MONTHLY NEWS SCAN

Tinjauan Berita Bulanan Compiled by IDS

Vol. 25 Issue 11 IDS Online http://www.ids.org.my 1 – 30 November 2020

HIGHLIGHTS “super-sized” economy to import Indonesia in recession for first time FOCUS more high-quality goods and services. in 22 years: Indonesia has fallen into China will also sign free trade pacts its first recession in 22 years as the •IMF: Economy ‘losing with more countries, he said recently. coronavirus pandemic continues to momentum’ amid virus second Mr Xi was speaking at the Asia- take its toll. South East Asia’s biggest wave Pacific Economic Cooperation (Apec) economy saw growth fall 3.49% in the • ASEAN states speed up economic forum, which includes the US and third quarter of the year, compared to integration through ACTS Russia. (19 November, BBC News) the same period in 2019. Following a • Economy, rakyat will suffer if fall of 5.32% in the second quarter of development expenditure is cut, Japan leads economic ‘Zoom boom’ 2020, this has pushed Indonesia into a says Mustapa out of recession: Japan’s economy recession. The last time this happened • World Bank hub in to bring together economic, has bounced back from recession with was during the 1998 Asian financial financial experts - Tengku Zafrul growth of 5% in the third quarter of crisis. (5 November, BBC News) • Extra RM50m boon for this year. It had seen its economy Covid fight shrink during 2020 as lockdowns hit Euro zone economy likely already • RM6.05 bln for 101 Sabah rural its manufacturing sector and in double-dip recession: Reuters road projects under 11MP consumer spending. The world’s third poll: The euro zone is on track for its biggest economy is now showing INTERNATIONAL first double-dip recession in nearly a signs of recovery, although some decade, according to a Reuters poll of ANTARABANGSA analysts cautioned that further growth economists which points to a more is likely to be modest. (16 November, muted recovery next year despite IMF: Economy ‘losing momentum’ BBC News) expectations for 500 billion euros of amid virus second wave: The global additional monetary stimulus. As economic recovery may be losing US jobs growth slows in October as most of Europe grapples with a momentum as coronavirus infections unemployment dips below 7%: The resurgence in coronavirus cases, surge again, the International US economy added 638,000 jobs in forecasters who last month predicted Monetary Fund has warned. Fund October, which was the slowest the recovery would continue now chief Kristalina Georgieva said more growth in five months but still helped expect the euro zone economy to economic help is needed, and warned to push the unemployment rate below shrink 2.5% this quarter after countries against withdrawing aid too 7%. Jobs were added in leisure and expanding a record 12.6% in Q3. (18 soon. Recent progress towards a hospitality as US lockdown measures November, Reuters) vaccine has raised hopes of a return to were eased, according to the US normal. But despite those steps, “the Bureau of Labor Statistics. The economic path ahead remains difficult unemployment rate fell to 6.9% from Vietnam economy is Asia’s shining and prone to setbacks,” she said. (19 7.9%, with 11.1 million Americans star during Covid: Vietnam has minimised the economic damage from November, BBC News) out of work. September’s data was Covid-19 and is the only country in revised up to show that 672,000 jobs ASEAN states speed up economic were created. (6 November, BBC South East Asia on track for growth this year. Its economy is expected to integration through ACTS: ASEAN News) grow 2.4% this year, according to member states are speeding up their economic integration by mitigating Singapore non-oil exports post latest figures from the International Monetary Fund. The IMF credited intra-Asian trade challenges and surprise 3.1% drop in October: “decisive steps to contain the health accelerating seamless trade in goods Singapore’s non-oil domestic exports by roads with the new ASEAN (Nodx) shrank unexpectedly in and economic fallout from COVID- Customs Transit System (ACTS). The October, snapping four straight 19” for the country’s success. ACTS was developed to streamline months of growth, due to fewer Vietnam has had only 1,288 Covid-19 cross-border customs processes with shipments of non-monetary gold and cases and 35 deaths. The IMF is the aim of accelerating land transit electronics such as integrated circuits. predicting a strong economic recovery movements and reducing the time and Nodx fell 3.1 per cent, after expanding in 2021, with growth projected to expense of carrying out regional trade a revised 5.8 per cent in September, strengthen to 6.5% “as normalisation in goods. (30 November, ) according to data from Enterprise of domestic and foreign economic Singapore (ESG) on Tuesday (Nov activity continues.” (19 November, President Xi at Apec: China pledges 17). Shipments also missed the 5.1 per BBC News) to open up its ‘super-sized’ cent growth forecast by analysts in a economy: Chinese president Xi Bloomberg poll. (17 November, The Jinping has said China will open up its Straits Times) 1 – 30 November 2020 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 Movement Control Order (CMCO). Jobless rate improves in Q3: NATIONAL (27 October, Bernama) Malaysia’s unemployment rate fell to NASIONAL 4.7% in the third quarter ended Sept Malaysia’s trade surplus widens to 30 from 5.1% in the second quarter as Economy, rakyat will suffer if RM22.12 bln in October 2020 - the education sector and related development expenditure is cut, MITI: Malaysia’s trade surplus in industries reopened, the Statistics says Mustapa: The allocation for October 2020 widened to