MITI Minister with the Rakyat (People)

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MITI Tower, No. 7, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia Tel: +603 - 8000 8000 Fax: +603 - 6202 9446

MITI Minister at Kg. Halban Comel, Tanah Merah, Kelantan3 March2018

MITI Minister at Padang Bukit Jering, Kuala Balah, Jeli, Kelantan3 March 2018

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MITI Weekly Bulletin | www.miti.gov.my

MEDIA RELEASE

TRADE PERFORMANCE FOR THE MONTH OF JANUARY 2018 #

2018 Starts with the Highest January Exports of RM82.86 billion Malaysia’s trade in January 2018 surged by 14.9% to reach a value of RM156.01 billion from January 2017. Expansion in trade were seen with ASEAN, Hong Kong SAR, the European Union (EU), China, India, Taiwan and the Republic of Korea (ROK).

Exports posted a stronger y-o-y growth compared to imports, registering a double digit growth of 17.9% to RM82.86 billion. This was the highest export value ever recorded for the month of January, surpassing RM70.27 billion registered in January 2017. Imports expanded by 11.6% to RM73.15 billion, resulting in a trade surplus of RM9.71 billion. This was the 243rd consecutive month of trade surplus recorded since November 1997.

On a month-on-month (m-o-m) basis, total trade, exports and imports expanded by 3%, 4.4% and 1.5%, respectively.

Performance of Major Sectors

Expansion in exports in January 2018 was driven mainly by growth in all major sectors. Exports of manufactured goods recorded a y-o-y double digit growth of 20.4% while mining and agriculture goods grew by 8.5% and 6.2%, respectively.

In January 2018, exports of manufactured goods were valued at RM68.34 billion, accounting for 82.5% share of Malaysia’s total exports. The main contributors to the increase were exports of electrical and electronic (E&E) products which surged by 27.1%, followed by chemicals and chemical products (↑23.4%), iron and steel products (↑60.9%), optical and scientific equipment (↑18%), manufactures of metal (↑14.8%) as well as transport equipment (↑32%).

Exports of mining goods expanded by 8.5% to RM7.25 billion contributed mainly by growth in exports of liquefied natural gas (LNG), attributed to higher Average Unit Volume (AUV) and quantity.

Exports of agriculture goods rose by 6.2% to RM6.51 billion on higher exports of palm oil and palm oil-based agriculture products. Exports of palm oil grew by 10.1% to RM3.92 billion, due to higher quantity.

Major exports in January 2018 were:

• E&E products, valued at RM31.67 billion and constituted 38.2% of total exports, increased by 27.1% from January 2017;

• Chemicals and chemical products, RM6.18 billion, 7.5% of total exports, increased by 23.4%;

• Petroleum products, RM6.11 billion, 7.4% of total exports, increased by 0.5%;

• Palm oil and palm oil-based agriculture products, RM4.6 billion, 5.5% of total exports, increased by 9.4%; and

• LNG, RM3.75 billion, 4.5% of total exports, increased by 14%.

Performance of Major Markets Growing Trade with ASEAN

Trade with ASEAN in January 2018 expanded by 16.2% y-o-y to RM42.98 billion compared to January 2017.

Exports to ASEAN grew by 15.6% to RM24.19 billion, accounting for 29.2% share of Malaysia’s total exports.

The increase was attributed mainly to exports of E&E products, petroleum products, chemicals and chemical products as well as machinery, equipment and parts.

Breakdown of exports to ASEAN countries:

• Singapore RM11.58 billion, increased by 8.5%

• Thailand RM4.82 billion, ↑16.8%

• Viet Nam RM3.05 billion, ↑64.5%

• Indonesia RM2.82 billion, ↑25.7%

• Philippines RM1.48 billion, ↑7.1%

• Brunei RM183.2 million, ↑8.2%

• Myanmar RM162.0 million, ↓55.9%

• Cambodia RM91.5 million, ↓2.8%

• Lao PDR RM2.7 million, ↓63.1%

Imports from ASEAN were higher by 17.1% to RM18.79 billion, consisting largely imports of E&E products, petroleum products, chemicals and chemical products as well as machinery, equipment and parts.

