MONTHLY NEWS SCAN

Tinjauan Berita Bulanan Compiled by IDS

Vol. 24 Issue 4 IDS Online http://www.ids.org.my 1 – 30 April 2019

HIGHLIGHTS it downgraded forecasts for coming Although stocks weakened in the FOCUS years. Despite that, the government second half of April, the big gains was able to promise a return to since the start of the year kept the budget surplus in 2019/20 starting three-month weighted average • World economy facing delicate July 1, the first since 2007/08 before positive. Copper prices, sales moment, IMF says the global financial crisis hit. The managers and smaller enterprises • U.S. negotiators land in as improving budget position enabled reported weaker readings. (29 April, the government to announce tax cuts Bloomberg) data show fragile economy and increased health, education and • Malaysia-Nordic trade positive, infrastructure spending ahead of a South Korea’s GDP contraction says Finnish ambassador sparks currency slide: Thursday’s national election due to be called for unexpected contraction in the South • Malaysia signs ASEAN Trade in mid-May. (2 April, Reuters) Korean economy was met by a range Services Agreement of reactions in financial markets, • A first for Sabah in aerospace Singapore’s Finance Minister sees from a flurry of activity in swaps to a solid Southeast Asia growth despite training risks: Singapore and other Southeast mild indifference in equities. The • Looking to for industrial Asian economies are poised to interest-rate swap curve shifted lower boost after data showed gross domestic remain resilient in the face of product shrank 0.3 percent in the first INTERNATIONAL increasingly dour signs on the global quarter from the previous three economy, said Finance Minister months, versus expectations of an 0.3 ANTARABANGSA Heng Swee Keat. Economies in the percent gain. The currency extended 10-member Association of Southeast its decline into a fourth day as the World economy facing delicate Asian Nations “and Asean as a group figures confirmed U.S.- trade moment, IMF says: The global both continue to grow quite well even tensions and a technology downturn economy is at what the International this year and next,” Heng told are taking a toll on Korea’s export- Monetary Fund’s chief economist Bloomberg Television’s Haslinda driven economy. (25 April, calls a “delicate moment”. Gita Amin on the sidelines of meetings of Bloomberg) Gopinath says that while she does not the regional bloc in Chiang Rai, predict a global recession, “there are Thailand. “There will still be growth French first-quarter consumer many downside risks”. The IMF has even though the growth will be recovery helps keep economy released its regular assessment of the uneven across the world and it’ll be cruising: The French economy World Economic Outlook, which slower than before.” (8 April, maintained a steady pace of growth forecasts global growth of 3.3% this Bloomberg) in the first three months of the year as household spending recovered after year and 3.6% in 2020. That would Japan’s exports fall again amid U.S. be slower growth than last year – and pressure in trade talks: Japan’s anti-government protests at the end of for 2019, a downgrade compared exports shrank for a fourth straight 2018, official data showed on with the previous forecast. (9 April, month in March as weakness in Tuesday. The euro zone’s second- BBC News) global demand continues to weigh on biggest economy grew 0.3 percent in the economy. One of the bright spots the January-March period, the third U.S. negotiators land in Beijing as in recent data – increasing shipments quarter in a row at that rate, the data show fragile economy: U.S. trade to the U.S. – could darken if trade INSEE statistics agency said. The negotiators landed in Beijing talks with the Trump administration preliminary GDP reading was in line Tuesday, seeking “substantial” that began this week turn sour. The with the average expectation in a progress in talks aimed at ending the value of exports to the U.S. rose for a Reuters poll of 27 economists and tariff war, as weak economic data sixth month, by 4.4 percent, was just a tad less than the 0.4 underscored the stakes for the global generating a bilateral surplus of 683.6 percent recorded in the broader euro economy. Earlier, China’s first zone. (30 April, Reuters) billion yen ($6.1 billion) in March, official gauge of the manufacturing according to the finance ministry in German business morale dips as sector in April fell, signaling that Tokyo. Sales to China slumped, economy loses steam: German more work is needed to bed down the driving a 2.4 percent drop in total business morale deteriorated in April, economic stabilization seen in the exports. (17 April, Bloomberg) a survey showed on Wednesday, first quarter. Industrial production bucking expectations for a small rise also tumbled in South Korea China’s recovery still relies on and suggesting Europe’s largest and Japan, and gross domestic stimulus as outlook upgraded: economy is losing momentum as product growth slowed a notch China’s economic recovery continued trade tensions hamper its exporters. in Taiwan. (30 April, Bloomberg) this month, underpinned by The Munich-based Ifo economic expansive fiscal policy as investors institute said its business climate Australia economy seen stretching await a potential resolution of the index fell to 99.2 from an upwardly record run as budget back in trade war with the U.S. That’s revised 99.7 in the previous month. black: Australia is expected to according to a Bloomberg Economics The April reading compared with a extend its enviable recession-free run gauge aggregating the earliest consensus forecast for 99.9. (24 of growth into a third decade, the available indicators on market April, Reuters) government said on Tuesday even as sentiment and business conditions. 