April 2018 - MITI

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Exports Continued to Grow at a Robust Pace in April

Malaysia’s exports in April 2018 registered a robust growth of 14% year-on-year (y-o-y) to RM84.24 billion. This is the second highest monthly exports value after the previous months’ exports of RM84.47 billion.

The expansion was supported mainly by higher exports to Hong Kong SAR, ASEAN, China, the European Union (EU), Taiwan, Bangladesh and the Republic of Korea (ROK).

Imports expanded by 9.1% y-o-y to RM71.17 billion. Total trade rebounded by 11.7%

y-o-y to RM155.42 billion from a decline of 3.5% in March. Trade surplus was recorded at RM13.07 billion, the 246th consecutive month of trade surplus since November 1997.

On a month-on-month (m-o-m) basis, imports and total trade grew by 2% and 0.8%, while exports and trade surplus contracted by 0.3% and 11%, respectively.

Total trade for the first four months of 2018 amounted to RM597.3 billion, rose by 4.9%

compared to the same period of 2017.

Exports increased by 7.8% to RM321.87 billion while imports were higher by 1.6% to RM275.43 billion. Trade surplus surged by 68.7% to RM46.44 billion compared to the corresponding period of 2017.

Export Performance of Major Sectors Highest Share of Manufactured Goods Since September 2017

Exports of manufactured goods in April 2018 increased by 16.8% y-o-y or RM10.16 billion to RM70.54 billion, accounting for 83.7%

of Malaysia’s total exports. The expansion was mainly on account of higher exports of electrical and electronic (E&E) products which increased by RM5.57 billion. Other products which contributed to the increase were manufactures of metal, transport equipment, petroleum products, chemicals and chemical products as well as machinery, equipment and parts.

Exports of mining goods grew by 4.2% to RM6.76 billion, constituting 8% of Malaysia’s total exports. The increase was mainly driven by higher exports of crude petroleum.

Exports of agriculture goods which accounted for 7.1% of total exports, contracted by 4.8%

to RM6.01 billion mainly due to lower exports of natural rubber.

Major exports in April 2018:

• E&E products valued at RM31.84 billion, constituting 37.8% of total exports, increased by 21.2% from April 2017;

• Petroleum products, RM6.39 billion, 7.6%

of total exports, increased by 16.7%;

• Manufactures of metal, RM4.71 billion, 5.6% of total exports, increased by 42.8%;

• Chemicals and chemical products, RM4.58 billion, 5.4% of total exports, increased by 17.8%; and

• Palm oil and palm oil based agriculture products, RM4.19 billion, 5% of total exports, decreased by 0.8%.

Compared to March 2018, exports of manufactured goods increased by 1.1%, while mining and agriculture goods declined by 13.1% and 1.7%, respectively.

In the first four months of 2018, exports of manufactured goods expanded by 10.4% to RM266.94 billion compared to the corresponding period of 2017, mainly led by higher exports of E&E products, manufactures of metal, chemicals and chemical products, transport equipment as well as optical and scientific equipment.

Exports of mining goods increased by 0.9% to RM27.93 billion, supported mainly by higher exports of crude petroleum.

Meanwhile, exports of agriculture goods contracted by 8.7% to RM23.83 billion, owing to lower exports of palm oil and palm oil based agriculture products as well as natural rubber.

Performance of Major Markets

Exports Growth Recorded to Almost All ASEAN Markets

Trade with ASEAN in April 2018 rose by

MEDIA RELEASE

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MITI Tower, No. 7, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia Tel: +603 - 8000 8000 Fax: +603 - 6202 9446

11% y-o-y to RM41.39 billion and accounted for 26.6% of Malaysia’s total trade. Exports amounted to RM23.89 billion, an increase of 13.6%, led by increase in exports of transport equipment, petroleum products and E&E products. Among the 9 ASEAN markets, exports to 7 countries recorded increases. Imports from ASEAN expanded by 7.7% to RM17.49 billion.

