MALAYSIA

(1)

LEADING INDEX (LI), APRIL 2018

The growth of Malaysia's economy is expected to remain favourable between August to October 2018

Reference Month

Economic Direction Forecast by Leading Index in Average of

4 to 6 Months Ahead (Year on Year)

Contribution of Each Component to the Percentage Change in the LI from

the Previous Month (Month on Month)

Real Money Supply, M1 (Mar,2018:0.1%) Bursa Malaysia Industrial Index

(Mar,2018:-0.1%) Real Importsof Semi Conductors

(Mar,2018:0.4%)

Real Importsof Other Basic Precious and Other Non-ferrous Metal

(Mar,2018:0.3%) Number of Housing Units

Approved (Mar,2018:-0.7%) Expected Sales Value,

Manufacturing (Mar,2018:0.0%) Number of New Companies

Registered (Mar,2018:-0.5%)

12/97Peak Peak

Through 1/08 11/98

Note:

Through Per Cent 3/09

(Mar,2018:-0.5%)

(2)

Source: Department of Statistics, Malaysia

Wholesale and Retail Trade Performance

April 2018

Volume Index of Wholesale and Retail Trade

April 2018

Wholesale Trade

Retail Trade

Motor Vehicles

Wholesale

Trade Retail

Trade Motor

Vehicles

(3)

Source: Department of Statistics, Malaysia

Labour Force

April 2018

%

s and

(4)

Malaysia was the Largest Exporter of Industrial Fatty Alcohols in 2017

International Report

Note : Refers to HS382370

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

Malaysia’s Top Five Export Destinations for Industrial Fatty Alcohol

24.4%

US$786.6m

23.6%

Indonesia US$761.9m

13.0%

Germany

US$418.9m

12.6%

Netherlands

US$405.6m

8.0%

USA

US$257.4m

% share

China

US$244.2 mil. 31.0

1

3 Singapore

US$89.9 mil.

2 % share 11.4

USA

US$88.3 mil. 11.2

% share

India

US$60.3 mil.

4 % share 7.7

3 Netherlands

US$57.8 mil.

7.3 % share

5

(5)

International Report

The World’s Best Places to Retire in 2018

Source : https://internationalliving.com/the-best-places-to-retire/

Costa Rica

1 The World’s Best Retirement Haven

Mexico

2 Convenient, Exotic, First-World Living

Panama

3 Friendly, Welcoming, and Great Benefits

Ecuador

4 Diverse, Unhurried, and Metropolitan

Malaysia

5 Easy, English-Speaking, and First World

Colombia

6 Sophisticated and Affordable

Portugal

7 Europe’s Best Retirement Haven

Nicaragua

8 Best Bang-for-Your Buck in Latin America

Spain

9 Romance, History, and Charming Villages

10 Peru

Low-Cost Living,

Vibrant, and Diverse

(6)

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

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 20 40 60 80 100 120 140 160 180

0 5 10 15 20 25 30 35 40

1 Apr 8 Apr 15 Apr 22 Apr 29 Apr 6 May 13 May 20 May 27 May 3 Jun 10 Jun 17 Jun No. of Certificate of Origin

RM mil.

Generalised System of Preferences (GSP)

Total FOB (RM mil.) Total CO 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)

Total FOB (RM mil.) Total CO

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 1,600

0 100 200 300 400 500 600 700

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 50 100 150 200 250 300 350 400

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)

(7)

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

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 50 100 150 200 250 300 350

0 50 100 150 200 250

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

RM mil.

