Monthly News June 2020, Vol. 25 Issue 6
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MONTHLY NEWS SCAN Tinjauan Berita Bulanan Compiled by IDS Vol. 25 Issue 6 IDS Online http://www.ids.org.my 1 – 30 June 2020 HIGHLIGHTS be greater in places where economic number still signaling contraction, FOCUS activity is picking up faster. (12 June, new orders declining and employment Reuters) falling. (23 June, The Straits Times) • China’s economy will resume growth this quarter, economists Japan’s deflation gathers New Zealand enters first recession say momentum as prices extend since 2010 as coronavirus bites: • A month into reopening, no clear declines: Japan’s core consumer New Zealand entered recession for the turn for U.S. economy or pandemic prices fell for a second straight month first time in almost a decade as the • Malaysia calls for cohesive in May, reinforcing deflation coronavirus pandemic led to the economic measures among expectations and raising the challenge nation's biggest quarterly contraction ASEAN members for policymakers battling to revive an in 29 years. Gross domestic product • Stimulating the economy is as economy reeling from the coronavirus fell 1.6 per cent in the first quarter challenging as containing pandemic. The data will likely from the fourth, Statistics New COVID-19 - Muhyiddin • RM240m ‘Sabah New Deal’ complicate the Bank of Japan's job of Zealand said on Thursday (June 18) in • 50 broadband towers for Sabah restoring growth and inflation, with a Wellington. That's the largest decline schools raft of recent indicators suggesting the since 1991 and more than the 1 per nation is in the grip of its worst cent expected by economists. From a INTERNATIONAL postwar economic slump. (19 June, year earlier, the economy shrank 0.2 ANTARABANGSA The Straits Times) per cent - the first annual contraction since 2009. (18 June, The Straits China’s economy will resume Brexit: New momentum needed in Times) growth this quarter, economists trade talks, say UK and EU: UK and say: Economists upgraded their EU leaders have said new momentum Australian employment recovering forecasts for China's economic growth is needed in negotiations on their gradually from coronavirus shock: this quarter and for 2020, signaling future relationship, after high-level Australian employment is continuing more optimism that the country is on talks recently. The PM, who met EU to pick up gradually after the huge track for a gradual recovery. Gross Commission President Ursula von der losses caused by coronavirus domestic product will expand at 1.5 Leyen virtually, said there was a “very lockdowns, recovering around 30 per per cent in the second quarter from a good” chance of getting a trade deal cent of the jobs initially shed, data year earlier, according to the median by December. He said he saw no showed recently. The Australian estimate of economists in a reason why it cannot be “done in Bureau of statistics said total payroll Bloomberg survey recently. That’s July”, after the sides agreed to jobs increased 1 per cent between faster than 1.2 per cent growth seen in intensify talks next month. Mrs. von mid-May and mid-June, though they the last survey in May. Economists der Leyen said they “agreed to deliver were still down 6.4 per cent on their also dialled up their full-year growth the best deal” for citizens. The EU level in mid-March before the projection to 1.8 per cent from 1.7 per also noted the UK’s decision not to lockdowns started to take effect. (30 cent. (23 June, The Straits Times) extend the transition period, which June, The Straits Times) ends in December. (15 June, BBC A month into reopening, no clear News) Russia cuts rates to record low amid turn for U.S. economy or pandemic: coronavirus crisis: Russia’s central A month into efforts to broadly reopen Euro zone economy moves towards bank slashed interest rates recently to the U.S. economy there is little clarity slow recovery from record slump: the lowest level since the collapse of either on the pace and durability of the The euro-area economy picked up the Soviet Union, pledging to consider recovery, or on the ability to from its record slump, but the good the need for even lower rates amid convincingly suppress the virus that news on activity was tempered with a waning inflationary risks and a has killed more than 112,000 warning that the recovery will be shrinking economy. The central bank Americans. Data on cellphone traffic, protracted. The June Purchasing delivered a deeper-than-usual cut of employee time management and Managers Index from IHS Markit 100 basis points, taking the key rate to weekly unemployment claims point to showed an improvement at the 4.5% RUCBIR=ECI, in the face of the an ongoing and steady climb back - region's manufacturers and service crisis sparked by the coronavirus and but one that shows stark divisions firms, and confidence at the highest the related lockdowns, in line with a among states, and some evidence the since February. It also had plenty of Reuters