RM22.12 Department said. Chief statistician development expenditure under billion, registering a double-digit Datuk Seri Mohd Uzir Mahidin said Budget 2021 for construction projects growth of 25.9 per cent year-on-year Malaysia entered the phase of cannot be cut as it will have an adverse (y-o-y) and was the highest trade Recovery Movement Control Order impact on the country's economic surplus ever recorded for the month. (RMCO) since June 10, most of the cycle and the people, said Minister in The Ministry of International Trade economic sectors had gradually the Prime Minister's Department resumed albeit compliance to standard and Industry (MITI) said exports (Economy) Datuk Seri Mustapa operating procedures. “The reached RM91.05 billion in October Mohamed. He said more than 40 per improvement was due to the 2020, increasing by 0.2 per cent of the development projects reopening of the sectors and coupled under the budget were continuation of cent compared to October 2019 and with increased of tourism related half-completed projects such as the this was the third highest export value activities as interstate travel was construction of schools, hospitals and recorded thus far. “The expansion was allowed. This has resulted in a better highways. If the projects are supported mainly by higher exports to labour market situation for the quarter immediately halted, the people will the United States (US), China, India as compared to the second quarter of suffer, he said. (28 October, Bernama) and the United Kingdom (UK),” it 2020, ” he said in a statement. (20 said in a recent statement. (27 November, ) World Bank hub in Malaysia to October, Bernama) bring together economic, financial IPI advanced 1% in September: experts - Tengku Zafrul: The World Malaysia’s economy to grow 6.0pct Malaysia’s industrial production Bank Group (WBG) office in 2021, oil & ringgit to strengthen: index (IPI) rose by 1% in September in Malaysia will function as a hub that UOB: Malaysia’s economy is from a year ago, which was below a brings together local economic and expected to rebound 6.0 per cent next Bloomberg survey of a 2.3% increase, financial experts, said Finance year from an expected contraction of due to a slowdown in mining and Minister Tengku Datuk Seri Zafrul 5.5 per cent this year, said United electricity. Chief Statistician Datuk Abdul Aziz. He said the hub would Overseas Bank (Malaysia) Bhd. Seri Dr Mohd Uzir Mahidin said yesterday the slight increase in the IPI also allow WBG to conduct senior economist Julia Goh. in September was driven by a 4.3% developmental research to improve Commodity prices might trade higher global indicators including through increase in the manufacturing index. particularly crude oil, Goh said, However, the mining and electricity the World Bank's Doing Business forecasting oil price to trade between Survey and provide technical support index recorded a decrease of 9.6% and US$50 and US$60 per barrel in 2021 2.1% respectively. The manufacturing in selected fields, especially for low in line with the global recovery. This and middle-income countries. “This sector output based on year-on-year will help the ringgit to strengthen comparison grew by 4.3% in office will build on the existing against the US dollar at 4.0 by the end Malaysia-WBG collaboration in September after recording a growth of of next year. (30 November, Business 2.2% in August. (10 November, The various fields for Malaysia to Times) achieve a developed and high-income Star) nation status. (30 November, CPI declines 1.5pct Y-o-Y in Bernama) Inflation falls for eighth month in October: Malaysia’s inflation rate in October 2020: DOSM: Malaysia's October fell for the eighth month, Consumer Price Index (CPI) declined Business prospects forecast to 1.5 per cent year-on-year (y-o-y) to improve in Q4 but remain down by 1.5% on-year due to lower fuel prices, based on the Statistics 120.2 in October 2020 from 122.0 in pessimistic -- DOSM: Business the same month last year, said the prospects are forecast to improve in Department data. According to the statementpublished recently, the Department of Statistics Malaysia the fourth quarter of 2020 (Q4 2020) (DOSM). Chief statistician Datuk Seri but remain pessimistic, according to decline in the Consumer Price Index Dr Mohd Uzir Mahidin said the the Business Tendency Statistics (CPI) was faster than a Reuters’ poll decrease in the overall index was report for Q4 2020 released by the of a fall of 1.4%. In September, the Department of Statistics Malaysia attributed to the decline in transport (- CPI fell by 1.4%. Chief Statistician 10.2 per cent), housing, water, (DOSM) . The statistics were based Datuk Seri Dr Mohd Uzir Mahidin on the Business Tendency Survey electricity, gas & other fuels (-3.0 per said the CPI declined by 1.5% in cent), and clothing & footwear (-0.4 conducted on a quarterly basis which October to 120.2 as against 122.0. The presents expectations on business per cent) which contributed 41.6 per performance for the upcoming quarter decrease in the overall index was due cent to overall weight. "Out of 552 and six months ahead. In a statement, to the decline in transport (-10.2%); items covered in CPI, 337 items chief statistician Datuk Seri Dr Mohd housing, water, electricity, gas & showed an increase in October 2020 Uzir Mahidin said the respondents’ other Fuels (-3%) and clothing & compared with October 2019. On the perceptions for the current quarter footwear (-0.4%) which contributed contrary, 150 items declined while 65 were mainly influenced by the 41.6% to overall weight, he said. (25 items were unchanged. (25 reinforcement of the Conditional November, The Star) November, Business Times)

