PDF Exports Remained High in May 2018 at RM82.11 billion

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Deputy Secretary General (Trade) International Trade and Industry of

Exports Remained High in May 2018 at RM82.11 billion

Malaysia’s trade in May 2018 grew by 1.8%

to reach a value of RM156.1 billion from May 2017. Expansion in trade were seen with China, Taiwan, Hong Kong SAR, the Republic of Korea (ROK), the European Union (EU), Japan and Saudi Arabia.

May 2018 exports remained above the RM80 billion mark, totalling RM82.11 billion, a 3.4%

growth compared to May 2017, while imports rose by 0.1% to RM73.99 billion. Export growth continued to outpace import for 5 consecutive months since January 2018. Trade surplus was recorded at RM8.12 billion, an expansion of 47.1% from May 2017 and marked the 247th consecutive month of trade surplus since November 1997.

On a month-on-month (m-o-m) basis, imports and total trade grew by 3.9% and 0.4%, while exports and trade surplus contracted by 2.5%

and 37.7%, respectively.

For the first five months of 2018, trade amounted to RM753.46 billion, rose by 4.2% compared to the same period of 2017. Exports increased by 6.9% to RM403.99 billion while imports were higher by 1.3% to RM349.48 billion. Trade surplus surged by 64.9% to RM54.51 billion compared to the corresponding period of 2017.

Manufactured Goods Continued to Drive Exports

Exports of manufactured goods in May 2018 increased by 3.2% y-o-y or RM2.14 billion to RM68.77 billion, accounting for 83.8% of Malaysia’s total exports. The expansion was driven mainly by higher exports of manufactures of metal which grew by 44.7% or RM1.35 billion. Other products which contributed to the increase were electrical and electronic (E&E) products, chemicals and chemical products, optical and scientific equipment as well as palm oil-based manufactured products.

Exports of mining goods expanded by 40% to

RM7.09 billion, constituting 8.6% of Malaysia’s total exports. The increase was attributed to higher exports of liquefied natural gas (LNG) and crude petroleum. Exports of LNG rebounded in May 2018 with a double digit growth of 61%, after registering 3 consecutive months of y-o-y decline since February 2018.

This was due to higher exports volume which increased by 68.7%.

Exports of agriculture goods which accounted for 6.6% of total exports, contracted by 21.9%

to RM5.44 billion mainly due to lower exports of palm oil and palm oil-based agriculture products, particularly palm oil. This was due to the decline in both exports volume and Average Unit Value (AUV).

Major exports in May 2018:

•E&E products valued at RM29.18 billion, constituting 35.5% of total exports, increased by 2.1% from May 2017;

•Petroleum products, RM8.09 billion, 9.9% of total exports, increased by 1.7%;

•Chemicals and chemical products, RM4.51 billion, 5.5% of total exports, increased by 14.6%;

•Manufactures of metal, RM4.36 billion, 5.3%

of total exports, increased by 44.7%; and

•Palm oil and palm oil-based agriculture YB Darell Leiking

Minister of International Trade and Industry

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products, RM3.63 billion, 4.4% of total exports, decreased by 24.7%.

Compared to April 2018, exports of mining goods increased by 4.8%, while manufactured and agriculture goods declined by 2.5% and 9.5%, respectively.

In the first five months of 2018, exports of manufactured goods expanded by 8.8%

to RM335.71 billion compared to the corresponding period of 2017, mainly led by higher exports of E&E products, manufactures of metal, chemicals and chemical products, transport equipment as well as optical and scientific equipment. Exports of mining goods increased by 7% to RM35.02 billion, supported mainly by higher exports of crude petroleum.

Meanwhile, exports of agriculture goods contracted by 11.5% to RM29.27 billion, owing to lower exports of palm oil and palm oil-based agriculture products.

Performance of Major Markets

Stronger Trade Performance with ASEAN for the First 5 Months

Trade with ASEAN in May 2018 which accounted for 26.8% of Malaysia’s total trade, slipped by 1% y-o-y to RM41.78 billion. Exports amounted to RM23.66 billion, a decline of 1.9%, due to the drop in exports of petroleum products, machinery, equipment and parts as well as E&E products. However, higher exports were recorded for crude petroleum, manufactures of metal as well as petroleum condensates and other petroleum oil. Imports from ASEAN rose by 0.1% to RM18.12 billion.

