Perutusan YB. Menteri

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MITI Weekly Bulletin | www.miti.gov.my

1438H

Perutusan YB. Menteri

Tema hari kemerdekaan yang ke-60 membawa mesej yang jelas tentang kesepakatan, kecintaan dan kesetiaan kita kepada negara. Pengorbanan pemimpin terdahulu untuk membebaskan Malaysia daripada penjajahan British tidak harus dilupakan. Hari ini negara kita telah bebas dan merdeka. Kemerdekaan dan pembangunan yang kita kecapi harus ditatang dengan penuh rasa kesyukuran dan kita sewajarnya bersatu dalam mempertahankan nikmat kemerdekaan ini buat generasi yang akan datang.

Hari Raya Haji atau Aidil Adha merupakan sambutan yang amat bermakna bagi umat Islam.

Peristiwa bersejarah ini bermula apabila Nabi Ibrahim (A.S) telah diwahyukan supaya melakukan penyembelihan terhadap anaknya yang tersayang, Nabi Ismail (A.S). Sebagai seorang Nabi, pesuruh dan pembawa agama Allah S.W.T, Nabi Ibrahim (A.S) telah menjalankan perintah Allah S.W.T dengan penuh ketaatan. Sifat taat kepada Allah S.W.T telah melebihi segala-galanya.

Nilai murni dari peristiwa Nabi Ibrahim (A.S) dan Nabi Ismail (A.S) yang harus kita contohi dalam konteks kemerdekaan Malaysia adalah sejauh mana kita menyayangi dan sanggup melakukan pengorbanan, ketaatan untuk mempertahankan kedaulatan bumi Malaysia.

Pengorbanan ini sewajarnya menjadi teladan untuk kita bersama khususnya dalam mempertahankan nikmat kemerdekaan yang dikecapi bumi bertuah ini. Kitalah yang bertuah untuk mewarisi dan menjadi penyambung kelangsungan negara yang merdeka ini.

Akhir kata, saya mengambil kesempatan ini untuk mengucapkan selamat menyambut hari kemerdekaan yang ke-60. Saya dan keluarga serta warga Kementerian ingin mengambil kesempatan ini untuk mengucapkan Selamat Hari Raya Aidiladha, Maaf Zahir dan Batin.

Dato’ Sri Mustapa Mohamed

Menteri Perdagangan Antarabangsa dan Industri

Assalamualaikum Warahmatullahi Wabarakatuh dan Salam Sejahtera.

Pada akhir bulan Ogos 2017 ini,

sebagaimana biasa rakyat Malaysia

akan menyambut hari kemerdekaan

ke-60 yang bertemakan “NegaraKu

Sehati Sejiwa” dan disusuli pula dengan

Hari Raya Korban yang akan disambut

pada 1 September 2017, bersamaan

10 Zulhijjah 1438H. Sambutan Hari

Kemerdekaan dan Hari Raya Korban

membawa falsafah dan pengertian yang

amat besar kepada kita semua rakyat

Malaysia.

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MALAYSIA

Balance of Payments (BOP)

Current Account Balance

RM9.6 bil

RM27.0 billion

Goods Income

Financial Account

RM7.3 bil (net inflow)

Direct Investment RM7.1b (Net Outflow)

Portfolio Investment RM16.0b (Net Inflow)

Financial Derivatives RM0.3b (Net Outflow)

Other Investment RM1.3b (Net Outflow)

Q2 2017

Reserve Assets

RM424.8bil

10.9 8.2

5.2 10.8

6.2 3.1

7.3 12.5

5.3 9.6

0 5 10 15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2015 2016 2017

RM billion

Current Account

-29.2 0.4

-33.2

6.6 7.8 11.1

-5.8 -14.2

-8.8 7.3

-40 -20 0 20

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

RM billion

Financial Account

389.65 398.10

415.10 409.10

381.53 390.30

404.92 423.87 422.10 428.80

340 360 380 400 420 440

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

RM billion Reserve Assets

BOP Performance, Q1 2015-Q2 2017

FDI & DIA Performance RM8.3 bil

Foreign Direct Investment (FDI) in Malaysia

RM15.4 bil

Direct Investment Abroad(DIA)

2015 2016 2017

Source : Department of Statistics, Malaysia

-RM5.0 billion Services

-RM12.4

billion

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MITI Weekly Bulletin | www.miti.gov.my

Trade in Services, Q2 2017

Exports Services, Q2 2017

Imports Services, Q2 2017

Exports

RM39.5 bil.

