GDP, 2nd Quarter 2014

Q2 2014 Q2 2013 Q1 2014 % Growth % Growth RM billion (q-o-q) (y-o-y) Gross Domestic Product (GDP) 205.6 193.2 198.6 3.5 6.4

Gross National Income (GNI) 191.5 179.2 186.7 2.6 6.9 “ DRIVING Gross Fixed Capital Formation (GFCF) 60.0 56.0 54.0 11.1 7.2

Source : Department of Statistics, Malaysia Transformation, GDP, Q3 2011 - Q2 2014

GDP at constant price POWERING Growth % (y-o-y), 6.4 210 7.0 205 6.0 200 5.0

195 Growth” 190 4.0

185 3.0 Growth (%) RM billion 180 2.0 175 170 1.0 165 0.0 III IV I II III IV I II III IV I II 2011 2012 2013 2014

GDP at current price Growth % (y-o-y), 10.7 270 12.0

260 10.0 250 8.0 240 6.0 230 RM billion Growth (%) 4.0 220

210 2.0

200 0.0 III IV I II III IV I II III IV I II 2011 2012 2013 2014

Source : Department of Statistics, Malaysia

MITI Weekly Bulletin/ www.miti.gov.my GNI, Q3 2011 - Q2 2014 GNI at constant price Growth % (y-o-y), 6.9 195 9.0 190 8.0 185 7.0 180 6.0 175 5.0 170 4.0 Growth (%) RM billion 165 3.0 160 2.0 155 1.0 150 0.0 III IV I II III IV I II III IV I II 2011 2012 2013 2014

GNI at current price Growth % (y-o-y), 11.2 260 12.0

250 10.0

240 8.0

230 6.0 RM billion Growth (%) “

220 4.0 DRIVING

210 2.0

200 0.0 Transformation, III IV I II III IV I II III IV I II 2011 2012 2013 2014 GDP by Economic Activity, Q2 2014 120.0 12.0 POWERING GDP Seasonally Adjusted Growth (y-o-y) 100.0 9.9 10.0

80.0 8.0

7.1 7.3 Growth” 60.0 6.0 6.0 RM billion RM

40.0 4.0 Growth (%)

20.0 2.1 2.0

0.0 0.0 Agriculture Mining and quarrying Manufacturing Construction Services (include Government Services) GFCF, Q3 2011 - Q2 2014

70 30 Gross fixed capital formation Growth % (y-o-y) 60 25 50 20 40 15 30 RM billion RM 10 Growth (%) 20 7.2

10 5

0 0 III IV I II III IV I II III IV I II 2011 2012 2013 2014

Source : Department of Statistics, Malaysia

MITI Weekly Bulletin/www.miti.gov.my GDP by Economic Activity, Q2 2014

Services RM 112.4b 54.7%

plus Import duties RM 3.3b 1.6%

Agriculture RM 13.9b 6.7% “ DRIVING Construction Mining and RM 7.9b Manufacturing quarrying

3.9% Transformation, RM 52.0b RM 16.2b 25.3% 7.9% POWERING

Manufacturing Food, beverages and tobacco 2.0%

15.5% 11.1% Textiles, wearing apparel and leather products Growth”

6.0% Wood products, furniture, paper products, printing and publishing Petroleum, chemical, rubber and plastic products 24.6% Non-metallic mineral products, basic metal and 26.6% fabricated metal products Electrical and electronic products 14.3% Transport equipment and other manufactures

Agriculture Services Government Rubber services Retail trade 13.4% Palm Oil 14.7% 24.8% 35.8% Finance Livestock 11.9% Wholesale trade 20.9% Other agriculture 6.6% Real estate and Forestry and business services 11.9% logging 7.7% Communication 10.4% Marine 9.0% fishing 10.8% 11.6% Transport and storage 6.0% Aquaculture 4.5% Others

Source : Department of Statistics, Malaysia

MITI Weekly Bulletin/www.miti.gov.my Production of TV sets and Air Conditioners, January 2013 - May 2014

