 billion ringgit (2.4 billion dollars) next year to spur the recovery process.
The MIER also upgraded its 2010 growth forecast to a 3.7 percent expansion from 2.8 percent forecast in July, in anticipation of a modest economic recovery worldwide.
"There are glimmer signs that the global downturn has stabilised somewhat, but the recovery is expected to be sluggish and uneven,” the influential institute said in a report.
"Malaysia may not regain more strength until the global economy is back on track, which is going to be at a disappointinglyslowpace,” it added.
South Korea's jobless rate falls to nine-month low
AFP, Seoul
South Korea's unemployment rate fell to its lowest level in nine months in September amid signs its economy is recovering fast, official data showed Wednesday.
The rate was 3.4 percent last month, down from 3.7 percent the previous month, the National Statistical Office said.
The number of employed people surged to 23.8 million in September, up 71,000 from a year earlier, it said.
Asia's fourth-largest economy has rebounded quickly, growing 2.3 percent in the second quarter from three months earlier thanks to the impact of stimulus packages.
But Tine Olsen, an economist with Moody's Economy.com, cautioned there could be some signs of weakness in South Korea's labour market, citing a cut in manufacturing and mining jobs in August and September.
"Lower employment in these industries could reduce workers' willingness to spend and the demand for services," Olsen said in a commentary.
Ford adds 4.5m vehicles to defective switch recall
AP, Detroit
Ford Motor Co said Tuesday it will add 4.5 million older-model vehicles to the long list of those recalled because a defective cruise control switch could cause a fire.
The latest voluntary action pushes Ford's total recall due to faulty switches to 14.3 million registered vehicles over 10 years, capping the company's largest cumulative recall in history involving a single problem.
The recall covers 1.1 million Ford Windstar minivans that had a small risk of fire due to internal leaking from the switches. Ford said in a letter to federal regulators that it found a small number of reported fires linked to ffie problem during an internal investigation that began last year, but did not specify how many.