BULLETIN

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Weekly

VOLUME 500

MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY

4 September 2018 | NO. ISSN : 2180-0448

Dirgahayu Tuanku

Salutations and Heartiest Congratulations

to

HIS MAJESTY

YANG DI-PERTUAN AGONG XV SULTAN MUHAMMAD V

On the occasion of

His Majesty's Official Birthday

9

^th

September 2018 on

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Malaysia Statistics

PPI for local production increased 0.7%

in July 2018 compared to July 2017

118.7 PRODUCER PRICE INDEX (PPI) ( 2010 = 100 )

119.8 Index Numbers

July

2018 July

2017

106.7 106.0

0.7%

PPI for local production Performance , 2011 - July 2018

110.1 107.3 104.2 102.5 101.9 99 97.4104 97.5 97.4 105.7 110.5 107.4 110.2

108.4 107.5 107.1 106.9 106.7 106.6 106.7114.1 115.4 116.3 116.2 116.6 115.7 116.2

114.1 114.2 114 115.2 114.6 113.9 114.6

0 20 40 60 80 100 120

Jan Feb Mar Apr May Jun Jul

Index Number

Agriculture, forestry & fishing Mining

Manufacturing Electricity and gas supply

Water supply

Source : Department of Statistics, Malaysia

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Source : Department of Statistics, Malaysia

PPI for local production by sector , July 2018

Mining Index:110.2 Growth: 32.6%

Water supply Index:114.6 Growth: 0.3%

Manufacturing Index:106.7 Growth: -1.2%

Electricity &

gas supply Index:116.2 Growth:1.1%

Agriculture, forestry

& fishing Index:97.4 Growth: -11.5%

PPI for local production Index:106.7

Growth:0.7%

Note:

Growth refers to year on year growth

PRODUCER PRICE INDEX (PPI) ( 2010 = 100 )

Malaysia Statistics

PPI for local production by Stage of Processing, July 2018

Crude materials for further processing

Intermediate materials, supplies and components

Finished goods

Total

Index: 112.4 Growth: 11.1%

Index: 107.8 Growth: -1.2%

Index: 100.2 Growth: -3.1%

Index: 106.7

Growth: 0.7%

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Malaysia was ranked as number one exporter of Palmitic acid, stearic acid, their salts and esters* in 2017

Note : % Share in World’s export

International Statistics

INDONESIA

US$125.2m 12.8%

INDIA

US$114.2m 11.7%

ITALY US$68.6m

7.0%

SINGAPORE

US$62.5m 6.4%

2 3

4 5

MALAYSIA

US$225.8m 26.1%

1 JAPAN CANADA

PRC

US$50.22m|19.6%

US$39.39m|15.4%

US$21.84m |8.5%

US$21.56m |8.4%

US$19.12m |7.5%

USA

BELGIUM

Notes :

- % Share in Malaysia’s export - *Refers to HS 291570

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

MALAYSIA’S TOP 5 EXPORT DESTINATION

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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

10 Jun 17 Jun 24 Jun 1 Jul 8 Jul 15 Jul 22 Jul 29 Jul 5 Aug 12 Aug 19 Aug 26 Aug 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

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

RM mil.

ASEAN Trade in Goods Agreement (ATIGA)

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

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

RM mil.

ASEAN-China Free Trade Agreement (ACFTA)

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

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

0 50 100 150 200 250 300 350 400

RM mil.

ASEAN-India Free Trade Agreement (AIFTA)

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

0 20 40 60 80 100 120 140 160

RM mil.

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

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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

RM mil.

Malaysia-Japan Economic Partnership (MJEPA)

0 50 100 150 200 250 300 350

0 50 100 150 200 250

RM mil.

Malaysia-Pakistan Closer Economic Partnership (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 10 20 30 40 50 60 70 80 90 100

0 5 10 15 20 25

RM mil.

