BULLETIN - MITI

(1)

VOLUME 599 VOLUME 599

MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY

Weekly

BULLETIN BULLETIN

18 August 2020 | NO. ISSN : 2180-0448

Manufacturing

Civil engineering

Residential buildings

Mining &

Quarrying

Construction Agriculture

Wholesale and retail trade Transportation and storage Food & beverage and accommodation

Oil palm Other agriculture

Livestock Non-metalic mineral products,

basic metal and fabricated metal products Petroleum,chemical,rubber and plastic products

Natural gas Crude oil and condensate

Services

MALAYSIA ECONOMIC PERFORMANCE SECOND QUARTER 2020

Malaysia's economy contracted 17.1 per cent in Q2 2020.The performance for this quarter was the lowest recorded since the fourth quarter of 1998 (-11.2%).

On the production side, all main sectors in the economy recorded a decrease in this quarter with the exception of the Agriculture sector.

On the expenditure side, sharp decline was recorded for all components except for Government final consumption expenditure.

Production

Expenditure

Source: Department of Statistics, Malaysia

Note: Exclude import duties Civil Engineering

Residential buildings

Transport Recreation services and culture

Restaurants and hotels

Structure Machinery and equipment

Other asset

Spending on supplies

and services Goods

and services

GDP at constant 2015 prices Growth rate

Per cent (%) RM billion

341.6 349.2 360.5 370.1 344.1 289.6

(2)

MITI Weekly Bulletin | www.miti.gov.my

Agriculture mining & quarrying Manufacturing Construction Services

Malaysia Statistics

GDP by kind of economic activity growth (year-on-year,%)

Source: Department of Statistics, Malaysia

GDP - Value Added and Annual Growth Rate

Constant Prices Annual Percentage Change at Constant Prices

2017 2018 2019 2020

GDP Growth (year-on-year,%)

-10.2 -11.2 (Q494)

-17.1

Agriculture Mining & quarrying Manufacturing Construction Services

(3)

Malaysia Statistics

BALANCE OF PAYMENTS, SECOND QUARTER 2020

Malaysia's current account balance recorded a surplus of RM7.6 billion as against RM9.5 billion in Q1 2020.

Current Account

Current Account by Components

GOODS

Surplus RM25.9b

(Q1-20: Surplus RM28.9b)

SERVICES Deficit RM12.5b

(Q1-20: Deficit RM8.0b)

PRIMARY INCOME Surplus RM4.0 b

(Q1-20: Surplus RM6.0b)

SECONDARY INCOME Deficit RM1.9 b

(Q1-20: Deficit RM5.4b)

Trade in Services by Components

Components Exports Imports Total Trade

Manufacturing services on physical

inputs owned by others 2,864 110 2,974

Transport 2,883 9,230 12,113

Travel 40 3,119 3,159

Construction 631 680 1,311

Telecommunications, computer and

information services 3,310 4,208 7,518

Personal, cultural and recreational

Services 529 598 1,127

Others 8,186 12,962 21,148

TOTAL 18,442 30,907 49,348

RM Million

Note: Others include Financial services, Insurance and pension services, Charges for the use of intellectual property n.i.e., Government goods and services n.i.e., Maintenance and repair services n.i.e., and Other business services.

(4)

Malaysia Statistics

Source: Department of Statistics, Malaysia

^Financial Account by Components

BALANCE OF PAYMENTS, SECOND QUARTER 2020

DIRECT INVESTMENT Net outflow RM1.2b

(Q1-20: Net inflow RM3.4b) PORTFOLIO INVESTMENT Net inflow RM22.2b

(Q1-20: Net outflowRM41.3b) FINANCIAL DERIVATIVES Net inflow RM0.6b

(Q1-20: Net inflow RM2.5b) OTHER INVESTMENT Net outflow RM41.3b

(Q1-20:Net inflow RM22.113)

Financial account continued to register a net outflow of RM19.8 billion in the second quarter this year. The predominant contributor was Other investment with net outflow of RM41.3 billion from net inflow of RM22.1 billion in the first quarter of 2020. This reflected mainly on net interbank lending abroad by the domestic financial sector.