Strong Exports to China

MALAYSIA EXTERNAL TRADE STATISTICS

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In January 2018, trade with China rose by 8.5% y-o-y to RM25.33 billion. Exports surged by 17.9% to RM10.1 billion on account of exports of E&E products, chemicals and chemical products as well as optical and scientific equipment.

Imports from China increased by 3.1% to RM15.23 billion. Major imports were E&E products, machinery, equipment and parts as well as manufactures of metal.

The EU - Double Digit Growth in Exports

Trade with the EU surged by 20.5% y-o-y to RM15.52 billion. Exports to the EU grew by 13.6% or RM1.01 billion to RM8.38 billion in January 2018.

Exports to most EU markets registered increases. Major markets with double digit export growth were Germany (↑18.8%), Italy (↑28.1%), Spain (↑48%) and Slovenia (↑11.2%). Hungary recorded an outstanding growth of 114.8% or RM108.6 million compared to January 2017. In terms of products, higher exports were contributed mainly by E&E products, palm oil and palm oil-based agriculture products as well as manufactures of metal.

Exports of manufactured goods to the EU rose by 10.9% to RM7.43 billion, accounting for 88.7% of Malaysia’s total exports to the EU.

Imports from the EU increased by 29.6% to RM7.14 billion. Main import products were E&E products, transport equipment as well as machinery, equipment and parts.

Trade with the USA Remained Firm

Total trade with the USA posted an increase of 4% y-o-y to RM12.94 billion. Exports rose by 8.7% to reach RM7.27 billion, underpinned mainly by higher exports of manufactured goods which increased by 6.9%. Manufactured exports accounted for 95.6% or RM6.95 billion of Malaysia’s total exports to the USA.

Expansion in exports were seen for transport equipment, palm oil and palm oil-based agriculture products, chemicals and chemical products, optical and scientific equipment as well as rubber products.

Imports from the USA declined by 1.5% to RM5.67 billion and the main import products were E&E products, machinery, equipment and parts as well as chemicals and chemical products.

Resilient Trade with Japan

In January 2018, total trade with Japan grew by 2.9% y-o-y to RM11.73 billion. Exports increased by 3.3% to RM7.02 billion. Higher exports to Japan was supported mainly by exports of LNG, iron and steel products, crude petroleum as well as palm oil and palm oil-based agriculture products.

Imports from Japan registered an increase of 2.4% to RM4.71 billion. Major imports were E&E products, machinery, equipment and parts as well as chemicals and chemical products.

Trade with FTA Partners

In January 2018, trade with Free Trade Agreement (FTA) partners was valued at RM97.77 billion accounting for 62.7% of Malaysia’s total trade. Exports to FTA partners expanded by 13.7% to RM51.01 billion, representing 61.6% of Malaysia’s total exports. Imports grew by 11.9% to RM46.76 billion. Increases in exports were recorded to China, Viet Nam, Singapore, the ROK, Thailand, Indonesia, India, Japan, New Zealand, Turkey, the Philippines, Pakistan, Chile and Brunei.

Exports to the ROK surged by 52.2% to RM2.54 billion, driven mainly by higher exports of E&E products while exports to India rose by 19.1% to RM2.97 billion, on account of growing exports of manufactures of metal.

Imports

Total imports in January 2018 increased by 11.6% y-o-y to RM73.15 billion from RM65.53 billion. The three main categories of imports by end use were:

• Intermediate goods, valued at RM37.73 billion or 51.6% share of total imports, decreased by 1.7%, following lower imports of parts and accessories of capital goods (except transport equipment) particularly electrical, machinery, equipment and parts;

• Capital goods, valued at RM9.3 billion or 12.7% of total imports, declined by 3.1%, due mainly to lower imports of industrial transport equipment particularly ships, boats and floating structures; and

• Consumption goods, valued at RM6.31 billion or 8.6% of total imports, increased by 9.8%, as a result of higher imports of processed food and beverages mainly pastry products.

