Monthly News Scan
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MONTHLY NEWS SCAN Tinjauan Berita Bulanan Compiled by IDS Vol. 22 Issue 6 IDS Online http://www.ids.org.my 1 – 30 June 2017 HIGHLIGHTS in both services and manufacturing. the year through June followed by 3.7 IHS Markit, which compiles the data, percent in fiscal 2018, fueled by FOCUS said the eurozone‟s “big two” nations, booming tourism and immigration, Germany and France, drove the record-low interest rates and soaring • IMF says global financial growth. It also said May‟s reading house prices. (15 June, Bloomberg) adds to evidence that single currency- stability has improved nations are “enjoying a strong second BOJ upgrades view on • Russia, Saudis see oil inventories quarter”. Business activity across the consumption, rules out early exit falling after price drop eurozone was 56.8, said IHS Markit, from stimulus: The Bank of Japan • Japan’s investment in Malaysia which was the same as April. (5 June, kept monetary policy steady on BBC News) Friday and upgraded its assessment may rise 30pct in 2017 of private consumption for the first • M’sia to operate world’s first Australia’s economy might be in time in six months, signaling its bio-based chemical better shape than GDP suggests: confidence in an export-driven manufacturing plant in 2019 Australia‟s best three months of economic recovery that is gaining hiring since 2004 has brought the momentum. But Governor Haruhiko • Sabah has capabilities to host jobs market into line with buoyant Kuroda reassured markets the BOJ incentive groups business conditions – signaling the will still lag well behind the Federal • Kudat gears up as RE dynamo economy could be in better shape Reserve in dialing back its massive than recent GDP data showed. At the stimulus program, with inflation far INTERNATIONAL Reserve Bank of Australia, there‟ll be from reaching his 2 percent target. He some relief. For months, it‟s repeated also shrugged off the need to scrap ANTARABANGSA that forward indicators suggested the BOJ‟s pledge to increase its bond higher employment and lower holdings at 80 trillion yen ($729 IMF cuts U.S. outlook, calls unemployment were in the offing, as billion) per year, even though recent Trump’s growth target unlikely: the jobs market turned in circles or purchases have slowed significantly. The International Monetary Fund cut even weakened. “The labor market (16 June, Reuters) its outlook for the U.S. economy, has started to catch up to the strength removing assumptions of in other indicators,” said Daniel Russia just past crisis, but already President Donald Trump‟s plans to Gradwell, a senior economist at up against growth limit: The cut taxes and boost infrastructure Australia & New Zealand Banking debate two years ago at spending to spur growth. The IMF Group Ltd. (15 June, Bloomberg) President Vladimir Putin‟s annual reduced its forecast for U.S. growth investment showcase in St. this year to 2.1 percent, from 2.3 Singapore’s economic rebound Petersburg centered on the direction percent in the fund‟s April update to isn’t as good as it seems: Russia would take as it moved past its world economic outlook. The Singapore‟s economy may be picking the turbulence of oil‟s collapse. This Washington-based fund also cut its up, but consumers aren‟t feeling time the consensus is that the projection for U.S. growth next year it. After two years of below-par economy is running aground. to 2.1 percent, from 2.5 percent in growth, economists and even the Halfway through what‟s likely to be April. (28 June, Bloomberg) government are becoming the first year of economic growth more positive on the outlook. While since 2014, things are about as good Russia, Saudis see oil inventories it‟s not boom time yet, the consensus as they‟re going to get. A spurt of up falling after price drop: A deal is that 2017 growth will come in to 2 percent forecast by the among oil-producing countries to higher than last year‟s 2 percent. A government for 2017 would put curb production and balance an large part of that is down to exports: Russia at the limit of what the central oversupplied market will achieve its Singapore, like other trade-reliant bank believes the economy can objective in the first quarter of next nations in Asia, is benefiting from a accomplish. (5 June, Bloomberg) year, Russian Energy Minister recovery in global growth, which is Alexander Novak said, after prices translating into rising sales of China’s growth looks like it has tumbled on news of a build-up in U.S. electronic goods. (9 June, Bloomberg) already peaked for 2017: The inventories. His Saudi counterpart, earliest indicators for China‟s Khalid Al-Falih, said at a joint news New Zealand economy grew less economy in June signal that the briefing in Astana, Kazakhstan, that than forecast in first quarter: New manufacturing sector may be poised inventories were declining