MONTHLY NEWS SCAN

Tinjauan Berita Bulanan Compiled by IDS

Vol. 24 Issue 11 IDS Online http://www.ids.org.my 1 – 30 November 2019

HIGHLIGHTS according to new official data. The forecast for a 2.1 per cent fall and FOCUS country’s economy grew by 0.1% in swinging from a 1.7 per cent rise the the third quarter of the year after previous month. That matched a • New warning on global economic contracting in the previous three similar fall in January 2018. (30 slowdown months. A recession is often defined November, The Straits Times) • Australia and others ask for Brexit as two consecutive quarters of trade compensation declining economic activity. South Korea central bank chief says • FDI into is much bigger Germany’s strength as an exporter of economy bottoming after cutting than before - PM Mahathir manufactured goods has left it growth forecasts: Bank of Korea • Economy grew slower at 4.4% exposed to recent conflict in global Governor Lee Ju-yeol insisted that in 3Q but within forecast trade. (14 November, BBC News) Korea's economy was already passing • Shafie woos Japanese investors through its most painful moment after • expects GDP to grow 5.1pc China’s factory activity the central bank cut its growth next year unexpectedly returns to growth in forecasts on Friday (Nov 29), but kept INTERNATIONAL November: Factory activity in China its policy unchanged. “Cautiously unexpectedly returned to growth in speaking, the economy appears to be ANTARABANGSA November for the first time in seven passing through the bottom,” Lee said months, as domestic demand picked in a press conference. “Forecasts that New warning on global economic up on Beijing’s accelerated stimulus global uncertainties will ease and the slowdown: A leading international measures to steady growth. But gains tech business situation will improve economic organisation has warned were slight, and export demand from the middle of next year are that risks to the global outlook have remained sluggish. More U.S. tariffs prevalent.” (29 November, The Straits increased. The Organisation for are looming within weeks and Beijing Times) Economic Cooperation and and Washington are still haggling Development - the OECD - says in a over the first phase of a trade deal. (30 U.S. economy picks up in third- new report that prospects have November, Reuters) quarter; data surprise on the steadily deteriorated. It forecasts upside: U.S. economic growth picked continued growth of around 3% but Euro-Area sentiment brightens in sign up slightly in the third quarter, rather warns that the risks have increased. economy reached trough: Economic than slowing as initially reported, and The report says a lack of direction on confidence in the euro area improved there are signs the downturn in climate policy is holding back more than forecast this month, adding business investment may be drawing business investment. Although the to signs the region might be through to a close. The modest firming in OECD is not forecasting a recession, the worst of its recent slump. The growth reported by the government it is a decidedly downbeat report. (21 European Commission survey is the came alongside data showing the November, BBC News) latest to suggest growth prospects in number of Americans filing claims for the 19-nation region have at least unemployment benefits dropped last Australia and others ask for Brexit stopped deteriorating after the week after standing at a five-month trade compensation: Countries European Central Bank unleashed high for two straight weeks. (27 including Australia have asked for new monetary support in September. November, Reuters) trade compensation from the UK and Sentiment improved in industry, French fourth quarter GDP growth the EU over Brexit disruption. Fifteen services, retail and among consumers will slip to 0.2%, Bank of France countries, including the US, India and in November, with forward-looking estimates: The French economy New Zealand, have been setting out sub-components faring particularly should grow 0.2% in the fourth Brexit concerns at a World Trade well. (28 November, Bloomberg) quarter, the Bank of France estimated Organization (WTO) meeting in which would mark a slowdown from Geneva. Australian officials said their Japan’s October factory output the third quarter as international trade beef and lamb exporters had already falls 4.2%, jobless rate holds steady: disputes cloud the outlook for the been hit after several Brexit delays. Japan's industrial output slipped at the global economy. Business leaders Brazil said Brexit plans for Northern fastest pace since early last year in expect industrial production to slow in Ireland could breach WTO rules. (15 October, exposing widening cracks in November, particularly among November, BBC News) the economy which faces a decline in carmakers which have been hit by domestic and foreign demand. Output trade disputes, and a slowdown in Germany narrowly avoids recession fell 4.2 per cent in October from a construction, the French central despite trade war hit: Germany has month ago, trade ministry data bank’s survey said. (12 November, Reuters) narrowly avoided a recession, showed, below the median market 1 – 30 November 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1

