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 Malaysia 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 • Sabah 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 Mahathir Mohamad 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 Pakatan Harapan 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, The Star) short term,”. (26 November, things than any other government has Bernama) 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.