Note: * include Construction, Maintenance and repair services, Insurance and pension services, Financial services, Charges for the use of intellectual property, Personal, cultural and recreational services and Government goods and services

% -Year on Year Growth

Telecommunications, computer and information services

Note: * include Maintenance and repair services, Insurance and pension services, Financial services, Manufacturing services on physical inputs owned by others Charges for the use of intellectual property, Personal, cultural and recreational services and Government goods and services

% -Year on Year Growth

0 10 20 30 40 50

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

3 3 .3 3 2 .5 3 4 .5 3 5 .8 3 6 .1 3 6 .5 3 6 .2 3 7 .5 3 6 .4 3 9 .5

3 6 .7 3 7 .4 4 0 .3 4 2 .3 4 1 .7 4 0 .3 4 0 .5 4 2 .9 4 2 .6 4 4 .5

RM Billion

Exports Imports

Exports and Import of Services, Q1 2015-Q2 2017

2015 2016 2017

Travel

RM19.5 b, 7.8%

Other business services

RM6.6 b, 9.5%

RM4.7 b, 6.6%

Transport

RM3.6 b, 25.8%

Others*

Telecommunications, computer and information services

RM2.6 b, 1.2%

Manufacturing services on physical inputs owned by others

RM2.6 b, 3.3%

Imports

RM44.6 bil.

Travel

RM12.2 b, 4.0%

Other business services

RM7.4 b, 0.1%

RM11.2, 7.2%

Transport

RM6.6 b, 2.8%

Others*

Telecommunications, computer and information services

RM3.1 b, 9.1%

Construction

RM3.9 b, 6.4%

(4)

Trade in Services, 2016

Source : Department of Statistics, Malaysia

RM165.4 b 5.5%

RM146.3 b

7.5% Total Trade

RM311.7 b 6.5%

Note: %:Y-o-Y Growth

Trade In Services By Component, 2016

6.5 9.9 10.5 18.3 46.7

0 20 40 60

UK PRC Indonesia USA Singapore

RM Billion

8.7 11.9 15.9 19.5 31.9

0 10 20 30 40

Thailand Japan USA PRC Singapore

RM Billion

Top Five Exports and Imports by Country, 2016

Exports Imports

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MITI Weekly Bulletin | www.miti.gov.my

International Report

Top Five Trading Partners (Trade in Goods), June 2017

billion

(Rank: 25)

105.2 110.1

94.5

82.7 60.8 61.0 57.7 60.8 58.1 64.4 73.7 80.2

43.3 55.9 60.1

54.2 56.1

48.8 56.3 55.4

49.1 50.7 52.4 55.3 55.7

37.9 161.1

135.9 0 40 80 120 160 200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Jan-

June)

RM billion

Exports Imports Total Trade

Malaysia’s Trade with USA, 2005 - 2017 (Jan-June)

Total Trade:US$52.0 bil.

15.7%*

PRC

1 2 3 4 5

Canada Mexico Japan Germany

Source: U.S. Bureau of Economic Note: %* : Percent of U.S. total trade

Major Exports , 2015/2016

HS

Code Product 2015

RM bil 2016

RM bil Change

% 85 Electrical machinery and equipment 35.32 38.47 8.9

84 Machinery appliances 10.5 12.46 18.7

90 Optical, photographic, precision,

medical apparatus 4.98 5.77 15.8

40 Rubber and articles thereof 5.34 5.24 -1.9

94 Furniture and bedding; illuminated signs;

prefabricated builings 2.96 3.21 8.5

Major Imports , 2015/2016

HS

Code Product 2015

RM bil

2016 RM bil

Change

% 85 Electrical machinery and

equipment 24.28 24.52 1.0

84 Machinery appliances 6.83 6.66 -2.5

90 Optical, photographic, precision, medical apparatus 4.33 4.59 6.1 88 Aircraft and spacecraft 3.72 4.18 12.4 39 Plastics and articles thereof 1.75 1.85 5.8