Breakdown of exports to ASEAN countries in April 2018:

•Singapore RM 10.96 billion, increased by 3.7%•Thailand RM 5.11 billion, ↑32.4%

•Viet Nam RM 2.90 billion, ↑44.2%

•Indonesia RM 2.76 billion, ↑2.1%

•Philippines RM 1.50 billion, ↑13.6%

•Myanmar RM 272.5 million, 4.7%

•Brunei RM 195.1 million, ↑2.7%

•Cambodia RM 189.0 million, 147%

•Lao PDR RM 3.0 million, 45.8%

Exports to Singapore rose by RM386.1 million mainly on the back of increased exports of crude petroleum. Exports to Thailand expanded by RM1.25 billion contributed mainly by transport equipment and E&E products.

On a m-o-m basis, exports grew by 2.6%, while imports and total trade contracted by 8.1% and 2.2%, respectively.

In January-April 2018, trade with ASEAN expanded by 4.3% to RM162.45 billion compared to the same period of 2017. Exports to this region rose by 4.8% to RM91.66 billion contributed mainly by higher exports of E&E products. Imports increased by 3.6% to RM70.79 billion.

Trade with China Rebounded in April

In April 2018, trade with China which absorbed 16.9% of Malaysia’s total trade expanded by 16.1% y-o-y to RM26.26 billion compared to a decline of 12.5% in the previous month. Exports amounted to RM12.4 billion, increased by 22%

led by higher exports of E&E products as well as chemicals and chemical products. Imports from China were up by 11.2% to RM13.86 billion.

Compared to March 2018, exports, imports and total trade were higher by 18.8%, 15.9%

and 17.2%, respectively.

Trade with China in January-April 2018

expanded by 4.2% to RM95.2 billion compared to the same period of 2017. Exports to China increased by 5.9% to RM41.59 billion, attributed to higher exports of E&E products, chemicals and chemical products, optical and scientific equipment as well as manufactures of metal. Imports from China increased by 2.9%

to RM53.61 billion.

EU- Double Digit Growth for Exports, Imports and Total Trade

Malaysia’s trade with the EU in April 2018 increased by 25.1% y-o-y to RM16.15 billion and accounted for 10.4% of Malaysia’s total trade. Exports totalled RM8.93 billion, higher by 19.5% mainly due to increased exports of manufactures of metal as well as E&E products.

Imports grew by 32.8% to RM7.22 billion.

Among the top 10 EU markets, exports to 9 countries registered growth namely, Italy (↑180.3%), Germany (↑19.2%), Spain (↑176.9%), the Netherlands (↑5.1%), Hungary (↑45.8%), the Czech Republic (↑49.7%), France (↑10.6%), Belgium (↑3.1%) and Poland (↑3.6%).

On a m-o-m basis, imports and total trade increased by 3.9% and 0.9%, respectively while exports were lower by 1.5%.

In the first four months of 2018, trade with the EU grew by 14.6% to RM61.84 billion compared to the corresponding period in 2017.

Exports increased by 8.6% to RM33.78 billion, attributed to higher exports of manufactures of metal, E&E products, palm oil and palm oil based agriculture products as well as chemicals and chemical products. Imports from the EU increased by 22.8% to RM28.06 billion.

Exports to the USA Remained Positive

Malaysia’s trade with the United States of America (USA) in April 2018 recorded a growth of 1.2% to RM12.79 billion or 8.2% of Malaysia’s total trade. Exports totalled RM7.49 billion, increasing by 1.7% y-o-y on the back of higher exports of transport equipment, petroleum products as well as optical and scientific equipment. Imports rose marginally by 0.6% to RM5.3 billion.

Compared to March 2018, imports increased by 0.6%, while exports and total trade fell by

↑

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5.5% and 3%, respectively.

In January-April of 2018, trade with the USA amounted to RM50.42 billion, contracting by 6.2% compared to the corresponding period in 2017. Exports to the USA rose by 3.2% to RM29.61 billion on account of higher exports of transport equipment, manufactures of metal, optical and scientific equipment, chemicals and chemical products as well as machinery, equipment and parts. Imports from the USA decreased by 17% to RM20.81 billion.

Lower Exports to Japan

Trade with Japan in April 2018 which constituted 6.8% of Malaysia’s total trade or RM10.6 billion, contracted by 7.6% y-o-y. Exports were lower by 21.4% to RM5.02 billion, owing mainly to lower shipments of liquefied natural gas (LNG), while imports increased by 9.6% to RM5.58 billion.

