MONTHLY NEWS SCAN

Tinjauan Berita Bulanan Compiled by IDS

Vol. 26 Issue 4 IDS Online http://www.ids.org.my 1 – 30 April 2021

HIGHLIGHTS drop in January following Brexit. have been getting from strong external FOCUS Official figures show exports to the demand, particularly from China, EU jumped by 46.6%, £3.7bn, to which forms the basis for keeping World economy risks ‘dangerously £11.6bn, following January’s 42% intact the economic recovery from last • slump when firms struggled with new year’s steep coronavirus drop. (30 diverging’ even as growth booms • Eurozone suffers double-dip trade rules. However, the Office for April, The Straits Times) recession as pandemic impact National Statistics said exports were continues still below last year’s levels and Brexit: UK and Australia agree • Trade mission results in deals imports from the EU had seen a ‘vast majority’ of trade deal: The worth RM986mil weaker recovery. Other figures from UK and Australia say they have • poised to maintain top the ONS showed the UK economy agreed “the vast majority” of a free position in ASEAN e-commerce grew by 0.4% in February. (13 April, trade deal. After recent talks in market BBC News) London the two said they aim to seal a • Enhancing RM1.8b -Indo deal by June. “Both countries are trade China’s economy grows 18.3% in confident the remaining issues will be • RM235m sugar, Siakap projects post-Covid comeback: China’s resolved, and will now enter a sprint INTERNATIONAL economy grew a record 18.3% in the to agree the outstanding details with first quarter of 2021 compared to the the aim of reaching agreement in ANTARABANGSA same quarter last year. It’s the biggest principle,” a joint statement said. It is jump in gross domestic product estimated a deal could add £500m World economy risks ‘dangerously (GDP) since China started keeping ($694m) to UK GDP over the long- diverging’ even as growth booms: quarterly records in 1992. However, term. (23 April, BBC News) The world economy is on course for Friday’s figures are below its fastest growth in more than a half expectations, with a Reuters poll of S’pore economy to grow faster than century this year, yet differences and economists predicting 19% growth. 6% in 2021, but recovery will be deficiencies could hold it back from more uneven across sectors: MAS: attaining its pre-pandemic heights any They are also heavily skewed, and less time soon. The US is leading the indicative of strong growth, as they Singapore’s economy has almost charge into this week's semi-annual are compared to last year’s huge recovered the output lost during the virtual meeting of the International economic contraction. (16 April, BBC first half of 2020, although its growth Monetary Fund, pumping out trillions News) momentum eased in the first quarter of of dollars of budgetary stimulus and this year. But while the outlook for resuming its role as guardian of the U.S. goods trade deficit vaults to Singapore’s economy has improved, global economy following President record high in March: The U.S. projected growth outcomes across Joe Biden’s defeat of “America First” trade deficit in goods jumped to a sectors have become even more President Donald Trump. (5 April, record high in March, suggesting trade lopsided than previously predicted, The Straits Times) was a drag on economic growth in the the Monetary Authority of Singapore first quarter, but that was likely offset (MAS) noted in its biannual Eurozone suffers double-dip by robust domestic demand amid macroeconomic review released recession as pandemic impact massive government aid. Economic recently. (28 April, The Straits Times) continues: The eurozone’s economy activity in the United States has has fallen back into recession as the rebounded more quickly compared to South Korea economy grows faster than expected as investment, impact of the pandemic continues to its global rivals. The pent-up demand hit activity. Europe’s economies have exports bounce: South Korea’s is drawing in imports, eclipsing a been set back by a renewed surge in economic growth beat expectations in infections this year and Covid-related recovery in exports and keeping the the first quarter, extending the restrictions. The eurozone shrank by overall trade deficit elevated. (28 country’s export-led recovery as 0.6% in the January-to-March period - April, Reuters) global demand surged and the the second consecutive contraction, government maintained support for which is a widely-used definition of a Japan’s factory activity expands at ailing small businesses. Gross recession. It is the second such fastest pace since early 2018: domestic product (GDP) grew a episode, a so-called double-dip Japan’s factory activity expanded in seasonally adjusted 1.6 per cent in the recession, since the onset of the April at the fastest pace since early March quarter from three months pandemic. (30 April, BBC News) 2018 on a global demand recovery, a earlier, according to the Bank of private sector survey showed recently, Korea, faster than the median estimate UK exports to EU rebound partially though new coronavirus curbs cast a of a 1.0 per cent growth in a Reuters after January’s slump: Trade shadow over the overall economic poll and following a 1.2 per cent between the UK and EU partially outlook. The activity expansion expansion in the December quarter. recovered in February, after a steep highlights the tailwind manufacturers (27 April, The Straits Times) 1 – 30 April 2021 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 Malaysia’s import and exports are more dynamic economy, said Higher NATIONAL expected to grow by 13 per cent and Education Minister Datuk Seri Dr NASIONAL 15 per cent, respectively, in 2021 with . Noraini said an upside exports growth momentum, according to the Department of Trade mission results in deals said AmBank Research. Statistics Malaysia, the creative worth RM986mil: Malaysia’s first Malaysia’s total trade amounted to industry sector had contributed about trade and investment mission to South RM1.777 trillion in 2020, RM29.4 billion to the country’s Gross Korea and Japan