worldwide Zealand‟s economy grew less than to decelerate, while other challenges and reductions would accelerate in expected in the first quarter as a loom in the second half of this year. the next three to four months. (11 rebound in dairy production was Small- and medium-sized enterprises June, Bloomberg) offset by a drop in construction. New showed the lowest level of Zealand enjoyed its highest terms of confidence in 16 months, a gauge of Eurozone growth remains fastest trade in 44 years in the first quarter, manufacturing drawn from satellite for six years says PMI survey: New buoyed by a surge in dairy export imagery slumped, and conditions in orders and jobs supported strong prices. That was tempered by weaker the steel business remained lackluster. business activity across the eurozone construction as activity fell for the There‟s some good news though: in May, according to new data. first time since June 2015. While sales-manager sentiment stayed Growth last month remained at its annual GDP gains have slowed in positive, and outlook of financial fastest pace for six years, according recent quarters, the Treasury last experts recovered. (27 June, to a survey of purchasing managers month forecast 3.2 percent growth in Bloomberg) 1 – 30 June 2017 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 products, food and beverage and RM2.21 per litre in April. NATIONAL tobacco, and petroleum, chemical, Additionally, it said that with global NASIONAL rubber and plastic products, data oil prices trending lower in June, from the Statistics Department domestic fuel prices also averaged Japan’s investment in Malaysia showed. Electricity output declined lower in June. On another note, the may rise 30pct in 2017: Japanese 1.5%, the data showed. (9 June, The central bank also observed that investment in Malaysia may increase Star) continued inflows into the domestic by 30 per cent this year, predicted the financial market had led to the Malaysian economy’s diversified ringgit‟s appreciation. (30 June, Japanese Chamber Of Trade And growth & revenue thanks to govt Business Times) Industry In Malaysia (JACTIM), economic, fiscal reforms: The according To Japan’s Kyodo News, Malaysian economy is well- M’sia on track to achieve 5% trade Vietnam News Agency (VNA) diversified in terms of sources of growth in 2017: Mustapa: Malaysia reported. In a recent seminar, growth and revenue owing to the is on track to achieving five per cent JACTIM President Toshihiko economic, financial and fiscal growth in trade in 2017, International Todokoro expressed optimism for a reforms undertaken thus far by the Trade and Industry (MITI) Minister surge of at least 30 per cent in government. Prime Minister Datuk Datuk Seri Mustapa Mohamed said today. Speaking at the launch of the Japanese investment in Malaysia in Seri Najib Razak said the measure taken has resulted into a more robust Miti Report 2016, Mustapa explained 2017. Todoroko said that Japanese that the record trade growth of 23.6 companies will expand operation in economy which is able to withstand global and domestic challenges. “In per cent in the first four months of Malaysia if political stability is the first quarter 2017, the economy 2017 is providing the momentum for maintained, since it is important for grew by 5.6 per cent, well beyond the record growth. He said in 2016, those companies, especially new expectations, clocking in the fastest trade growth was 1.5 per cent. investors. The latest data shows that pace in two years. Domestic demand According to the report, Malaysia‟s Japanese investment in Malaysia is continued to anchor growth total trade in 2016 stood at RM1.48 concentrated on the manufacturing supported mainly by private trillion, with exports rising 1.1 per sector, notably in the electrical and consumption which expanded at a cent to RM785.9 billion and imports electronics industry. (28 June, faster pace of 6.6 per cent while rising 1.9 per cent to RM698.6 billion, creating a trade surplus of RM87.2 Business Times) private investment surged to 12.9 per cent. (15 June, Business Times) billion for the nation. (20 June, Business Times) M’sia to operate world’s first bio- S&P expects Malaysia’s economy based chemical manufacturing to grow over 4% up to 2020: S&P Producer price index up 8% in plant in 2019: The Malaysian Global Ratings expects the May: The Producer Price Index (PPI) Bioeconomy Development government to continue in May increased 8% to 107.5 in May Corporation (Bioeconomy implementing prudent budgetary and versus a year earlier, said the Corporation) announced that economic policies and forecasts the statistics department. In a statement Malaysia will be home to the world's economy will grow at an average rate on Friday, it said the highest increase of over 4% between now and was recorded by mining index first bio-based chemical (16.9%), followed by manufacturing manufacturing plant by 2019.