Breakdown of exports to ASEAN countries in May 2018:

•Singapore RM11.13billion, decreased by 9.8%

•Thailand RM 4.87 billion, ↑18.4%

•Viet Nam RM 3.09 billion, ↑41.3%

•Indonesia RM 2.63 billion, ↓20.1%

•Philippines RM 1.29 billion, ↓4.1%

•Myanmar RM 265.6 million, ↓41.7%

•Brunei RM 193.4 million, ↓18.6%

•Cambodia RM 175.4 million, ↑31.4%

•Lao PDR RM 3.3 million, ↓39.8%

Exports to Singapore contracted by RM1.2 billion mainly due to reduced shipment of petroleum products and E&E products.

Meanwhile, exports to Thailand expanded by RM757.4 million on account of higher exports of crude petroleum and E&E products, Viet Nam (↑RM904.4 million, petroleum products) and Cambodia (↑RM41.9 million, iron and steel products).

On a m-o-m basis, imports and total trade

grew by 3.6% and 0.9% respectively, while exports contracted by 1%.

In January-May 2018, trade with ASEAN expanded by 3.2% to RM204.23 billion compared to the same period of 2017.

Exports to this region rose by 3.4% to RM115.32 billion contributed mainly by higher exports of E&E products and crude petroleum. Imports increased by 2.9% to RM88.91 billion.

Sturdy Demand From China in May

In May 2018, trade with China which absorbed 17.4% of Malaysia’s total trade expanded by 7.7% y-o-y to RM27.14 billion.

Exports amounted to RM11.53 billion, increased by 7.4% due to higher exports of manufactures of metal as well as chemicals and chemical products. Imports from China were up by 7.8% to RM15.61 billion.

Compared to April 2018, imports and total trade were higher by 12.6% and 3.3% while exports declined 7.1%.

Trade with China in January-May 2018 expanded by 5% to RM122.35 billion compared to the same period of 2017.

Exports to China increased by 6.2% to RM53.12 billion, attributed to higher exports of E&E products, chemicals and chemical products as well as manufactures of metal.

Imports from China rose by 4% to RM69.23 billion.

Manufactured Goods Drove Exports to the EU in May 2018

Malaysia’s trade with the EU in May 2018 increased by 4.6% y-o-y to RM15.85 billion and accounted for 10.2% of Malaysia’s total trade. Exports increased by 11.4% to RM8.92 billion, driven by higher exports of manufactured goods, particularly petroleum products, manufactures of metal as well as palm oil-based manufactured products.

Imports declined by 3% to RM6.93 billion.

Among the top 10 EU markets, exports to 7 countries registered growth namely, Germany (↑34.9%), Ireland (↑205.1%), Italy (↑22.8%), Spain (↑22.9%), the Czech Republic (↑48.9%), France (↑8.5%) and Hungary (↑16.1%).

On a m-o-m basis, exports, imports and total trade contracted by 0.1%, 4% and 1.8%, respectively.

In the first five months of 2018, trade with the EU grew by 12.4% to RM77.7 billion compared to the corresponding period in 2017. Exports

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increased by 9.2% to RM42.7 billion, attributed to higher exports of manufactures of metal and E&E products. Imports from the EU increased by 16.7% to RM34.99 billion.

Exports to the USA Remained Positive in the First 5 Months

Malaysia’s trade with the United States of America (USA) in May 2018 recorded a contraction of 20% to RM11.56 billion or 7.4% of Malaysia’s total trade. Exports totalled RM7 billion, decreasing by 5.6% y-o-y due to lower exports of E&E and petroleum products. However, higher exports were recorded for optical and scientific equipment as well as chemicals and chemical products. Imports declined by 35.1% to RM4.56 billion.

Compared to April 2018, exports, imports and total trade declined by 6.5%, 14.7% and 9.9%, respectively.

In January-May of 2018, trade with the USA amounted to RM62.02 billion, contracting by 9.1% compared to the corresponding period in 2017. Exports to the USA rose by 1.4% to RM36.61 billion on account of higher exports of transport equipment, manufactures of metal as well as optical and scientific equipment. Imports from the USA decreased by 20.8% to RM25.4 billion.