FDI and DIA Performance

Foreign Direct Investment (FDI) slowed down to RM2.2 billion from RM6.4 billion in the previous quarter attributed to lower

investment in Manufacturing sector.

Foreign Direct Investment (FDI)

Net inflow RM2.2b (Q1-20: Net inflow RM6.4b)

Direct Investment Abroad(DIA)

Net inflow RM3.5b

(Q1-20: Net outflow RM3.0b)

(5)

Malaysia Statistics

Source: Department of Statistics, Malaysia

INTERNATIONAL INVESTMENT POSITION SECOND QUARTER 2020

As at end of second quarter 2020, Malaysia’s international investment position (IIP) recorded a higher net assets position of RM57.3 billion as against RM27.1 billion in the

last quarter.

(6)

International Report

Source: WTO (https://www.wto.org/english/news_e/news20_e/publ_31jul20_e.htm)

WORLD TRADE STATISTICAL REVIEW 2020 WORLD TRADE STATISTICAL REVIEW 2020

• Fuel prices were down 17 per cent in 2019 and are expected to record further declines in 2020 as travel restrictions and social distancing measures to combat the COVID-19 pandemic have reduced energy demand.

• Food and agricultural raw materials recorded declines of 3 per cent and 5 per cent respectively in 2019.

• In 2019, metals prices were up 7 per cent over the previous year.

Food Agricultural raw materials Metals Fuels

(7)

International Report

WORLD TRADE STATISTICAL REVIEW 2020 WORLD TRADE STATISTICAL REVIEW 2020

Source: WTO (https://www.wto.org/english/news_e/news20_e/publ_31jul20_e.htm)

1) Nominal effective exchange rate indices against a broad basket of currencies.

Source: Bank for International Settlements.

• The dollar rose 3 per cent on average against the currencies of US trading partners, while the euro and renminbi fell 1 per cent and 2 per cent respectively in 2019.

• The Japanese yen appreciated by 5 per cent in 2019 while the United Kingdom pound remained static at 0 per cent.

• The US dollar appreciated during the onset of the COVID-19 pandemic, reflecting the currency’s role as a financial safe haven. Further strengthening of the dollar could increase financial strain for net foreign borrowers with dollar-denominated debts.

United States Japan Japan

(8)

Number and FOB Value of PCO as at 9 August 2020 Weekly / Monthly/ Annually

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

2020 Total No of CO

TOTAL BILATERAL TOTAL REGIONAL

0.0 2,000.0 4,000.0 6,000.0 8,000.0 10,000.0 12,000.0 14,000.0 16,000.0 18,000.0 20,000.0

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

RM mil.

2020 Total FOB (RM mil)

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

2012 2013 2014 2015 2016 2017 2018 2019 2020

(Jan-Jul) Total No of CO

0.0 5,000.0 10,000.0 15,000.0 20,000.0 25,000.0 30,000.0 35,000.0 40,000.0 45,000.0

Jan Feb Mar Apr May June Jul

RM mil.

2020 Total FOB (RM mil)

TOTAL BILATERAL TOTAL REGIONAL 0

10,000 20,000 30,000 40,000 50,000 60,000

Jan Feb Mar Apr May June Jul

2020 Total No of CO

0.0 50,000.0 100,000.0 150,000.0 200,000.0 250,000.0 300,000.0 350,000.0 400,000.0 450,000.0

2012 2013 2014 2015 2016 2017 2018 2019 2020

(Jan-Jul)

RM mil.

Total FOB (RM mil)

Weekly

Annually

Monthly

(9)

MITI Weekly Bulletin | www.miti.gov.my MITI Weekly Bulletin | www.miti.gov.my

Sale s V alu e

Regional FTA

Number and Value of Preferential Certificates of Origin (PCOs)

0 20 40 60 80 100 120 140

0 5 10 15 20 25 30 35

24 May 31 May 7 Jun 14 Jun 21 Jun 28 Jun 5 Jul 12 Jul 19 Jul 26 Jul 2 Aug 9 Aug No. of Certificate of Origin

RM mil.

Generalised System of Preferences (GSP)

Total FOB (RM mil.) Total CO 0

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

RM mil.

