MALAYSIA, 10 OTHER ASIA PACIFIC NATIONS INK TRADE DEAL

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“Despite the absence of the US, Malaysia still stands to gain from market access to countries like Canada, Peru and Mexico with whom we currently do not have preferential trading arrangement.”

MALAYSIA, 10 OTHER ASIA PACIFIC NATIONS INK TRADE DEAL

Source:https://www.thestar.com.my/business/business-news/2018/03/09/malaysia-10-other-asiapac-nations-ink-trade-deal/

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Source: Department of Statistics, Malaysia

MALAYSIA

Labour Market, January 2018

Jan 2018 : 15.19 mil Dec 2017: 15.15 mil Jan 2017 : 14.88 mil

2.1% (Y-o-Y)

Labour Force

Jan 2018 : 14.67 mil

Jan 2017 : 14.37 mil 2.1%

Employed Persons

Labour Force

Participation Rate (LFPR)

Jan 2018 : 68.2%

Jan 2017 : 67.7% 0.5%

Jan 2018 : 0.52 mil

Jan 2017: 0.51 mil 0.5%

Unemployed Persons 0.1%

Unemployment Rate

Jan 2018 Jan 2017

3.4%

3.5%

The number of labour force increased 0.3 per cent

in January 2018 compared to the previous month.

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

Key Highlights on

www.miti.gov.my

Economic Developments and Outlook

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Box Articles

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Côt e d'Ivoire USD0.1 Bil

INDONESIA USD11.1 Bil

Germany USD0.3 Bil

Netherl ands USD0.9 Bil Mal aysia

USD6.7 Bil

01 02 03 04 05

Malaysia as the Second Largest Exporter of Palm oil and its fractions, whether or not refined **(excluding chemically modified and crude)*, 2016**

International Report

Note : * Refers to HS151190

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

Indonesia

USD11.05b _USD6.73b ^Malaysia Netherlands

USD0.94b ^USD0.34b ^Germany Côte d'Ivoire USD0.15b

Malaysia's Top Five Export Destinations

PRC Pakistan Philippines India Viet Nam USD796.3

Million ÛSD467.7 ^Million ÛSD390.9 ^Million ÛSD374.9 ^Million ÛSD332.8 ^Million

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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 50 100 150 200 250 300

7 Jan 14 Jan 21 Jan 28 Jan 4 Feb 11 Feb 18 Feb 25 Feb 4 Mar 11 Mar 18 mar 25 Mar 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 5,000 10,000 15,000 20,000 25,000

RM mil.

ASEAN Trade in Goods Agreement (ATIGA)

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

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

RM mil.

ASEAN-China Free Trade Agreement (ACFTA)

0 200 400 600 800 1,000 1,200

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

RM mil.

ASEAN-Korea Free Trade Agreement (AKFTA)

0 50 100 150 200 250 300 350

0 20 40 60 80 100 120 140

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

RM mil.

ASEAN-India Free Trade Agreement (AIFTA)

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

0 50 100 150 200 250 300

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

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 18

0.00 0.10 0.20 0.30 0.40 0.50 0.60

RM mil.

Malaysia-New Zealand Free Trade Agreement (MNZFTA)

0 20 40 60 80 100 120

0 5 10 15 20 25 30 35 40 45

RM mil.

Malaysia-Chile Free Trade Agreement (MCFTA)

0 100 200 300 400 500 600

0 50 100 150 200 250

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 50 100 150 200 250 300 350 400

0 50 100 150 200 250 300 350

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 - March 2018

US Dollar

Chinese Yuan

Thai Baht

Japanese Yen

Singapore Dollar

New Taiwan Dollar

4.4596

3.9031

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

2017 2018

RM

USD 1 = RM

0.6466 0.6468

0.6150

0.6176

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

12.4847

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

3.6811

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

2.9690

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

13.3647

13.00 13.20 13.40 13.60 13.80 14.00 14.20 14.40 14.60

2017 2018

RM

TWD 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-

29 Mar 2018 : US$70.3, 0.3%*

Average Price

ⁱ

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

-per MT-

29 Mar 2018 : US$677.0, 0.1%*

Average Price

ⁱ

: 2017: US$719.7 2016: US$702.2

RUBBER SMR 20 -per MT-

29 Mar 2018 : US$1,384.5, 1.7%*

Average Price

ⁱ

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

COAL -per MT- 29 Mar 2018 : US$60.8, 3.5%

Average Price

ⁱ

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

-per MT-

29 Mar 2018 : US$1,718.2, 1.2%*

Average Price

ⁱ

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

SCRAP IRON HMS -per MT-

30 Mar 2018 : US$410.0

^(high)

, unchanged

US$395.0

^(low)

, unchanged

Average Price

ⁱ

: 2017: US$314.5 2016: US$243.2

HIGHEST and LOWEST 2017/2018

Highest

26 Jan 2018 : US$70.5 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 23 Feb 2018 : US$653.5

Crude Palm Oil -per MT-

Domestic Prices 30 Mar 2018

Steel Bars

(per MT) RM2,600 – RM2,750

Billets

(per MT) RM2,200 – RM2,250

SUGAR -per lbs-

29 Mar 2018 : US¢ 12.4, 1.8%*

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.

