MITI Weekly Bulletin

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International Trade and Industry of YBHG. DATUK NORAZMAN AYOB

DEPUTY SECRETARY GENERAL (TRADE) OF INTERNATIONAL TRADE AND INDUSTRY

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Malaysia

Domestic Tourism Malaysia, 2017

Domestic Visitors (million)

2017 : 205.4 2016: 189.3

8.5%

Number of Trips (million)

2017 : 276.1 2016: 253.9

8.8%

Total Expenditure (RM million)

2017 : 83,103 2016: 74,773

11.1%

Five Main Purposes of Trips, 2017

Five Top States of Domestics Visitors, 2017

41.9% ^13.2%

Holiday/

leisure/

relaxation

3.6%

Medical treatment/

wellness

5.8%

Entertainment/

attending special event/sport

31.1%

Shopping Visiting

relatives

& friends

Selangor 25.5 mil

1

Perak 20.1 mil

2 WP Kuala Lumpur 19.0 mil

3 Sabah 17.8 mil

4 Sarawak 17.7 mil

5

Source: Department of Statistics, Malaysia

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Consumer Price Index (CPI) May 2018

Note :

- % change year-on-year

-The Consumer Price Index (CPI) measures the percentage change through time in the cost of purchasing a constant basket of goods and services representing the average pattern of purchases made

+1.8%

CPI increased 1.8% ⁱⁿ

May 2018 compared to May 2017

May 2018 121.1 May 2017 119.0

Food & Non-Alcoholic Beverages Alcoholic Beverages

& Tobacco

Housing, Water, Electricity, Gas & Other

Clothing &

Footwear

Furnishings, Household Equipment & Routine Household Maintenance

Health

Transport

Communication Recreation Services & Culture

Education Restaurants &

Hotels

Miscellaneous Goods

& Services -0.7%

2.2% 3.8%

0.5%

1.5% 2.1%

2.1%

0.1% -0.9%

1.2%

1.9% 0.4%

Inflation Rate for Main Groups, May 2018 / 2017

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Sabah &

WP Labuan 1.3%

Sarawak 1.5%

Inflation Rate by States, May 2018 / 2017

Inflation Rate for Food, Urban & Rural Malaysia

May 2018 / 2017

Rice, Bread &

Other Cereals

Urban Malaysia

1.6%

Rural Malaysia

1.4%

Meat

Urban Malaysia

0.8%

Rural Malaysia

1.4%

Fish &

Seafood

Urban Malaysia

3.6%*

Rural Malaysia

2.1%

Milk & Eggs

Urban Malaysia

0.9%

Rural Malaysia

1.0%

Oils & Fats

Urban Malaysia

0.6%

Rural Malaysia

0.3%

Fruits

Urban Malaysia

2.1%*

Rural Malaysia

0.9%

Vegetables

Urban Malaysia

-3.6%

Rural Malaysia

-0.9%

Urban Malaysia

1.3%

Rural Malaysia

06%

Food Products n.e.c.

Urban Malaysia

1.6%*

Rural Malaysia

1.3%

Food At Home:

Urban Malaysia

1.2%

Rural Malaysia

1.2%

Food Away

FromHome: Urban Malaysia

3.8%

Rural Malaysia

2.7%

Sugar, Jam, Honey, Chocolate &

Confectionery

Kedah & Perlis Pulau Pinang 1.2%

1.4%

Perak 1.6%

Selangor & WP Putrajaya

2.1% Kuala Lumpur 2.2%

Melaka 1.7%

Negeri Sembilan 1.8%

Johor 2.0%

Pahang 1.3%

Kelantan

1.5% Trengganu 1.4%

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Malaysia was the Largest exporter of wire of refined copper, with a maximum

cross-sectional dimension of less/equal 6 mm in 2017

International Report

Note : Refers to HS740819

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

Malaysia’s Top Five Export Destinations Wire of Refined Copper, with a maximum

cross-sectional dimension of less/equal mm in 2017

Malaysia Germany Turkey

.

Thailand Indonesia 12.3%

US$439.8 mil

9.9%

US$356.3 mil

9.2%

US$328.3 mil

7.7%

US$275.5 mil

7.1%

US$253.0 mil

India

US$313.7 mil.

1 Singapore US$53.0 mil.

2 Philippines US$17.5 mil.

3 Taipei, Chinese US$14.6 mil.

4

1 Hong Kong US$11.1mil.

5

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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 40

8 Apr 15 Apr 22 Apr 29 Apr 6 May 13 May 20 May 27 May 3 Jun 10 Jun 17 Jun 24 Jun 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 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)

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)

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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

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 5 10 15 20 25

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)

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 - June 2018

US Dollar

Chinese Yuan

Thai Baht

Japanese Yen

Singapore Dollar

New Taiwan Dollar

4.4596

3.8862 3.9999

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

2017 2018

RM

USD 1 = RM

0.6466 0.6468

0.6150

0.6186

0.59 0.60 0.61 0.62 0.63 0.64 0.65

2017 2018

RM

CNY 1 = RM

12.5766

12.8790

12.3207

12.00 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

3.6367

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

2.9555 2.9687

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

13.2323 13.3020

12.50 13.00 13.50 14.00 14.50 15.00

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 June 2018 : US$79.4, 5.1%*

Average Price

ⁱ

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

-per MT-

29 June 2018 : US$609.5, 4.1%*

Average Price

ⁱ

: 2017: US$719.7 2016: US$702.2

RUBBER SMR 20 -per MT-

29 June 2018 : US$1,354.5, 0.2%*

Average Price

ⁱ

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

COAL -per MT-

29 June 2018 : US$62.3, 2.2%*

Average Price

ⁱ

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

-per MT-

29 June 2018 : US$1,646.7, 2.5%*

Average Price

ⁱ

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

SCRAP IRON HMS -per MT-

29 June 2018 :US$390.0

^(high)

, unchanged*

US$375.0

^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 29 June 2018 : US$609.5

Crude Palm Oil -per MT-

Domestic Prices 29 June 2018

Steel Bars

(per MT)

RM2,400 – RM2,550

Billets

(per MT)

RM2300 – RM2,350

SUGAR -per lbs- 29 June 2018 :US¢12.3, 1.3%*

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.