amidst the pandemic with imports totalled RM796.19 Domestic Product (GDP) in 2019. “In and global challenges has generated billion and exports valued at the same year, the industry also export-related transactions worth RM980.99 billion. In a research note, provided employment opportunities to RM986.15mil. During the six-day AmBank chief economist/head of 859,900 individuals nationwide. On mission which ended on April 6, a research Anthony Dass said a low average, the creative industry in series of business discussions on base, improved global economic and developed countries contribute sourcing of products and services trade activities, a semiconductor between one to five per cent to the were held, involving premium buyers upcycle, and rm commodity prices nation’s GDP,” she said in her speech and leading companies from both were the main drivers of exports in during the signing of a memorandum countries. “About RM70mil of March 2021. (30 April, ) of understanding (MoU) between Universiti Putra Malaysia exports in products and services to Manufacturing to spur Malaysia’s and National Book Development South Korea were reported following industrial production: Moody’s Foundation (YPBN) in the meetings with buyers from the Analytics: Manufacturing sector is recently. (8 April, Bernama) country,” said Malaysia External likely to be a key sector to buoy Trade Development Corp (Matrade) Malaysia's industrial production with Malaysia’s aerospace industry to in a statement. (27 April, ) a strong external demand cushioning rebound early next year: Azmin Malaysia poised to maintain top the downturn, according to Moody’s Ali: The Malaysian aerospace position in ASEAN e-commerce Analytics. In an analysis report titled industry is expected to rebound and market: Malaysia is expected to ‘Malaysia Industrial Production’, regain pre-pandemic revenue levels as maintain its position as one of the top associate economist Sonia Zhu expect early as next year if the country can e-commerce markets in ASEAN, with Malaysia’s industrial production to continue to capture new work its gross merchandise value (GMV) pick up in the coming months from packages with a positive impact on the likely to grow 6.0 per cent to US$11.4 robust external demand and low base whole ecosystem through product billion (US$1=RM4.09) in 2020. In a effect from the previous year. localisation. International Trade and recent statement, the Malaysia Digital Sustained growth in external demand Industry Minister Datuk Seri Economy Corp (MDEC) said the e- will continue to bolster the production said the Conomy SEA 2020 Report by outlook for trade-oriented industries, recovery would be expedited if the technology giant Google, given the strong demand for electrical industry can further expand its air Singapore state-owned investor and electronics, and rubber products cargo services, business aviation, Temasek and global consultancy rm and better economic prospects for maintenance, repair and overhaul Bain & Company had major trading partners such as the US (MRO) as well as professional projected Malaysia’s GMV to rise to and China, said Moody's Analytics. (9 training services. He said a total of US$30 billion in value by 2025. (27 April, Business Times) RM15 million was allocated for the industry’s development programs April, Bernama) Govt to focus on selling palm oil to covering the promotion of the east and west Asian countries – Malaysian aerospace industry Total trade expands by 25.6%: Wee: The government through the ecosystem, empowerment of the Malaysia’s trade performance Ministry of Plantation Industries and National Aerospace Centre of continued its upward trajectory in Commodities will be focusing on Excellence, competency enhancement March 2021, registering the highest selling Malaysian palm oil to East and through digital systems and Industry monthly value for trade, exports, and West Asian countries following high 4.0, and development of bio-based imports. Senior Minister Datuk Seri demand from those areas. Deputy aerospace materials. (9 April, Mohamed Azmin Ali, who is also the Minister Datuk Seri Dr Wee Jeck International Trade and Industry Business Times) Seng said among the countries that Minister, said total trade expanded by have increased palm oil purchase are CPI up 1.7% to 122.9 in March 25.6% to RM185.74bil compared Saudi Arabia, Afghanistan and several 2021: Malaysia’s Consumer Price with March 2020. “Exports countries in Southeast Asia. “Saudi Index (CPI) increased 1.7 per cent to accelerated by 31%, surpassing the Arabia that imported 300,000 tonnes 122.9 in March 2021 from 120.9 in the RM100bil mark to reach Malaysian palm oil per year same month last year, said the RM104.95bil. Imports increased by previously has increased its purchase Department of Statistics Malaysia 19.2% to RM80.79bil and trade to 500,000 tonnes while Afghanistan (DoSM). Chief statistician Datuk Seri surplus surged by 96.1% to doubles its purchase to 150,000 tonne Dr Mohd Uzir Mahidin said this was a RM24.15bil. “(Hence) trade, exports, per year,” he told reporters during a positive increase for two consecutive imports, and trade surplus recorded recent visit to the Malaysian Palm Oil months since February 2021. “The double-digit growth for two Board (MPOB) research station. (12 increase in the overall index was consecutive months,” he said in a April, Bernama) driven by the index of transport (9.8 statement on the country’s external per cent), food and non-alcoholic trade performance for March 2021. Creative industry has potential to beverages (1.5 per cent), (29 April, The Star) generate new sources of income – miscellaneous goods and services (1.0 Noraini: The creative industry in Malaysia’s import to rise 13 per per cent) and furnishings, household Malaysia has the potential to generate equipment and routine household cent, exports to surge 15 per cent in new sources of income and will 2021 - AmBank Research: maintenance (0.9 per cent). (23 April, be able to help the country build a The Star) 1 – 30 April 2021 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 2

