Monthly News Scan
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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 China virus weakening service sector, while economy unexpectedly shrank in the •Boost to Malaysia’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, •Sabah-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 Singapore’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 NATIONAL recording a 2.2% growth in October round of disruptions for global trade 2019. (10 January, The Star) 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 Lim Guan Eng. “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 Kuala Lumpur 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 Malaysians, 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. Ong Kian Ming 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.