On a m-o-m basis, exports, imports and total trade contracted by 24.8%, 2.4% and 14.4%, respectively.

During the first four months of 2018, trade with Japan was RM44.98 billion, a decrease of 5.8% from the corresponding period a year ago. Exports to Japan amounted to RM24.27 billion, reduced by 9.5% on account of lower exports of LNG and E&E products. Imports from Japan declined by 1% to RM20.71 billion.

Trade with FTA Partners

In April 2018, trade with Free Trade Agreement (FTA) partners rose by 8.1% y-o-y to RM95.12 billion and accounted for 61.2% of Malaysia’s total trade. Exports to FTA partners amounted to RM50.77 billion, increased by 8.4% and imports expanded by 7.8% to RM44.35 billion.

Higher exports were registered to the ROK, growing by 10% to RM2.33 billion, attributed mainly to higher exports of E&E products, Pakistan (↑53.3% to RM567.4 million, palm oil and palm oil based agriculture products), New Zealand (↑44.5% to RM527.8 million, crude petroleum) and India (↑4.9% to RM3 billion, crude petroleum).

Compared to March 2018, imports grew by

0.1%, while exports and total trade declined by 0.8% and 0.4%, respectively.

During January-April of 2018, total trade with FTA partners increased by 2.7% to RM370.62 billion and accounted for 62% of Malaysia’s total trade. Exports amounted to RM196.29 billion, an increase of 3.3% and imports totalled RM174.33 billion, expanding by 2%.

Other Markets Registering Higher Exports In April 2018, other markets with significant growth in exports were Hong Kong SAR, Taiwan and Bangladesh. Exports to Hong Kong SAR expanded by 113.8% y-o-y to RM6.4 billion, supported mainly by higher exports of E&E products, Taiwan (↑70.4% to RM2.89 billion, E&E products) and Bangladesh (↑157.1% to RM858.1 million, petroleum products).

Import Performance

In April 2018, imports increased by 9.1% y-o-y to RM71.17 billion. The three main categories of imports by end use were:

• Intermediate goods, valued at RM33.82 billion or 47.5% of total imports, decreased by 11.9%, following lower imports of parts and accessories of capital goods (except transport equipment) primarily electrical machinery, equipment and parts;

• Capital goods, valued at RM8.39 billion or 11.8%

of total imports, rose by 4.8%, due mainly to higher imports of industrial transport equipment, particularly aircraft and parts; and

• Consumption goods, valued at RM5.57 billion or 7.8% of total imports, decreased by 1.8%, as a result of lower imports of semi-durables goods mainly articles of plastics.

During the first four months of 2018, imports amounted to RM275.43 billion, grew by 1.6% from the corresponding period of 2017. Intermediate goods totalled RM141.18billion, decreasing by 10.8%, capital goods (RM34.88 billion, ↓9.3%) and consumption goods (RM22.36 billion,

↑1.3%).

Ministry of International Trade and Industry 5 June 2018

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Source: Department of Statistics, Malaysia

Trade Performance , January - April 2018

Malaysia

Jan-Apr 2018 RM597.3 billion

Jan-Apr 2017 RM569.6billion

Total Trade

4.9%

Jan-Apr 2018 RM321.9 billion

Jan-Apr 2017 RM298.6 billion 7.8%

Jan-Apr 2018 RM275.4 billion

Jan-Apr 2017 RM271.0 billion

Imports

1.6%

Jan-Apr 2018 RM46.4 billion

Jan-Apr 2017 RM27.5 billion

Trade Balance

68.7%

Exports

Malaysia's Top Five Trading Partners in the First Four Months 2018

4

3

2

1

5 PRC

Total Trade

Jan - Apr 2018:RM95.2 bil.

Jan - Apr 2017:RM91.4 bil. 4.2%

Growth

Singapore

USA Japan

Thailand

8.6%

6.2%

5.8%

5.5%

Jan - Apr 2018:RM76.0 bil.

Jan - Apr 2017:RM70.0bil.

Jan - Apr 2018:RM50.4 bil.

Jan - Apr 2017:RM53.8 bil.

Jan - Apr 2018:RM45.0 bil.

Jan - Apr 2017:RM47.7 bil.

Jan - Apr 2018:RM34.1 bil.

Jan - Apr 2017:RM32.3 bil.

