HAPPY National Day! - MITI

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Male Female

63.1 years 1956

66.0 years

2018

72.7 years 77.6 years

National Day!

Population

Life expectancy at birth

Total Population

Male Female

1957

6.3 mil 3.3 mil 3.0 mil

2018

32.4 mil 16.7 mil 15.7 mil

Malaysia's Economic

Malaysia's Economic Evolution

1957

RM5,126 million

1970 2017

2017

RM1,353,380 million

Gross Domestic

Product

1957

RM816

2017

RM42,227

Gross Capita Per

CAGR*

6.8%

Facts and Figures

Services Manufacturing

Mining &

Quarrying Agriculture Construction

42.6% 54.5%

23.0%

8.4%

8.2%

4.6%

6.9%

14.6%

28.8%

3.7%

Source : Department of Statistics, Malaysia

Note :

* refers to compound annual growth rate

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Total Trade Trade

Major Trading Partners

1957 RM2.5 billion

2017

RM1,773.5 billion

Exports

RM1.4 billion 1957 2017

RM935.4 billion

Imports

RM1.1 billion 1957 2017

RM838.1 billion

1957

2017

Exports

RM300.9 mil. UK

RM283.0 mil. USA

Thailand RM44.8 mil.

Imports

RM328.0 mil. UK

RM26.7 mil. USA

Thailand RM203.3 mil.

Exports

Singapore RM135,590.0 mil.

RM126,150.5 mil. PRC

RM88,693.0 mil. USA

Imports

Singapore RM92,723.9 mil.

RM164,495.4 mil. PRC

RM69,320.9mil. USA

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Malaysia Statistics

The Consumer Price Index (CPI) rose 0.9

percent in July 2018 compared with the same month last year

Food & Non-Alcoholic

Beverages Alcoholic

Beverages &

Tobacco

Clothing &

Footwear

Housing, Water, Electricity, Gas &

Other Fuels

Furnishings, Household Equipment & Routine

Household Maintenance Health

Transport

+0.7% -0.8%

-1.7%

-3.0%

0.0%

Communication Recreation Services & Culture

Education Restaurants &

Hotels Miscellaneous

Goods & Services

Inflation Rate for Main Groups, July 2018 / July 2017

+2.0%

+6.7%

+1.0%

-3.9%

+1.0%

-2.4%

-3.0%

July 2018

119.8 July 2017

118.7 Index Numbers

CONSUMER PRICE INDEX ( 2010 = 100 )

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Malaysia was ranked as number one exporter of Glycerol * i n 2 0 1 7

International Statistics

MALAYSIA GERMANY ^INDONESIA

NETHERLANDS ^ARGENTINA

US$271.4m

23.4% US$199.3m

17.2% US$195.6m 16.8%

US$133.4m

11.5% US$56.3m

4.8%

Note :

* Refers to HS 290545

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

uSA PRC

JAPAN

ROk

IRAN

US$61.2m 22.5%

US$50.1m 18.5%

US$27.1m 10.0%

US$12.3m 4.5%

US$9.9m 3.6%

Malaysia’s Top Five Export Destinations For Glycerol* in 2017

Note : % Share in World’s export Note:

% Share in Malaysia’s export

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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

3 Jun 10 Jun 17 Jun 24 Jun 1 Jul 8 Jul 15 Jul 22 Jul 29 Jul 5 Aug 12 Aug 19 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 50 100 150 200 250 300 350 400

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

Canadian Dollar

New Zealand Dollar

Swiss Franc

Saudi Riyal

Myanmar Kyat

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

3.3755

3.4288

3.0211

3.0814

2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50

2017 2018

RM

CAD 1 = RM

3.1735 3.2126

2.7498

2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30

2017 2018

RM

NZD 1 = RM

4.4209 4.4697

3.9775 4.0718

3.70 3.80 3.90 4.00 4.10 4.20 4.30 4.40 4.50 4.60

2017 2018

RM

CHF 1 = RM

118.9006

103.6265

107.9706

95.0 100.0 105.0 110.0 115.0 120.0 125.0

2017 2018

RM

SAR 100 = RM

0.3296

0.2843

0.260 0.270 0.280 0.290 0.300 0.310 0.320 0.330 0.340

2017 2018

RM

MMK 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

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

SCRAP IRON HMS -per MT-

24 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 24 Aug 2018 : US$545.0

Crude Palm Oil -per MT-

Domestic Prices 17 Aug 2018

Steel Bars

(per MT)

RM2,400– RM2,550

Billets

(per MT) RM2,250– RM2,330

SUGAR -per lbs- 24 Aug 2018 :US¢10.2, 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.