Exports to Japan Driven By Increased Shipment of LNG

Trade with Japan in May 2018 which constituted 6.7% of Malaysia’s total trade or RM10.53 billion, rose by 7.1% y-o-y. Exports to Japan rebounded by 16% y-o-y growth to RM5.57 billion after registering 3 straight months of negative growth.

The increase was attributed mainly to higher shipments of LNG to Japan. Imports from Japan were lower by 1.5% to RM4.96 billion.

On a m-o-m basis, exports increased by 11%, while imports and total trade contracted by 11.2% and 0.6%, respectively.

During the first five months of 2018, trade with Japan was RM55.51 billion, a decrease of 3.6%

from the corresponding period a year ago.

Exports to Japan which amounted to RM29.84 billion, reduced by 5.6% on account of lower exports of E&E products and LNG. Products registering higher exports were iron and steel products, manufactures of metal as well as chemicals and chemical products. Imports from Japan declined by 1.1% to RM25.67 billion.

Trade with FTA Partners

In May 2018, trade with Free Trade Agreement (FTA) partners rose by 2.1% y-o-y to RM97.68 billion and accounted for 62.6% of Malaysia’s total trade. Exports to FTA partners amounted to RM50.67 billion, increased by 2.1% and imports expanded by 2% to RM47.01 billion.

Higher exports were registered to the ROK, growing by 17.1% to RM2.58 billion, attributed mainly to increase in exports of E&E products, Pakistan (↑19.6% to RM539.3 million, palm oil and palm oil-based agriculture products), Chile (↑24.8% to RM63.3 million, chemicals and chemical products) and Turkey (↑0.3% to RM853.4 million, palm oil and palm oil-based agriculture products).

Compared to April 2018, imports and total trade grew by 6% and 2.7% respectively, while exports declined marginally by 0.2%.

During January-May of 2018, total trade with FTA partners increased by 2.6% to RM468.32 billion and accounted for 62.2% of Malaysia’s total trade. Exports amounted to RM246.96 billion, an increase of 3.1% while imports totalled RM221.35 billion, expanding by 2%.

Other Markets Registering Higher Exports In May 2018, other markets with significant growth in exports were Hong Kong SAR, Taiwan and Bangladesh. Exports to Hong Kong SAR expanded by 34.8% y-o-y to RM5.24 billion, supported mainly by higher exports of E&E products, Taiwan (↑21.5% to RM2.72 billion, E&E products) and Bangladesh (↑41.5% to RM937.5 million, petroleum products).

Import Performance

In May 2018, imports increased by 0.1% y-o-y to RM73.99 billion. The three main categories of imports by end use were:

•Intermediate goods, valued at RM40.06 billion or 54.1% of total imports, decreased by 5.3%, following lower imports of parts and accessories of capital goods (except transport equipment) primarily electrical machinery, equipment and parts;

•Capital goods, valued at RM9.82 billion or 13.3% of total imports, contracted by 0.7%, led by lower imports of capital good (except transport equipment), particularly electrical machinery, equipment & parts; and

•Consumption goods, valued at RM5.99 billion or 8.1% of total imports, reduced by 10.2%, as a result of lower imports of semi-durables goods mainly articles of plastics.

During the first five months of 2018, imports amounted to RM349.48 billion, grew by 1.3% from the corresponding period of 2017.

Intermediate goods totalled RM181.27 billion, dropped by 9.6%, capital goods (RM44.71 billion, ↓7.5%) and consumption goods (RM28.34 billion, ↓1.4%).

Source: Ministry of International Trade and Industry

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RM69.2 bil

RM41.1 bil RM25.7 RM25.4 bil RM23.8 bil

bil RM164.3

bil

RM54.3 bil

RM53.1 bil

RM36.6 bil RM29.8 RM29.5 bil

bil RM200.6

bil

Trade Performance, January - May 2018

Malaysia's Exports and Imports, January - May 2018

Malaysia

Source: Department of Statistics, Malaysia Notes: % - percentage share to total exports/imports