October CPI at 1.1% as soft Netherlands sees bright future for NATIONAL inflation trend continues: The full- Malaysian palm oil industry: The NASIONAL year inflation for 2019 may hit the Netherlands is convinced of the lowest level in a decade as the importance of palm oil and sees a FDI into Malaysia is much bigger country’s soft inflation trend is bright future for the industry in than before - PM Mahathir: Foreign expected to continue in the last two Malaysia. The Netherlands Direct Investment (FDI) into Malaysia months of this year, led by cautious Ambassador to Malaysia Aart Jacobi is much bigger than before, Tun Dr consumer sentiment that keeps price said that he is unperturbed about the said. “FDI is pressures under control. The comment talks of measures against palm oil by much bigger than before that we from Bank Islam chief economist the European Union (EU). “We all should be very happy about,” the Mohd Afzanizam Abdul Rashid came know that oil palm per square metre or Prime Minister said. He said following the Statistics Department’s per acre has a yield that’s 8 times ironically, the announcement that Malaysia’s larger than (that of) other oils that we government lacked the headline inflation in October was know of. And as such, it is communication skills to disseminate 1.1%, similar to the rate seen in indispensable for a world population messages about its good efforts and September. For perspective, the that will grow over the next 10 to 20 polices. “This government is not good monthly headline inflation rate for the years. “There are ongoing at communication and telling what it January-October 2019 period had negotiations and talks on EU has done. But believe me, this remained at 1.5% and below. (21 measures on palm oil but that is only government has done much more November, ) short term,”. (26 November, things than any other government has ) done in such a short period of one and M’sia needs quality firms to Rubber industry to contribute a half year,” he told reporters after become industrial hub: The RM41 bln in 2020: The rubber chairing the Parti Pribumi Bersatu government needs to focus on industry is expected to contribute Malaysia (Bersatu) Supreme Council building a few quality companies RM41 billion in 2020 from RM40 Meeting at the Parti Pribumi Bersatu instead of a mass of sluggish firms billion estimated for this year, driven Malaysia headquarters in Kuala that can compete at the regional level mainly by the downstream sector Lumpur. (20 November, Bernama) and achieve its aspiration of becoming including rubber glove, according to an Asean hub for various industries. Minister of Primary Industries Teresa Economy grew slower at 4.4% in Consulting Board Asia founding Kok. She said it was in line with 3Q but within forecast: Malaysia’s partner Datuk Badlisham Ghazali said rubber glove industry projection that economy expanded by 4.4% in the for Malaysia to become an Asean hub, export revenue would likely hit third quarter of 2019 (3Q2019), which as envisioned in the Shared Prosperity RM20.68 billion in 2020 from the was line with a Bloomberg survey, Vision 2030 (WKB2030), the RM18.2 billion expected in 2019. On this note, she urged the Malaysian due to slower growth in service and government needed to start looking at manufacturing. The 3Q GDP growth Rubber Board (MRB) as custodian of things differently, in terms of the industry to continue was slower than the 4.9% in 2Q, developing quality companies at the according to a statement released by commercialising its research and regional level. “This (Asean hub) is development (R&D) projects to boost the Statistics Department. Bank not a new thing for Malaysia. We have Negara Malaysia Governor Datuk Nor the income of the country, while been trying to get into a lot of these benefiting smallholders. (26 Shamsiah Mohd Yunus said for the things such as in maritime, digital November, Bernama) nine months, the economy expanded economy and fintech,”. (11 by 4.6%. She said the pace of growth Malaysia-China trade set to record November, The Star) was expected to be sustained for the another new high in 2019: The remainder of the year and going into Malaysia inks four MoUs with Malaysia-China two-way trade is set 2020. (15 November, The Star) South Korea: Malaysia is fully to record another new high this year, reaping the opportunity to step up its judging by the first nine months of 2019 performance which has reached Malaysia registers RM149b worth game in various fields by signing four of approved investments in Jan- US$89.75 billion (US$1=RM4.17), memoranda of understanding (MoU) up 11.3 per cent from the same period Sept: Malaysia has registered RM149 to tap on and work together with billion worth of approved investments in 2018. Malaysia’s special envoy to South Korea in Seoul. The four MoU in the services, manufacturing and China said the total primary sectors in first nine months were inked in the presence of leaders trade hit a record high of US$108.6 billion last year, which is 683 times this year. This was 4.4 per cent higher of both countries namely Prime Minister Tun Dr Mahathir Mohamed compared with US$159 million in than the RM142.6 billion approved in 1974, the year when both countries the same period last year. and his counterpart, President Moon Jae-In after a bilateral meeting at the first established their formal International Trade and Industry diplomatic ties. “Malaysia-China Minister Datuk Darrel Leiking said Presidential Blue House. The first trade volume is about one-fifth of the these investments involved 4,025 MoU is to intensify cooperation on China-United States and one-third of projects and will create an additional information and communications China-Japan trade volume,” he told of 93,841 job opportunities. “The technology. It was signed between reporters after the launch of the majority of the investments came Malaysia's Minister of second China-Malaysia 'Belt & Road' from domestic sources, which Communications and Multimedia, Shaanxi Trade Expo in Kuala contributed RM82.7 billion or 55.5 and South Korea's Lumpur. In addition, Malaysia-China per cent of the total investments,” he Minister of Science and ICT, Choi trade volume accounted for one-fifth said in a statement. (29 November, Kiyoung. (28 November, Bernama) of the total China-ASEAN trade. (25 Business Times) November, Bernama) 1 – 30 November 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 2

