Monthly News Scan
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MONTHLY NEWS SCAN Tinjauan Berita Bulanan Compiled by IDS Vol. 26 Issue 2 IDS Online http://www.ids.org.my 1 – 28 February 2021 HIGHLIGHTS Russia’s key economic indicators prepared for the meeting showed. FOCUS surprise on the upside in January: Finance ministers and central bank Russia’s main barometers of governors of the world’s top 20 • UK and EU in ‘constructive economic health, such as economies, called the G20, will hold a discussions’ over NI trade row employment, consumer demand and video-conference and the global • G7 says to counter ‘non-market’ wages, all exceeded expectations in response to the unprecedented havoc policies from China to ensure free January, opening the door for wreaked by the coronavirus on the trade economic recovery in 2021, recent economy will top the agenda. (23 • World Bank: Malaysian data showed. Russia’s commodity- February, Reuters) economy to recover this year dependent economy is on track to • China remains Malaysia’s largest grow this year after shrinking 3.1% in Japan cautious on global economy, foreign partner for 2020, its sharpest contraction in 11 urges support for poor nations: The manufacturing sector, says global economy warrants caution due MIDA years which, however, was smaller than expected. (19 February, Reuters) to uncertainty over coronavirus • Sabah on right track as main vaccinations and variants, though gateway for BIMP-EAGA trade China overtakes US as EU’s biggest Japan’s economy shows signs of • Pineapple Industry Board recovery with low infections, proposed for Sabah trading partner: China is now the Japanese Finance Minister Taro Aso EU’s biggest trading partner, INTERNATIONAL overtaking the US in 2020. China saidrecently. Speaking to reporters bucked a wider trend, as trade with after attending a virtual meeting of ANTARABANGSA Group of 20 financial leaders, Aso most of Europe’s major partners dipped due to the Covid-19 pandemic. also urged the major economies to UK and EU in ‘constructive unite in backing low income countries Trade between China and the EU was discussions’ over NI trade row: The given widening disparities of government and the EU have vowed worth $709bn (€586bn, £511bn) last economic growth and vaccinations. year, compared with $671bn worth of to “work intensively” to quell tensions (26 February, Reuters) imports and exports from the US. over post-Brexit checks at Northern Although China’s economy cratered China regains slot as India’s top Ireland ports. In a joint statement, both in the first quarter due to the trade partner despite tensions: sides said recent talks with Northern pandemic, its economic recovery later China has regained its position as Ireland leaders were “constructive”. in the year fueled demand for EU India's top trading partner despite a The talks were arranged after checks goods. (17 February, BBC News) decaying relationship between the at some ports were suspended Asian neighbours. The two countries were involved in a bloody border following “sinister” threats made to Singapore factory output extends rebound, rising 8.6% in January: conflict last year and saw India ban staff. UK and EU leaders say they Singapore's manufacturing output 220 Chinese tech apps. But that did condemn “unreservedly” any threats continued expanding last month, not stop China leapfrogging the US in or intimidation. (4 February, BBC driven mainly by electronics and 2020 to become India's biggest trade News) precision engineering. Factory output partner. Two-way trade between the rose 8.6 per cent year on year in long-standing economic and strategic G7 says to counter ‘non-market’ January for a third straight month of Asian rivals stood at $77.7bn (£55.2bn) last year. (23 February, policies from China to ensure free growth, according to data released BBC News) trade: Group of Seven leaders said recently by the Economic they would seek a collective approach Development Board (EDB). This Euro zone corporate lending to China to counter “non-market came in below the upwardly revised growth slows as monthly flows dry oriented” policies and practices and to 16.2 per cent growth rate in December up: Lending to euro zone companies ensure a fair multilateral global trade. last year, but topped the 3.6 per cent slowed last month as the flow of fresh “With the aim of supporting a fair and forecast of analysts in a Bloomberg credit came to a halt with the bloc poll. (26 February, The Straits Times) back in recession and banks tightening mutually beneficial global economic access to credit, European Central EU to call on G20 not to withdraw system for all people, we will engage Bank recent data showed. Lending to COVID-19 stimulus too early: The with others, especially G20 countries non-financial corporations in the 19- European Union will call on financial including large economies such as country euro area slowed to 7.0% in leaders of the world’s 20 biggest China,” the G7 said after a virtual January from 7.1% month