2,500,000

2,000,000 * *

1,500,000 Television Sets 1,129,451

1,000,000 “ 500,000 Air Conditioners DRIVING 262,385 Transformation, 0 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2013 2014

Source: Department of Statistics Malaysia POWERING Total Electricity Supply and Electricity Loss,

January 2013 - May 2014 Growth”

14,000 Total Supply Loss

12,000

10,000

8,000

6,000 KW/h

4,000

2,000

0

2,000 Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2013 2014 Total Supply 10,840.7 9,456.9 11,281.9 11,097.1 11,389.7 11,278.9 11,357.6 10,822.2 10,800.5 11,315.1 10,893.8 11,109.3 10,861.2 10,253.8 11,782.2 11,531.8 11,922.2 Loss 1,079.1 -353.9 2,302.4 1,011.4 1,161.6 1,035.6 1,353.2 431.3 1,100.0 1,361.9 700.5 1,150.5 825.5 303.8 2,053.3 1,002.6 1,297.2

Source: Tenaga Nasional Berhad, Electricity Sdn. Bhd., Syarikat SESCO Berhad, Pengeluar Tenaga Bebas (Independent Power Producers)

MITI Weekly Bulletin/www.miti.gov.my Malaysian Ringgit Exchange Rate with US Dollars and Singapore Dollars, January 2013-July 2014

US Dollar (USD) Singapore Dollar (SGD) 3.40 2.65 3.35 1 SGD = RM 2.56 2.60 3.30 3.25 2.55 3.20 2.50 3.15 1 USD = RM 3.18 3.10 2.45 3.05 2.40 3.00 2.35 2.95 2.90 2.30 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July 2013 2014 “

Source : Bank Negara, Malaysia DRIVING Gold and Silver Prices, 3 January - 8 August 2014 Transformation,

45 Gold 30

44 Silver 28 43 POWERING 42 26 41

40 24 US$/oz

39 Growth”

US$/gramme 22 38

37 20 36

35 18 3 Jan 17 Jan 30 Jan 14 Feb 28 Feb 14 Mar 28 Mar 11 Apr 25 Apr 9 May 23 May 6 Jun 20 Jun 4 Jul 18 Jul 8 Aug

Source : http://www.gold.org/investments/statistics/gold_price_chart/ Aluminium, Nickel and Cooper Prices, January 2013 - July 2014

US$/MT 25,000 Aluminum Copper Nickel US$19,118 20,000

15,000

10,000 US$7,113

5,000 US$1,948

0 Jan 13 Mar 13 May 13 Jul 13 Sep 13 Nov 13 Jan 14 Mar 14 May 14 Jul 14

Source : http://econ.worldbank.org- MITI Weekly Bulletin/www.miti.gov.my Number and Value of Preferential Certificates of Origin (PCO’s)

Value of Preferential Certificates of Origin

600 Number of Certificates

500 AANZFTA AIFTA AJCEP ATIGA ACFTA AKFTA 15 Jun 2014 787 505 243 4,068 1,266 840 400 22 Jun 2014 871 650 196 4,585 1,293 906 300 RM million RM 29 Jun 2014 683 476 220 4,344 1,127 713 200 6 Jul 2014 392 276 104 2,135 733 318 100 13 Jul 2014 780 552 199 4,444 1,089 806 0 15 Jun 22 Jun 29 Jun 6 Jul 13 Jul 20 Jul 27 Jul 3 Aug 20 Jul 2014 807 513 137 4,153 1,205 872 AANZFTA 69 83 57 48 74 67 82 35 AIFTA 300 494 80 62 142 535 121 33 27 Jul 2014 796 547 226 4,115 1,418 849 AJCEP 77 59 69 48 81 30 93 66 3 Aug 2014 182 178 130 128 461 282

Value of Preferential Certificates of Origin AANZFTA: ASEAN-Australia-New Zealand Free Trade Agreement (Implemented since 1 January 2010) 12,000 AIFTA: ASEAN-India Free Trade Agreement

10,000 (Implemented since 1 January 2010) AJCEP: ASEAN-Japan Comprehensive Economic Partnership 8,000 (Implemented since 1 February 2009) “ DRIVING 6,000 ATIGA: ASEAN Trade in Goods Agreement (Implemented since 1 May 2010) RM miliion 4,000 ACFTA: ASEAN-China Free Trade Agreement (Implemented since 1 July 2003)