sight to help raise their status to higher destinations and products. She said LOCAL income earners, he said when leading under the 12th Malaysia Plan, TEMPATAN MPIB’s board of directors and the ministry has also forwarded a slew management in a courtesy call on of suggested new product Enhancing RM1.8b Sabah-Indo Chief Minister Datuk Seri Hajiji developments for Sabah to the trade: Indonesia is expecting to build Noor,in . (11 April, Daily Economic Planning Unit (EPU), upon the solid business partnership Express) including the Sabah Cultural Village with Malaysia, especially Sabah, once worth RM80 million and the Sabah the Covid-19 pandemic is effectively Govt serious on KK Sky Train: The Art Gallery worth RM3 million. (22 contained. Consulate General of the Sabah government is committed to April, Bernama) Republic of Indonesia (KJRI) Kota develop the Sky Train project to Kinabalu, Renny Meirina said in further upgrade the public transport LD to be seafood export hub: A cold terms of economic relations, the value system in Kota Kinabalu. Deputy storage facility and other amenities of physical trade between Indonesia Chief Minister Datuk Seri Bung are in the pipeline to pave way for and Sabah in 2020 reached RM1.8 Moktar Radin, who is also Works to be a seafood export hub billion and that it is hoped that the Minister, said it is not impossible to for the east coast of Sabah. This was figure will increase higher in the implement if careful planning is taken. disclosed by POIC Sabah Sdn Bhd future. “Sabah is a very strategic and He also said that there must be Chairman Datuk Yong Teck Lee. important state for Indonesia because financial allocation for the project to “Lahad Datu has been earmarked for among reasons is that only Sabah has be implemented. “Currently, there are the development of a seafood export two Indonesian consulates, one in several local investors and a few from hub for the east coast of Sabah under Kota Kinabalu and other in Tawau. overseas such as China who are the State Government’s Sabah maju “In areas under the jurisdiction of the interested to develop the project Jaya (SMJ) development plan,” said Indonesian consulate general of Kota through the Private Funding Initiative the former Sabah Chief Minister. He Kinabalu, there are 163,000 registered (PFI),” he said after listening to the said a cold storage facility would be Indonesians, while for Tawau, proposal from three local and foreign built to support the operations of the 150,000 Indonesians. (12 April, Daily companies who were interested in the seafood hub. (27 April, Daily Express) project at the Sembulan Public Works Express) Department. (16 April, The Borneo RM235m sugar, Siakap projects: Post) LPP spent RM62 mln to assist Chief Minister Datuk Seri Sabah farmers last year: The Sabah witnessed the signing of a Tourism boost as marina launched Farmers Organisation Authority Memorandum of Understanding in Semporna: The launch of Seafest (LPP) has spent RM62 million to (MoU) totalling RM235 million Marina will create entrepreneurship implement various development between the Sawit Kinabalu Group and employment opportunities to projects to assist farmers in the state and two domestic investors. They are generate the economy of the people in last year, said its director Anita Borneo Lestari Sdn Bhd owned by Semporna despite the Covid-19 Misuari. She said of the total, two Sabahan businessmen and pandemic. Deputy Chief Minister RM47.75 million was aid managed by -based Admuda Sugar Sdn Datuk Seri said LPP for the Paddy Fertiliser Scheme Bhd. Both projects were investment he is confident the