1 – 30 April 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 Malaysia, Nailofer Al Bastaki. (29 2009. Economists too have upgraded NATIONAL April, The Star) their forecast to a median of NASIONAL US$68.25 a barrel from US$67 in PM’s visit to China puts bilateral just about less than a month, Malaysia-Nordic trade positive, relations into perspective – CABA: according to Bloomberg’s survey. (15 says Finnish ambassador: Nordic Prime Minister Tun Dr. Mahathir April, Business Times) Mohamad’s second visit to China has countries account for a combined Indonesia and Malaysia unite to trade of 750 million Euros (about put the Malaysia-China bilateral relations into a broader perspective fight EU’s ban on palm oil: RM3.495 billion) in exports with Malaysia and Indonesia stand united for the future, said the China-ASEAN Malaysia. On the other hand, the in fighting the discriminatory Business Association (CABA). Its region has imports worth 950 million delegated regulation supplementing president, Tan Sri Lim Gait Tong, Euros (about RM4.427 billion) from Directive 2018/2001 of the European said the fact that Dr. Mahathir was Malaysia. The Nordic region Union Renewable Energy Directive accorded the greatest respect during comprises Finland, Sweden, Norway, II. In a recent statement, Primary his meeting with Chinese President Denmark and Iceland. Speaking on Industries Ministry said the Council Xi Jinping and Premier Li Keqiang their behalf, Finland’s ambassador to of Palm Oil Producing Countries was a testimony to the bond that has Malaysia Petri Puhakka said in (CPOPC) was now in Brussels to been reestablished for the future proportion to the size of the Nordic register the two major global palm oil conduct of government-to- region’s population of 27 million, producers’ protests to the members of government and business-to-business trade with Malaysia (with a the European Parliament. The relations between both countries. population of 32 million) was on a Malaysian delegation is led by “Though the Prime Minister’s visit is “fairly notable level”. (17 April, Primary Industries Ministry primarily to participate in the Belt Business Times) secretary-general Datuk Dr. Tan Yew and Road Forum on the President of Chong. (7 April, Business Times) Malaysia signs ASEAN Trade in China’s invitation, Tun Dr. Mahathir Services Agreement: Malaysia has is taking the opportunity to make his Malaysia’s reserves at US$103 bln signed the ASEAN Trade in Services presence and influence felt on a at end-March 2019 – BNM: Agreement (ATISA) and the Fourth wider front, including business Malaysia’s reserves remained usable Protocol to Amend the ASEAN relations events and engagements. as at end-March 2019, with official Comprehensive Investment (26 April, Bernama) reserve assets at US$103.01 billion, in accordance with the International Agreement (ACIA). “Both Export growth may moderate to Monetary Fund’s Special Data Agreements would strengthen and 3.6 pct: Malaysia’s exports growth Dissemination Standard (IMF SDDS) enhance trade in services and is expected to moderate further at 3.6 format. In a statement today, Bank investment respectively among per cent this year from 6.7 per cent in Negara Malaysia (BNM) said other member states of ASEAN,” Minister 2018, analysts said. This is amid foreign currency assets amounted to of International Trade and Industry higher base effects and continuous US$147.3 million. “For the next 12 Datuk Darell Leiking, who signed the signs of easing key global indicators, months, the pre-determined short- agreement, said in a statement they added. The moderating pace was term outflows of foreign currency released here in Kuala Lumpur today. consistent with global commodity loans, securities and deposits, which He said this would further stimulate prices, expectation of a slight include among others, scheduled greater opportunities for economic slowdown in overall business repayment of external borrowings by and business development, by performance on top of the uncertainty the government and repayment creating a larger market and over China-US trade conflict, MIDF arising from maturity of the foreign predictability of the business Research said when commenting on currency Bank Negara Interbank environment in the region, in line the country’s latest trade date today. Bills, amounted to US$4.27 billion. with the ASEAN Economic Malaysia’s trade in February had (30 April, Bernama) Community (AEC) Blueprint 2025. declined 7.2 per cent to RM122.15 (23 April, Bernama) billion from RM130.94 billion a year Growth forecast at 4.7%: The ago, according to the International World Bank Group has maintained Malaysia eyes potential Trade and Industry Ministry. (5 Malaysia’s 2019 gross domestic investments worth RM10bil from April, Business Times) product (GDP) growth forecast at expo 2020 Dubai: Malaysia aims to 4.7%, driven by private consumption. achieve RM10 billion worth of Malaysia’s economy to pick in Lead economist for Malaysia Richard 2H on higher oil prices: Malaysia’s potential investments and businesses Record said private consumption economic growth is expected to from Expo 2020 Dubai, said Energy, would continue to be the main driver bounce back in the second half of the Science, Technology, Environment of growth, albeit expanding at a more year after most likely hitting its and Climate Change Minister Yeo measured pace. “Household spending lowest level in nearly three years Bee Yin. She said Malaysia had will be buoyed by stable labour during the first quarter, economists targeted to secure 1,000 business market conditions and income said. They said the economy may leads and achieve 20 partnership support measures such as the cost of have posted the slowest quarterly agreements during the six-month living aid,” he told reporters at the expansion since the second quarter of long expo. “The RM10 billion East Asia and Pacific economic 2016 but with the recovery in oil potential investments would be the update briefing here in Kuala Lumpur price, a significant pick up is result of strategic alliances in yesterday. He said gross fixed capital expected from July till December this business leads and signing of mutual formation was expected to increase year. The oil price had gained around agreements,” she told a press slightly, driven by the private sector, 30 per cent in the first quarter of this conference here in Putrajaya while public investment was year, with Brent posting its best today. Also present was United Arab expected to remain subdued in the quarterly performance in a Emirates Deputy Head of Mission to near term. (25 April, The Star) decade since the second quarter of 1 – 30 April 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 2