earlier, a economies this week to keep pumping leaders’ meeting. (20 February, relatively high level not far from a 10- money into the global economy as year high of 7.4% hit in May. (25 Reuters) long as is needed for it to recover from February, Reuters) the COVID-19 pandemic, a document 1 – 28 February 2021 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 NATIONAL Malaysia, France agree on Recovery in manufacturing developing new forms of moderates in January: IHS NASIONAL cooperation: Malaysia and France, Markit: The recovery in the given their experiences in addressing Malaysian manufacturing sector World Bank: Malaysian the current COVID-19 pandemic, moderated in January due to rising economy to recover this year: have agreed that the two countries Covid-19 case numbers and stricter Malaysia’s economy is expected to should develop new forms of restrictions to try and curb the further return to positive growth this year, cooperation, including guaranteed along with other economies globally spread of the virus, according to IHS access to vaccines, and post-pandemic Markit’s survey. In its Malaysia on the sustained progress in the socio-economy recovery, said Foreign vaccine rollouts that will boost Manufacturing PMI statement issued Minister Datuk Seri Hishamuddin Tun consumption worldwide, the World recently, the headline MPI -- a Hussien. He said this was agreed upon Bank Group said. Its composite single-figure indicator of during an hour-long video call with Macroeconomics, Trade and manufacturing performance – slipped Investment Global Practice lead his counterpart from France, Jean- to 48.9 in January from 49.1 in economist, Richard Record, said the Yves Le Drian, who is Minister for December. It said businesses signalled Europe and Foreign Affairs of France, group expects the vaccine deployment the recovery in the manufacturing to take stock of and chart the future can be mostly completed in 2021 in sector was hindered at the start of course for long-standing Malaysia- most economies, leading to strong 2021 due to tighter curbs. (1 February, France cooperation. Both sides also recovery and demand, as well as The Star) boosting trade and commodity prices. exchanged views on regional and “We are projecting a global growth of international developments that are of Malaysia offers incentives to attract 4.0% this year. (23 February, The strong interest to the two countries. investors, more strategic ones to be Star) (24 February, Bernama) announced, says Muhyiddin: Prime Minister Tan Sri Muhyiddin Yassin China remains Malaysia’s largest CPI down 0.2% in January: said foreign investors, including foreign partner for manufacturing Malaysia’s consumer price index Fortune 500 companies, have sector, says MIDA: China remains recorded a year-on-year (y-o-y) continued to show interest in investing Malaysia’s largest foreign investor for decrease of 0.2% to 122.1 in January, in Malaysia due to various incentives four consecutive years since 2016 and representing a 10th straight month of offered by the government. “We offer topped the rank of foreign direct declines since March last year. On a special incentives. This is our way to investment (FDI) for the month-on-month comparison, the CPI attract investors. So for me, it is manufacturing sector for the first nine was 1.2% higher over December. important that we increase months of 2020. The Malaysian Transport prices remained the leading investment. If you come to Malaysia, Investment Development Authority laggard, falling 5.1% y-o-y while you will get very attractive incentives. (MIDA) senior deputy director of other declining sectors included “So, this is what I think is our way to foreign investment promotion May housing, water, electricity, gas and Lim Ming Yee said from January to other fuels, clothing and footwear, and attract investors. So for me, it is September 2020, MIDA has approved restaurants and hotels, the National important that we increase 58 manufacturing projects with Statistics Department revealed. investment, but set our eyes on China's participation amounting to Excluding fuel, the consumer price (certain) sectors such as high RM16.77 billion. “Despite the adverse index increased 0.5% in January 2021 technology and digital,” he said. (28 effects of the Covid-19 pandemic seen February, Bernama) to 113.6. (25 February, The Star) on the global investment patterns, China continues to be our top FDI. (22 Malaysia trade surplus rises 38pct Digital economy’s contribution to February, Business Times) to RM16.6 bil in January 2021: GDP to hit at least 20 pct by year- Malaysia’s trade surplus soared by end – MDEC: The digital economy’s Inflation expected to return on 38.0 per cent year-on-year (y-o-y) to contribution to Gross Domestic high fuel prices, demand: After RM16.6 billion in January 2021, said Product (GDP) will easily reach 20 facing monthly deflation for nearly a the Department of Statistics Malaysia per cent by year-end from 19.1 per year, Malaysia is expected to feel (DOSM).