687.5

678.0

666.0 671.0

656.5 675.6

653.5 673.5

691.5

673.5 676.0 677.0

630 640 650 660 670 680 690 700

12 Jan 19 Jan 26 Jan 2 Feb 9 Feb 15 Feb 23 Feb 3 Mar 9 Mar 16 Mar 23 Mar 29 Mar

US$/mt

Crude Palm Oil

1,334.8 1,384.5

1,367.7 1,401.6

1,371.11,386.6 1,536.3

1,532.2 1,673.3

1,720.2

1,699.51,719.2

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

12 Jan 19 Jan 26 Jan 2 Feb 9 Feb 15 Feb 23 Feb3 Mar 9 Mar 16 Mar 23 Mar 29 Mar

US$/mt

Cocoa

14.2

13.3 13.4

13.6 13.6

13.3

13.5 13.4

12.8

12.7 12.6 12.4

11.0 11.5 12.0 12.5 13.0 13.5 14.0 14.5

US¢/lbs

Sugar

1,523.5

1,536.51,547.0

1,497.0

1,437.51,448.5 1,469.0

1,487.5

1,453.01,463.0

1,361.5 1,384.5

1,300 1,350 1,400 1,450 1,500 1,550 1,600

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 Jun JulAug SepOct Nov DecJanFebMar Apr May Jun JulAug Sep

2016 2017

USD/ tonne

Black Pepper

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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.

64.4 64.6 64.6 64.8

64.6 64.3 64.3

63.8 63.8 63.4

63.0

60.8

58.0 59.0 60.0 61.0 62.0 63.0 64.0 65.0 66.0

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

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

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

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

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

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

2017 2018

US$/ tonne

Nickel

64.3 63.4

66.1 65.5

59.2 61.7

63.6

61.3 62.0 62.3 65.9

64.9 69.9

68.6 70.5

68.6

62.8 64.8

67.3

64.4

65.5 66.2

70.5 70.3

52 54 56 58 60 62 64 66 68 70 72

US$/bbl

Crude Petroleum

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

Commodity Price Trends

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Sources: Ministry of International Trade and Industry Malaysia, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group, World Bank.

940.0

1,014.01,020.0 1,000.0

972.0 1,008.0

994.0

971.0

952.0 954.0 960.0

939.0

880.0 900.0 920.0 940.0 960.0 980.0 1,000.0 1,020.0 1,040.0

US$/oz

Platinum

420.0 420.0

400.0

390.0 390.0 390.0 390.0 395.0

410.0 410.0 410.0 410.0

400.0 400.0

380.0

370.0 370.0 370.0 370.0 385.0

400.0

395.0 395.0 395.0

340 350 360 370 380 390 400 410 420 430

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

30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

2017 2018

US$/dmtu

Iron Ore

17.1 17.1 17.4

17.0

16.4 16.8

16.6

16.6 16.5 16.5

16.7

16.3

15.6 15.8 16.0 16.2 16.4 16.6 16.8 17.0 17.2 17.4 17.6

US$/oz

Silver

42.7 42.9

43.5

42.8

42.3 43.5

42.7

42.5 42.5

42.1 43.3

42.6

41.0 41.5 42.0 42.5 43.0 43.5 44.0

US$/oz

Gold

Commodity Price Trends

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InvestKL Annual Networking

Malaysia International Trade And Exhibition Centre(Mitec)

29 March 2018

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MITI PROGRAMME MITI PROGRAMMES

MITI Minister at SMK Ayer Lanas, Jeli Kelantan

2 April 2018

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MITI Minister (II) at the Launching Ceremony of the e-Commerce Micro Credit Scheme Wisma HUAZONG,Seri Kembangan, Selangor.

1 April 2018

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MITI Deputy Minister (Industry) at Program Transformasi Jawatankuasa Perwakilan Penduduk (JPP) Majlis Daerah Pontian

1 April 2018

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MITI Deputy Minister (Trade) at Program Jalan Kaki Kesihatan 10,000 Langkah with Warga Felda Tenang, Labis Johor

1 April 2018

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NATIONAL BLUE OCEAN STRATEGY

MALAYSIA’S NATIONAL BLUE OCEAN SHIFT (NBOS)

Malaysia is making a blue ocean shift in its national development as it strives to become an advanced nation by 2020. To achieve this, the government has adopted blue ocean shift process.