Exports Imports

Jan-Apr 2017 RM569.7 billion

Jan-Apr 2016 RM460.0 billion

Jan-May 2018 RM404.0 billion

Exports Imports Total Trade

6.9% 1.3% 4.2%

RM404.0

billion RM349.5

billion

13.4% Singapore 13.1% PRC

9.1% USA 7.4% Japan 7.3% Hong Kong 49.7% Others

19.8% PRC

11.8% Singapore 7.3% Japan 7.3% USA

6.8% Chinese Taipei 47.0% Others

Notes: % refers to year-on-year change

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Source: Department of Statistics, Malaysia

Notes: % - percentage share to total exports/imports

Top Three Export & Import Products, January - May 2018

Electrical & Electronic Products

PRC RM25.0 bil (24.2%) Chinese Taipei RM16.7 bil (16.2%) Singapore

RM13.0 bil (12.6%) USA RM12.2 bil (11.8%) Japan

RM7.1 bil (6.9%)

Petroleum Products

Singapore

RM15.0 bil (44.1%) PRC RM4.5 bil (13.2%) India

RM3.9 bil (11.5%) ROK RM1.8 bil (5.4%) UAE RM1.7 bil (5.1%)

Chemicals & chemical products

PRC RM5.9 bil (18.4%) Singapore

RM3.6 bil (11.1%) Saudi Arabia RM2.6 bil (8.0%) Japan

RM2.3 bil (7.1%) USA RM2.2 bil (7.0%)

Electrical & Electronic Products

Singapore

RM24.1 bil (16.2%) Hong Kong SAR RM23.0 bil (15.4%) PRC RM21.8 bil (14.6%) USA RM18.3 bil (12.2%) Thailand

RM8.3 bil (5.6%)

Exports ^I mports

Petroleum Products

Singapore

RM8.2 bil (25.8%) Viet Nam

RM4.5 bil (14.0%) PRC RM4.1 bil (12.7%) Indonesia

RM2.8 bil (8.7%) Bangladesh RM2.0 bil (6.2%)

Chemicals & chemical products

PRC RM6.2 bil (27.4%) Indonesia

RM2.7 bil (12.1%) Thailand

RM2.1 bil (9.5%) Viet Nam

RM1.6 bil (7.0%) Singapore

RM1.4 bil (6.3%)

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Malaysia was the largest exporter of

glass fibre threads "chopped strands", cut into lengths less/equal 50 mm, 2017

International Report

Note : Refers to HS701911

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

1 MALAYSIA

USD$427.8m 29.5%

Belgium

USD$226.8m

15.6%

Netherlands USD$168.9m

11.6%

China USD$160.5m

11.1%

France USD$118.3m

8.1%

Malaysia’s Top Five Export Destinations For Glass Fibre Threads

"Chopped Strands", Cut Into Lengths less/equal to 50 mm, 2017

USA USD$68.5m 16%

Germany USD$69.0m 16.1 %

Japan USD$57.1 m 13.3%

ROK USD$47.5m 11.1%

2 1 ₅

PRC

3

USD$4 8.3m 11.3%

4

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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

15 Apr 22 Apr 29 Apr 6 May 13 May 20 May 27 May 3 Jun 10 Jun 17 Jun 24 Jun 1 Jul 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

Euro

South Korean Won

Pound Sterling

Australian Dollar

Brunei 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

4.7389

5.0606

4.6736

4.40 4.50 4.60 4.70 4.80 4.90 5.00 5.10

2017 2018

RM

EUR 1 = RM

0.3778

0.3915

0.3621

0.3660

0.35 0.35 0.36 0.36 0.37 0.37 0.38 0.38 0.39 0.39 0.40

2017 2018

RM

KRW 100 = RM

5.4963

5.6062

5.3167

5.15 5.20 5.25 5.30 5.35 5.40 5.45 5.50 5.55 5.60 5.65

2017 2018

RM

GBP 1 = RM

3.3241 3.4124

2.9874 3.0002

2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50

2017 2018

RM

AUD 1 = RM

3.1214 3.1583

2.9452 2.9836

2.80 2.85 2.90 2.95 3.00 3.05 3.10 3.15 3.20

2017 2018

RM

BND 1 = RM

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Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian

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-

6 July 2018 : US$77.1, 2.9%*

Average Price

ⁱ

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

-per MT-

6 July 2018 : US$610.5, 0.2%*

Average Price

ⁱ

: 2017: US$719.7 2016: US$702.2

RUBBER SMR 20 -per MT-

6 July 2018 : US$1,316.0, 2.8%*

Average Price

ⁱ

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

COAL -per MT- 6 July 2018 : US$63.8, 2.3%*

Average Price

ⁱ

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

-per MT-

6 July 2018 : US$1,612.5, 2.1%*

Average Price

ⁱ

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

SCRAP IRON HMS -per MT-

6 July 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 6 July 2018

Steel Bars

(per MT)

RM2,400 – RM2,550

Billets

(per MT)

RM2250 – RM2,300

SUGAR -per lbs- 6 July 2018 :US¢11.5, 6.0%*

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.

