PDF Malaysian Economy Recap 2018 - Ministry of International Trade and Industry

(1)

VOLUME 567 VOLUME 567

MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY

Weekly

BULLETIN BULLETIN

31 December 2019 | NO. ISSN : 2180-0448

m i l l i o n

32.4

population (2017: 32.0m)

Malaysian Economy Recap 2018 72.2

72.2

Life Expectancy at Birth

(2017: 72.1)

7 7.1 7 7.1

(2017: 77.1) (number of years)

m i l l i o n

15.3

labour force

3

unemployment

.3%

rate

Tr a d e

(RM billion)

in 2018

25.7%

Trade Balance

98.5

i n c r e a s e d

123.8

from

Exports

1,003.6

(2017: 934.9) Imports

879.8

(2017: 836.4) Total Trade

1,883.4

(2017: 1,771.3)

G o o d s S e rv ic e s

_{in 2018}

29.0%

Trade Balance

-22.9

i n c r e a s e d

-17.7

from

Exports

162.1

(2017: 159.4) Imports

179.8

(2017: 182.2) Total Trade

341.9

(2017:341.6)

Gr o s s Do m e s t i c Pr o d u c t (GDP)

C u rr e n t P ri c e s C o n s ta n t 2 0 15 P ri c e s

Total GDP Services

Manufacturing Mining &

Quarrying Agriculture Construction RM1,446.9b, 5.5% (2017: RM1,371.6b, 11.7%)

RM312.0b, 4.1% (2017: RM299.8b, 10.1%) RM804.0b, 7.7% (2017: RM746.6b, 8.2%)

RM134.2b, 10.6% (2017: RM121.3b, 16.7%)

RM70.1b, 5.3% (2017: RM66.6b, 8.9%) RM109.1b, -7.7% (2017: RM118.1b, 11.7%)

RM1,361.5b, 4.7% (2017: RM1,299.9b, 5.7%)

RM304.8b, 5.0% (2017: RM290.5b, 6.0%) RM771.9b, 6.8% (2017: RM722.6b, 6.2%)

RM103.1b, -2.6% (2017: RM105.8b, 0.4%)

RM66.2b, 4.2% (2017: RM63.5b, 6.7%) RM99.5b, 0.1% (2017: RM99.4b, 5.7%)

RM32.6b

FDI Net Flows 2017: RM40.4b

R M 5 9 5 . 5 b

position as end 2018 2 0 1 7 : R M 5 9 5 . 5 b

Foreign Direct Investment (FDI)

Direct Investment Abroad (DIA)

RM-21.3bb

DIA Net Flows 2017: RM-24.2b

R M 4 9 2 . 0 b

position as end 2018 2 0 1 7 : R M 5 2 6 . 6 b

MWB Editorial members wish all Readers a Happy New Year...

(2017: 15.0m)

(2017: 3.4%)

Note: Percentage refers to y-o-y percentage change Source: Department of Statistics, Malaysia

(2)

MITI Weekly Bulletin | www.miti.gov.my

Malaysia Statistics

Source: Department of Statistics, Malaysia

Total revenue generated in 2018 was RM1,321.7 billion as compared to RM893.2 billion in 2013

with growth rate of 8.2% per annum

Wholesale & Retail Trade Key Indicators

(3)

Malaysia Statistics

Source: Department of Statistics, Malaysia

(4)

Sustainable Development Goals Indicators

Cluster 3: Human Capital

Indicator 4.1.1: Proportion of children and young people (a) in grades 2/3; (b) at the end of primary; and (c) at the end of lower secondary achieving at least a minimum proficiency level in (i) reading and (ii) mathematics, by sex

Source: Department of Statistics and Ministry of Education Malaysia

Goal 4: Quality Education

Figure 4.1: Proportion of children and young people in grades 2/3 in reading and mathematics, 2017 and 2018

The proficiency of children and young people in grades 2/3 for mathematics was slightly higher than the proficiency in reading. The proportion of children at grades 2/3 achieving at least a minimum proficiency

level in reading and mathematics showed a declining

trend. The proportion of children with reading proficiency dropped by 0.3 percentage points to 98.0% in 2018 as compared to 98.3% in 2017. Similarly, the proportion of children achieving at least a minimum proficiency level in mathematics declined by 0.2 percentage points to 98.6% in 2018 as compared to 98.8% in 2017. The indicator refers to Literacy and Numeracy Programme (LINUS) data.