Malaysia-Turkey Free Trade Agreement (MTFTA)

(8)

Source : Bank Negara Malaysia

Ringgit Malaysia Exchange Rate with Selected Currencies, January 2017 - May 2018

US Dollar

Philippine Peso

Vietnamese Dong

Hong Kong Dollar

Indonesian Rupiah

Indian Rupee

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

8.9685

7.4635 7.5853

6.50 7.00 7.50 8.00 8.50 9.00 9.50

2017 2018

RM

PHP 100 = RM

0.0197

0.0171 0.0174

0.0155 0.0160 0.0165 0.0170 0.0175 0.0180 0.0185 0.0190 0.0195 0.0200

2017 2018

RM

VND 100 = RM

57.4972

49.5163 50.5118

44.00 46.00 48.00 50.00 52.00 54.00 56.00 58.00 60.00

2017 2018

RM

HKD 100 = RM

0.0334

0.0282 0.0282

0.025 0.026 0.027 0.028 0.029 0.030 0.031 0.032 0.033 0.034

2017 2018

RM

IDR 100 = RM

6.5503

6.8277

5.8692

5.20 5.40 5.60 5.80 6.00 6.20 6.40 6.60 6.80 7.00

2017 2018

RM

INR 100 = RM

(9)

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

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.

CRUDE PETROLEUM (BRENT) -per bbl-

22 June 2018 : US$75.6, 2.9%*

Average Price

ⁱ

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

-per MT-

22 June 2018 : US$635.5, 3.3%*

Average Price

ⁱ

: 2017: US$719.7 2016: US$702.2

RUBBER SMR 20 -per MT-

22 June 2018 : US$1,352.0, 1.4%*

Average Price

ⁱ

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

COAL -per MT-

22 June 2018 : US$61.0, unchanged*

Average Price

ⁱ

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

-per MT-

22 June 2018 : US$1,607.1, 3.5%*

Average Price

ⁱ

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

SCRAP IRON HMS -per MT-

22 June 2018 :US$390.0

^(high)

, 5.4%*

US$375.0

^low)

, 7.1%*

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 22 June 2018 : US$635.5

Crude Palm Oil -per MT-

Domestic Prices 22 June 2018

Steel Bars

(per MT)

RM2,380 – RM2,530

Billets

(per MT)

RM2300 – RM2,350

SUGAR -per lbs- 22 June 2018 :US¢12.4, 1.4%*

Average Price

ⁱ

: 2017: US¢15.8

2016: US¢18.2

(10)

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.

675.8 674.5 665.5

654.0

641.7 641.5 655.0

663.0 666.5

662.0 657.0

635.5

610 620 630 640 650 660 670 680

6 Apr 13 Apr 20 Apr 27 Apr 4 May 8 May 18 May 25 May 1 June 8 June 14 June22 June

US$/mt

Crude Palm Oil

1,672.5 1,662.6 1,849.9

1,888.0

1,918.9 1,915.5

1,785.3 1,744.3

1,644.3

1,506.4 1,553.3

1,607.1

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

US$/mt

Cocoa

12.3 12.2

11.9

11.5 11.5

11.2 11.7

12.5 12.5 12.5

12.3 12.4

10.0 10.5 11.0 11.5 12.0 12.5 13.0

US¢/lbs

Sugar

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 1,424.0

1,371.5

1,352.0

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

Jan Feb Mar Apr May Jun Jul Aug SepOctNovDecJan Feb Mar Apr May Jun Jul Aug Sep

2016 2017

USD/ tonne

Black Pepper

62.1

67.4 67.4 68.1

69.7 70.7 71.3 67.9

65.8 65.7 65.1 67.1 68.6

72.6

74.1 74.6 74.9 77.1

78.5

76.4 76.8 76.5

73.4 75.6

50 55 60 65 70 75 80

6 Apr 13 Apr 20 Apr 27 Apr 4 May 11 May 18 May 25 May 1 June 8 June 15 June 22 June

US$/bbl

Crude Petroleum

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

(11)

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.

59.2 59.2 58.9

56.6 56.6 56.6 58.3

59.6

61.2 61.0 61.0 61.0

53.0 54.0 55.0 56.0 57.0 58.0 59.0 60.0 61.0 62.0

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 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 SepOctNovDecJan 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