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Export by Sector, January - April 2018

Import by Sector, January - April 2018

Agriculture Goods 7.4%^#

RM23.8b

Agriculture Goods 5.3%^#

RM14.5 b

Manufactured Goods 82.9%^# RM266.9b

Manufactured Goods 87.0%^# RM239.7b Mining Goods

8.7%^# RM27.9b

Mining Goods 5.6%^# RM15.4b Others

1.0%^# RM3.2b

Others 2.1%^# RM5.8b

Palm Oil & Palm-Based Agriculture Products RM16.6 billion

Natural Rubber RM1.3 billion

Sawn Timber & Moulding RM1.5 billion E&E Products

RM120.0 billion Petroleum Products

RM23.8 billion

Manufactures of Metal RM14.9 billion

LNG

RM12.8 billion Crude Petroleum RM11.4 billion

Metalliferous Ores &

Metal Scrap RM2.3 billion

Source: Department of Statistics, Malaysia Note: ^# Share to total exports/imports of sector

Natural Rubber RM2.1 billion

Palm Oil & Palm-Based Agriculture Products RM1.1 billion Seafood, Fresh, Chilled or Frozen RM1.0 billion E&E Products

RM82.1 billion Petroleum Products RM26.3 billion Chemicals & chemical

products RM25.4 billion

Crude Petroleum RM5.9 billion

Metalliferous Ores & Metal Scrap RM4.1 billion

LNG

RM0.5 billion Manufactured Goods Mining Goods Agriculture Goods

Manufactured Goods Agriculture Goods Mining Goods

Source: Department of Statistics, Malaysia

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6 International Report

Malaysia Netherlands ^Indonesia ^Germany ^Sweden Malaysia was the largest Exporter for

Vegetable Fats and Oils and their Fractions, Partly or Wholly Hydrogenated* in 2017

Malaysia's Top Five Destinations for

Vegetable Fats and Oils and their Fractions, **Partly or Wholly Hydrogenated* in 2017**

Netherlands USD 0.2 Billion

NOTE:

% - Share in world exports

NOTE:

% - Share in world exports * Refers to HS 151620

Source : http://www.trademap.org/Index.aspx

US$ 1.9 Billion 49.1%

US$ 0.3 Billion

8.7%

US$ 0.3 Billion

8.1%

US$ 0.2 Billion

5.2%

US$ 0.1 Billion

2.8%

US$431.0 million

22.4%

China

US$209.7 million

10.9%

USA US$138.9

million

7.2%

Netherlands

US$84.1 million

4.4%

Japan

US$137.2 million

7.1%

Turkey

1 ² ³ ⁴ ⁵

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Note: *Provisional Data Source: Ministry of International Trade and Industry, Malaysia

0 20 40 60 80 100 120 140 160 180

0 5 10 15 20 25 30 35 40

11 Mar 18 mar 25 Mar 1 Apr 8 Apr 15 Apr 22 Apr 29 Apr 6 May 13 May 20 May 27 May No. of Certificate of Origin

RM mil.

Generalised System of Preferences (GSP)

Total FOB (RM mil.) Total CO

Note: The preference giving countries under the GSP scheme are Liechtenstein, the Russian Federation, Japan, Switzerland, Belarus, Kazakhstan and Norway.

Number and Value of Preferential Certificates of Origin (PCOs)

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

RM mil.

ASEAN Trade in Goods Agreement (ATIGA)

0 500 1,000 1,500 2,000 2,500 3,000

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

RM mil.

ASEAN-China Free Trade Agreement (ACFTA)

0 200 400 600 800 1,000 1,200 1,400 1,600

0 500 1,000 1,500 2,000 2,500

RM mil.

ASEAN-Korea Free Trade Agreement (AKFTA)

0 50 100 150 200 250 300

0 20 40 60 80 100 120 140 160

RM mil.

ASEAN-Japan Comprehensive Economic Partnership (AJCEP)

0 100 200 300 400 500 600 700 800 900 1,000

0 50 100 150 200 250

RM mil.

ASEAN-India Free Trade Agreement (AIFTA)

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

0 20 40 60 80 100 120 140

RM mil.

ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)

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8 Number and Value of Preferential Certificates of Origin (PCOs)

0 200 400 600 800 1,000 1,200

0 50 100 150 200 250 300 350 400 450 500

RM mil.