2,000 Transformation, AKFTA: ASEAN-Korea Free Trade Agreement 0 (Implemented since 1 July 2006) 15 Jun 22 Jun 29 Jun 6 Jul 13 Jul 20 Jul 27 Jul 3 Aug ATIGA 9,322 9,219 9,259 302 796 646 643 10 ACFTA 272 649 520 437 406 356 624 116 AKFTA 1,017 522 151 58 143 598 244 213 Number of Certificates MICECA MNZFTA MCFTA MAFTA

15 Jun 2014 252 0 35 297 POWERING Value of Preferential Certificates of Origin 22 Jun 2014 243 6 321 321 60 29 Jun 2014 296 3 60 292 50 6 Jul 2014 133 3 32 158

13 Jul 2014 281 6 65 376 Growth” 40 20 Jul 2014 250 16 50 358

30 27 Jul 2014 243 8 48 402

RM million 3 Aug 2014 82 1 27 128 20

10 MICECA: Malaysia-India Comprehensive Economic Cooperation Agreement (Implemented since 1 July 2011) 0 MNZFTA: Malaysia-New Zealand Free Trade Agreement 15 Jun 22 Jun 29 Jun 6 Jul 13 Jul 20 Jul 27 Jul 3 Aug (Implemented since 1 August 2010) MICECA 50.72 30.03 49.21 22.05 45.95 35.63 54.12 9.60 MCFTA: Malaysia-Chile Free Trade Agreement MNZFTA 0.00 0.40 0.14 0.06 0.11 0.32 0.14 0.14 (Implemented since 25 February 2012) MCFTA 5.64 22.17 7.23 7.80 12.76 6.41 6.38 2.71 MAFTA: Malaysia-Australia Free Trade Agreement MAFTA 28.40 22.17 27.34 11.60 24.25 29.89 32.67 9.56 (Implemented since 1 January 2013)

Number of Certificates Value of Preferential Certificates of Origin MJEPA MPCEPA GSP 250 15 Jun 2014 837 125 109 200 22 Jun 2014 791 136 144 29 Jun 2014 752 154 159 150

6 Jul 2014 409 54 55 100 RM million 13 Jul 2014 843 133 130 50 20 Jul 2014 730 127 243 0 27 Jul 2014 705 151 139 15 Jun 22 Jun 29 Jun 6 Jul 13 Jul 20 Jul 27 Jul 3 Aug MJEPA 109 136 123 79 127 131 128 455 3 Aug 2014 376 30 46 MPCEPA 21 28 50 8 21 22 43 8 GSP 17 19 27 14 25 26 39 10

Notes: The preference giving countries under the GSP scheme MPCEPA: Malaysia-Pakistan Closer Economic Partnership are Japan, Switzerland, the Russian Federation, Norway Agreement (Implemented since 1 January 2008) and Kazakhstan. MJEPA: Malaysia-Japan Economic Partnership Source: Ministry of International Trade and Industry, Malaysia Agreement (Implemented since 13 July 2006) MITI Weekly Bulletin/ www.miti.gov.my Commodity Price Trends, 9 May- 8 August 2014 3,000.0 110.0

Cocoa SMC 2 108.0

2,500.0 106.0

104.0 2,000.0 102.0 Rubber SMR 20 100.0 1,500.0 Crude Petroleum 98.0 US$/bbl US$/MT 96.0 1,000.0 Crude Palm Oil 94.0

