MONTHLY NEWS SCAN

Tinjauan Berita Bulanan Compiled by IDS

Vol. 25 Issue 1 IDS Online http://www.ids.org.my 1 – 31 January 2020

HIGHLIGHTS National Statistics. Growth was push by President Moon Jae-in's FOCUS slightly stronger in September and government and a jump in factory October than previously thought, but investment that included spending on fell 0.3% in November, dragging equipment for making •Global economy snapback to prove down the three-month figure. The semiconductors. (23 January, The elusive despite market joy: ONS said growth in the economy Straits Times) Reuters polls year-on-year was at its lowest since •OPEC aims to extend oil output the spring of 2012. Growth in French economy shrinks in fourth cuts through June, alarmed by construction was offset by a quarter as strikes bite: The French virus weakening service sector, while economy unexpectedly shrank in the •Boost to ’s GDP •MITI welcomes US-China phase manufacturing was “lacklustre”. (13 final quarter of 2019 as manufacturing one trade deal, positive for open January, BBC News) output slumped in the face of strikes economies over an unpopular pension reform, •-S’wak link road Japan warns about risks to putting more pressure on President construction to start June economy from China virus Emmanuel Macron. Macron has so far •RM3 mln to upgrade basic outbreak: Japanese Economy been able to point to resilient growth facilities in 10 villages Minister Yasutoshi Nishimura warned and job creation to justify his pro- recently that corporate profits and business reforms. But he faced a wave INTERNATIONAL factory production might take a hit of protests over the last year, first from from the coronavirus outbreak in the “yellow vests” movement and now ANTARABANGSA China that has rattled global markets from those opposed to his plans to and chilled confidence. Asian stocks streamline the French pensions Global economy snapback to prove extended a global selloff as the scheme. (31 January, Reuters) elusive despite market joy: Reuters outbreak in China, which has killed polls: A significant global upturn will 106 people and spread to several Australia jobless hits nine-month remain elusive this year as many countries, fuelled concern over the low, analysts give up on February economies still face an array of damage to the world’s second largest rate cut: Australian employment daunting risks, despite improved economy - an engine of global growth. outpaced forecasts for a second month sentiment from an initial U.S.-China (28 January, Reuters) in December pushing the jobless rate trade deal and ebullience in financial to a nine-month low, a much-needed markets, Reuters polls showed. The ’s free trade deal with EU improvement that could forestall a global economy in 2019 may have will apply to Britain during Brexit near-term cut in interest rates. The been near its weakest since the transition period: MTI: A free trade local dollar climbed 0.47% to financial crisis thanks to trade deal between Singapore and the $0.6874 as the market sharply scaled protectionism and political European Union will continue to back the chance of an easing from the uncertainty, but world stocks had a apply to Britain during its 11-month Reserve Bank of Australia (RBA) at blowout year with several indexes Brexit transition period starting on its policy meeting on Feb. 4. Analysts repeatedly setting record highs. (24 Saturday, the Ministry of Trade and at several major banks, including January, Reuters) Industry said on Friday (Jan 31). CBA, ANZ and Citi, threw in the Singapore and the UK meanwhile are towel on a February cut though they OPEC aims to extend oil output cuts working on an agreement to maintain still expect a move at some point. (23 through June, alarmed by China trade continuity after the transition January, Reuters) virus: OPEC wants to extend current period ends and the EU-Singapore oil output cuts until at least June, with Free Trade Agreement (FTA) no China posts weakest growth in 29 the possibility of deeper reductions on longer applies to Britain. (31 January, years as trade war bites, but ends the table if oil demand in China is The Straits Times) 2019 on better note: China’s significantly impacted by the spread economic growth cooled to its of a new coronavirus, OPEC sources South Korean economy ends bad weakest in nearly 30 years in 2019 said. The quick slide in oil prices over year with stronger-than-expected amid a bruising trade war with the the past few days has alarmed OPEC growth: South Korea’s economy United States, and more stimulus is officials, the sources say, as the new finished its slowest year of growth expected this year as Beijing tries to virus found in China and several other since the global financial crisis with a boost sluggish investment and countries raised concerns about a hit spurt that suggests the worst may be demand. But data on Friday also to economic growth and oil demand. over for the Asian bellwether of global showed the world’s second-largest (28 January, Reuters) tech trade. Gross domestic product economy ended the rough year on a expanded in the fourth quarter at its somewhat firmer note as a trade truce Weak November weighs on UK fastest pace since 2017, the Bank of revived business confidence and growth: The UK’s economy grew by Korea (BOK) said recently. The earlier growth boosting measures just 0.1% in the three months to stronger-than-expected growth was finally appeared to be taking hold. (17 November, according to the Office for fuelled by an aggressive spending January, Reuters) 1 – 31 January 2020 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 recording a 2.2% growth in October round of disruptions for global trade NATIONAL 2019. (10 January, ) flows. (31 January, The Star) NASIONAL Malaysia achieves 2019 