The proficiency in reading among children and young people at the end of primary achieved higher proportion than the proficiency in mathematics. The proportion of children and young people at the end of primary achieving at least a minimum proficiency level in reading decreased 0.6 percentage points to 94.5% in 2018 as compared to 95.1% in 2017. The proportion of children and young people at the end of primary achieving at least a minimum proficiency level in mathematics dropped 0.9 percentage points to 80.5% in 2018 as compared to 2017 (81.4%). This indicator refers to Ujian Pencapaian

Sekolah Rendah (UPSR) result.

Figure 4.2: Proportion of children and young people at the end of primary in reading and mathematics, 2017 and 2018

The proportion of children and young people at the end of lower secondary achieving at least a minimum proficiency level in reading among students declined 1.9 percentage points to 78.3% in 2018 as compared to 80.2% in 2017. Similarly, the proportion of children and young people at the end of lower secondary achieving at least a minimum proficiency level in mathematics declined 2.3 percentage points to 42.3%

in 2018 as compared to 44.6% in 2017. This indicator

refers to percentage of passes for Bahasa Melayu and Mathematics in Pentaksiran Tingkatan 3 (PT3).

Figure 4.3: Proportion of children and young people at the end of lower secondary achieving at least a minimum proficiency level in reading and mathematics, 2017 and 2018

Indicator 4.6.1: Proportion of population in a given age group achieving at least a fixed level of proficiency in functional (a) literacy and (b) numeracy skills, by sex

The proportion of the populations in a given age

group achieving at least a fixed level of proficiency in functional literacy rate for male declined 0.4 percentage points to 96.7% in 2018 as compared to 97.1% in 2017. In addition, female literacy rates also decreased by 0.4 percentage points to 97.0% in 2018 as compared to 97.4% in 2017.

Figure 4.4: Proportion of population aged 15-24

years old achieving proficiency in literacy skill

by sex, 2017 and 2018

(5)

Be part of something BIG?

Come and join us, be a volunteer for APEC 2020!

For more information about the volunteer program, kindly click the following link:

https://www.miti.gov.my/index.php/pages/view/5657?mid=626

Sources: Ministry of International Trade and Industry

5

(6)

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 Regulations:

e-Fulfillment:

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

G L O S S A RY

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

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

Duty Drawback Facility:

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

Door-to-Door:

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.

Digital Marketing:

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.

An online market place. A type of e-commerce site where product or service information is provided by multiple third parties, whereas transactions are processed by the marketplace operator.

e-Marketplace:

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.

Online payment transactions on the internet. A subset of an e-commerce transaction to include electronic payment for buying and selling goods or services offered through the Internet.

e-Payment:

Employed:

Refers to all persons who, at any time during the reference week work at least one hour for pay, profit or family gain (as an employer, employee, own account worker or unpaid family worker).

Derogates from the MFN principle. It allows members to give better treatment through preferential trading arrangements for trade in goods.

Enabling Clause:

Early Harvest:

This term refers to conclusion of selected areas under negotiations before agreement is reached on all areas being negotiated (contrast with single undertaking).

Companies that test, manufacture, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs).

Equipment Manufacturing Services:

(7)

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

0 20 40 60 80 100 120

0 5 10 15 20 25 30 35

6 Oct 13 Oct 20 Oct 27 Oct 3 Nov 10 Nov 17 Nov 24 Nov 1 Dec 8 Dec 15 Dec 22 Dec 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

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

RM mil.

ASEAN Trade in Goods Agreement (ATIGA)

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

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

RM mil.

ASEAN-China Free Trade Agreement (ACFTA)

0 200 400 600 800 1,000 1,200

0 50 100 150 200 250 300 350 400 450 500

RM mil.

ASEAN-Korea Free Trade Agreement (AKFTA)

0 50 100 150 200 250 300 350

0 20 40 60 80 100 120 140 160

RM mil.