400.0

380.0 380.0

350.0 350.0 350.0 350.0 350.0 350.0 370.0 370.0

390.0

385.0

350.0 340.0

330.0 330.0 330.0 330.0 340.0 340.0

350.0 350.0 375.0

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 66.10

30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

2017 2018

US$/dmtu

Iron Ore

42.7 43.1

43.4

42.5 42.3 42.4

41.5 41.9 42.0

41.7 41.9

40.7

39.0 39.5 40.0 40.5 41.0 41.5 42.0 42.5 43.0 43.5 44.0

US$/oz

Gold

16.5 16.5 17.2

16.6 16.5

16.8

16.5 16.6 16.5

16.8

16.3 16.4

15.8 16.0 16.2 16.4 16.6 16.8 17.0 17.2 17.4

US$/oz

Silver

913.0 929

936.0

914.0 904.0

929.0

888.0 912.0

906.0 904.0

869.0 870.0

820.0 840.0 860.0 880.0 900.0 920.0 940.0 960.0

US$/oz

Platinum

(12)

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

of Technical Terms

Keynesian

A branch of economics, based, often loosely, on the ideas of Keynes, characterised by a belief in active government and suspicion of market outcomes. It was dominant in the 30 years following the Second World War, and especially during the 1960s, when fiscal policy became bigger-spending and looser in most developed countries as policymakers tried to kill off the business cycle. During the 1970s, widely blamed for the rise in inflation, Keynesian policies gradually gave way to monetarism and microeconomic policies that owed much to the neo-classical economics that Keynes had at times opposed. Even so, the idea that public spending and taxation have a crucial role to play in managing demand, in order to move towards full employment, remained at the heart of macroeconomic policy in most countries, even after the monetarist and supply-side revolution of the 1980s and 1990s. Recently, a school of new, more pro-market Keynesian economists has emerged, believing that most markets work, but sometimes only slowly.

Kleptocracy

Corrupt, thieving government, in which the politicians and bureaucrats in charge use the powers of the state to feather their own nests.

Labour Force

Refers to those who, during the reference week, are in the 15 - 64 years age group (in completed years at last birthday) and who are either employed or unemployed.

LC Letter of Credit - A Letter of Credit or Documentary Credit (DC) is a written undertaking by the bank given to an exporter/seller at the request of the importer/buyer, to pay the exporter/seller at sight or at a determinable future date up to a stated sum of money, within a prescribed time limit against stipulated documents and in compliance with the terms and conditions of the LC.

Lead Shepard

The head of a working group under the Steering Committee on Economic and Technical Cooperation (SCE) of APEC, within some SCE fora this position is called Chair. This is to differentiate with Convenor, who is the Chair of a forum under the Committee on Trade and Investment (CTI).

Leaders

Term used for heads of APEC member economies participating in the annual Informal Sessions of the APEC Economic Leaders’ Meetings (AELM). Terminology is in accordance with the common principle of APEC which refers to APEC participants as member economies, instead of sovereign nations.

Less Than Full Reciprocity

Principle which requires developed countries to undertake higher reduction compared to developing countries.

LEV Low emission vehicle - is a vehicle that meets the average emissions standard within the LEV programme.

Lipstick Effect

A theory that states that during periods of recession or economic downturn, consumers will eschew purchases

of big-ticket luxury items and seek material solace in smaller indulgences, such as premium lipstick instead of

fur coat.

(13)

Tentative Schedule for MITI Pocket Talks 2018

No. Date Venue Topic

1 18-Jul MITI Kelantan • Introduction to FTA & Preferential Certificate of Origin (PCO)

2 8-Aug MITI HQ • Introduction Preferential Certificate of Origin (PCO)

• Updates on RCEP

3 15-Aug MITI Perak • Introduction to FTA & Preferential Certificate of Origin (PCO)

4 19-Sep MITI Pahang • Introduction to FTA & Preferential Certificate of Origin (PCO)

5 17-Oct MITI HQ • Introduction to FTA & Preferential Certificate of Origin (PCO)

6 14-Nov MITI Sabah • Introduction to FTA & Preferential Certificate of Origin (PCO)

7 5-Dec MITI HQ • Introduction to FTA & Preferential Certificate of Origin (PCO)

8 12-Dec MITI Sarawak • Introduction to FTA & Preferential Certificate of Origin (PCO)

Please click here to register

s

(14)

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

For more information, kindly click the following links:

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

(15)

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