tourism industry for lowland paddy and hill paddy initiatives under the five-year will grow strongly in the future after distributed by the Area Farmers Halatuju Sabah Maju Jaya (SMJ) the rest of the world have vaccinated Organisation (PPK). “RM3.51 million development plan. Hajiji, who is also their communities. “With the was spent on management, RM2.21 Chairman of the Sawit Kinabalu vaccination, the tourism industry will million for development, RM6.07 Group, said the Halatuju SMJ, bounce back in Sabah,” he said when million for the Economic Stimulus launched last month, has started to launching the Seafest Marina. Bung Package, RM1.37 million for the B40 bear fruits and he congratulated all said Semporna district is fortunate to and RM1.07 million for a special parties concerned for this have Seafest Group willing to develop account,” she said in a recent collaboration, adding that he was the tourism industry in the district statement. (27 April, Bernama) confident Sawit would be able to which is blessed with Sipadan island maintain its position as a progressive that is among the top tourist Dam, drainage relief for seven State GLC. (20 April, Daily Express) attractions in the world. (3 April, The K’gau villages: Farmers from seven Borneo Post) villages in the Bingkor area can now High-yield Sabah pineapples to heave a sigh of relief as the dam and become reality: The Malaysian RM26.9 mln allocation to boost drainage system had been built and Pineapple Industry Board (MPIB) is Sabah tourism this year - Nancy improved by the Drainage and keen to spread its wings to expand Shukri: - The federal Irrigation Department (DID) through Sabah’s pineapple industry using government through the Tourism, Assemblyman, Datuk Robert Tawik modern technology to produce high- Arts and Culture Ministry (MOTAC) @ Nordin, who is State Assistant yield varieties for the local and has allocated RM26.9 million this Works Minister. The villages are international markets. Its Chairman year to develop the tourism sector in Kampung Baru, Bunsit, Lipasu, Datuk Dr Sahruddin Jamal said MPIB Sabah, with an emphasis on new Berungis, Minansut, Kumawanan, has the capacity and capital to help by tourism products. Its minister Datuk Tongkungan as well as the sharing expertise and giving Seri said the latest surrounding areas. They are glad with incentives to Sabah’s smallholders Sabah tourism products will be the department’s efforts to improve and entrepreneurs. In this endeavour, introduced soon and the government dams, drainage and irrigation for the MPIB has the B40 income earners in has also allocated RM3.4 million for flow of water to their paddy fields. (30 maintenance of existing tourism April, Daily Express) 1 – 30 April 2021 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 3

SELECTED FACTS AND FIGURES FAKTA MUTAKHIR

Malaysia’s External Trade Statistics Bulletin, March 2021

(Source: 28 April, Department of Statistics Malaysia)

Malaysia’s Monthly Rubber Statistics, February 2021

(Source: 15 April, Department of Statistics Malaysia)

Malaysia’s Economic Indicators: Leading, Coincident & Lagging Indexes, February 2021

(Source: 23 April, Department of Statistics Malaysia)

1 – 30 April 2021 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 4 Malaysia’s Monthly Manufacturing Statistics, February 2021

(Source: 9 April, Department of Statistics Malaysia)

Malaysia’s Consumer Price Index, March 2021

Chart 1: Percentage Change of Consumer Price Index by Main Group:

(Source: 23 April, Department of Statistics Malaysia)

1 – 30 April 2021 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 5