The Malaysian Insider

SINGAPORE, Nov 21 — Singapore's economy could contract by up to 1 per cent next year as a global slowdown undermines demand for exports, the government said today.

The government expects economic activity of between negative 1 per cent and growth of 2 per cent in 2009, the Trade and Industry Ministry said in a statement. It also cut Singapore's 2008 growth forecast to 2.5 per cent from 3 per cent.

"Singapore's economy is expected to face a broad-based slowdown in 2009," the ministry statement said. "The slowdown in international and regional trade will significantly impact our wholesale trade and the transport and storage sectors. Considerable uncertainty remains as to how deep and long this downturn will last."

LONDON, Nov 21 - Fears of a severe global recession gripped financial markets on Thursday, sending interest rates to record lows and driving down US stock prices to their worst close in more than a decade.

Economic news across the world was almost uniformly bad. US jobless claims soared while slumping Japanese exports threatened to push the economy further into recession and the Swiss central bank unexpectedly slashed interest rates by a full percentage point.

In China, officials warned that the employment outlook was becoming “grim”, as the global financial crisis led to more factory closures in the export sector.

KUALA LUMPUR, Nov 21 — Share prices on Bursa Malaysia were lower in early trading today on lack of buying, reflecting the sharp fall on the Wall Street overnight amid fears about the impact of economic slowdown, dealers said.

"Today's market direction will largely influence by external factors as the US markets again plunged to its lowest level in 11 years and weaker commodity prices," one of the dealers said.

At 9.30am, the benchmark Kuala Lumpur Composite Index fell 10.15 points to 855.17 with finance and plantation-related stocks continuing to be under selling pressure. The key index had opened 8.43 points lower at 856.89 this morning.

PITTSBURGH, Nov 21 - General Electric Co said Thursday it was talking with Asian investment funds about forming global partnerships similar to a joint venture with an Abu Dhabi government investment firm announced earlier this year.

The conglomerate, which makes jet engines, water treatment systems and owns NBC Universal, was discussing possible partnerships with sovereign wealth funds in China and Singapore, said Elma Peters, a GE spokeswoman in Brussels.

The funds include China Investment Corp., Government of Singapore Investment Corp, Temasek Holdings Pte of Singapore and China Safe Investments Ltd, she said.