Malaysia-Japan Economic Partnership (MJEPA)

0 50 100 150 200 250

0 20 40 60 80 100 120 140

RM mil.

Malaysia-Pakistan Closer Economic Partnership (MPCEPA)

0 2 4 6 8 10 12 14 16

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35

RM mil.

Malaysia-New Zealand Free Trade Agreement (MNZFTA)

0 20 40 60 80 100 120

0 10 20 30 40 50 60 70

RM mil.

Malaysia-Chile Free Trade Agreement (MCFTA)

0 100 200 300 400 500 600

0 10 20 30 40 50 60 70 80

RM mil.

Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA)

0 100 200 300 400 500 600

0 20 40 60 80 100 120 140

RM mil.

Malaysia-Australia Free Trade Agreement (MAFTA)

0 50 100 150 200 250 300 350 400

0 50 100 150 200 250

RM mil.

Malaysia-Turkey Free Trade Agreement (MTFTA)

Note: *Provisional Data Source: Ministry of International Trade and Industry, Malaysia

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Source : Bank Negara Malaysia

Malaysian Ringgit Exchange Rate with Selected Countries, January 2017 - May 2018

US Dollar

Chinese Yuan

Thai Baht

Japanese Yen

Singapore Dollar

New Taiwan Dollar

4.4596

3.8862 3.9644

3.50 3.60 3.70 3.80 3.90 4.00 4.10 4.20 4.30 4.40 4.50 4.60

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

2017 2018

RM

USD 1 = RM

0.6466 0.6468

0.6150

0.6221

0.59 0.60 0.61 0.62 0.63 0.64 0.65

2017 2018

RM

CNY 1 = RM

12.5766

12.8790

12.3963

12.4068

12.10 12.20 12.30 12.40 12.50 12.60 12.70 12.80 12.90 13.00

2017 2018

RM

THB 100 = RM

3.8818

4.0057

3.5615

3.6127

3.30 3.40 3.50 3.60 3.70 3.80 3.90 4.00 4.10

2017 2018

RM

JPY 100 = RM

3.1214 3.1583

2.9555 2.9622

2.85 2.90 2.95 3.00 3.05 3.10 3.15 3.20

2017 2018

RM

SGD 1 = RM

14.0734

14.5092

13.2323 13.2733

12.50 13.00 13.50 14.00 14.50 15.00

2017 2018

RM

TWD 100 = RM

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MITI Tower, No. 7, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia Tel: +603 - 8000 8000 Fax: +603 - 6202 9446 Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Iron and Steel Industry Federation, and Bloomberg.

Commodity Prices

Notes: All figures have been rounded to the nearest decimal point * Refer to % change from the previous week’s price i Average price in the year except otherwise indicated

CRUDE PETROLEUM (BRENT) -per bbl-

1 June 2018 : US$76.8, 0.5%*

Average Price

ⁱ

: 2017: US$55.0 2016: US$45.3 CRUDE PALM OIL

-per MT-

1 June 2018 : US$666.5, 0.5%*

Average Price

ⁱ

: 2017: US$719.7 2016: US$702.2

RUBBER SMR 20 -per MT-

1 June 2018 : US$1,424.5, 2.2%*

Average Price

ⁱ

: 2017: US$1,646.6 2016: US$1,394.5

COAL -per MT- 1 June 2018 : US$61.2, 2.7%*

Average Price

ⁱ

: 2017: US$57.2 2016: US$45.6 COCOA SMC 2

-per MT-

1 June 2018 : US$1,644.3, 5.7%*

Average Price

ⁱ

: 2017: US$1,439.0 2016: US$1,609.8

SCRAP IRON HMS -per MT-

1 June 2018 :US$350.0

^(high)

, unchanged*

US$340.0

^low)

, unchanged*

Average Price

ⁱ

: 2017: US$314.5 2016: US$243.2

HIGHEST and LOWEST 2017/2018

Highest

18 May 2018 : US$78.5 29 Dec 2017 : US$66.9

Lowest

9 Feb 2018 : US$62.8 23 June 2017 : US$45.5

Crude Petroleum

(Brent) -per bbl-

Highest

9 Mar 2018 : US$691.5 20 Jan 2017 : US$843.0

Lowest

30 June 2017 : US$650.0 11 May 2018 : US$641.5

Crude Palm Oil -per MT-

Domestic Prices 1 June 2018

Steel Bars

(per MT)

RM2,350 – RM2,500

Billets

(per MT) RM2,050 – RM2,300

SUGAR -per lbs-

1 June 2018 : US¢12.5, 0.5%*

Average Price

ⁱ

: 2017: US¢15.8

2016: US¢18.2

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Commodity Price Trends

Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Pepper Board, Bloomberg and Czarnikow Group, World Bank, World Gold Council, The Wall Street Journal.