1,506.4 1,553.3

1,607.1 1,646.7

1,612.51,633.7

1,463.5 1,489.2

1,408.5

1,311.4 1,303.6 1,423.5

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

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

US$/mt

Cocoa

12.5

12.3 12.4 12.3

11.5

11.0 11.1

10.9 10.9

10.5

10.2 10.2 10.0

10.5 11.0 11.5 12.0 12.5 13.0

US¢/lbs

Sugar

1,424.0

1,371.5

1,352.0 1,354.5

1,316.0 1,314.5 1,342.5

1,332.5 1,316.5

1,349.0 1,339.5

1,373.5

1,240 1,260 1,280 1,300 1,320 1,340 1,360 1,380 1,400 1,420 1,440

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

65.7 65.1 68.6

74.2 73.8

71.0 70.5

68.7 68.5 67.6 65.9

68.7 76.5

73.4 75.6

79.4 77.1

75.3

73.1 74.3

73.2 72.8 71.8

75.8

50 55 60 65 70 75 80 85

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

US$/bbl

Crude Petroleum

Crude Petroleum (WTI)/bbl Crude Petroleum (Brent)/bbl 662.0

657.0

635.5

609.5 610.5

602.0 605.0

587.5

572.5 570.5 569.0

545.0 530

550 570 590 610 630 650 670

US$/mt

Crude Palm Oil

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16.8

16.3 16.4 16.1 16.1

15.8

15.5 15.5 15.5 15.3

14.6

13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0

US$/oz

Silver

41.7 41.9

40.7 40.2 40.4

40.1

39.2 39.5

39.1 39.0

38.0

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

904.0

869.0 870.0 854.0

848.6

830.3 829.5 831.7 836.9 829.6

777.3

700.0 720.0 740.0 760.0 780.0 800.0 820.0 840.0 860.0 880.0 900.0 920.0

US$/oz

Platinum

370.0 370.0

390.0 390.0 390.0 390.0 390.0

380.0 380.0 380.0 380.0 380.0

350.0 350.0

375.0 375.0 375.0 375.0 375.0

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 61.0

62.3 63.8

64.4 64.6

65.2 65.2 65.3 65.4 66.7

57.0 58.0 59.0 60.0 61.0 62.0 63.0 64.0 65.0 66.0 67.0 68.0

US$/t

Coal

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MITI Minister Official visit to the Office of

Chief Minister of Sabah, 24 August 2018

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Y.B. Darell Leiking, Minister of International Trade and Industry will lead the Malaysian delegation to the 50th ASEAN Economic Ministers’ (AEM) Meeting and Related Meetings from 28 August – 1 September 2018 in Singapore. In conjunction with the AEM, Y.B. Darell will also undertake a working visit to Singapore as part of MITI’s continuous efforts to further strengthen trade and investment ties between Malaysia and Singapore.

During the working visit, a line-up of programmes will be conducted, including a series of discussion and networking session with economists, potential investors, local and foreign business chambers, Malaysian diaspora and companies.

Such engagements are important to ensure Malaysia- Singapore economic relations continue to be intensified through exchange of views and information on the current economic landscape and business opportunities. Y.B. Darell

will also be visiting the Agency for Science, Technology and Research (A*STAR) to gain insight on the ongoing initiatives undertaken in the area of advanced manufacturing. At the 50th AEM Meeting, a vast range of areas related to the broadening and deepening of economic integration within the region and engagements with Dialogue Partners will be the main topics of deliberations. Among the key topics to be deliberated include priority deliverables for the Singapore ASEAN Chairmanship 2018, implementation of the ASEAN Economic Community (AEC) Blueprint 2025 measures, addressing challenges on trade facilitation measures, Non-Tariff Barriers (NTBs) and progress in integration of other economic sectors. The ASEAN Economic Ministers are also scheduled to sign the 10th ASEAN Framework Agreement of Services (AFAS) Protocol and the 1st Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA).