ASEAN Trade in Goods Agreement (ATIGA)

Total FOB (RM mil.) Total CO

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

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

RM mil.

ASEAN-China Free Trade Agreement (ACFTA)

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

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

RM mil.

ASEAN-Korea Free Trade Agreement (AKFTA)

0 50 100 150 200 250 300

0 10 20 30 40 50 60 70 80 90 100

RM mil.

ASEAN-Japan Comprehensive Economic Partnership (AJCEP)

0 100 200 300 400 500 600 700 800

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

RM mil.

ASEAN-India Free Trade Agreement (AIFTA)

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

0 20 40 60 80 100 120 140

RM mil.

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

0 1 2 3 4 5 6 7

0 1 1 2 2 3

RM mil.

ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA)

(10)

Bilateral FTA

Number and Value of Preferential Certificates of Origin (PCOs)

Note: *Provisional Data

0 200 400 600 800 1,000 1,200

0 50 100 150 200 250

RM mil.

Malaysia-Japan Economic Partnership Agreement (MJEPA)

0 50 100 150 200 250 300

0 20 40 60 80 100 120 140 160

RM mil.

Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA)

0 2 4 6 8 10 12 14

0.00 0.10 0.20 0.30 0.40 0.50 0.60

RM mil.

Malaysia-New Zealand Free Trade Agreement (MNZFTA)

0 50 100 150 200 250 300 350 400 450

0 10 20 30 40 50 60

RM mil.

Malaysia-Chile Free Trade Agreement (MCFTA)

0 50 100 150 200 250 300 350 400

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 10 20 30 40 50 60 70

RM mil.

Malaysia-Australia Free Trade Agreement (MAFTA)

0 50 100 150 200 250 300 350

RM mil.

Malaysia-Turkey Free Trade Agreement (MTFTA)

(11)

Malaysian Ringgit Exchange Rate with Selected Countries, January 2019 - July 2020

Source : Bank Negara Malaysia

US Dollar

Philippine Peso

Vietnamese Dong

Hong Kong Dollar

Indonesian Rupiah

Indian Rupee

4.1161 4.0746

4.3553

4.2657

4.06 4.11 4.16 4.21 4.26 4.31 4.36 4.41

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

2019 2020

RM

USD 1 = RM

7.8498 7.7731

8.6299

7.70 7.80 7.90 8.00 8.10 8.20 8.30 8.40 8.50 8.60 8.70

2019 2020

RM

PHP 100 = RM

0.0177

0.0175

0.0186 0.0184

0.0174 0.0176 0.0178 0.0180 0.0182 0.0184 0.0186 0.0188

2019 2020

RM

VND 100 = RM

52.4901 51.9208

56.1859

55.0346

51.50 52.00 52.50 53.00 53.50 54.00 54.50 55.00 55.50 56.00 56.50

2019 2020

RM

HKD 100 = RM

0.0291

0.0276 0.0302

0.0293

0.027 0.028 0.028 0.029 0.029 0.030 0.030 0.031

2019 2020

RM

IDR 100 = RM

5.8219

5.9949

5.6463 5.6902

5.60 5.65 5.70 5.75 5.80 5.85 5.90 5.95 6.00 6.05

2019 2020

RM

INR 100 = RM

(12)

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

%*

US$290.0 (low) US$310.0 %*

(high)

14 August 2020

3.1%*

US$49.3

4.7%*

US$1,481.3 RUBBER SMR 20 -per MT-

1.7%*

US$1,301.5

COCOA SMC 2 -per MT-

COAL -per MT-

SUGAR -per lbs-

3.4%*

US$13.1

SCRAP IRON HMS -per MT-

Average Price 2019

ⁱ

: US$1,414.6 Average Price 2019

ⁱ

: US$1,592.4 Average Price 2019

ⁱ

: US ¢ 12.4

Average Price 2019

ⁱ

: US$316.9 (high) Average Price 2019

ⁱ

: US$291.6(low) Average Price 2019

ⁱ

: US$56.5

Domestic Prices

14 August 2020

Steel Bars

(per MT)