673.5 676.0 677.0 675.8 674.5

665.5

654.0

641.7 641.5 655.0

663.0 666.5

620 630 640 650 660 670 680

16 Mar 23 Mar 29 Mar 6 Apr 13 Apr 20 Apr 27 Apr 4 May 11 May 18 May 25 May 1 June

US$/mt

Crude Palm Oil

1,720.2

1,699.51,719.2 1,672.5 1,662.6

1,849.9

1,888.01,918.9 1,915.5

1,785.3 1,744.3

1,644.3

1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000

US$/mt

Cocoa

12.7 12.6

12.4 12.3 12.2

11.9

11.5 11.5

11.2 11.7

12.5 12.5

10.0 10.5 11.0 11.5 12.0 12.5 13.0

US¢/lbs

Sugar

1,463.0

1,361.5 1,384.5

1,353.0 1,398.5

1,425.5

1,388.5

1,438.5 1,435.51,431.5 1,457.0

1,424.5

1,280 1,300 1,320 1,340 1,360 1,380 1,400 1,420 1,440 1,460 1,480

US$/mt

Rubber SMR 20

6,900 7,088 7,113 7,281 6,917 6,851 6,730 6,337 6,085 5,965 4,516 3,984 4,366 4,605 4,170 4,474 4,463 3,974 2,950 3,476 4,114

2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500

JanFebMar Apr May JunJulAug Sep OctNov DecJanFebMar Apr May JunJulAug Sep

2016 2017

USD/ tonne

Black Pepper

62.3

65.9 64.9

62.1

67.4 67.4 68.1

69.7 70.7 71.3 67.9

65.8 66.2

70.5 70.3

67.1 72.6

74.1 74.6 74.9 77.1

78.5

76.4 76.8

50 55 60 65 70 75 80

US$/bbl

Crude Petroleum

Crude Petroleum (WTI)/bbl Crude Petroleum (Brent)/bbl

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MITI Tower, No. 7, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia Tel: +603 - 8000 8000 Fax: +603 - 6202 9446 Sources: Ministry of International Trade and Industry Malaysia, , Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group,

World Bank, World Gold Council, The Wall Street Journal.

63.4 63.0

60.8

59.2 59.2 58.9

56.6 56.6 56.6 58.3

59.6 61.2

52.0 54.0 56.0 58.0 60.0 62.0 64.0

US$/t

Coal

1,791 1,861 1,901 1,921 1,913 1,885 1,903 2,030 2,096 2,131 2,097 2,080 2,210 2,182 2,069 2,255

1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300

JanFebMar Apr May Jun Jul Aug Sep OctNov DecJanFebMar Apr

2017 2018

US$/ tonne

Aluminium

5,755 5,941 5,825 5,684 5,600 5,720 5,985 6,486 6,577 6,808 6,827 6,834 7,066 7,007 6,799 6,852

4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500

JanFebMar Apr May Jun JulAug Sep OctNov DecJanFebMar Apr

2017 2018

US$/ tonne

Copper

9,971 10,643 10,205 9,609 9,155 8,932 9,491 10,890 11,216 11,336 11,972 11,495 12,865 13,596 13,393 13,938

7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000

JanFebMar Apr May Jun Jul Aug Sep OctNov DecJanFebMar Apr

2017 2018

US$/ tonne

Nickel

Commodity Price Trends

410.0 410.0 410.0 400.0

380.0 380.0

350.0 350.0 350.0 350.0 350.0 350.0 395.0 395.0 395.0

385.0

350.0 340.0

330.0 330.0 330.0 330.0 340.0 340.0

300 320 340 360 380 400 420

US$/mt

Scrap Iron

Scrap Iron/MT (High) Scrap Iron/MT(Low)