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gangguan bekalan elektrik di kawasan LOCAL Sandakan, Tawau dan Lahad Datu. Sabah to push local entrepreneurs’ Timbalan Ketua Menteri, Datuk Seri transition into digital business: The TEMPATAN state Industrial Development Ministry berkata anggaran Extra RM50m boon for kos keseluruhan bagi projek tersebut is working to help local entrepreneurs Sabah Covid fight: An additional adalah dalam sekitar bilion ringgit step up their productivity and adapt to allocation of RM50 million in Budget yang mampu membekalkan kapasiti the new norm in business through 2021 to combat Covid-19 in Sabah 1,000 Megawatt (MW). Bung yang digitalisation. Deputy Chief Minister could enhance the frontliners’ ability juga Menteri Kerja Raya berkata, Datuk Dr said his to fight the pandemic, says Sabah sementara menunggu pembinaan IPP, Ministry was collaborating with Local Government and Housing Kerajaan Persekutuan bersetuju untuk private sectors to promote products of Minister Datuk Masidi Manjun. Sabah small-medium enterprises menyediakan bekalan 300 MW (SMEs) and cottage entrepreneurs via Masidi, who is also the official melalui sistem solar ataupun Mobile spokesman for the Sabah State e-commerce. Such a move would not Barge bagi menampung permintaan only enable local entrepreneurs to Government on Covid-19, said the bekalan elektrik di Pantai Timur RM50 million allocation could be market their goods locally but also Sabah. (14 November, Utusan nationwide and globally. Through the used to cover various types of Borneo) expenses, including logistics and the many collaborations, Gunsalam noted SMEs and home-made products purchase of food and medical 20 projects for upgrading of equipment. “We are thankful for this would be placed on online allocation, we really need more dilapidated schools, involving marketplaces like E-pasar Sabah, allocation to deal with Covid-19 in RM98.1 million, in Kota Belud: Shopee, BorneoKaki, ShopDirect, Sabah. Of course, some of our tasks A total of 20 projects for upgrading Tamuku, My Borneoshop, and GoNet, will be made easier and smoother. (28 and rebuilding of dilapidated schools among others. (26 November, New November, Daily Express) in Kota Belud, Sabah , have been Straits Times) approved, involving an allocation of RM6.05 bln for 101 Sabah rural RM98.1 million, said Deputy Sabah KPD boosts income of rural road projects under 11MP: A total Education Minister I Muslimin residents through kelulut farming: of 101 Rural Road projects in Sabah Yahaya. He said the scope of the After the successful breeding of the have been approved under the 11th projects included construction of Apis Cerana or Pomosuon species of Malaysia Plan (11MP) involving a classrooms, administrative blocks, honey bees, the Sabah Rural total cost of RM6.05 billion, the hostels, teachers' quarters, dining Development Cooperative (KPD) is was toldrecently. halls, resource centres, science rooms focusing on helping its participants, comprising rural residents, to increase Rural Development Minister Datuk and toilets. So far, he said, nine Dr said this year their income through the breeding of projects have been completed, namely kelulut or stingless bees. Sabah KPD alone, RM271.24 million has been set Sekolah Kebangsaan (SK) Kiau I; SK aside for the projects with the latest deputy general manager (business and Timbang; SK Kepasang; SK Lasau operations division) Andree amount spent totalling RM172.48 Tintapon; SK Taburan; SK Rampayan million. “Of the 101 projects, 18 are Funk said so far, 22 Apis Cerana Ulu; SK Taun Gusi; SK Suang breeders who