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Monthly News January 2021, Vol. 26 Issue 1

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Monthly News January 2021, Vol. 26 Issue 1 MONTHLY NEWS SCAN Tinjauan Berita Bulanan Compiled by IDS Vol. 26 Issue 1 IDS Online http://www.ids.org.my 1 – 31 January 2021 HIGHLIGHTS investment, pushing millions of year despite the ravages of the FOCUS Americans out of work and into pandemic that emerged in the central poverty. Though a recovery is under city of Wuhan, and will rebound a IMF lifts global growth forecast way, momentum slowed significantly sharp 8.4% this year thanks to • as the year wound down amid a Beijing’s aggressive COVID-19 for 2021, still sees ‘exceptional uncertainty’ resurgence in coronavirus infections response and global recovery, • EU needs ‘masterplan’ to grab and exhaustion of nearly US$3 trillion according to a Reuters poll of euro finance from London (S$4 trillion) in relief money from the economists. (28 January, Reuters) • Italy eyes Malaysia as gateway to government. The moderation is likely Asean via RCEP to persist at least through the first Economists cut euro zone growth • Malaysia’s GDP to grow by 5.0 pct three months of 2021. (29 January, forecast for 2021: ECB survey: The this year: UOB Malaysia The Straits Times) pandemic-stricken euro zone • ‘Sabah has best renewable energy economy is likely to rebound this year potential’ South Korea Q4 GDP beats but at a slower pace than expected • Biomass woe, so RM350m deal off expectations, poised for strong 2021 only a few months ago, before making rebound: South Korea’s economy up for the lost ground in 2022, a INTERNATIONAL grew at a faster-than-expected pace in European Central Bank survey ANTARABANGSA the fourth quarter as it ended the showed recently. Economists polled coronavirus-stricken year solidly in the ECB’s quarterly Survey of IMF lifts global growth forecast for poised for a recovery in 2021 thanks Professional Forecasters put real GDP 2021, still sees ‘exceptional to surging exports. Gross domestic growth in the euro zone at 4.4% this uncertainty’: The International product (GDP) grew a seasonally year, down from 5.3% in the previous Monetary Fund recently raised its adjusted 1.1 per cent in the December edition of the survey. (22 January, forecast for global economic growth quarter from the third quarter, the Reuters) Bank of Korea has said, faster than the in 2021 and said the coronavirus- median estimate of 0.7 per cent in a triggered downturn last year - the UK economy shrank by 2.6% in biggest peacetime contraction since Reuters poll and following a 2.1 per November as services suffered: The the Great Depression - would be cent expansion in the September nearly a full percentage point less quarter. (26 January, The Straits UK economy shrank by 2.6% in severe than expected. The global Times) November as England was placed in lender said multiple vaccine approvals lockdown for a second time, official and the start of vaccinations in some Singapore core inflation falls in figures show. The Office for National countries had boosted hopes of an December, with bigger drop in costs Statistics said it meant gross domestic eventual end to the pandemic that has of services: Core consumer prices fell product was 8.5% below its pre- now infected nearly 100 million in December, driven by a larger pandemic peak. November’s decline people and claimed the lives of more decline in services costs and lower came after six consecutive months of than 2.1 million globally. (26 January, food inflation, according to data out growth. Pubs and hairdressers were Reuters) by the Monetary Authority of badly hit as the service sector Singapore (MAS) and the Ministry of suffered, the ONS said, but some EU needs ‘masterplan’ to grab euro Trade and Industry (MTI). Core manufacturing and construction finance from London: The European inflation, which excludes activity improved. (15 January, BBC Union needs a “masterplan” to move accommodation and private road News) euro financial services from London transport costs, fell to minus 0.3 per to the bloc if it wants to expand the cent on a year-on-year basis last Covid contraction shrinks German single currency’s role in a global month, from minus 0.1 per cent in economy by 5%: The German November. (25 January, The Straits economy dominated by the U.S. economy shrank by 5% last year as the dollar, a senior EU lawmaker said. Times) Covid-19 pandemic took its toll, Markus Ferber, a senior member of according to official figures. The the European Parliament, said if the Exclusive: China likely to avoid setting 2021 GDP target over debt country’s national statistics office said EU wants to compete with the that most sectors of the economy were greenback, it needs a financial system concerns, sources say: China will likely avoid setting a 2021 growth “markedly affected” by the health to match it. (18 January, Reuters) emergency. It was a sharp decline, target, dropping the closely watched measure for a second straight year on although many economists had Covid-19 savages US economy, 