80.41 89.44 87.65 70.22 62.43 57.48 67.74 76.07 71.53 61.66 64.24 72.25 76.34 77.46 70.35 65.75

30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Jan FebMar Apr May Jun Jul Aug Sep OctNov DecJan FebMar Apr

2017 2018

US$/dmtu

Iron Ore

42.1 43.3

42.6 42.7 43.1

43.4

42.5 42.3 42.4

41.5 41.9 42.0

40.5 41.0 41.5 42.0 42.5 43.0 43.5 44.0

US$/oz

Gold

16.5 16.7

16.3 16.5 16.5

17.2

16.6 16.5

16.8

16.5 16.6 16.5

15.8 16.0 16.2 16.4 16.6 16.8 17.0 17.2 17.4

US$/oz

Silver

954.0 960.0

939.0

913.0 929

936.0

914.0 904.0

929.0

888.0 912.0

906.0

840.0 860.0 880.0 900.0 920.0 940.0 960.0 980.0

US$/oz

Platinum

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Commodity t

Y.Bhg Datuk Seri J. Jayasiri

Secretary General of Ministry of International and Industry

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14

MITI Tower, No. 7, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia Tel: +603 - 8000 8000 Fax: +603 - 6202 9446 Source: http://www.miti.gov.my/index.php/glossary

of Technical Terms

International Payment Methods

Cash in Advance:

• Time of Payment : Before Shipment

• Goods Available to Buyer : After Payment Open Account:

• Time of Payment : As agreed; e.g.: 30 days

• Goods Available to Buyer : Before Payment

Letters of Credit (L/Cs) are legal instruments issued by banks (on behalf of their customers) with the conditional obligation to make payment to the beneficiary of the L/C:

• Documentary (Trade) Letters of Credit are used to facilitate payments in import and export transactions

• Standby Letters of Credit are “standing by” for an event of default or non-performance before they can be drawn on.

Invisible trade

Exports and imports of things you cannot touch or see: services, such as banking or advertising and other intangibles, such as copyrights. Invisible trade accounts for a growing slice of the value of world trade.

IoT

Internet of Things - System of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers and the ability to transfer data over a network without requiring human-to- human or human-to-computer interaction.

IPI

Industrial Production Index - The industrial production index measures the change in output in Malaysian manufacturing, mining, construction, and electricity, gas and water. Output refers to the physical quantity of goods produced, unlike sales value, which combines quantity and price. The index covers the production of goods and power for domestic sales in Malaysia and for export. It excludes production in the agriculture, transportation, communications, trade, finance, and service industries, government, and imports.

ITA

Information Technology Agreement - Tariff liberalization arrangement negotiated in the WTO on elimination of import duties on IT products.

J-curve

The shape of the trend of a country’s trade balance following a devaluation. A lower exchange rate initially means cheaper exports and more expensive imports, making the current account worse (a bigger deficit or smaller surplus). After a while, though, the volume of exports will start to rise because of their lower price to foreign buyers, and domestic consumers will buy fewer of the costlier imports. Eventually, the trade balance will improve on what it was before the devaluation. If there is a currency appreciation there may be an inverted J-curve.

JPC 3

Jawatankuasa Pengecualian Cukai Besi Keluli - A committee chaired by MITI and representatives from MOF, MIDA and Customs that evaluates and determines import duty exemption applications for raw materials of iron and steel products.

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Announcement

Tentative Schedule for MITI Pocket Talk 2018

No. Date Venue Topic

1 6-Jun MITI HQ • Introduction Preferential Certificate of Origin (PCO)

• Updates on RCEP

2 18-Jul MITI Kelantan • Introduction to FTA & Preferential Certificate of Origin (PCO)

3 8-Aug MITI HQ • Introduction Preferential Certificate of Origin (PCO)

• Updates on RCEP

4 15-Aug MITI Perak • Introduction to FTA & Preferential Certificate of Origin (PCO)

5 19-Sep MITI Pahang • Introduction to FTA & Preferential Certificate of Origin (PCO)

6 17-Oct MITI HQ • Introduction to FTA & Preferential Certificate of Origin (PCO)