Major ideas of Blue Ocean Strategy:

• focuses on differentiation & low cost to open up new market space;

• creates new demands by converting non-customers into customers; and

• offers process and visual tools that are systematic and replicable to ensure designing and implementation of strategies which are much more effective.

National Blue Ocean Shift (NBOS) is formulated and executed through the NBOS Summit, a unique and dynamic national strategy platform which brings together ministries, agencies, all levels of government and the private sector on a voluntary basis. The Summit, which was launched in 2009, breaks down bureaucratic silos through fair process, and is driven by the creation of new ideas.

To date, 117 NBOS initiatives have been successfully implemented to tackle a wide range of economic and social issues.

The implementation of NBOS work culture will lead to new, creative & innovative ideas. It emphasizes collaboration among government agencies, the private sector and NGO's with the objective of delivering services and projects that are of high impact, low cost with rapid execution & on a sustainable basis.

The design and selection of NBOS initiatives are based on two key principles:

• delivering high income through economic growth and integrated development; and

• enhancing the level of public well-being through greater security as well as social inclusion to close the social distance between various groups in society (for example, rural vs. urban, young vs. old, men vs women, etc..) The government used blue ocean tools and frameworks in the Eleventh Malaysia Plan to formulate high-impact, low-cost national strategies that can be rapidly executed.

Source: Reprinted from https://www.blueoceanstrategy.com/malaysia-nbos/ and http://www.

nbos.gov.my/posts/national-blue-ocean-strategy-(nbos)

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

of Technical Terms

DFQF Duty Free Quota Free - Special treatment accorded to LDCs where by developed countries will allow DFQF access for products from LDCs.

Digital Marketing

Marketing of products or services using digital channels to reach consumers. Digital marketing extends beyond internet marketing to include channels that do not require the use of the internet.

Doha Development Agenda (DDA/Doha Development Round)

The Doha Round or the Doha Development Agenda is the latest round of trade negotiations among WTO membership. The work program covers about 20 areas and a basic objective to improve the trading prospects of developing countries. Key areas under negotiations are agriculture, industrial tariffs and non-tariff barriers, services, and trade remedies (safeguards, anti- dumping, subsidies). The DDA was launched in November 2001 at the 4th WTO Ministerial Conference in Doha, Qatar.

However, negotiations have broken down and a conclusion of elements of the Doha Round is unlikely in the near future.

Domestic Regulations

Unpacking GATS Article VI.4 on domestic regulation exposes possibly the single most controversial item on the current negotiating agenda, and also one of the greatest threats that GATS poses to democracy. Concern is all the greater because it is not clear whether rules developed in the current negotiations on Article VI.4 will apply to all service sectors or only those where specific commitments have been made. Complex judgement decides the appropriateness of domestic regulations in the services sector, ensuring a balance between public interest and commercial considerations. This judgement must not be allowed to pass from elected governments to WTO disputes panels.

Domestic Support (Subsidies)

In WTO terminology, subsidies in general are identified by “boxes” which are given the colours of traffic lights: green (permitted), amber (slow down — i.e. to be reduced), red (forbidden).

In agriculture, domestic support refers to domestic subsidy or other measure which acts to maintain producer’s price at levels above those prevailing in international trade. Examples include direct payments to producers, input and marketing cost reductions measures.

Door-to-Door

Contract of carriage that includes pre-carriage, main-carriage and on-carriage by the same carrier:

• Door-to- (Air) Port: Contract of carriage including pre-carriage and main-carriage to airport or ocean port or truck terminal port or rail port

• (Air) Porr-to- (Air) Port: Contract of carriage for main carriage only

• (Air) Port-to-Door:Contract of carriage including main carriage and on-carriage

Duty Drawback Facility

Rebate of import duties when the imported good is re-exported or used as input to the production of an exported good.

E-commerce

Electronic business transactions, commerce or internet trade. May be conducted between companies (B2B) or between companies and customers (B2C) that are wholly or partially conducted over the internet or similar public or private computer networks.

e-Fulfillment

The process of receiving, packaging and shipping orders for goods.

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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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MICRO CREDIT FOR e-COMMERCE

• Provide loan to young chinese who are interested to venture into e-commerce

• Provide loan for start-up capital in related to e-commerce

• Provide e-commerce training consultation

• Can apply loan on the spot

For more information, please visit http://chinesewomenfoundation.org/e-commerce-micro-credit/

03-56300608 Organised by:

Malaysian Chinese Women Entrepreneurs Foundation

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MALAYSIA, 10 OTHER ASIA PACIFIC NATIONS INK TRADE DEAL

“Despite the absence of the US, Malaysia still stands to gain from market access to countries like Canada, Peru and Mexico with whom we currently do not have preferential trading arrangement.”