starting the implementation of various recurring expenditure and special LOCAL programmes under the recently expenditure. (15 November, Daily TEMPATAN launched Sabah Agriculture Express) Blueprint. (21 November, Daily Shafie woos Japanese investors: Express) Allocation to boost rural tourism: Chief Minister Datuk Seri Mohd The State Government is coming up began the first leg of his Turn Sabah into leading bakery, with a special allocation to upgrade trade mission in Japan addressing 200 confectionery hub – Junz: rural roads used for tourism. State investors and businessmen from 140 Agriculture and Food Industry Rural Development Minister Datuk companies in Kobe, Japan by spelling Minister Datuk called Ewon Benedick said the allocation, out investment opportunities available upon bakery industry players to turn which will be included in Sabah’s in Sabah. He delivered a keynote Sabah into a leading bakery and 2020 Budget to be tabled next week, address at a business seminar and confectionery hub in the Brunei is part of his Ministry’s initiative to spent three hours explaining at length Darussalam-Indonesia-Malaysia- help the rural community develop the many business potentials in Sabah Philippines East Asean Growth Area their tourism industry. “I have due to its strategic location as a (Bimp-Eaga). Junz said the bakery received complaints that many roads gateway for Japan to expand their industry had been able to offer more connecting tourism spots operated by trade to the Asean countries. In variety to the market compared to the the rural community could not be particular, he said Sabah’s position past with modernization and skills improved and upgraded because of the alongside the increasingly favoured improvement. “Pastry products have lack of funds. (10 November, Daily Lombok-Makassar Straits shipping since become one of the staple food Express) route, ideally places it as a logistics products to the locals and tourists. It Measures to elevate Kudat’s hub for the region. (30 November, has directly and indirectly contributed Daily Express) to our local industry and economy,” economy: The Government is said Junz. (23 November, The Borneo committed in improving the economic Sabah expects GDP to grow 5.1pc Post) standard of people in Kudat and next year: Chief Minister Datuk Seri elevating the district into a thriving Mohd Shafie Apdal said more job Govt determined to build new city. Assistant Minister of Trade and opportunities are expected to be airport in KK: The State Industry, (MTI) Ben Chong, said created in Sabah next year as the Government is determined to build a various measures have been planned State’s gross domestic product (GDP) new airport, despite the Federal to ensure this effort can be executed is expected to grow to 5.1 per cent. He Government having no such plan as effectively. Most recently, an said the oil and gas, tourism and the present KKIA is fast reaching its understanding has been achieved agriculture sectors would be among maximum passenger capacity of 9.5 between the Sabah and Federal the contributors to this growth, as well million. “It is our intention (to build a governments to find the best formula as several approaches to be new airport). We have to talk to them to help Small and Medium-Sized undertaken by the State Government and discuss about it at the end of this Enterprise (SME) entrepreneurs based like its effort to boost the downstream year,” Chief Minister Datuk Seri in Kudat. “I am very grateful to industry. “The State Government Mohd Shafie Apdal told reporters Minister of International Trade and hopes the global economy will when asked to comment on the Industry (MITI), Datuk Darell improve further this year. Next year, Federal Government plan to expand Leiking for sending his Special Sabah’s GDP is expected to grow to the International Airport. Kota Kinabalu Member of Officer (Christopher Masudal) to 5.1 per cent, which is also expected to Kudat to identify the weaknesses that create even more job opportunities. “It Parliament was have hindered the growth of SME is one of the new State Government’s reported saying that the existing agenda to reduce the unemployment KKIA has a maximum capacity of 21 entrepreneurs. (4 November, Daily million passengers per annum (mppa) Express) rate through various ways, including creation of more job opportunities. as according to the National Airport Sabah, Mindanao set to boost trade Unemployment is one of our main Master Plan 2008. (26 November, ties: The barter trade between Sabah challenges,”. (3 November, Daily Daily Express) and Mindanao will soon be