Minister Of International Trade And Industry Malaysia

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Source: Department of Statistics, Malaysia

Malaysia's Trade Performance

Jan 2017- Jan 2018

70.3 71.8 82.6 73.9 79.4 73.1 78.6 82.3 78.3 82.3 83.5 79.3 82.9

65.5 63.1 77.2 65.2 73.9 63.2 70.6 72.3 69.7 71.9 73.6 72.1 73.2

135.8 156.0

0 40 80 120 160

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

RM Bil

Exports Imports Total Trade

2017 2018

Malaysia's Top Five Trading Partner

January 2018

PRC Total Trade

Jan 2018:RM25.3bil.

Jan 2017:RM23.3bil.

8.5%

1 ^Singapore Total Trade

Jan 2018:RM20.7bil.

Jan 2017:RM17.2bil.

20.3%

2 USA Total Trade

Jan 2018:RM12.9bil.

Jan 2017:RM12.4bil.

4.0%

3 ^Japan Total Trade

Jan 2018:RM11.7bil.

Jan 2017:RM11.4bil.

2.9%

4 Thailand

Total Trade Jan 2018:RM8.7bil.

Jan 2017:RM7.5bil.

14.9%

^Note:%- Y-o-Y Growth

5

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Source:

Department of Statistics, Malaysia

Malaysia's Export By Sectors January 2018

Manufactured

Goods Mining

Goods Others

Agriculture Goods

Jan2018:RM6.5bil.

Jan 2017:RM6.1bil.

6.2%

Jan 2018:RM68.3bil.

Jan 2017:RM56.8bil. Jan 2018:RM7.3bil.

Jan 2017:RM6.7bil. Jan 2018:RM0.8bil.

Jan 2017:RM0.7bil.

20.4% 8.5% 7.9%

Note:

%- Y-o-Y Growth

Top Five Export Products January 2018

E&E Products Jan 2018:RM31.7bil.

Jan 2017:RM24.9bil.

27.1%

Chemicals & Chemical Products Jan 2018:RM6.2bil.

Jan 2017:RM5.0bil.

23.4%

Palm Oil & Palm-Based Agriculture products

Jan 2018:RM4.6bil.

Jan 2017:RM4.2bil.

9.4%

Petroleum Products Jan 2018:RM6.1bil.

Jan 2017:RM6.1bil.

0.5%

Jan 2018:RM3.8bil. LNG Jan 2017:RM3.3bil.

14.0%

1 2 ³

4 ⁵

Note:

%- Y-o-Y Growth

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Note : Refers to HS600129

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

Malaysia as The Largest Exporter of Looped Pile Fabrics, Knitted Or Crocheted, 2016

Combodia US$4.0mil

3

1 _Singapore

US$20.8mil

2 Chinese Taipei US$5.1mil

3 RRC US$4.3mil

4

Italy

US$4.1mil

5 Malaysia

US$28.2mil

International Report

Top Five Export Destinations

Viet Nam US$0.5mil

Indonesia US$23.1mil US$0.1mil PRC

Singapore US$0.2mil

1

2

3

4

5

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Source: TN50 Youth Canvas Report

Malaysia Enjoy's Strong Economic Fundamentals

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Top 10 Breakthrough Tech- nologies For 2018

Top 10 Breakthrough Technologies, 2018

1. 3D Metal Printing 2. Artificial Embryos 3. Sensing City

4. Cloud-based AI services 5. Duelling Neural Networks 6. Babel Fish earbuds

7. Zero-carbon Natural Gas 8. Perfecting Online Privacy 9. Genetic Fortune Telling 10. Materials’ Quantum Leap

Source: https://www.forbes.com/sites/bernardmarr/2018/02/21/here-are-the-top-10-breakthrough- technologies-for-2018/2/#639ee1f936db

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

0 20 40 60 80 100 120 140

0 50 100 150 200 250 300

10 Dec 17 Dec 24 Dec 31 Dec 7 Jan 14 Jan 21 Jan 28 Jan 4 Feb 11 Feb 18 Feb 25 Feb 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

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

RM mil.

ASEAN Trade in Goods Agreement (ATIGA)

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

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

RM mil.