Source : Department of Statistics, Malaysia

https://www.pemandu.gov.

my/...reports

Exports US$194.4 billion

Imports US$238.0 billion

USA GOODS AND SERVICES TRADE: JUNE 2017

Total Trade US$432.4 billion

Total Trade:US$51.1 bil.

15.4%*

Total Trade:US$48.7 bil.

14.7%*

Total Trade:US$16.8 bil.

5.1%*

Total Trade:US$14.5 bil.

4.4%*

Total Trade

US$323.3 billion

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Note: *Provicional 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 45

4 Jun 11 Jun 18 Jun 25 Jun 2 Jul 9 Jul 16 Jul 23 Jul 30 Jul 6 Aug 13 Aug 20 Aug 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

RM mil.

ASEAN Trade in Goods Agreement (ATIGA)

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

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

RM mil.

ASEAN-China Free Trade Agreement (ACFTA)

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

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

RM mil.

ASEAN-Korea Free Trade Agreement (AKFTA)

0 50 100 150 200 250 300

0 50 100 150 200 250

RM mil.

ASEAN-Japan Comprehensive Economic Partnership (AJCEP)

0 100 200 300 400 500 600 700 800 900

0 50 100 150 200 250

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)

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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 50 100 150 200 250 300 350

RM mil.

Malaysia-Japan Economic Partnership (MJEPA)

0 50 100 150 200 250 300 350

0 20 40 60 80 100 120 140 160

RM mil.

Malaysia-Pakistan Closer Economic Partnership (MPCEPA)

0 2 4 6 8 10 12 14

0.0 0.1 0.1 0.2 0.2 0.3 0.3 0.4 0.4 0.5

RM mil.

Malaysia-New Zealand Free Trade Agreement (MNZFTA)

0 20 40 60 80 100 120 140 160 180 200

0 10 20 30 40 50 60 70 80 90 100

RM mil.

Malaysia-China Free Trade Agreement (MCFTA)

0 50 100 150 200 250 300 350 400 450 500

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 50 100 150 200 250 300

RM mil.

Malaysia-Australia Free Trade Agreement (MAFTA)

0 50 100 150 200 250 300 350 400 450

0 50 100 150 200 250 300 350 400 450 500

RM mil.

Malaysia-Turkey Free Trade Agreement (MTFTA)

Note: *Provicional 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 2016 - July 2017

US Dollar

Canadian Dollar

New Zealand Dollar

Swiss Franc

Saudi Riyal

Myanmar Kyat

4.3481

4.2903

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 Jul

2016 2017

RM

USD 1 = RM

3.0559

3.3725

2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50

2016 2017

RM

CAD 1 = RM

2.8405

3.1544

2.40 2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30

2016 2017

RM

NZD 1 = RM

4.3241

4.4697

3.80 3.90 4.00 4.10 4.20 4.30 4.40 4.50 4.60

2016 2017

RM

CHF 1 = RM

115.89

114.40

95.00 100.00 105.00 110.00 115.00 120.00 125.00

2016 2017

RM

SAR 100 = RM

0.3367

0.3156

0.295 0.300 0.305 0.310 0.315 0.320 0.325 0.330 0.335 0.340 0.345 0.350

2016 2017

RM

MMK 100 = RM

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MITI Weekly Bulletin | www.miti.gov.my

Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group.