During the consultations with Dialogue Partners, the Ministers are expected to evaluate the progress in implementation of the various Free Trade Agreements (FTAs)

and economic cooperation programmes. The Ministers will also deliberate on accelerating the pace of negotiations of the Regional Comprehensive Economic Partnership (RCEP), with the view to bringing RCEP closer to a substantial conclusion. Apart from these meetings, Y.B. Darell will be meeting his counterparts from ASEAN and Dialogue Partners such as Australia, Canada, India, Japan, New Zealand, and the United States on a bilateral setting, as well as representatives from the ASEAN Business Advisory Council (ASEAN-BAC), US-ASEAN Business Council (USABC) and East Asia Business Council (EABC).

AEC remains a fundamental platform towards creating a deeply integrated and highly cohesive regional economy as well as a competitive, innovative and dynamic community. Malaysia will continue to play an active role in driving the regional economic integration under the AEC Blueprint 2025, especially in championing the efforts to enhance trade facilitation and resolve the long-standing issues of NTBs. Malaysia has been benefiting from the various economic integration initiatives implemented under the AEC especially in terms of trade, investment and employment opportunities.

Generally, ASEAN economic integration has provided the opportunities for Malaysian companies to expand their business to other ASEAN countries, not only as a major key export and import market but also an important destination for Malaysia’s outward investments.

With more than 640 million population, ASEAN remains a key trading partner for Malaysia, taking up 27.5% of Malaysia’s external trade in 2017. Trade with ASEAN amounted to RM487.42 billion, an increase of 21% from 2016. Foreign Direct Investment (FDI) inflows from ASEAN to Malaysia totalled at US$2.17 billion, also increased by 3.2% from 2016.

WORKING VISIT TO SINGAPORE & 50 ASEAN ECONOMIC MINISTERS’ MEETING AND RELATED MEETINGS

27 AUGUST – 1 SEPTEMBER 2018, SINGAPORE

Source : Ministry of International Trade and Industry (MITI)

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

of Technical Terms

Preferential Tariff

Tariff set at certain percentage between two countries which is more favourable with other countries.

Producer Price Index

Measures the changes in the price of commodities charged by domestic producers and those paid by importers for importing goods into Malaysia. The commodities originated from (i) Agriculture , Forestry and Logging & Fishing (ii) Mining &

Quarrying (iii) Manufacturing and (iv) Water, Gas & Electricity Sectors.

Professional services

Occupations in the tertiary sector of the economy requiring special training in the arts or sciences. Some professional services require holding professional licenses such as architects, auditors, engineers, doctors, accountants and lawyers.

PSR

Product Specific Rules - Rules used to specify that the materials have undergone change in tariff classification or a specific manufacturing process.

QRs

Quantitative restrictions - specific limits on the quantity or value of goods that can be imported (or exported) during a specific time period.

QVC

Qualifying Value Content

RCEP

Regional Comprehensive Economic Partnership (ASEAN+6)

Regional Economic Integration

Refers to agreements between countries in a geographic region to reduce, and ultimately remove, tariffs and non- tariff barriers to facilitate the free flow of goods and services between one another. In 2009 APEC Senior Officials agreed on a threefold comprehensive approach to accelerating regional economic integration – liberalizing trade and investment flows “at the border”, improving the business environment “behind the border”, and enhancing physical connectivity “across the border”.

Regional Trade Agreements

A preferential trade agreement or free trade agreement, signed between countries in the same region (often located near to each other)

Regionalism

Refers to the expression of a common sense of identity and purpose combined with the creation and implementation of institutions that express a particular identity and shape collective action within a geographical region. Regionalism is a theory and action implemented by governments for trade liberalization or facilitation in a region, or carried out through free trade areas or customs unions (WTO definition).

Remanufacturing

The process of transforming a used product to as good as new condition by rebuilding its component parts back to its functionality performance speciﬁcations and also by replacing unbuildable parts with brand new components and carries an acceptable warranty period as to a brand new (similar) product manufactured by the Original Equipment Manufacturers (OEMs).

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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

(16)

Malaysia

Happy

NATIONAL DAY

Ministry of International Trade and Industry

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