Malaysia-Chile Free Trade Agreement (MCFTA)

0 50 100 150 200 250 300 350 400 450 500

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

0 50 100 150 200 250 300

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 - July 2018

US Dollar

Pakistani Rupee

Egyptian Pound

Cambodian Riel

Nepalese Rupee

United Arab Emirates Dirham

4.4596

3.8862 4.0493

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 Jun Jul

2017 2018

RM

USD 1 = RM

4.2561

3.2476

3.00 3.20 3.40 3.60 3.80 4.00 4.20 4.40

2017 2018

RM

PKR 100 = RM

0.2391 0.2639

0.2198

0.2262

0.17 0.18 0.19 0.20 0.21 0.22 0.23 0.24 0.25 0.26 0.27

2017 2018

RM

EGP 1 = RM

0.1108

0.0964

0.0994

0.085 0.090 0.095 0.100 0.105 0.110 0.115

2017 2018

RM

KHR 100 = RM

4.0931

4.2657

3.7005 3.6842

3.30 3.40 3.50 3.60 3.70 3.80 3.90 4.00 4.10 4.20 4.30 4.40

2017 2018

RM

NPR 100 = RM

121.4188

105.8030

110.2404

95.0 100.0 105.0 110.0 115.0 120.0 125.0

2017 2018

RM

AED 100 = RM

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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-

31 Aug 2018 : US$77.4, 2.1%*

Average Price

ⁱ

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

-per MT-

30 Aug 2018 : US$545.0, unchanged*

Average Price

ⁱ

: 2017: US$719.7 2016: US$702.2

RUBBER SMR 20 -per MT-

30 Aug 2018 : US$1,349.0, 1.8%*

Average Price

ⁱ

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

COAL -per MT- 31Aug 2018 : US$70.0, 4.9%*

Average Price

ⁱ

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

-per MT-

30 Aug 2018 : US$1,448.6, 1.8%*

Average Price

ⁱ

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

SCRAP IRON HMS -per MT-

31 Aug 2018 :US$380.0

^(high)

, unchanged*

US$360.0

^low)

, unchanged*

Average Price

ⁱ

: 2017: US$314.5 2016: US$243.2

HIGHEST and LOWEST 2017/2018

Highest

29 June 2018 : US$79.4 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 30 Aug 2018 : US$545.0

Crude Palm Oil -per MT-

Domestic Prices 31 Aug 2018

Steel Bars

(per MT)

RM2,400– RM2,550

Billets

(per MT) RM2,250– RM2,330

SUGAR -per lbs- 31 Aug 2018 :US¢10.6, 3.6%*

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.

1,553.3 1,607.1

1,646.7 1,612.5 1,633.7

1,463.5 1,489.2

1,408.5

1,311.4 1,303.6 1,423.5

1,448.6

1,200 1,250 1,300 1,350 1,400 1,450 1,500 1,550 1,600 1,650 1,700

14 June22 June29 June 6 July 13 July 20 July 27 July 3 Aug 10 Aug 17 Aug 24 Aug 30 Aug

US$/mt

Cocoa

12.3 12.4 12.3

11.5

11.0 11.1

10.9 10.9

10.5

10.2 10.2 10.6

10.0 10.5 11.0 11.5 12.0 12.5 13.0

15 June 22 June 29 June 6 July 13 July 20 July 27 July 3 Aug 10 Aug 17 Aug 24 Aug 31 Aug

US¢/lbs

Sugar

1,371.5

1,352.01,354.5

1,316.0 1,314.5 1,342.5

1,332.5

1,316.5 1,349.0

1,339.5 1,373.5

1,349.0

1,270 1,280 1,290 1,300 1,310 1,320 1,330 1,340 1,350 1,360 1,370 1,380

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

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

2016 2017

USD/ tonne

Black Pepper

65.1 68.6

74.2 73.8

71.0 70.5

68.7 68.5 67.6

65.9

68.7 69.8 73.4

75.6 79.4

77.1 75.3

73.1 74.3

73.2 72.8 71.8

75.8 77.4

50 55 60 65 70 75 80 85

US$/bbl

Crude Petroleum

Crude Petroleum (WTI)/bbl Crude Petroleum (Brent)/bbl 657.0

635.5

609.5 610.5

602.0 605.0

587.5

572.5 570.5 569.0

545.0 545.0 530

550 570 590 610 630 650 670

US$/mt

Crude Palm Oil

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16.3 16.4 16.1 16.1

15.8

15.5 15.5 15.5 15.3

14.6 14.9

14.6

13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0

US$/oz

Silver

41.9

40.7 40.2 40.4

40.1

39.2 39.5

39.1 39.0

38.0 38.5 38.5

35.0 36.0 37.0 38.0 39.0 40.0 41.0 42.0 43.0

US$/oz

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.