ASEAN-Japan Comprehensive Economic Partnership (AJCEP)

0 100 200 300 400 500 600 700 800 900

0 50 100 150 200 250 300 350

RM mil.

ASEAN-India Free Trade Agreement (AIFTA)

0 200 400 600 800 1,000 1,200

0 100 200 300 400 500 600

RM mil.

ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)

(8)

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

Number and Value of Preferential Certificates of Origin (PCOs)

0 200 400 600 800 1,000 1,200

0 20 40 60 80 100 120 140 160 180 200

RM mil.

Malaysia-Japan Economic Partnership Agreement (MJEPA)

0 50 100 150 200 250

0 20 40 60 80 100 120 140 160

RM mil.

Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA)

0 1 2 3 4 5 6 7 8 9 10

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45

RM mil.

Malaysia-New Zealand Free Trade Agreement (MNZFTA)

0 10 20 30 40 50 60 70 80 90

0 2 4 6 8 10 12 14 16

RM mil.

Malaysia-Chile Free Trade Agreement (MCFTA)

0 50 100 150 200 250 300 350 400 450

0 20 40 60 80 100 120 140 160

RM mil.

Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA)

0 100 200 300 400 500 600

0 10 20 30 40 50 60

RM mil.

Malaysia-Australia Free Trade Agreement (MAFTA)

0 50 100 150 200 250 300 350

0 20 40 60 80 100 120 140 160 180

RM mil.

Malaysia-Turkey Free Trade Agreement (MTFTA)

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

(9)

Source : Bank Negara Malaysia

Malaysian Ringgit Exchange Rate with Selected Countries, January 2018 - December 2019

US Dollar

Pakistani Rupee

Egyptian Pound

Cambodian Riel

Nepalese Rupee

United Arab Emirates Dirham

3.9578

3.8862

4.1881 4.1879

3.70 3.75 3.80 3.85 3.90 3.95 4.00 4.05 4.10 4.15 4.20 4.25

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

2018 2019

RM

USD 1 = RM

3.5738

2.5930

2.6732

2.00 2.20 2.40 2.60 2.80 3.00 3.20 3.40 3.60 3.80

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

2018 2019

RM

PKR 100 = RM

0.2235 0.2198

0.2579

0.20 0.21 0.22 0.23 0.24 0.25 0.26 0.27

2018 2019

RM

EGP 1 = RM

0.0979

0.0964

0.1035

0.1029

0.092 0.094 0.096 0.098 0.100 0.102 0.104 0.106

2018 2019

RM

KHR 100 = RM

3.8875

3.5316

3.6372

3.40 3.50 3.60 3.70 3.80 3.90 4.00

2018 2019

RM

NPR 100 = RM

107.7531

105.8030

114.0195 113.2273

100.0 102.0 104.0 106.0 108.0 110.0 112.0 114.0 116.0

2018 2019

RM

AED 100 = RM

(10)

Sale s V alu e

3.1%*

US$68.2

%*

US$45.6

0.2%*

US$1,512.8

%*

US$280.0 (low)

%*

US$300.0 (high)

27 December 2019

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-

27 December 2019

CRUDE PALM OIL -per MT-

3.3%*

US$794.5

27 December 2019

RUBBER SMR 20 -per MT-

0.5%*

US$1,449.5

COCOA SMC 2 -per MT-

COAL -per MT-

SUGAR -per lbs-

%*

US$13.5

SCRAP IRON HMS -per MT-

5 Oct 2018 : US$84.2

Highest

2018/2019

17 May 2019 : US$72.2

9 Aug 2019 : US$54.5 28 Dec 2018 : US$52.2

Lowest 2018/2019

9 Mar 2018 : US$691.5

Highest

2018/2019

27 Dec 2019 : US$794.5

26 July 2019 : US$488.5 23 Nov 2018 : US$448.5

Lowest 2018/2019 Average Price 2018

ⁱ

: US$71.5 Average Price 2018

ⁱ

: US$600.1

Average Price 2018

ⁱ

: US$1,371.0 Average Price 2018

ⁱ

: US$1,535.6 Average Price 2018

ⁱ

: US ¢ 12.3

Average Price 2018

ⁱ

: US$380.7 (high) Average Price 2018

ⁱ

: US$359.6 (low) Average Price 2018

ⁱ

: US$66.9

Domestic Prices

27 December 2019

Steel Bars

(per MT)

RM1,900– RM1,950

Billets

(per MT) RM1,800 - RM1,900

27 December

2019 27 December

2019 27 December 2019

27 December 2019

(11)

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.