fiscal deficit target of 3.4%: The 12th Malaysia Plan to crystallise Boost to Malaysia’s GDP: Bank government has achieved its fiscal SPV2030 execution: The 12th Negara appears to be focused on deficit target for 2019 of 3.4% of gross Malaysia Plan (12MP), covering three boosting gross domestic product domestic product (GDP), says development dimensions - economic (GDP) growth with the surprise cut in Finance Minister . “We empowerment, environmental the overnight policy rate (OPR) reached the target 100%, we achieved sustainability and social re- recently. This is attributable to the a fiscal deficit of 3.4% of GDP. We engineering - will further crystallise downside risks to growth that are still definitely achieved it,” he said. Lim the implementation of the Shared present globally with the ongoing was speaking to reporters after the Prosperity Vision 2030 (SPV2030). trade negotiations between the United Customs Department’s The SPV2030 - unlike the National States and China, according to Meet the Customer Day recently. Lim Economic Policy (NEP), which is a economists. “The adjustment in the also announced that the government policy prescription - is a new initiative OPR is a pre-emptive measure to collected RM27.6bil in Sales and providing a 10-year development protect growth, given the escalating Service Tax (SST) revenue, roadmap and framework for the growth risks. “Of particular concern is surpassing the target of RM22bil in country’s economic restructuring to the uncertainty caused by the ongoing the budget. He said it showed that the benefit all , regardless of trade negotiations and the delay in the economy is still sustainable. (10 race and ethnicity. Measures and implementation of certain projects,” January, The Star) courses of action to achieve the Public Invest Research said in its SPV2030 goals would be incorporated report. (24 January, The Star) Macroeconomic stability drives in the 12MP, which is expected to be Malaysia's economic growth: tabled in Parliament in the third MITI welcomes US-China phase Macroeconomic stability will drive quarter of this year. (30 January, The one trade deal, positive for open Malaysia’s economic growth this year Star) economies: Ministry of International with Gross Domestic Product (GDP) Trade and Industry (MITI) lauds the growth of between 4.4 per cent and Govt determined to drive digital recent agreement between the United 4.9 per cent easily achievable, said IQI economy growth in 2020: The States of America and China Global chief economist Shan Saeed. government is determined to drive the following the phase one trade deal The country he said, will continue to development of digital economy to signed on January 15. Deputy be on the global investors’ radar due boost the nation’s economic growth, Minister Dr. said the to its solid economic position and said Finance Minister Lim Guan Eng. trade agreement would be ‘good’ for importance in the Belt and Road He said the digital economy could also all open trading economies such as Initiative (BRI). Shan even predicted attract investors and encourage human Malaysia. “It gives more certainty and the ringgit to improve to RM3.97 capital development as well as stability to the international trading against the US dollar this year. “The research. "Malaysia’s transformation landscape. That is something we global economy is heading for a major towards digital economy could only welcome. “We hope this (outcome) slowdown but despite this, Malaysia’s be realised if the people immerse will stabilise the global value chain, economy would demonstrate themselves in the digital culture and which many Malaysian companies or economic confidence due to strong take part in digital transactions in a multinational companies are base in productivity,”. (17 January, Business move towards becoming a cashless the country,” he said on the sideline of Times) society,” he said. (27 January, The MITI Seminar on Industry4WRD Star) Incentives held in Kuala Lumpur. (20 RAM Ratings sees RM9.5b trade January, Business Times) surplus in December: RAM Inflation up 1% in Dec, within Ratings expects a trade surplus of forecast: Malaysia’s inflation rose November industrial output up RM9.5bil for December as its imports by 1% in December last year, in line 2%, nearly double forecast: and exports see a turnaround. In its with a Bloomberg forecast, Malaysia’s industrial production report issued on Friday it expected underpinned by higher food prices, index (IPI) grew at a much faster pace Malaysia’s imports to expand by 3.9% with Kuala Lumpur exceeding the of 2% in November 2019 from a year and exports by 1.7% in December national average. According to the ago, which was nearly double a 2019. “This contrasts against Statistics Department, the consumer Bloomberg survey of a 1.1% increase. respective declines of 3.6% and 5.5% price index (CPI) increased by 1% in Chief Statistician Datuk Seri Dr Mohd the preceding month. The better December to 122.3 compared with Uzir Mahidin said the growth in showing was achieved despite 121.1 a year ago. Chief statistician November was driven by the increase subdued global demand, which has Datuk Seri Dr Mohd Uzir Mahidin in the index of manufacturing (2.5%), been affecting Malaysia’s trade said that of the 552 items covered in electricity (1.6%) and mining (0.5%). performance,” it said. However, RAM the CPI, 360 items showed an increase On a year-on-year basis, the pointed out the “phase one” trade deal in December 2019 from a year ago. He manufacturing sector output rose by signed between the US and China on added that 137 items declined while 2.5% in November 2019 after Jan 15,2020 could trigger another 55 items were unchanged. (23 January, The Star) 1 – 31 January 2020 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 2