poll. (19 June, Reuters) spread of the novel coronavirus may reason for caution, with the headline 1 – 30 June 2020 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 pandemic could start to bottom out. negatively affect demand. (25 June, NATIONAL (30 June, Bernama) Business Times) NASIONAL Malaysia’s economy to grow 7.5pct Malaysia’s aerospace Malaysia calls for cohesive in 2021: S&P: S&P Global Ratings manufacturers see business drop economic measures among ASEAN has reaffirmed Malaysia’s A- rating 30pct in Covid-19 era: The local members: Malaysia has called for with a revision to the outlook to aerospace manufacturing sector has cohesive economic measures among negative from stable. The experienced a 30 per cent reduction in ASEAN member states to build reaffirmation comes with S&P’s deliveries requirements for long-term socioeconomic resilience in bullish forecast of a 7.5 per cent contracts, resulted from the delay of mitigating the impact of COVID-19, growth in the country’s gross aircraft deliveries in particularly said the International Trade and domestic product next year. The 7.5 among the airlines and lessors. Market Industry Ministry (MITI). In a per cent is more optimistic than the observers said the Movement Control statement on the 36th ASEAN World Bank’s expected 6.9 per cent Order (MCO), which was enforced Summit, the ministry said Prime expansion of Malaysia’s economy from March 18 till May 3, had Minister Tan Sri Muhyiddin Yassin next year. Finance Minister Tengku partially halted manufacturing stressed that leaders, in moving Datuk Seri Zafrul Abdul Aziz, when activities in Malaysia. However, the beyond efforts to contain commenting on S&P's latest move, maintenance, repair and overhaul the pandemic in the region, must said the negative outlook was driven (MRO) services for both commercial inculcate a similar sense of urgency to by the impact of the Covid-19 and private jet continued to operate to also push for economic recovery. In pandemic on Malaysia’s economic support grounded aircraft, despite a his intervention, he said the public growth and fiscal position. (26 June, similar 30 per cent contraction in the health crisis had a profound impact Business Times) overall operations. (22 June, Business on economies and rebooting the Times) regional economy must be the Federal government to be fair to all grouping’s utmost priority to mitigate states in economic recovery efforts – Malaysia to improve trade relations disruptions to trade and strengthen the Azmin: The Federal Government has with India pertaining to palm oil: resilience of the regional supply given assurance that it will be fair to Malaysia is working on creating better chains. (27 June, Bernama) all states, including those led by the trade relations with India, its top palm opposition, in the efforts to revive the oil buyer last year, and addressing Stimulating the economy is as COVID-19-affected economy. Senior some of the issues that have negated challenging as containing COVID- Minister Datuk Seri Mohamed Azmin the country’s palm oil share in the 19 - Muhyiddin: Prime Minister Tan Ali, who is also the International global market, Malaysian Palm Oil Sri Muhyiddin Yassin described the Trade and Industry Minister, said no Council (MPOC) chief executive task of stimulating the country’s issue arose regarding differing officer Datuk Dr Kalyana economy following the months- political ideologies when it came to Sundram said. He noted that 2020 long Movement Control Order economic development, which was a had been a tough year so (MCO) period as being as challenging shared responsibility especially post- far, with India falling to the lowest as curbing the spread of COVID-19. COVID-19. “We put aside politics. (13th) position among the country’s The Gambir assemblyman said This is the time when the Federal and top palm oil export destinations in the although economic activity had state governments must work together first five months. For the January-May resumed, it had not reached the level to overcome the challenges faced due 2020 period, Malaysia's shipments of targeted by the government and there to the Movement Control Order palm oil to India plunged by 93 per were many problems faced, including (MCO) and COVID-19. (30 June, cent to 151,106 tonnes from 2.16 by businesses. According Bernama) million tonnes recorded in the same to Muhyiddin, economic experts period last year. (22 June, Bernama) have also forecast that the country’s Further deflation in 2020 as April economy would contract in the second CPI matches steepest drop in 10 Malaysia’s unemployment rate and third quarters of this year. (27 years: Malaysia can expect further expected at 4.0pct this year: June, Bernama) deflation this year after its Consumer Malaysia’s unemployment rate is Price Index (CPI) declined 2.9 per expected to remain high for the Export performance May improve cent year-on-year (y-o-y) in May, remaining months this year as some as Malaysia returns to trade surplus economists said.