Monthly News Scan
Total Page:16
File Type:pdf, Size:1020Kb
MONTHLY NEWS SCAN Tinjauan Berita Bulanan Compiled by IDS Vol. 24 Issue 5 IDS Online http://www.ids.org.my 1 – 31 May 2019 HIGHLIGHTS Singapore’s export-reliant economy, about capital outflows from emerging FOCUS which posted solid growth in the first market economies and widespread quarter. Gross domestic product rose currency depreciation have eased. (27 • China’s economy weakened in an annualized 3.8% from the prior May, Reuters) quarter, higher than the government’s May, early data show German economy suffers another • Brexit shutdown slashes UK car earlier projection of 2%, as construction rebounded. Compared to blow as business confidence drops: production by 45% German business confidence fell to • Japanese giant companies pledge a year ago, GDP rose 1.2%, the slowest pace in almost a decade. The the weakest in more than four years their commitment to invest in as the escalation of global trade Malaysia Ministry of Trade and Industry sees “pockets of strength” in the economy tensions weighed heavily on the • South Korea seeks Malaysia’s this year from the services industry, outlook. Along with a survey expertise for its Muslim friendly though manufacturing will see a showing manufacturing still hospitality “sharp slowdown” following two contracting and new orders falling, • Master plan for Kadamaian in years of robust expansion. (21 May, it’s a reminder of the shaky situation pipeline Bloomberg) Europe’s largest economy is in. Its • Kudat-Palawan ferry service car industry is in upheaval and soon: Loke Oil mixed as China’s economy weakens, but OPEC cuts still industrial giants such as INTERNATIONAL support crude: Oil prices were Thyssenkrupp AG are mixed, pressured by a weakening seeing earnings plunge. (23 May, ANTARABANGSA Bloomberg) economy, especially in China, yet still supported by ongoing supply Russian first-quarter economic China’s economy weakened in May, cuts from producer club OPEC and growth below forecast, slowest early data show: China’s economic U.S. sanctions against Iran and since 2017: Economic growth in outlook deteriorated this month, after Venezuela. Front-month Brent crude April’s weaker-than-expected Russia in the first quarter missed futures, the international benchmark forecasts and slowed to its weakest performance combined with the for oil prices, were at $69.90 at 0106 renewed trade dispute to hit GMT. That was 21 cents, or 0.3%, level since late 2017, recent data confidence. That’s according to a below the last session’s close, when showed, raising chances of an Bloomberg Economics gauge Brent rose 2.1%. (28 May, Reuters) imminent rate cut by the central bank. aggregating the earliest available Gross domestic product (GDP) rose indicators of business conditions and Bank of France estimates second 0.5% in the first quarter in year-on- market sentiment. Copper prices quarter French GDP growth at 0.3 year terms compared with 2.7% in dropped as hopes faded for a quick percent: The French economy the fourth quarter of 2018, the resolution to the trade dispute, and should grow 0.3 percent in the second Russian statistic service said. This South Korean exports fell for a fifth quarter, the Bank of France forecast, brings Russia’s economy to the brink month. Sentiment among stock as the euro zone’s second-biggest of recession as the first quarter investors and small businesses also economy maintains a relatively growth print was the lowest since the declined. (29 May, Bloomberg) steady pace of growth despite the fourth quarter of 2017 when the Brexit shutdown slashes UK car impact of anti-government protests. economy expanded by 0.3%, said production by 45%: Factory The Bank of France added in a Kirill Tremasov, a former economy shutdowns designed to cope with monthly business survey that ministry official and now head of disruption from a 29 March Brexit, sentiment in the French research at Loko-Invest. (17 May, slashed UK car production in April manufacturing industry had dipped to Reuters) 99 points in April from 100 points in by almost a half. Even though Brexit RBNZ needs 3% economic growth to is delayed, the factories still closed March, and also fell to 100 points in and production fell 44.5% according April from 101 in March in the meet targets, Bascand says: New to the Society of Motor services sector. (13 May, Reuters) Zealand’s economy needs to grow at Manufacturers and Traders (SMMT). around 3% a year for the central bank BOJ’s Kuroda sounds alarm on to meet its inflation and employment In what is called “an extraordinary global economy ahead of G20: month”, the SMMT said only 70,971 goals, Deputy Governor Geoff Bank of Japan Governor Haruhiko Bascand said. Speaking to a cars rolled off production lines. That Kuroda has said the global economic was 56,999 fewer than in April a year Wellington business audience after outlook is highly uncertain, and there the Reserve Bank cut interest rates, ago. Production for both home and are downside risks due to trade overseas markets fell by 43.7% and friction, China’s slowing economy Bascand said growth had fallen 44.7% respectively. (30 May, BBC and Britain’s negotiations to leave the below its potential rate of 2.8%, News) meaning more spare capacity in the European Union. “There is a high degree of uncertainty... and the economy and less price pressure. Singapore’s economy gains 3.8% as “We think capacity pressures will construction rebounds: The U.S.