Express) strengthened. Mindanao Development RM4.14bil for Sabah’s growth: The Authority (MinDA) Chairman RM498m to develop agri State Government has proposed a RM4.14 billion budget for 2020 with Emmanuel F. Pinol said he was sector: Some RM498.131 million has expecting more engagements between been allocated to the Agriculture and a surplus of RM48.55 million – the sixth consecutive surplus budget for the two in the future. “We are going to Food Industry Ministry to develop the look at what Mindanao needs from agriculture sector next year. Of this, Sabah since 2015. Chief Minister RM345.562 million is for supply, Datuk Seri Mohd Shafie Apdal said Sabah and what Sabah needs from while RM155.569 million for the surplus budget shows that the State Mindanao,” he told reporters after development. Its Minister, Datuk Junz Government’s financial position paying a courtesy call on Chief Wong said the big allocation clearly remains healthy and stable, with Minister Datuk Seri Shafie Apdal at proves that the Warisan-led State estimated revenue collection at the latter’s office in Kota Kinabalu. Government is committed and RM4.19 billion. He said the RM4.14 “In January, we will be organising a attentive to the needs of agriculture billion supply expenditure estimates trade mission from Mindanao to development as food supplier for for 2020 represent a decrease of Sabah. I have already committed to Sabah apart from its contribution to RM15.81 million or 0.38 per cent the Chief Minister that Mindanao will the State’s economic growth. Apart compared to the original estimate in send a big delegation for the Sabah from that, he said Chief Minister 2019 of RM4.16 billion, adding the International Expo, expected to be Datuk Seri Mohd Shafie Apdal has amount is divided into three parts, held late next year,” he said. (23 also approved RM24 million for namely emolument expenditure, November, ) 1 – 30 November 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 3

SELECTED FACTS AND FIGURES FAKTA MUTAKHIR

Malaysia’s Economic Performance, Third Quarter 2019

(Source: 15 November, Department of Statistics Malaysia)

Malaysia’s International Investment Position, Third Quarter 2019

(Source: 15 November, Department of Statistics Malaysia)

Malaysia’s Economic Indicators: Leading, Coincident & Lagging Indexes, September 2019

(Source: 25 November, Department of Statistics Malaysia)

1 – 30 November 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 4

Malaysia’s Business Tendency Statistics, Fourth Quarter 2019

(Source: 28 November, Department of Statistics Malaysia)

Malaysia’s Consumer Price Index, October 2019

(Source: 20 November, Department of Statistics Malaysia)

1 – 30 November 2019 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 5