665.5

654.0

641.7 641.5 655.0

663.0 666.5 662.0

657.0

635.5

609.5 610.5

570 580 590 600 610 620 630 640 650 660 670 680

20 Apr 27 Apr 4 May 8 May 18 May 25 May 1 June 8 June 14 June22 June29 June 6 July

US$/mt

Crude Palm Oil

1,849.9

1,888.01,918.9 1,915.5

1,785.3 1,744.3

1,644.3

1,506.4 1,553.3

1,607.1 1,646.7

1,612.5

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

US$/mt

Cocoa

11.9

11.5 11.5

11.2 11.7

12.5 12.5 12.5

12.3 12.4 12.3

11.5

10.0 10.5 11.0 11.5 12.0 12.5 13.0

US¢/lbs

Sugar

1,425.5

1,388.5

1,438.5 1,435.5 1,431.5 1,457.0

1,424.5 1,424.0

1,371.5

1,352.0 1,354.5

1,316.0

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

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 68.1

69.7 70.7 71.3 67.9

65.8 65.7 65.1 68.6

74.2 73.8 74.1 74.6 74.9

77.1 78.5

76.4 76.8 76.5 73.4

75.6 79.4

77.1

50 55 60 65 70 75 80 85

20 Apr 27 Apr 4 May 11 May 18 May 25 May 1 June 8 June 15 June 22 June 29 June 6 July

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.

58.9

56.6 56.6 56.6 58.3

59.6

61.2 61.0 61.0 61.0 62.3

63.8

52.0 54.0 56.0 58.0 60.0 62.0 64.0 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 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

350.0 350.0 350.0 350.0 350.0 350.0 370.0 370.0

390.0 390.0 390.0

340.0

330.0 330.0 330.0 330.0 340.0 340.0

350.0 350.0

375.0 375.0 375.0

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

43.4

42.5 42.3 42.4

41.5 41.9 42.0

41.7 41.9

40.7 40.2 40.4

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

17.2

16.6 16.5

16.8

16.5 16.6 16.5

16.8

16.3 16.4

16.1 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

936.0

914.0 904.0

929.0

888.0 912.0

906.0 904.0

869.0 870.0 854.0

848.6

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

Material Handling Equipment

Machines for movement, handling, storage and retrieval of materials such as cranes, conveyance equipment, auto/storage/

retrieval systems and material handling equipment for manufacturing processes.

MCFTA

Malaysia-Chile Free Trade Agreement

MEEPA

Malaysia-European Free Trade Association (EFTA) Economic Partnership Agreement - Iceland, Liechtenstein, Norway, Switzerland.

Member Economies

A term used for an official member of APEC. Members taking part in APEC activities do so as economic entitites rather than as sovereign states. Currently, APEC comprises 21 member economies: Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea;

Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; the Philippines; Russia; Singapore; Chinese Taipei;

Thailand; the United States; and Viet Nam.

MEUFTA

Malaysia-European Union Free Trade Agreement

MFN

Most-Favoured-Nation – Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members. This principle is known as most-favoured-nation (MFN) treatment. It is so important that it is the first article of the General Agreement on Tariffs and Trade (GATT), which governs trade in goods. MFN is also a priority in the General Agreement on Trade in Services (GATS) (Article 2) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) (Article 4), although in each agreement the principle is handled slightly differently. Together, those three agreements cover all three main areas of trade handled by the WTO. Some exceptions are allowed. For example, countries can set up a free trade agreement that applies only to goods traded within the group — discriminating against goods from outside. Or they can give developing countries special access to their markets. Or a country can raise barriers against products that are considered to be traded unfairly from specific countries. And in services, countries are allowed, in limited circumstances, to discriminate. But the agreements only permit these exceptions under strict conditions. In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners — whether rich or poor, weak or strong.