concept to produce organic rice. railroad can boost the living standard LOCAL Rural Development Minister Datuk and the people’s economy here. He TEMPATAN Ewon Benedick said the project will said the creation of Melalap involves be implemented by villagers of Kg. 300 acres to be turned into a new A first for Sabah in aerospace Tambatuon and the Malaysian administration centre for the district, training: Sabah will have the Agroecology Society for Sustainable with the construction of government country’s first and only training Resource Intensification with support offices, police station, hospital, centre offering Aircraft Maintenance from Kota Belud Integrated schools, religious houses and other Technician under European Aviation Agriculture Development Area and facilities for the benefit of the Safety Agency (EASA) Category A local NGO, Pacos Trust. “With people. “We will ensure development training programme with dual support from these bodies, I’m of the interior so that it can be certification when the proposed confident we will be able to bring justified for the benefit of rural RM25 million KKIP Aerospace rice that are produced from the people who want development. “The Training Centre at Kota Kinabalu village to a bigger market,” he said. creation of Melalap can spur the lives Industrial Park (KKIP) begins (11 April, Daily Express) of the people and their economy in operations mid next year. The the interior, this is to address the training programmes comes with RM316.9m for 81 rural Sabah road hardship faced by the people due to certifications by the Civil Aviation projects: Things are starting to look distance from the city. (1 April, Daily Authority of Malaysia (CAAM) and up for Sabah, especially in terms of Express) EASA. With an initial investment amenity development such as roads, value of RM35 million, this five-acre bridges and drainage systems in rural Potential for Tuaran to develop bee aerospace training centre is expected areas. This is thanks to the RM1.13 industry: The district has the to cater up to 250 students annually. billion allocation to the State for rural potential to further develop a (30 April, Daily Express) development through the Rural and profitable stingless bee honey-based Regional Development Ministry industry, said Deputy Chief Minister Looking to Jiangxi for industrial under the leadership of Datuk Seri Datuk Seri Wilfred Madius Tangau. boost: Chief Minister Datuk Seri Rina Mohd Harun. Rina said the Tangau, who is also Trade and Mohd Shafie Apdal has set his sights RM1.13 million involved 27 new Industry Minister, urged on Jiangxi Province in China to projects and 98 existing projects. She entrepreneurs, especially rubber propel industrialisation in Sabah. said the ministry was committed to smallholders here, to combine their Upon arriving in City on further strengthening Sabah’s rural effort to realise this aim. “To Saturday, he paid a courtesy call on transport network via the establish such industry, it needs the Jiangxi Governor Lianhong at the implementation of 81 rural road cooperation of all quarters as we are Qianhu State Guest House where construction projects involving an aware that not everyone is able to set both leaders signed a Letter of Intent allocation of RM316.9 million this up a factory,” he said when closing (LoI) to establish a Sister Province year. (8 April, Daily Express) the Basic Tantadan (Stingless Bee) relationship. Shafie said Sabah and Industry Course, at the Tamparuli Jiangxi intend to explore trade, Sabah plans to set up fifth Multipurpose Hall, near here, Friday. investment, agriculture and tourism industrial park: Sabah plans to set “I would like to see a stingless bee to generate mutual