RM1,980 – RM2,130

Billets

(per MT) RM1,820 - RM1,880

14 August 2020 14 August 2020 14 August 2020

14 August 2020

0.9%*

US$44.8

CRUDE PETROLEUM (BRENT) -per bbl-

14 August 2020

CRUDE PALM OIL -per MT-

2.6%*

US$662.5

14 August 2020

17 May 2019 : US$72.2

Highest

2019/2020

03 Jan 2020 : US$68.6

24 Apr 2020 : US$21.4 09 Aug 2019 : US$54.5

Lowest 2019/2020

27 Dec 2019 : US$794.5

Highest

2019/2020

10 Jan 2020 : US$761.9

8 May 2020 : US$473.0 26 Jul 2019 : US$488.5

Lowest

2019/2020

Average Price 2019

ⁱ

: US$64.2 Average Price 2019

ⁱ

: US$557.1

(13)

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.

1,650.0 1,681.5

1,582.3 1,559.9

1,607.1

1,312.1 1,271.1

1,247.2 1,260.4 1,349.4 1,554.5

1,481.3

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

29 May 5 Jun 12 Jun 19 Jun 26 Jun 3 Jul 10 Jul 17 Jul 24 Jul 30 Jul 7 Aug 14 Aug 2020

US$/mt

Cocoa

1,108.5 1,157.0

1,142.5

1,160.51,151.0 1,173.5

1,191.01,183.5 1,198.5

1,256.5 1,323.5

1,301.5

1,090 1,140 1,190 1,240 1,290 1,340 1,390

US$/mt

Rubber SMR 20

35.5 39.6

36.3 39.8

38.5

40.7 40.6 40.6 41.3 39.9

41.2 42.0

35.3 42.3

38.7 42.2

41.0

43.1 43.2 43.1 43.3 42.9

44.4 44.8

30 32 34 36 38 40 42 44 46

US$/bbl

Crude Petroleum

Crude Petroleum (WTI)/bbl Crude Petroleum (Brent)/bbl 10.9

12.1 12.0 12.2

11.6 12.2

11.8 11.7 11.5

12.5 12.7

13.1

9.5 10.0 10.5 11.0 11.5 12.0 12.5 13.0 13.5

US¢/lbs

Sugar

525.0

557.7 556.8 580.3575.2

563.1 573.0 616.0

655.4 641.0

679.8 662.5

450 500 550 600 650 700

US$/mt

Crude Palm Oil

1,702 1,760

1,838

1,908 1,909 2,057

2,194 2,270 2,273

2,3622,387 2,384

1,650.0 1,750.0 1,850.0 1,950.0 2,050.0 2,150.0 2,250.0 2,350.0 2,450.0

US$/mt

Pepper

(14)

18.5

17.5 17.9 17.8 18.0 18.3 19.1 19.8 22.9 23.4

27.5 26.1

14.0 16.0 18.0 20.0 22.0 24.0 26.0 28.0 30.0

US$/oz

Silver

55.6 54.1

55.7 55.8 56.2 57.2

58.0 58.1 61.2

62.9 65.3

62.5

52.0 54.0 56.0 58.0 60.0 62.0 64.0 66.0

US$/g

Gold

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.

2,082 2,052 2,026 2,030

1,939 1,920 1,854 1,863 1,871 1,845 1,781 1,756 1,797 1,741 1,754 1,726 1,775 1,771 1,773 1,688 1,611 1,460 1,466 1,569 1,644

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

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

2018 2019 2020

US$/ tonne

Aluminium

6,251 6,051 6,051 6,220 6,196 6,075 5,939 6,300 6,439 6,438 6,018 5,882 5,941 5,709 5,759 5,757 5,860 6,077 6,031 5,688 5,183 5,058 5,240 5,755 6,372

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

2018 2019 2020

US$/ tonne

Copper

13,794 13,411 12,510 12,315 11,240 10,835 11,523 12,685 13,026 12,773 12,016 11,944 13,546 15,749 17,657 17,046 15,172 13,829 13,507 12,716 11,846 11,804 12,180 12,727 13,402