500.0 Scrap Iron 92.0

Iron Ore Raw Sugar 90.0 Coal 0.0 88.0 16 May 23 May 30 May 6 June 13 June 20 June 27 June 4 Jul 11 Jul 18 Jul 1 Aug 8 Aug Crude Palm Oil 898.5 906.0 893.0 856.3 848.8 849.5 868.0 867.0 863.7 863.7 822.0 792.0 Rubber SMR 20 1,723.5 1,725.0 1,695.0 1,660.5 1,685.0 1,736.0 1,792.5 1,747.0 1,687.0 1,671.5 1695.5 1660.5 Cocoa SMC 2 2,517.9 2,643.1 2,629.9 2,690.6 2,675.4 2,690.6 2,736.1 2,720.9 2,705.7 2,736.1 2,789.1 2,819.4 Iron Ore 150.0 140.0 140.0 140.0 140.0 140.0 140.0 140.0 140.0 140.0 140.0 140.0 Scrap Iron 395.0 380.0 380.0 380.0 380.0 380.0 380.0 380.0 380.0 380.0 380.0 380.0 Raw Sugar 394.5 384.0 364.8 364.5 365.3 381.0 390.5 371.5 367.5 366.0 354.3 339.5 Coal 69.3 69.3 62.0 60.9 60.4 59.5 61.5 61.5 60.2 60.5 60.5 60.0 Crude Petroleum 101.6 103.8 103.4 102.4 107.6 106.6 106.7 104.6 102.8 101.6 98.5 95.7 Highest & Lowest Prices, 2013/2014

Crude Petroleum “ DRIVING (8 August 2014) US$95.7 per bbl Crude Palm Oil (8 August 2014)

US$792.0 per MT Transformation,

POWERING Highest Lowest Highest Lowest (US$ per bbl) (US$ per bbl) (US$ per MT) (US$ per MT) 13 Jun 2014: 107.6 10 Jan 2014: 92.3 14 Mar 2014: 982.5 1 August 2014: 822.0 Sep 2013: 110.2 19 Apr 2013: 88.1 15 Nov 2013: 925.0 4 Jan 2013: 800.0 Growth” Commodity Prices

Crude Crude Raw Rubber Cocoa Scrap Iron Coal Commodity Petroleum Palm Oil Sugar SMR 20 SMC 2 HMS (per MT) (per bbl) (per MT) (per MT) (per MT) (per MT) (per MT) 8 Aug 2014 380.0 (high)

95.7 792.0 339.5 1,660.5 2,819.4 60.0

(US$) 370.0 (low)

unchanged % change* 2.8 3.6 4.2 2.1 1.1 unchanged unchanged 2013i 88.1 - 108.6 805.5 361.6 2,390.8 1,933.1 .. 485.6 2012i 77.7 - 109.5 1,000.4 473.8 952.5 2,128.9 .. 444.7 2011i 80.3 - 112.7 1,124.0 647.0 1,348.3 2,644.8 .. 491.0 Notes: All figures have been rounded to the nearest decimal point Source : Ministry of International Trade and Industry Malaysia, * Refer to % change from the previous week’s price Malaysian Palm Oil Board, Malaysian Rubber Board, i Average price in the year except otherwise indicated Malaysian Cocoa Board, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group

8 August 2014 domestic prices for : 1. Billets (per MT) : RM1,700 – RM1,750 2. Steel bars (per MT) : RM1,970 - RM2,120

MITI Weekly Bulletin/ www.miti.gov.my Our Success Stories Reka Nutrition Sdn Bhd The sense of smell and taste is often underrated, will lead Reka Nutrition to continue their growth to be and yet it has the greatest impact of all our senses. Our one of the best providers of flavour, fragrance, foodstuff, longest and strongest memories are often evoked by the home and personal care formulation solutions to the complexity of scent and flavour. Reka Nutrition Sdn. Bhd. world. has endeavoured to bring the best and most evocative Sensory Delights for World Market fragrance and flavour to enhance the products and Reka Nutrition is committed to continue services of their clients. serving the best sensory enhancement solution to their The company started off as a trading entity clients needs. With greater investment in research and in 1966 but has since diversified into the exciting and development, Reka Nutrition has built an impressive rarefied arena of providing flavour, fragrance, foodstuff, scent and taste library that has been customised for the home and personal care formulation solutions. Nothing Asian market and beyond. Their products’ customisation but the best ingredients and compounds are used in services and stringent standards have made the products their product, with quality control checks every step of of Reka Nutrition a trusted name for clientele from all the way to ensure that the final product is of the highest over Asia as well as Oceania. “ standards. Together with MATRADE, Reka Nutrition has DRIVING Your Taste and Scent Solution Provider taken their products to the global platform. They have Their ability to customise their product allows showcased their products and services in various trade Transformation, their clients to enjoy personalised, one-of-a-kind creations and industry shows worldwide, garnering accolades from to enhance their products for any usage. Reka Nutrition various commercial sectors, from food manufacturers to took research and development very seriously to enable household products and personal care business concerns. the food flavours, fragrances, cloudifying agents, nature Reka Nutrition looks forward to the challenges of satisfying essential oils, emulsifiers and basic aroma chemicals their clienteles’ sensory needs. POWERING that come out of their manufacturing plant to be of the best quality and adheres to globally recognised industrial COMPANY : REKA NUTRITION SDN BHD