MICECA

Malaysia-India Comprehensive Economic Cooperation Agreement

Minamata Convention

A global treaty to protect human health and the environment from the adverse effects of mercury.

MISIF

Malaysian Iron and Steel Industry Federation - MISIF is the national industry association for manufacturers of iron and steel products. The primary function of MISIF is to assist and support members in carrying out their business efficiently and successfully.

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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

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).

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MITI Weekly Bulletin (MWB) Mobile Apps

MITI MWB APPs is now available for IOS, Android and Windows platforms. MWB APPs can be download from Gallery of Malaysian Government Mobile APPs (GAMMA) at the link: http://gamma.malaysia.gov.my/#/appDetails/85

MWB Facebook Page

Like MWB page at

https://www.facebook.com/MITIWeeklyBulletin/?fref=ts

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

PDF Exports Remained High in May 2018 at RM82.11 billion

Deputy Secretary General (Trade) International Trade and Industry of

Exports Remained High in May 2018 at RM82.11 billion

Trade Performance, January - May 2018

Malaysia's Exports and Imports, January - May 2018

Malaysia

Exports Imports

Exports Imports Total Trade

6.9% 1.3% 4.2%

RM404.0

billion RM349.5

billion

Top Three Export & Import Products, January - May 2018

Electrical & Electronic Products

PRC RM25.0 bil (24.2%) Chinese Taipei RM16.7 bil (16.2%) Singapore

RM13.0 bil (12.6%) USA RM12.2 bil (11.8%) Japan

RM7.1 bil (6.9%)

Petroleum Products

Singapore

RM15.0 bil (44.1%) PRC RM4.5 bil (13.2%) India

RM3.9 bil (11.5%) ROK RM1.8 bil (5.4%) UAE RM1.7 bil (5.1%)

Chemicals & chemical products

PRC RM5.9 bil (18.4%) Singapore

RM3.6 bil (11.1%) Saudi Arabia RM2.6 bil (8.0%) Japan

RM2.3 bil (7.1%) USA RM2.2 bil (7.0%)

Electrical & Electronic Products

Singapore

RM24.1 bil (16.2%) Hong Kong SAR RM23.0 bil (15.4%) PRC RM21.8 bil (14.6%) USA RM18.3 bil (12.2%) Thailand

RM8.3 bil (5.6%)

Exports I mports

Petroleum Products

Singapore

RM8.2 bil (25.8%) Viet Nam

RM4.5 bil (14.0%) PRC RM4.1 bil (12.7%) Indonesia

RM2.8 bil (8.7%) Bangladesh RM2.0 bil (6.2%)

Chemicals & chemical products

PRC RM6.2 bil (27.4%) Indonesia

RM2.7 bil (12.1%) Thailand

RM2.1 bil (9.5%) Viet Nam

RM1.6 bil (7.0%) Singapore

RM1.4 bil (6.3%)

Malaysia was the largest exporter of

glass fibre threads "chopped strands", cut into lengths less/equal 50 mm, 2017

International Report

1

MALAYSIA

USD$427.8m 29.5%

Belgium

Malaysia’s Top Five Export Destinations For Glass Fibre Threads

"Chopped Strands", Cut Into Lengths less/equal to 50 mm, 2017

2 1 5

3

4

Number and Value of Preferential Certificates of Origin (PCOs)

Number and Value of Preferential Certificates of Origin (PCOs)

Malaysian Ringgit Exchange Rate with Selected Countries, January 2017 - June 2018

US Dollar

Euro

South Korean Won

Pound Sterling

Australian Dollar

Brunei Dollar

Commodity Prices

CRUDE PETROLEUM (BRENT) -per bbl-

6 July 2018 : US$77.1, 2.9%*

Average Price

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

-per MT-

6 July 2018 : US$610.5, 0.2%*

Average Price

: 2017: US$719.7 2016: US$702.2

RUBBER SMR 20 -per MT-

6 July 2018 : US$1,316.0, 2.8%*

Average Price

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

COAL -per MT- 6 July 2018 : US$63.8, 2.3%*

Average Price

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

-per MT-

6 July 2018 : US$1,612.5, 2.1%*

Exports ^I mports

2 1 ₅