7,000 9,000 11,000 13,000 15,000 17,000 19,000

2018 2019 2020

US$/ tonne

Nickel

Commodity Price Trends

64.56 67.15 68.44 73.41 73.26 69.15 76.16 88.22 86.47 93.70 100.15 108.94 120.24 93.07 93.08 88.53 84.98 92.65 95.76 87.68 88.99 84.73 93.65 103.30 108.52 50.0

60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0

2018 2019 2020

US$/dmtu

Iron Ore

874.6 830.4

824.0 827.3 809.9

831.6 845.9 849.6 956.0

912.6 970.4

959.1

700.0 750.0 800.0 850.0 900.0 950.0 1,000.0

US$/oz

Platinum

280.0 280.0 270.0 270.0

280.0

270.0 270.0 285.0 285.0

300.0 310.0 310.0

260.0 260.0

250.0 250.0 250.0 240.0 240.0

255.0 255.0 270.0

290.0 290.0

230 240 250 260 270 280 290 300 310 320

US$/mt

Scrap Iron

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

38.5 46.2

44.5 45.0 45.5 51.1

48.7 49.3 49.6 49.9 50.8 49.3

30 35 40 45 50 55

US$/t

Coal

(15)

MEDIA RELEASE

PRELIMINARY DETERMINATION OF THE ANTI-DUMPING INVESTIGATION CONCERNING IMPORTS OF FLAT ROLLED PRODUCT OF NON-ALLOY STEEL PLATED OR COATED WITH ALUMINIUM AND ZINC ORIGINATING OR EXPORTED FROM THE PEOPLE’S REPUBLIC OF CHINA, THE REPUBLIC

OF KOREA AND THE SOCIALIST REPUBLIC OF VIET NAM

The Government of Malaysia has completed the preliminary determination of anti-dumping investigation concerning imports of flat rolled product of non-alloy steel plated or coated with aluminium and zinc (subject merchandise) originating or exported from the People’s Republic of China (PRC), the Republic of Korea (ROK) and the Socialist Republic of Viet Nam (Viet Nam), and found that there are sufficient evidences to continue with further investigation on the importation of subject merchandise from the alleged countries as provided under Section 23 of the Countervailing and Anti-Dumping Duties Act 1993 (the Act).

The Government has also decided to impose a provisional measure, which shall be in the form of provisional anti-dumping duties guaranteed by a security equivalent to the amount of the dumping margins determined in the preliminary determination. Provisional antidumping duties ranging from 2.17% to 37.14% will be applied on imports of subject merchandise from the alleged countries and shall be effective not more than 120 days from 14 August 2020.

The investigation has been initiated in accordance with the Act and Countervailing and Anti-Dumping Duties Regulation 1994 on 17 March 2020 based on a petition filed by NS Bluescope (Malaysia) Sdn. Bhd. (The Petitioner) on behalf of the domestic industry producing the like product. The Petitioner has claimed that imports of subject merchandise originating or exported from the alleged countries are being imported into Malaysia at a price lower than the selling price in their domestic market. The Petitioner claimed that this has caused material injury to the domestic industry in Malaysia.

A final determination will be made no later than 11 December 2020. Interested parties, such as importers, foreign producers/exporters and associations related to the investigation can have access to the non-confidential version of the report on the Preliminary Determination by submitting a written request to the Ministry of International Trade and Industry at the following address:

Director

Trade Practices Section

Ministry of International Trade and Industry Level 9, Menara MITI

No. 7, Jalan Sultan Haji Ahmad Shah 50480 Kuala Lumpur

MALAYSIA

(16)

All you need to know...

For more information, kindly click the following links:

https://www.miti.gov.my/index.php/pages/view/industry4WRD?mid=559#tab_547_2202

(17)

All you need to know...

For more information, kindly click the following links:

https://www.miti.gov.my/index.php/pages/view/industry4WRD

(18)

For more information, kindly click the following links:

https://t.co/4VGKl00Ymb

(19)

For more information, kindly click the following links:

https://www.myapec2020.my/en/

For more information, kindly click the following links:

https://bit.ly/2RUyG8l

For more information, kindly click the following links: https://bit.ly/2ZhxmRp

(20)

www.mycensus.gov.my

(21)

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