2020 expected the contraction to be even performance worst in 74 years: The concerns that maintaining one could encourage provincial economies to worse. The contraction was also less US economy contracted at its deepest pronounced than the downturn in pace since World War II in 2020 as the ramp up debt, policy sources told Reuters. The world’s second-biggest 2009 caused by the global financial Covid-19 pandemic depressed crisis. (14 January, BBC News) consumer spending and business economy eked out 2.3% growth last 1 – 31 January 2021 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 plantation sector across its supply household maintenance (- 0.1%) NATIONAL chain be allowed to continue to which contributed 48.6% to overall NASIONAL operate in compliance with strict weight,” he said. (22 January, The SOPs, thereby sustaining its Star) Italy eyes Malaysia as gateway to contribution to the national Asean via RCEP: Italy remains economy,”. (29 January, Bernama) IPI seen to rebound in second committed to Malaysia as trading and quarter: The industrial production investment partner as it eyes Malaysia Malaysia and Australia enhance index (IPI), a measure of the rate of as the gateway to opportunities arising cooperation with comprehensive change in the production of industrial from the Regional Comprehensive strategic partnership: Prime commodities, will likely stage a Economic Partnership (RCEP). Italian Minister Tan Sri Muhyiddin Yassin rebound in the second quarter but at investments in Malaysia is present in and his Australian counterpart Scott the same time, there may be a various sectors such as oil and gas, John Morrison officiated the challenge for the economy to achieve petrochemicals, aerospace, and the Comprehensive Strategic Partnership the Budget 2021 growth target. The green and circular economy. Its (CSP) at their first meeting which was IPI contracted 2.2% in November ambassador to Malaysia Cristiano held via video conference. The Prime 2020 compared with the same month Maggipinto said greater collaboration Minister’s Office, in a statement, said in the previous year. It is expected to between the two countries would that at the meeting, the two prime come under pressure in the first further open Malaysia's private sector ministers approved the Action Plan quarter of 2021 before gaining to tap into Italy's advanced outlining strong initiatives under three momentum in the subsequent technological expertise and expedite key elements of the CSP. These quarters. The IPI measures the rate of the momentum of Malaysia's digital elements are Economic change in the production of industrial economy. He stressed that Italy had Wellbeing; Society and Technology; commodities in real terms over time pursued a strategy with the aim of and Regional Defence and Security for the manufacturing, mining and strengthening relations with Asean. Cooperation. (27 January, Bernama) electricity sectors. (22 January, The (27 January, Business Times) Star) Malaysia continue to be preferred Malaysia’s GDP to grow by 5.0 pct investment destination, says Producer prices fall at slower this year: UOB Malaysia: United Tengku Zafrul: Both international pace in Dec: The Producer Price Overseas Bank (Malaysia) Bhd and domestic business communities Index (PPI) for local production expects Malaysia's gross domestic have remained committed to Malaysia declined at a slower rate of 2.1% year- product (GDP) to grow by 5.0 per cent due to the country’s strengths and on-year (y-o-y) in December 2020 this year and a return to pre-pandemic potential, said Finance Minister Datuk compared with 3.0% in November levels will likely be in 2022. Seri Tengku Zafrul Abdul Aziz. 2020. The Statistics Department said Managing director and country head Despite the COVID-19 pandemic, he the continuous increase in the index of of Personal Financial Services, said many international companies agriculture, forestry & fishing Ronnie Lim said the revised target and multinational corporations have (23.5%) and the positive change in was made after the reinstatement of started establishing vendor manufacturing index (0.2%) the Movement Control Order (MCO) development programmes and supply reinforced the momentum of the 2.0 in all states except Sarawak to curb chain management initiatives, overall index. “The index of water the rise in Covid-19 cases. “Malaysia together with local companies and supply also increased 0.7%. However, may suffer an estimated economic suppliers. “Over the years, these local the mining index and electricity and loss of RM12 billion in 2021, suppliers became large manufacturers gas supply index still recorded a assuming the affected states will be in their own right, and quite a few are decrease of 40% and 1.7%, under strict MCO until the end of now listed in our stock exchange, respectively,” chief statistician Datuk February with essential business providing employment opportunities Seri Dr Mohd Uzir Mahidin said in a sectors operating with only up to 70 for our local talents,” the minister recent statement.
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