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 2,300

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

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

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 6,825

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

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 14,366

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

2017 2018

US$/ tonne

Nickel

Commodity Price Trends

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 66.10

30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

2017 2018

US$/dmtu

Iron Ore

869.0 870.0 854.0

848.6

830.3 829.5 831.7 836.9

829.6

777.3 789.4 787.1

720.0 740.0 760.0 780.0 800.0 820.0 840.0 860.0 880.0

US$/oz

Platinum

370.0

390.0 390.0 390.0 390.0 390.0

380.0 380.0 380.0 380.0 380.0 380.0

350.0

375.0 375.0 375.0 375.0 375.0

360.0 360.0 360.0 360.0 360.0 360.0

300 310 320 330 340 350 360 370 380 390 400

US$/mt

Scrap Iron

Scrap Iron/MT (High) Scrap Iron/MT(Low) 61.0 61.0

62.3 63.8

64.4 64.6

65.2 65.2 65.3 65.4 66.7

70.0

56.0 58.0 60.0 62.0 64.0 66.0 68.0 70.0 72.0

US$/t

Coal

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MITI Minister at the Opening Ceremony of the 50 ^th Asean Economic Ministers' Meeting and Related Meetings, Singapore

29 August 2018

MITI Minister at the signing ceremony of the first ptotocol to amend the ASEAN Trade in Goods Agreement (ATIGA), Singapore

29 August 2018

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The 23 ^rd AEM-CER Consultations

1 September 2018

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Source: http://www.miti.gov.my/index.php/glossary

of Technical Terms

Robotics and Factory Automation Equipment

Whole spectrum of integrated automation solutions for industrial manufacturing with particular emphasis on mechanical engineering and robotics for various industries.

ROO Rules of Origin

Rotterdam Convention

A legally binding obligation for the implementation of PIC procedure on chemical trade.

RVC Regional Value Content

Safeguard Measures

Action taken to protect a specific industry from an unexpected build-up of imports - generally governed by Article 19 of GATT. The Agriculture Agreement and Textiles and Clothing Agreement have different specific types of safeguards:

“special safeguards” in agriculture, and “transitional safeguards” in textiles and clothing.

SCC Single Country Content

Services

The service sector, also called the tertiary sector, is one of the three parts of the economy in the Three-sector hypothesis. This hypothesis breaks the economy into three main areas so it can be better understood. The other two are the primary sector, which covers areas such as farming, mining and fishing; and the secondary sector which covers manufacturing and making things. The service sector provides a service, not an actual product that could be held in your hand. Activities in the service sector include retail, banks, hotels, real estate, education, health, social work, transport, computer services, recreation, media, communications, electricity, gas and water supply.

Shipbuilding

Designing, building and construction of all types of floating vessels.

Shipment Contract

Sales/purchase contract where the seller’s responsibility ends when goods are handed over to the first carrier.

Single Undertaking

Nothing is agreed, until everything is agreed. Members must accept the results of trade negotiations in all areas instead of being able to selectively accept parts of the negotiations (contrast with early harvest).

Spaghetti Bowl Effect

Preferential trade agreements (bilateral and regional PTAs) create fundamental conflicts with multilateralism in

that they promote trade liberalization based on discrimination between members of those agreements and non-

members. The Spaghetti Bowl Effect is an illustration of the complicated situation which occurs when products

are brought into important markets by various ways depending on their origins. Globalization of production

makes the identification process of product origins more difficult.

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Announcements

Tentative Schedule for MITI Pocket Talks 2018

No. Date Venue Topic

1 17-Oct MITI HQ

Introduction to FTA & Preferential Certificate of Origin (PCO) 2 14-Nov MITI

Sabah

Introduction to FTA & Preferential Certificate of Origin (PCO) 3 5-Dec MITI HQ

Introduction to FTA & Preferential Certificate of Origin (PCO) 4 12-Dec MITI

Sarawak

Introduction to

FTA & Preferential

Certificate of

Origin (PCO)

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Announcements

For more information, kindly click the following links:

http://www.miti.gov.my/miti/resources/Approve%20Permit/AP%20Announcement/Lampiran_GP_Classic_and_

For more information, kindly click the following links:

http://www.miti.gov.my/index.php/pages/view/4761Vintage_English.pdf

Issuance of APEC Business Travel Card is temporarily suspended

Immigration Department of Malaysia has issued a notice that due to unavoidable circumstances, the issuance of APEC Business Travel Card is temporarily suspended and ABTC card will not be printed for approved applicants until further notice.

Kindly refer:

http://www.imi.gov.my/index.php/en/resources-and-archives/announcement/1784-

notice-of-apec-card-production-suspended-time.html

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MITI Weekly Bulletin (MWB) Mobile Apps

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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