- downside risks are large,” Kuroda China trade war and weaker global said in a speech at a seminar. On a just become a little less,” he said. (10 demand are clouding the outlook for positive note, Kuroda said concerns May, Bloomberg) 1 – 31 May 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 Japan, South Korea, Singapore and areas in the digital economy in the NATIONAL Vietnam. The inclusion comes with Fourth Industrial Revolution (IR4.0) NASIONAL no immediate penalty. (29 May, for more sustainable growth. Prime Bernama) Minister Tun Dr Mahathir Mohamad Japanese giant companies pledge wants SMEs to increase their commitment to invest in Malaysia, Singapore sign competitiveness and actively Malaysia: Japanese giant companies supplemental agreement on participate in the global chain and have pledged their commitment to suspension of RTS Link Project: IR4.0. (2 May, The Star) Malaysia and Singapore officially expand their investments and Malaysia prepares to boost palm- signed the supplemental agreement businesses in Malaysia, said Prime biofuel use in wake of EU limits: (SA) for suspension of the Rapid Minister Tun Dr Mahathir Mohamad. Malaysia’s national automotive Transit System (RTS) Link Project In a special media conference with policy is expected to allow for a until September 30 this year. Malaysian journalists, Dr Mahathir higher percentage of palm-biodiesel Transport Minister Anthony Loke said all of the 19 Japanese companies blends over the next few decades, said Malaysia would reimburse he met in a business dialogue had according to International Trade and Singapore about RM2 million by 31st expressed their support for the Industry Minister Darell Leiking. The July 2019, as abortive costs incurred country and would campaign to get government plans to include a as a result of the six-month more Japanese companies to invest in “B20/B30-ready” specification for suspension. Loke and his Singapore Malaysia. “The Japanese vehicles in a review of the policy, counterpart Khaw Boon Wan sealed conglomerates were from various Leiking said in a statement. Malaysia, the agreement to formalise the sectors, ranging from health to the world’s second-largest palm oil suspension at the Transport Ministry financial services, and all of them producer, plans to double its biofuel have expressed their desire to expand here (Singapore). (21 May, Bernama) programme to B20 by 2020, which their business, or invest in new Malaysia´s export, import to grow mandates fuel be blended with 20 per projects in Malaysia,” he said after by 1.9 pct and 1.8 pct in April – cent palm-biodiesel. “Palm oil is a concluding his three-day working RAM: RAM Rating Services Bhd viable option to reduce our visit to Japan. (31 May, Bernama) (RAM Ratings) expects Malaysia’s dependency on fossil fuels, as it has export and import in April to grow at tremendous potential as a renewable South Korea seeks Malaysia’s 1.9 per cent and 1.8 per cent source of energy,” he said. (25 May, expertise for its Muslim friendly respectively, resulting in an overall Business Times) hospitality: South Korea is seeking trade surplus of RM13.4 billion for Malaysia to strengthen trade, Malaysia’s expertise, as well as the month. In a statement, RAM investment ties with Brazil: accreditation for its friendly hospital Ratings said this represented an Malaysia and Brazil will continue to services to further strengthen the improvement over the marginal focus on expanding bilateral trade sector which saw one million Muslim contraction of 0.5 per cent in export and investment ties. This is alongside visitors arrived in the country in and 0.1 per cent in imports recorded the possibility of having a free trade 2016, an increase of 33 per cent from in the preceding month. Looking agreement between Malaysia and a year before, says Korea Institute of ahead, it said the lacklustre trade Mercosur, an economic and political Halal Industry (KIHI). Its director- momentum was unlikely to recover in bloc comprising Argentina, Brazil, general Dr James Noh said currently the near term, largely due to the Paraguay and Uruguay. The Ministry the sector was operated by Korea escalating dispute between the United of International Trade and Industry Tourism Organisation, a government States (US) and China.