674.5 665.5

654.0

641.7 641.5 655.0

663.0 666.5 662.0

657.0

635.5

609.5

560 580 600 620 640 660 680

13 Apr 20 Apr 27 Apr 4 May 8 May 18 May 25 May 1 June 8 June 14 June22 June29 June

US$/mt

Crude Palm Oil

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 1,646.7

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

US$/mt

Cocoa

12.2

11.9

11.5 11.5

11.2 11.7

12.5 12.5 12.5

12.3 12.4 12.3

10.0 10.5 11.0 11.5 12.0 12.5 13.0

US¢/lbs

Sugar

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 1,354.5

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

JanFebMar Apr May JunJulAug SepOct Nov DecJanFebMar Apr May JunJulAug Sep

2016 2017

USD/ tonne

Black Pepper

67.4 67.4 68.1

69.7 70.7 71.3 67.9

65.8 65.7 65.1 68.6 72.6 74.1 74.6 74.9 74.2

77.1 78.5

76.4 76.8 76.5 73.4

75.6 79.4

50 55 60 65 70 75 80 85

13 Apr 20 Apr 27 Apr 4 May 11 May 18 May 25 May 1 June 8 June 15 June 22 June 29 June

US$/bbl

Crude Petroleum

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

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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.

59.2 58.9

56.6 56.6 56.6 58.3

59.6

61.2 61.0 61.0 61.0 62.3

53.0 54.0 55.0 56.0 57.0 58.0 59.0 60.0 61.0 62.0 63.0

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

JanFebMar Apr May JunJulAug SepOct Nov DecJanFebMar 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

380.0 380.0

350.0 350.0 350.0 350.0 350.0 350.0 370.0 370.0

390.0 390.0

350.0 340.0

330.0 330.0 330.0 330.0 340.0 340.0

350.0 350.0 375.0 375.0

300 310 320 330 340 350 360 370 380 390 400

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

JanFebMar Apr May Jun Jul Aug SepOct Nov DecJanFebMar Apr May

2017 2018

US$/dmtu

Iron Ore

43.1 43.4

42.5 42.3 42.4

41.5 41.9 42.0

41.7 41.9

40.7 40.2

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

16.5 17.2

16.6 16.5

16.8

16.5 16.6 16.5

16.8

16.3 16.4

16.1

15.4 15.6 15.8 16.0 16.2 16.4 16.6 16.8 17.0 17.2 17.4

US$/oz

Silver

929 936.0

914.0 904.0

929.0

888.0 912.0

906.0 904.0

869.0 870.0 854.0

800.0 820.0 840.0 860.0 880.0 900.0 920.0 940.0 960.0

US$/oz

Platinum

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

of Technical Terms

LMW Licensed Manufacturing Warehouse (Gudang Pengilangan Berlesen (GPB)) - In Malaysia, a Manufacturing Bonded Warehouse is known as Licensed Manufacturing Warehouse established under the provision of section 65/65A of the Customs Act 1967. An LMW is a manufacturing unit (factory) granted to any person for warehousing and manufacturing approved products on the same premise. It is primarily intended to cater for export oriented industries. Customs duty exemption is given to all raw materials and components used directly in the manufacturing process of approved produce from the initial stage of manufacturing until the finished product is finally packed ready for export.

Long Products

Long products include hot rolled bar, cold rolled or drawn bar, rebar, railway rails, wire, rope (stranded wire), woven cloth of steel wire, shapes (sections) such as U, I, or H sections, and may also include ingots from continuous casting, including blooms and billets. Fabricated structural units, such bridge sections are also classed as long products. Long products find general use in construction industries, and in capital goods sectors.

LPG Liquefied Petroleum Gas also referred to as GPL, LP or autogas is a blend primarily of two hydrocarbon gases, propane and butane.

MAC The Malaysian Aerospace Council chaired by YB Minister MITI provides the vision and direction for the overall development plan of the national aerospace industry. It also provides policy guidelines and identify priority areas of aerospace activities in Malaysia. Members of the Council consists of Government and industry players.

Machine Tools

Metalworking machinery consists of metal cutting and metal forming/shaping machinery.

MAFTA

Malaysia-Australia Free Trade Agreement

MAIA Malaysia Aerospace Industry Association is a non-governmental organisation and functions to support and represent the voice of Malaysian companies in the aerospace sector.

Main Carriage

Domestic: subsequent transportation beyond pre-carriage

International: transportation from the point of departure on the seller’s side to the arrival pint on the buyer’s side

Marine-restricted

Terms that only apply to carriage by vessel

Mark-up Approach

Addition of a certain number of percentage points to the applied rate of the unbound tariff line in order to establish the base rate. Current proposal is for mark-up of 30.

Market Access

Market access for goods in the WTO means the conditions, tariff and non-tariff measures, agreed by members for the

entry of specific goods into their markets.

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Announcement

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

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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

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

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Source: BERNAMA

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