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-

25 Aug 2017 : US$52.4, 0.6% ^* Average Price ⁱ : 2016: US$45.3

2015: US$53.6 CRUDE PALM OIL

-per MT-

25 Aug 2017 : US$686.0, 2.6%*

Average Price ⁱ : 2016: US$702.2 2015: US$616.9

RUBBER SMR 20 -per MT-

25 Aug 2017 : US$1,554.0, 1.0% ^* Average Price ⁱ : 2016: US$1.394.5

2015: US$1.364.3

COAL -per MT-

25 Aug 2017 : US$44.1, unchanged Average Price ⁱ : 2016: US$45.6

2015: US$49.9 COCOA SMC 2

-per MT-

25 Aug 2017 : US$1,379.6, 2.2% ^* Average Price ⁱ : 2016: US$1,609.8

2015: US$2,077.0

SCRAP IRON HMS -per MT-

25 Aug 2017 : US$390.0 ^(high) , 11.4%*

US$370.0 ^(low) , 8.8%*

Average Price ⁱ : 2016: US$243.2 2015: US$239.6

HIGHEST and LOWEST 2016/2017

Highest

6 Jan 2017 : US$57.1 30 Dec 2016 : US$56.8

Lowest

23 June 2017 : US$45.5 15 Jan 2016 : US$28.9

Crude Petroleum

(Brent) -per bbl-

Highest

20 Jan 2017 : US$843.0 30 Dec 2016 : US$797.5

Lowest

15 Jan 2016 : US$545.5 30 June 2017 : US$650.0

Crude Palm Oil -per MT-

Domestic Prices 25 Aug 2017

Steel Bars

(per MT) RM2,500 – RM2,650

Billets

(per MT) RM2,250 – RM2,300

SUGAR -per lbs-

25 Aug 2017 : US¢ 14.0, 4.6% ^* Average Price ⁱ : 2016: US¢18.2

2015: US¢13.2

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Data for April not available Ministers attending the recent APEC MRT 2017

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.

720.0 707.0

688.5

650.0 650.0

666.0 670.5 669.5 665.0

656.5 668.5

686.0

600 620 640 660 680 700 720 740

9 Jun 16 Jun 23 Jun 30 Jun 7 Jul 14 Jul 21 Jul 28 Jul 4 Aug 11 Aug 18 Aug 25 Aug

US$/mt

Crude Palm Oil

1,417.9 1,501.7

1,270.7 1,385.7

1,419.1

1,373.5 1,421.7

1,448.6 1,543.1

1,420.1

1,350.1 1,379.6

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

US$/mt

Cocoa

14.5

13.6

13.2 13.8

14.2

14.3 14.4 14.4 14.1

13.2 13.4

14.0

12.0 12.5 13.0 13.5 14.0 14.5 15.0

US¢/lbs

Sugar

1,393.5 1,469.0

1,381.0 1,540.0

1,469.0 1,510.0

1,568.5

1,433.5 1,477.5

1,520.51,539.0 1,554.0

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

4,188 4,571

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

2016 2017

USD/ tonne

Black Pepper

* until 31 May 2017

** data for April & June 2017 are not available

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MITI Weekly Bulletin | www.miti.gov.my

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.