ASEAN-China Free Trade Agreement (ACFTA)

0 200 400 600 800 1,000 1,200

0 50 100 150 200 250 300 350 400

RM mil.

ASEAN-Korea Free Trade Agreement (AKFTA)

0 50 100 150 200 250 300 350 400

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

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

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 - February 2018

US Dollar

Chinese Yuan

Thai Baht

Japanese Yen

Singapore Dollar

New Taiwan Dollar

4.4596

3.9123

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

2017 2018

RM

USD 1 = RM

0.6466 0.6468

0.6150 0.6190

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 12.4225

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 3.6258

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

2.9635

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

13.3784

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-

2 Mar 2018 : US$64.4, 4.4%*

Average Price

ⁱ

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

-per MT-

2 Mar 2018 : US$673.5, 3.1%*

Average Price

ⁱ

: 2017: US$719.7 2016: US$702.2

RUBBER SMR 20 -per MT-

2 Mar 2018 : US$1,487.5, 1.3%*

Average Price

ⁱ

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

COAL -per MT- 2 Mar 2018 : US$63.8, 0.8%

Average Price

ⁱ

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

-per MT-

2 Mar 2018 : US$1,532.2, 0.3%*

Average Price

ⁱ

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

SCRAP IRON HMS -per MT-

2 Mar 2018 : US$395.0

^(high)

, 1.3%

US$385.0

^(low)

, 4.1%

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

12 Jan 2018 : US$687.5 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 2 Mar 2018

Steel Bars

(per MT) RM2,650 – RM2,800

Billets

(per MT) RM2,300 – RM2,400

SUGAR -per lbs-

2 Mar 2018 : US¢ 13.4, 0.3%*

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.

676.5

661.0 656.7

675.6 687.5

678.0

666.0 671.0

656.5 675.6

653.5 673.5

630 640 650 660 670 680 690 700

15 Dec 22 Dec 29 Dec 5 Jan 12 Jan 19 Jan 26 Jan 2 Feb 9 Feb 15 Feb 23 Feb 3 Mar

US$/mt

Crude Palm Oil

1,320.6

1,320.11,329.4 1,301.8

1,334.8 1,384.5

1,367.7 1,401.6

1,371.11,386.6 1,536.3

1,532.2

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

US$/mt

Cocoa

13.7 14.6

15.2 15.1

14.2

13.3 13.4

13.6 13.6

13.3

13.5 13.4

12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5

US¢/lbs

Sugar

1,462.0

1,425.5 1,452.5

1,456.0 1,523.5

1,536.51,547.0

1,497.0

1,437.51,448.5 1,469.0

1,487.5

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

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

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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.

65.0 65.0 65.3

65.2

64.4

64.6 64.6 64.8

64.6

64.3 64.3

63.8

63.0 63.5 64.0 64.5 65.0 65.5

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

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

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

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

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

2017 2018

US$/ tonne

Nickel

57.3 58.5

60.4 61.4

64.3 63.4

66.1 65.5

59.2 61.7

63.6 61.3 63.2

65.3

66.9 67.6

69.9 68.6 70.5

68.6

62.8 64.8

67.3 64.4

40 45 50 55 60 65 70 75

US$/bbl

Crude Petroleum

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

Commodity Price Trends

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MITI Tower, No. 7, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia Tel: +603 - 8000 8000 Fax: +603 - 6202 9446 Sources: Ministry of International Trade and Industry Malaysia, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group,

World Bank.