1,630.6 1,677.4

1,689.4

1,623.9 1,651.1

1,741.2

1,751.4

1,684.1 1,663.7

1,623.8

1,515.5 1,512.8 1,500

1,550 1,600 1,650 1,700 1,750 1,800

11 Oct 18 Oct 25 Oct 1 Nov 8 Nov 15 Nov 22 Nov 29 Nov 6 Dec 13 Dec 20 Dec 27 Dec

US$/mt

Cocoa

2,003 2,002 1,991

1,957 1,976

1,936

1,881 1,879 1,879

1,840 1,841 2,161

1,800.0 1,850.0 1,900.0 1,950.0 2,000.0 2,050.0 2,100.0 2,150.0 2,200.0

US$/mt

Pepper

1,291.0 1,309.51,322.0

1,337.5

1,355.01,364.0 1,414.0

1,401.5 1,490.0

1,499.5

1,442.01,449.5

1,240 1,290 1,340 1,390 1,440 1,490

US$/mt

Rubber SMR 20

54.5 53.8

56.7 56.2 57.2 57.7 57.8

55.2

59.2 60.1 60.4 60.5 61.7

59.4

62.0 61.7 62.563.3 63.4 62.4

64.4 65.2 66.1

68.2

40 45 50 55 60 65 70

US$/bbl

Crude Petroleum

Crude Petroleum (WTI)/bbl Crude Petroleum (Brent)/bbl 533.0

554.5 564.5 583.5

639.0

673.0 680.5 684.5

698.5 689.5 769.0

794.5

485 535 585 635 685 735 785 835

US$/mt

Crude Palm Oil

12.4

12.3 12.4 12.5

12.6 12.7

12.8 12.9

13.2

13.5 13.5 13.5

11.8 12.0 12.2 12.4 12.6 12.8 13.0 13.2 13.4 13.6 13.8

US¢/lbs

Sugar

(12)

17.5 17.6 17.9

18.1

16.8 16.917.0

17.1

16.6 17.0

17.2 17.9

16.2 16.4 16.6 16.8 17.0 17.2 17.4 17.6 17.8 18.0 18.2

US$/oz

Silver

47.6 47.9

48.7 48.5

47.1 47.2 47.1

46.9 46.9 47.2

47.6 48.6

46.0 46.5 47.0 47.5 48.0 48.5 49.0

US$/g

Gold

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.

2,255 2,300 2,238 2,082 2,052 2,026 2,030 1,939 1,920 1,854 1,863 1,871 1,845 1,781 1,756 1,797 1,741 1,754 1,726 1,775

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

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

2018 2019

US$/ tonne

Aluminium

6,852 6,825 6,966 6,251 6,051 6,051 6,220 6,196 6,075 5,939 6,300 6,439 6,438 6,018 5,882 5,941 5,709 5,759 5,757 5,860

4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500

2018 2019

US$/ tonne

Copper

13,938 14,366 15,106 13,794 13,411 12,510 12,315 11,240 10,835 11,523 12,685 13,026 12,773 12,016 11,944 13,546 15,749 17,657 17,046 15,172

7,000 9,000 11,000 13,000 15,000 17,000 19,000

2018 2019

US$/ tonne

Nickel

Commodity Price Trends

65.75 66.10 65.04 64.56 67.15 68.44 73.41 73.26 69.15 76.16 88.22 86.47 93.70 100.15 108.94 120.24 93.07 93.08 88.53 84.98

50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0

2018 2019

US$/dmtu

Iron Ore

900.3 895.9

933.3 954.0

893.1 894.5 892.6 900.4 898.9

928.8 913.8

950.4

860.0 880.0 900.0 920.0 940.0 960.0 980.0

US$/oz

Platinum

250.0 260.0 260.0

280.0 280.0 280.0 280.0 300.0

310.0 320.0

300.0 300.0

225.0 235.0

250.0

260.0 260.0 260.0265.0

280.0285.0 290.0 280.0 280.0

200 220 240 260 280 300 320 340

US$/mt

Scrap Iron

Scrap Iron/MT (High) Scrap Iron/MT(Low)