(Medical), Dr. Abd Kahar Abd Azis selepas merasmikan Jelajah Cuti Cuti and Deputy Director of HDOK Malaysia sempena Tahun Melawat LOCAL (Medical), Dr. Mohd. Fahmi Othman. Malaysia 2020 (VM2020), di Sekolah (4 January, Daily Express) Menengah Kebangsaan Bongawan II. TEMPATAN (13 Januari, New Sabah Times) Shafie launches plan to boost Sabah-S’wak link road Kadamaian socio-economic Upgrading of all Sabah road construction to start June: development: The Kadamaian infrastructures soon – Peter: All Construction of the Sabah- Development Plan 2020-2035, which road infrastructures throughout Sabah link road, which will connect the most aims to boost the socio-economic are expected to be upgraded around 50 remote areas of both states, is development in the constituency to be per cent by 2021 to 2022.Sabah expected to begin in six months, says on par with other developed Infrastructure Development Minister . The Works Minister said constituencies, was launched at Datuk Peter Anthony said that the the first phase of the project would Kadamaian Square Hall in State Government is always cost RM2bil from to Pa’ Taginambur, about half-an-hour drive committed and concerned about the Berunut in Sarawak, a distance of from town. Chief Minister, Datuk Seri people’s problems, especially in rural about 90km. “We expect work to start Mohd , who officiated areas. “As the minister who is by the middle of this year,” he said the launching of the plan, also responsible for the infrastructure after a briefing on the latest Pan approved a RM1 million additional around Sabah, we will make sure that Borneo Highway development at the allocation for the implementation of all roads connecting the city or rural Sabah Oil and Gas Terminal. Under the Taginambur Tamu Development roads will be repaired. “I have the previous alignment, road users Phase 2 project, which is part of the directed the Public Works Department travelling from Sabah to Sarawak or Kadamaian development initiative. that we will ensure that at least 50 per vice versa have to go in and out of The Kadamaian Development Plan, cent of the roads throughout the state Brunei eight times. (18 January, Daily an initiative by Rural Development either in the city or villages will be Express) Minister Datuk Ewon Benedick as improved by the year 2021 – 2022,” Kadamaian Assemblyman, was based RM3 mln to upgrade basic facilities he said. (3 January, New Sabah on a study done jointly by the Institute Times) in 10 villages: The Rural for Development Studies (IDS), Kota Development Ministry (KPLB) has provided an allocation of RM3 million Belud District Office, Kadamaian RM4.2 mln spent on welfare aid in to upgrade the basic infrastructure UPPM Office and Kadamaian Membakut – Wan Azizah: The facilities in 10 villages throughout Assemblyman’s Office, using the Government spent RM4.2 million last Sabah this year. Its minister, Datuk Assemblyman touchpoint allocation year on welfare assistance in the Ewon Benedick, said the first village of RM68,000. (21 January, Daily district alone, said Deputy Prime chosen under the program as the Express) Minister Datuk Seri Dr Wan Azizah Kampung Sejahtera this year is Wan Ismail. Speaking to reporters Kampung Tiong Baru Membakut, Kalabakan set to become food hub after her unexpected visit to the which was selected based on basic of Sabah: A 1,200 hectare land in Membakut Welfare Department development needs of the village that Luasong will be developed with office, she said the visit was to see the is still facing various issues including mixed crops in efforts to make operation and implementation of no electricity and treated water Kalabakan the food hub of Sabah. government initiatives in the sub- supply. He added, as per the target of “The development plan for the land district. “The RM4.2 million amount 10 villages under the Kampung which has been identified by the State spent in 2019 helped 8,717 senior Sejahtera program annually, Ewon Government is expected to start June citizens (totalling RM3 million), said the other nine villages identified this year,” Kalabakan Member of 3,011 needy children (totalling are located in Kota Belud, Keningau, Parliament, Ma’mun Sulaiman, said. RM883,880), 349 chronic patients Nabawan and Paitan. (5 January, The He said the proposal was mooted by (totalling RM112,150), 268 disabled Borneo Post) Agriculture and Agro-based Industry workers allowance (totalling Minister, and had RM107,020) and 234 people with RM10.6m medical equipment for been given the nod by the Government disabilities totalling (RM58,500). (5 Sandakan hospital: The RM10.6 but how the implementation and the January, ) million allocation for Duchess of Kent type of crops would be looked into. Hospital (HDOK) from the Federal (23 January, New Sabah Times) Sabah Chief Minister to launch Finance Ministry and Health Ministry state’s own cooking oil ‘Sabah Best’ in May, last year, was used for the Industri homestay Sabah catat soon: Chief Minister Datuk Seri purchase of 26 high-value medical pendapatan lebih RM6 juta: Shafie Apdal will be launching the Industri inap desa atau ‘homestay’ di equipment. Finance Minister, Lim state’s own cooking oil product by this Guan Eng was also pleased that the Sabah, mencatatkan perkembangan hospital management saved up to positif dan antara yang menghasilkan year. He said the name of the cooking RM200,000 through open tender, pendapatan tertinggi di Malaysia oil, ‘Sabah Best’, would be which could also be used for the dengan kutipan lebih RM6 juta pada manufactured by Sawit Kinabalu in purchase of other medical equipment tahun lepas, kata Menteri Sandakan and Tawau. Shafie said the in the future. “The purchase of the 26 Pelancongan, Seni dan Budaya Datuk company’s factories in Sandakan and medical assets will also provide Mohamaddin Ketapi. Katanya Tawau had been in operation but had patients with amenities, including daripada jumlah itu, Homestay Seri not marketed the product yet. “It was Serbang yang terletak di Bongawan diagnosis machines and other needs,” supposed to be launched much earlier he said following a visit to the hospital mencatat pendapatan RM2,0267,612 recently. Also present were Tanjung dengan 68,269 penginap, termasuk but due to the Kimanis by-election we Papat assemblyman, Datuk Frankie dari luar negara. “Di Sabah sahaja, will do it by this year,” he told Poon Ming Fung, Sandakan Member terdapat 51 kampung mempunyai reporters after launching the Career of Parliament, Vivian Wong, Elopura homestay dengan Papar dan Beaufort Carnival Kimanis 2020 in Membakut assemblyman, Calvin Chong, Deputy sebagai kawasan terbesar terlibat yesterday. (12 January, The Borneo Director of State Health Department homestay,” katanya kepada pemberita Post 1 – 31 January 2020 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 3