885.0

930.0 940.0 969.0

940.0

1,014.01,020.0 1,000.0

972.0 1,008.0

994.0 971

800.0 850.0 900.0 950.0 1,000.0 1,050.0

US$/oz

Platinum

350.0 395.0

390.0 390.0

420.0 420.0 400.0

390.0 390.0 390.0 390.0 395.0

340.0

380.0 380.0 380.0

400.0 400.0 380.0

370.0 370.0 370.0 370.0 385.0

250 270 290 310 330 350 370 390 410 430 450

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

30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

2017 2018

US$/dmtu

Iron Ore

16.1 16.3

17.0 17.3

17.1 17.1 17.4

17.0

16.4 16.8

16.6 16.55

15.0 15.5 16.0 16.5 17.0 17.5

US$/oz

Silver

40.3 40.7

41.5 42.4

42.7 42.9

43.5

42.8

42.3 43.5

42.7 42.51

38.5 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

Commodity Price Trends

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16 MITI PROGRAMME

MITI PROGRAMME

24 ^th ASEAN Economic Ministers' Retreat Singapore

1 March 2018

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17 MITI PROGRAMME MITI PROGRAMME MITI PROGRAMME

MITI PROGRAMME

Courtesy Call on MITI's Sec. Gen., YBhg. Datuk

Seri J.Jayasiri by H.E. Andrew Goledzinowski, High

Commissioner of Australia to Malaysia, 1 March 2018

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YB. Dato’ Sri Mustapa Mohamad, Minister of International Trade and Industry (MITI) will lead the Malaysian delegation to the 24^th ASEAN Economic Ministers’ (AEM) Retreat and Related Meetings from 28 February to 3 March 2018 in Singapore.

At the 24^thAEM Retreat, the Economic Ministers will exchange views and deliberate on the 12 economic priority deliverables for Singapore’s ASEAN Chairmanship, operationalization of AEC 2025 monitoring and evaluation framework and be updated on the progress of ASEAN external relations. The Economic Ministers will consider the recommendations made by the High Level Task Force on Economic Integration which include streamlining AEC work process, the development of the ASEAN GRP Core Principles and an assessment of ASEAN's readiness for the 4^th Industrial Revolution. In addition, the ASEAN Business Advisory Council will brief Economic Ministers on its priorities and initiatives for 2018.

The 16^th AEM-EU Trade Commissioner Consultation will also be held on 2 March 2018, to be co-chaired by H.E Cecilia Malmström, the EU Trade Commissioner. The consultation with the EU is expected to further deliberate on the next steps towards the possible resumption of the ASEAN-EU Free Trade Agreement. The consultation will also note the implementation of the ASEAN-EU trade and investment work programme 2017-2018, stock-take ASEAN- EU relations as well as update and exchange views on the recent global and regional economic developments. The Ministers and EU Trade Commissioner will be meeting with the representatives of ASEAN-EU Business Council who will update activities and initiatives undertaken by the Business Council in enhancing the economic cooperation in the two regions.

The 4^th Regional Comprehensive Economic Partnership (RCEP) Intersessional Ministerial Meeting will take place on 3 March 2018 during which RCEP Ministers are expected to deliberate on expediting the pace of negotiations particularly on market access on goods, services and investment as well as on rules, geared towards facilitating trade and investment in support of the expansion and deepening of regional value chains.

Ministry of International Trade and Industry (MITI) 1 March 2018

The 24

^Th

asean Economic Ministers’ Retreat & Related Meetings 28 February – 3 March 2018, Singapore

MEDIA RELEASE

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MITI Tower, No. 7, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia Tel: +603 - 8000 8000 Fax: +603 - 6202 9446 Source: http://www.miti.gov.my/index.php/glossary

of Technical Terms

Cabotage Policy

The cabotage policy is a policy that governs the transport/shipping of goods or passengers between two places along coastal routes in the same country by a transport operator from another country, practiced by many nations worldwide including developed nations. For some of these nations, it is so strictly implemented that no foreign-owned vessels are even allowed to operate within their domestic waters.

This policy began in 1980 (implemented on 1 January 1980, with the Merchant Shipping Ordinance 1952 was amended and the Domestic Shipping Licence Board was established) with the purpose of developing Malaysian ownership and local shipping in general whilst at the same time minimising Malaysia’s dependence on foreign vessels as well as the outflow of foreign exchange in the form of freight payments. This policy also acts as a platform for local shipping companies to gradually expand and reach out into international waters.

The cabotage policy allows vessels from foreign ports to call directly to/from any Malaysian port including ports in Sabah and Sarawak. For example, a vessel from Singapore or Hong Kong is free to call directly to/from any Malaysian port such as Sepanggar, Bintulu etc. Foreign vessels are also allowed to operate within the domestic sector through the granting of an exemption issued by the Domestic Licensing Board upon fulfilling the criteria set.