are registered with the still in the planning stage, 22 are in the Punggor; and SK Tempasuk 1; while stage of appointing consultant and KPD have ventured into the breeding designing, seven are in the construction work is in progress for of kelulut bees. “Of this figure, 19 procurement stage, 26 are under five projects, namely at SK Tempasuk farmers have started selling kelulut construction, and 28 have been fully II; SK Wing; SK Pituru; SK Gensurai; honey to the KPD since January this completed.” (13 November, The and SK Tarintidon. (25 November, year with an average income of Borneo Post) Bernama) RM345 per month for each participant. “Kelulut bee breeding has Govt agrees to build -Sabah Sabah rural infrastructure projects great potential because Sabah has bridge: The government has agreed to on track: Twenty-eight of the 101 suitable areas or habitat for the kelulut build a bridge connecting Labuan to rural road projects in Sabah under the bees,” he told Bernama. (18 mainland Sabah through the Private 11th Malaysian Plan (2016-2020) November, Bernama) Finance Initiative (PFI), said Federal have been completed and the rest are Territories Minister Tan Sri Annuar in various stages of implementation, Ranau village (Kampung Gusi) to Musa. He said his ministry and Works the Dewan Rakyat was told. Deputy get broadband services: Broadband Ministry were in the process of services through Very Small Aperture Rural Development Minister II Datuk Terminal (VSAT) technology will be finalising the terms of reference for said 26 projects the ‘Request for Proposal’ (RFP) available at Kampung Gusi here by were in the construction stage; 18, December this year. This initiative is process to build the bridge. “The planning stage; 22, appointment-of- proposed bridge construction project in response to the incident where three consultant and design stage; and students fell from a suspended bridge will be implemented through public- seven, procurement stage. He also private sector collaboration and via in the village recently, purportedly to said that 15 rural electricity supply gain access to Internet coverage. privatisation or PFI. (18 November, projects have been approved at a cost ) Installation of the VSAT would be of RM3.06 billion to benefit 9,588 undertaken by Common Tower households in various districts under Technologies Sdn Bhd (CCT), a Bina sebuah IPP di Pantai Timur, the 11th plan. “Four of the projects subsidiary company of Warisan Harta atasi masalah bekalan have been completed while two are in Sabah Sdn Bhd, in support of the elektrik: Kerajaan negeri akan the appointment-of-consultant stage; Malaysian Communication and membina sebuah stesen janakuasa and nine, construction stage,” he said Multimedia Commission (MCMC). bebas (IPP) di kawasan Pantai Timur during Question Time in the House. (30 November, The Borneo Post) Sabah dalam usaha mengurangkan (25 November, Bernama)

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SELECTED FACTS AND FIGURES FAKTA MUTAKHIR

Malaysia’s International Investment Position, Third Quarter 2020

(Source: 13 November, The Star)

Malaysia’s Business Tendency, Fourth Quarter 2020

(Source: 27 November, The Star)

Malaysia’s Industrial Production Index (IPI), September 2020

(Source: 9 November, The Star)

1 – 30 November 2020 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 4 Malaysia’s Selected Agricultural Indicators, 2020

(Source: 27 November, The Star)

Malaysia’s External Trade Statistics Bulletin, October 2020

(Source: 27 November, The Star)

1 – 30 November 2020 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 5