44.6

44.1 44.1

43.8 43.8 43.8 43.8

46.1

45.6 45.6 45.6 45.6

43 44 44 45 45 46 46 47 47

US$/t

Coal

(13)

Media Release

Final Determination of an Anti-Dumping Investigation Concerning Imports of Cold Rolled Coils of Iron or Non Alloy Steel, of Width More than 1300mm Originating or Exported from the People's Republic of China, Japan, Republic of Korea and the Socialist Republic of Viet Nam

The Government of Malaysia has concluded the anti-dumping investigation concerning imports of cold rolled coils of iron or non-alloy steel, of width more than 1300mm (subject merchandise) from the People's Republic of China, Japan, Republic of Korea and the Socialist Republic of Viet Nam and decided to impose final affirmative anti-dumping duties as follows:

People’s Republic of China

Angang Steel Company Limited 4.82%

Maanshan Iron and Steel Co., Ltd. 4.76%

Shougang Jingtang United Iron & Steel Co., Ltd. 8.74%

Others 26.38%

Japan

All Producers/Exporters 26.39%

Republic of Korea

POSCO Nil

Others 3.84%

Socialist Republic of Viet Nam

POSCO Vietnam Company Limited 7.70%

Others 20.13%

The Government has also made a final determination that the definitive anti-dumping duties will not be imposed on imports of:

• tin mill black plate; and

• subject merchandise for automotive and transformer’s finwall end-usage.

The Royal Malaysian Customs Department will enforce the collection of anti-dumping duties and this measure will be effective for five (5) years, from 25 December 2019 to 24 December 2024. The investigation was initiated by the Government of Malaysia in accordance with the Countervailing and Anti-Dumping Duties Act 1993 and Countervailing and Anti-Dumping Duties Regulation 1994 on 29 March 2019 based on a petition filed by Mycron Steel CRC Sdn. Bhd. on behalf of the Domestic Industry producing cold rolled coils. The Petitioner alleged that subject merchandise from the alleged countries are being imported into Malaysia at a price lower than the selling price in their respective domestic markets, causing material injury to the Domestic Industry in Malaysia.

With the imposition of anti-dumping duties on imports of subject merchandise from the alleged countries, it is expected that the issue of unfair trade practices will be addressed. Interested parties, such as local producers, importers, foreign producers/exporters and associations related to the investigation can have access to the non-confidential version of the public report on the Final Determination by submitting a written request to:

Director

Trade Practices Section

Ministry of International Trade and Industry (MITI) Level 9, Menara MITI

No. 7, Jalan Sultan Haji Ahmad Shah 50480 Kuala Lumpur

MALAYSIA

Telephone Number : (603) 6208 4631/4632/4641/4647 Facsimile Number : (603) 6211 4429

E-mail address : alltps@miti.gov.my

Ministry of International Trade and Industry

26 December 2019

(14)

All you need to know...

For more information, kindly click the following links:

https://www.miti.gov.my/index.php/pages/view/industry4WRD

All you need to know...

(15)

All you need to know...

For more information, kindly click the following links:

https://www.miti.gov.my/index.php/pages/view/industry4WRD?mid=559#tab_547_2202

(16)

ANNOUNCEMENTSANNOUNCEMENTS

For more information, kindly click the following links:

http://www.miti.gov.my/index.php/pages/view/4761 For more information, kindly click the following links:

https://www.miti.gov.my/index.php/pages/view/aki?mid=535

For more information, kindly click the following links:

https://bit.ly/2MyIPFt

For information, kindly click https://fta.miti.gov.my/index.php/pages/view/69?mid=27

(17)

Dear Valued Readers,

We are currently conducting a survey to improve our contents so please share your valuable views and insights. This survey will take less than five minutes of your precious time. Your kind cooperation is highly appreciated.

Thank you.

http://bit.do/MWB-Readers-Satisfaction-Survey

Readers Satisfaction

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