Capital Account Deficit

A deficit in the capital account means money is flowing out more than flowing into the country, and it suggests the nation is increasing its ownership of foreign assets. (The capital account balance of Malaysia is always deficit).

Capital Account Surplus

A surplus in the capital account means money is flowing into the country more than flowing out, and the inbound flows effectively represent borrowings or sales of assets.

Capital Intensive

Describes an industry or sector of the economy that relies relatively heavily on inputs of capital, usually relative to labor, compared to other industries or sectors.

CBI

Cross-Border Investment – Residents of Malaysia investing directly in production in another country, either by buying a company there or establishing new operations of an existing business.

CBU

Completely built unit - is the terminology when a car/bike/automobile is imported/exported to/from some other country as a complete car fully assembled. These automobiles do not require an assembly before they can be sold out to the buyers in the target country’s markets.

CEPT

The Common Effective Preferential Tariff (CEPT Scheme)- was established as the mechanism to reduce and eliminate import duties in ASEAN.

Circumvention

Getting around commitments in the WTO such as commitments to limit agricultural export subsidies. Includes avoiding quotas and other restrictions by altering the country of origin of a product; measures taken by exporters to evade anti- dumping or countervailing duties.

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20

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

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

The 11 remaining countries, led by Japan, finalised a revised trade pact in January, now called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). It is expected to be

signed in Chile on March 8.

http://www.thesundaily.my/news/2018/02/21/final-version-revised-tpp-released For further enquiries, please contact us at [email protected].

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21 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

MITI Minister with the Rakyat (People)

1

2

MEDIA RELEASE

MALAYSIA EXTERNAL TRADE STATISTICS

3

4

Malaysia's Trade Performance

Jan 2017- Jan 2018

Malaysia's Top Five Trading Partner

January 2018

PRC Total Trade

Jan 2018:RM25.3bil.

Jan 2017:RM23.3bil.

8.5%

1 Singapore Total Trade

Jan 2018:RM20.7bil.

Jan 2017:RM17.2bil.

20.3%

2

USA Total Trade

Jan 2018:RM12.9bil.

Jan 2017:RM12.4bil.

4.0%

3 Japan Total Trade

Jan 2018:RM11.7bil.

Jan 2017:RM11.4bil.

2.9%

4

Thailand

Total Trade Jan 2018:RM8.7bil.

Jan 2017:RM7.5bil.

14.9%

5

5

Malaysia's Export By Sectors January 2018

Manufactured

Goods Mining

Goods Others

Agriculture Goods

Jan2018:RM6.5bil.

Jan 2017:RM6.1bil.

6.2%

Jan 2018:RM68.3bil.

Jan 2017:RM56.8bil. Jan 2018:RM7.3bil.

Jan 2017:RM6.7bil. Jan 2018:RM0.8bil.

Jan 2017:RM0.7bil.

20.4% 8.5% 7.9%

Top Five Export Products January 2018

E&E Products Jan 2018:RM31.7bil.

Jan 2017:RM24.9bil.

27.1%

Chemicals & Chemical Products Jan 2018:RM6.2bil.

Jan 2017:RM5.0bil.

23.4%

Palm Oil & Palm-Based Agriculture products

Jan 2018:RM4.6bil.

Jan 2017:RM4.2bil.

9.4%

Petroleum Products Jan 2018:RM6.1bil.

Jan 2017:RM6.1bil.

0.5%

Jan 2018:RM3.8bil. LNG Jan 2017:RM3.3bil.

14.0%

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4 5

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Malaysia as The Largest Exporter of Looped Pile Fabrics, Knitted Or Crocheted, 2016

Combodia US$4.0mil

1 Singapore

US$20.8mil

2 Chinese Taipei US$5.1mil

3 RRC US$4.3mil

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5

Malaysia

US$28.2mil

International Report

Top Five Export Destinations

Viet Nam US$0.5mil

1 ^Singapore Total Trade

3 ^Japan Total Trade

1 2 ³

4 ⁵

1 _Singapore

24 ^th ASEAN Economic Ministers' Retreat Singapore