benefits and up a fifth industrial park in the State. honey processing plant to be set up in promote common prosperity and State Trade and Industry Assistant Tuaran but the local entrepreneurs development. (22 April, Daily Minister Datuk Azhar Matussin said should try to raise the capital to build Express) his ministry has been given the task it without being too reliant on to plan and initiate the government’s assistance.” (27 April, Govt approves RM183 mln move. Presently, there are four Daily Express) allocation for Sandakan: The industrial parks in Sabah, namely the federal government has approved a Sipitang Oil and Gas Industrial Park, Sabah to produce in large quantity development allocation of RM183 Kota Kinabalu Industrial Park quality seaweed: The Ministry of million this year for 49 projects and (KKIP), Palm Oil Industrial Cluster Agriculture and Food Industry programmes in Sandakan, Sabah. (POIC) Lahad Datu and POIC (MAFI) will come out with a Finance Minister Lim Guan Eng said Sandakan. “The State Government mechanism to ensure large the allocation would ensure the local via the Trade and Industry Ministry is production of quality seaweed as well economy’s continued strength and aiming for a 30 per cent contribution as to ensure sufficient supply of raw benefit nearly 400,000 residents in from the industry sector to the Gross materials for local industrialisation the district. Projects that have been Domestic Product (GDP) in 10 years, purposes. Its Minister Datuk Junz identified include the Sungai from the present 7.2 per cent. “To Wong told reporters after visiting Anip flood mitigation project worth achieve this, a fifth industrial park several seaweed farms at Kg. Gelam- an estimated RM40 million. “The has been proposed and we invited Gelam here in Semporna on government has also approved a State Lands and Surveys Department Wednesday. “We are developing the RM80 million project to expand the Director Datuk Safar Untong to a seaweed industry through three Sandakan airport involving, among preliminary meeting on Wednesday categories namely nucleus farms, others, the extension of the runway to discuss the proposal,” Azhar told clusters projects and mini estates and improving the aprons,” he said reporters, here in Kota Kinabalu, programmes,” Junz informed. in a statement today. (23 April, The Thursday. (5 April, Daily Express) Between 2019 & 2020, we are Borneo Post) targeting to develop 400 farmers and New town and railroad to boost their families through nucleus farms Kota Belud to spearhead organic Tenom income: Chief Minister which are expected to cover 200 rice: Kadamaian is set to become the Datuk Seri Mohd Shafie Apdal said hectares. It is expected to produce first constituency to implement the the establishment of a new town in 1,200 metric tons per year. (25 April, System of Rice Intensification (SRI) Melalap and reconstruction of the New Sabah Times) 1 – 30 April 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 3

SELECTED FACTS AND FIGURES FAKTA MUTAKHIR MALAYSIA’S INDEX OF INDUSTRIAL PRODUCTION, FEBRUARY 2019

(Source: 11 April, Department of Statistic Malaysia)

MALAYSIA’S PRODUCER PRICE INDEX, MARCH 2019

(Source: 30 April, Department of Statistic Malaysia)

MALAYSIA’S MONTHLY RUBBER STATISTICS, FEBRUARY 2019

(Source: 11 April, Department of Statistic Malaysia)

1 – 30 April 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 4 MALAYSIA’S CONSUMER PRICE INDEX, MARCH 2019

(Source: 24 April, Department of Statistic Malaysia)

MALAYSIA’S ECONOMIC INDICATORS: LEADING, COINCIDENT & LAGGING INDEXES, FEBRUARY 2019

(Source: 25 April, Department of Statistic Malaysia) 1 – 30 April 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 5