SELECTED FACTS AND FIGURES FAKTA MUTAKHIR

Malaysia’s Economic Indicators: Leading, Coincident & Lagging Indexes, November 2019 (Source: 24 January, Department of Statistics Malaysia)

Malaysia’s Monthly Rubber Statistics, November 2019

(Source: 15 January, Department of Statistics Malaysia)

Malaysia’s Producer Price Index, December 2019

(Source: 30 January, Department of Statistics Malaysia)

1 – 31 January 2020 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 4 Malaysia’s Consumer Price Index, December 2019

(Source: 22 January, Department of Statistics Malaysia)

Australia Consumer Price Index, December 2019

Weighted average of eight Sep Qtr 2019 to Dec Qtr 2019 Dec Qtr 2018 to Dec Qtr 2019 capital cities % change % change All groups CPI 0.7 1.8 Food and non-alcoholic 1.3 2.6 beverages Alcohol and tobacco 3.0 6.5 Clothing and footwear -0.3 1.4 Housing 0.1 0.2 Furnishings, household -0.3 1.1 equipment and services Health -0.3 3.2 Transport 1.5 2.8 Communication -1.0 -3.8 Recreation and culture 0.9 1.5 Education 0.1 2.9 Insurance and financial 0.4 0.7 services CPI analytical series

All groups CPI, seasonally 0.6 1.8 adjusted Trimmed mean 0.4 1.6 Weighted median 0.4 1.3 (Source: 29 January, Australian Bureau of Statistics)

1 – 31 January 2020 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 5