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MITI Weekly Bulletin/www.miti.gov.my MITI in the news Malaysia’s Economic Growth Must be at a Sustainable Rate

not just dependent on one or two sectors.

Commenting on the dialogue session, Mustapa said

the objective was to provide a platform for the NGOs

to exchange ideas to enhance the sustainability of

Bumiputera businesses. “I will also suggest to Minister

in the Prime Minister’s Department, Senator Datuk Seri

Abdul Wahid Omar to gather those minister’s having a

relation to the Bumiputera agenda, to sit down together “ DRIVING Malaysia’s economic growth must be at a sustainable with the NGO’s and hear out the issues faced by them,”

rate to ensure the country’s resources are distributed he added. Transformation, in an inclusive manner, says International Trade and The Minister’s include Second Finance Minister Datuk

Industry Minister Dato’ Sri . Seri , Minister of Domestic

“The economic cake has to also expand and this is an Trade, Cooperatives and Consumerism Datuk Seri Hasan

important basis. Only then can we think about distribution Malek, Second Education Minister Datuk Seri POWERING

and we need to ensure the country’s economy continues and Rural and Regional Development Minister Datuk Seri

to expand at a sustainable rate. “We do not want it to be . According to Mustapa, issues such as access Growth” too high either, as this will not be sustainable,” he added. to bank loans, involvement in the automotive sector,

He told reporters this after attending a dialogue session Internet, and home ownership were raised at today’s

with 17 Bumiputera non-governmental organisations meeting.

(NGOs) here today. “But these are not under my ministry. It is therefore good

Mustapa said Malaysia’s gross domestic product (GDP) if the minister’s concerned can sit down with them to not

which expanded 6.4 per cent in the second quarter of just provide answers but also the action to be taken,” he

the year compared to 6.2 per cent in the first, was the said. result of growth in all sectors.

“Malaysia succeeded in continuing to register good,

encouraging growth compared to other countries. It is

a source of pride that this was not just the result of the

external environment, exports and rising investments,

but also growth from all contributing sectors,” he added.

He said the growth was also registered as a result of Date : Aug 18, 2014 Malaysia having a broad foundation to achieve it, and Source : BERNAMA

MITI Weekly Bulletin/ www.miti.gov.my Announcement MH17: National day of mourning on Aug 22, 2014 “ DRIVING Transformation,

WTO & You POWERING Growth”

MITI Weekly Bulletin/ www.miti.gov.my Name : SANUSI SHAMZURI BIN A.RAHIM Designation @ SHAARY : Administrative Assistant Regional Office : Job Description : Responsible for processing Certificates of Origin Email : [email protected] “ Contact Details DRIVING : 09-7483457 Transformation,

RASHID : HASMAH BINTI AB

Name POWERING : Administrative Assistant Designation : Kelantan

Regional Office Growth” : Responsible for processing Job Description Certificates of Origin : [email protected] Email : 09-7483457 Contact Details

James E. Faust Lawyer, Politician Comments & Suggestions Dear Readers, Kindly click the link below for any comments in this issue. MWB reserves the right to edit and to republish letters as reprints. http://www.miti.gov.my/cms_matrix/form.jsp?formId=c1148fbf-c0a81573-3a2f3a2f-1380042c

MITI Weekly Bulletin/ www.miti.gov.my