1,481 1,531

1,531 1,571

1,551 1,594

1,629 1,639

1,592 1,666

1,737 1,728

1,791 1,861

1,901 1,921

1,913 1,885 1,903

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

2016 2017

US$/ tonne

Aluminium

4,472 4,599

4,954 4,873

4,695 4,642 4,865

4,752 4,722

4,731 5,451

5,660 5,755 5,941

5,825 5,684

5,600 5,720

5,985

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

2016 2017

US$/ tonne

Copper

8,507 8,299

8,717 8,879 8,660

8,928 10,263

10,336 10,192

10,260 11,129

10,972

9,971 10,643

10,205

9,609 9,155

8,932 9,491

7,000 7,500 8,000 8,500 9,000 9,500 10,000 10,500 11,000 11,500

2016 2017

US$/ tonne

Nickel

45.8 44.7

43.0 46.3

44.2 46.6

45.8

49.7 49.6

48.8 48.5 47.9 48.2

47.4

45.5 47.9

46.7 49.0

48.1

52.5 52.4 52.1

52.7 52.4

40 42 44 46 48 50 52 54

US$/bbl

Crude Petroleum

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

Commodity Price Trends

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

942.0

926.0 930.0

914.0 914.0 921.0

940.0 930.0

969.0

987.0 988.0 978.0

860.0 880.0 900.0 920.0 940.0 960.0 980.0 1,000.0

US$/oz

Platinum

270.0 270.0 270.0 270.0 300.0

315.0 315.0 320.0 330.0

350.0 350.0 390.0

240.0 240.0 240.0 240.0 280.0

300.0 300.0 310.0

320.0

340.0 340.0 370.0

200 220 240 260 280 300 320 340 360 380 400

US$/mt

Scrap Iron

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

41.88 46.83

56.20 60.92

55.13 51.98

57.26 60.89

57.79 59.09

73.10 80.02

80.41 89.44

87.65

70.22

62.43 57.48

67.74

30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

2016 2017

US$/dmtu

Iron Ore

17.2

16.8 16.8 16.7

15.9 16.1

16.5 16.7

16.5 17.1

17.2 17.1

15.0 15.5 16.0 16.5 17.0 17.5

US$/oz

Silver

40.7

40.4 40.4 39.9

39.1 39.6

40.1 40.7

40.4 41.4

41.7 41.3

37.5 38.0 38.5 39.0 39.5 40.0 40.5 41.0 41.5 42.0

US$/oz

Gold

Commodity Price Trends

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MITI Weekly Bulletin | www.miti.gov.my

MITI Programme

Minister’s Visit to Top Glove R&D Centre, 29 August 2017

(14)

MITI Programme

GRP Day, 29 August 2017

(15)

MITI Weekly Bulletin | www.miti.gov.my

MITI TN50 Dialogue on Trade and Industry Development 24 August 2017

MITI Programme

(16)

MITI Weekly Bulletin | www.miti.gov.my

Halal Fiesta (HALFEST) ASEAN 2017

23-27 August 2017

(17)

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Asia Business First Forum, 22 August 2017

MITI Programme

(18)

Announcement

Kindly click http://www3.weforum.org/

docs/Beyond_Fintech_-_A_Pragmatic_

Assessment_of_Disruptive_Potential_

in_Financial_Services.pdf to download this publication.

s

(19)

MITI Weekly Bulletin | www.miti.gov.my

Of Technical Terms

IoT Internet of Things - System of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.

IPI I ndustrial Production Index - The industrial production index measures the change in output in Malaysian manufacturing, mining, construction, and electricity, gas and water. Output refers to the physical quantity of goods produced, unlike sales value, which combines quantity and price. The index covers the production of goods and power for domestic sales in Malaysia and for export. It excludes production in the agriculture, transportation, communications, trade, finance, and service industries, government, and imports.

J-curve

The shape of the trend of a country’s trade balance following a devaluation. A lower exchange rate initially means cheaper exports and more expensive imports, making the current account worse (a bigger deficit or smaller surplus). After a while, though, the volume of exports will start to rise because of their lower price to foreign buyers, and domestic consumers will buy fewer of the costlier imports. Eventually, the trade balance will improve on what it was before the devaluation. If there is a currency appreciation there may be an inverted J-curve.

JPC 3

Jawatankuasa Pengecualian Cukai Besi Keluli - A committee chaired by MITI and representatives from MOF, MIDA and Customs that evaluates and determines import duty exemption applications for raw materials of iron and steel products.

Keynesian

A branch of economics, based, often loosely, on the ideas of Keynes, characterised by a belief

in active government and suspicion of market outcomes. It was dominant in the 30 years

following the Second World War, and especially during the 1960s, when fiscal policy became

bigger-spending and looser in most developed countries as policymakers tried to kill off the

business cycle. During the 1970s, widely blamed for the rise in inflation, Keynesian policies

gradually gave way to monetarism and microeconomic policies that owed much to the neo-

classical economics that Keynes had at times opposed. Even so, the idea that public spending

and taxation have a crucial role to play in managing demand, in order to move towards full

employment, remained at the heart of macroeconomic policy in most countries, even after

the monetarist and supply-side revolution of the 1980s and 1990s. Recently, a school of new,

more pro-market Keynesian economists has emerged, believing that most markets work, but

sometimes only slowly.

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