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Monthly News April 2021, Vol. 26 Issue 4

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Monthly News April 2021, Vol. 26 Issue 4 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 • Malaysia 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 Sabah-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 Ahmad. 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, Bernama) 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 Kuala Lumpur 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, The Star) 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 Mohamed Azmin Ali 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.
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