7 14-Nov MITI Sabah • Introduction to FTA & Preferential Certificate of Origin (PCO)

8 5-Dec MITI HQ • Introduction to FTA & Preferential Certificate of Origin (PCO)

9 12-Dec MITI Sarawak • Introduction to FTA & Preferential Certificate of Origin (PCO)

Please click here to register

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16 Announcement

Withholding Tax

For more information on Withholding Tax, please visit LHDN’s website via this link:

http://www.hasil.gov.my/bt_goindex.php?bt_kump=2&bt_skum=6&bt_posi=1&bt_unit=5&bt_sequ=1&bt_lgv=2

Industry 4.0

For more information on Industry 4.0, please visit MITI’s website via this link:

http://www.miti.gov.my/index.php/pages/view/industry4.0?mid=559

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

For more information on Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) please visit MITI’s website via this link: http://fta.miti.gov.my/index.php/pages/view/71?mid=40

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MITI Weekly Bulletin (MWB) Mobile Apps

MITI MWB APPs is now available for IOS, Android and Windows platforms.

MWB APPs can be download from Gallery of Malaysian Government Mobile APPs (GAMMA) at the link: http://gamma.malaysia.gov.my/#/

appDetails/85

MWB Facebook Page

Like MWB page at

https://www.facebook.com/MITIWeeklyBulletin/?fref=ts

Dear Readers,

Kindly click the link below for any comments in this issue. MWB reserves the right to edit and republish letters as reprints. http://www.miti.gov.my/index.php/forms/form/13

miti @ YOUR SERVICE

Name : Yusri Md Yusop

Designation : Driver

MITI Singapore Contact No : (+65) 6222 0126

April 2018 - MITI

MEDIA RELEASE

2

4

Trade Performance , January - April 2018

Malaysia

Jan-Apr 2018 RM597.3 billion

Jan-Apr 2017 RM569.6billion

4.9%

Jan-Apr 2018 RM321.9 billion

Jan-Apr 2017 RM298.6 billion 7.8%

Jan-Apr 2018 RM275.4 billion

Jan-Apr 2017 RM271.0 billion

1.6%

Jan-Apr 2018 RM46.4 billion

Jan-Apr 2017 RM27.5 billion

68.7%

Malaysia's Top Five Trading Partners in the First Four Months 2018

4

3

2

1

5

PRC

Total Trade

Jan - Apr 2018:RM95.2 bil.

Jan - Apr 2017:RM91.4 bil. 4.2%

Growth

Singapore

USA Japan

Thailand

8.6%

6.2%

5.8%

5.5%

Jan - Apr 2018:RM76.0 bil.

Jan - Apr 2017:RM70.0bil.

Jan - Apr 2018:RM50.4 bil.

Jan - Apr 2017:RM53.8 bil.

Jan - Apr 2018:RM45.0 bil.

Jan - Apr 2017:RM47.7 bil.

Jan - Apr 2018:RM34.1 bil.

Jan - Apr 2017:RM32.3 bil.

Export by Sector, January - April 2018

Import by Sector, January - April 2018

6

International Report

Malaysia Netherlands Indonesia Germany Sweden Malaysia was the largest Exporter for

Vegetable Fats and Oils and their Fractions, Partly or Wholly Hydrogenated* in 2017

Malaysia's Top Five Destinations for

Vegetable Fats and Oils and their Fractions, Partly or Wholly Hydrogenated* in 2017

Netherlands USD 0.2 Billion

US$ 1.9 Billion 49.1%

US$ 0.3 Billion

8.7%

US$ 0.3 Billion

8.1%

US$ 0.2 Billion

5.2%

US$ 0.1 Billion

2.8%

US$431.0 million

22.4%

China

US$209.7 million

10.9%

USA US$138.9

million

7.2%

Netherlands

US$84.1 million

4.4%

Japan

US$137.2 million

7.1%

Turkey

1 2 3 4 5

Number and Value of Preferential Certificates of Origin (PCOs)

8

Number and Value of Preferential Certificates of Origin (PCOs)

Malaysia Netherlands ^Indonesia ^Germany ^Sweden Malaysia was the largest Exporter for

Vegetable Fats and Oils and their Fractions, **Partly or Wholly Hydrogenated* in 2017**

1 ² ³ ⁴ ⁵