MONTHLY NEWS SCAN Tinjauan Berita Bulanan Compiled by IDS Vol. 25 Issue 7 IDS Online http://www.ids.org.my 1 – 31 July 2020 HIGHLIGHTS 666.55 billion yuan ($95.27 billion) - 1998 and steeper than a 2.3 per cent FOCUS marking the quickest profit growth fall seen in a Reuters poll. (23 July, since March 2019. May marked the The Straits Times) sector’s first monthly growth in G20 officials pledge to keep • earnings since November, before the Coronavirus: UK economy ‘might cooperating to bolster global onset of the coronavirus pandemic. not recover until 2024’: The UK economy (27 July, Reuters) economy could take until 2024 to • EU sees deeper recession, less steep rebound for euro zone return to the size it was before the • Malaysia leads APEC consensus to U.S. economic growth revised coronavirus lockdown, according to ease movement of essential goods slightly down in 2019: U.S. analysis from the EY Item Club. The • Malaysia’s current account to economic growth slowed a bit more forecasters, who use a similar rebound in 2021 than previously estimated in 2019 as economic model to the Treasury, • Big demand for Sabah-made the sugar high from the Trump suggest unemployment will rise to 9% cooking oil – CM administration’s $1.5 trillion in tax from 3.9%. They also estimate the • IDS, ASB to set up training centre cuts faded over the final year of a economy will shrink by 11.5% this for oil & gas industry record-long expansion that came to an year, worse than the 8% they abrupt end in February in the face of predicted only a month ago. (27 July, INTERNATIONAL the global coronavirus pandemic. The BBC News) ANTARABANGSA Commerce Department said recently gross domestic product increased France sees record 13.8 per cent G20 officials pledge to keep 2.2% last year, revised down from the GDP plunge in second quarter: cooperating to bolster global previously estimated 2.3% and also France’s economy contracted by a economy: Finance officials from the reflective of consumer spending that record 13.8 per cent in the second Group of 20 major economies vowed had begun to show signs of fatigue quarter under the impact of to continue using “all available policy heading into 2020. The 2019 growth coronavirus lockdowns, the national tools” to fight the coronavirus rate was the slowest expansion since statistics institute INSEE.The pandemic and bolster the global 2016. (30 July, Reuters) seasonally-adjusted quarter-on- economy, warning that the outlook quarter drop in gross domestic product remains highly uncertain. G20 finance Japan’s sinking exports raise risks (GDP) was better than forecast but ministers and central bankers, in a of prolonged economic downturn at worse than the performance of most of communique issued after a virtual home and overseas: Japan’s exports its eurozone peers. “GDP’s negative meeting recently, said the global plunged at a double-digit pace for the developments in first half of 2020 is economy would recover as economies fourth month in a row in June, backing linked to the shut-down of ‘non- signs the coronavirus crisis has gradually reopen, but said further essential’ activities in the context of actions were needed to ensure growth. knocked the economy into its worst postwar recession and raising the the implementation of the lockdown (19 July, Reuters) between mid-March and the spectre of a longer and more painful global downturn. U.S.-bound beginning of May,” INSEE said in a EU sees deeper recession, less steep statement. (31 July, The Straits rebound for euro zone: The euro Japanese shipments nearly halved again due to plummeting demand for Times) zone economy will drop deeper into recession this year and rebound less cars and autoparts, while exports to China remained weak, pointing to the Australian employment suffers steeply in 2021 than previously setback from second coronavirus thought, the European Commission absence of a strong growth engine for wave: Australian employment fell 1.1 forecast, with France, Italy and Spain the world economy. (20 July, Reuters) struggling the most due to the per cent between mid-June and mid- COVID-19 pandemic. (7 July, South Korea enters recession as July, weekly data showed, with the Reuters) exports plunge by most since 1963: biggest loss coming from the South Korea plunged into recession in southeastern state of Victoria, which China’s industrial profit growth the second quarter in its worst is grappling with a fresh wave of quickens, signals firming economic economic decline in more than two coronavirus infections. The recovery: Profits at China’s industrial decades as the coronavirus pandemic Australian Bureau of Statistics (ABS) firms rose for a second straight month battered exports and social distancing said total payroll jobs decreased 2.2 and at the fastest pace in over a year, curbs paralysed factories. Asia’s per cent in Victoria alone as additional adding to signs the country’s fourth-largest economy shrank by a Covid-19 restrictions were re- economic recovery from the seasonally adjusted 3.3 per cent in the introduced following an “alarming” coronavirus crisis is gaining June quarter from three months rise in cases. The state reported 384 momentum. The statistics bureau said earlier, the Bank of Korea said new Covid-19 cases on July 28, on top that profits at China’s industrial firms recently. That is the sharpest of a record 532 the previous day. (28 rose 11.5% year-on-year in June to contraction since the first quarter of July, The Straits Times) 1 – 31 July 2020 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 Malaysia Plan, has established a the latest technology in the NATIONAL Facilitation Fund of RM20 billion to automotive supply chain. (22 July, NASIONAL catalyse private investment in Business Times) nationally strategic areas,” he said in Malaysia leads APEC consensus to opening speech at the Invest Malaysia PPI for local production slips 4.0 ease movement of essential goods: 2020. (20 July, Business Times) pct in June: Malaysia’s Producer Asia-Pacific Economic Cooperation Price Index (PPI) for local production (APEC) economies under the Headline inflation falls in June over slipped 4.0 per cent in June 2020 to leadership of Malaysia has reached a domestic fuel prices: The headline 100.30 compared with 104.5 in the consensus to ease the movement of inflation for June 2020 decreased to - same month last year. The essential goods, according to the 1.9 per cent in June compared with - Department of Statistics Malaysia Ministry of International Trade and 2.9 per cent in May, driven largely by (DOSM) said out of 1,063 items Industry (MITI). It said APEC the higher domestic retail fuel prices covered in the PPI in June 2020, 53.7 Ministers Responsible for Trade during the month. Bank Negara per cent showed a decline, 39.5 per (MRT), in a virtual meeting chaired Malaysia (BNM) in its monthly cent recorded price increase, while 6.8 by the Senior Minister and Minister of highlights said that the risk of per cent were unchanged. Chief International Trade and Industry deflation remains contained as statistician Datuk Seri Dr Mohd Uzir Datuk Seri Mohamed Azmin Ali, underlying inflation, as measured by Mahidin said the mining index issued a statement that clearly outlines core inflation, increased slightly to 1.2 registered the highest rate of decline at APEC commitment to support the per cent. “The higher share of 42.5 per cent, followed by work of the World Trade Organisation consumer price index items recorded manufacturing (-1.2 per cent), water (WTO) and advancing the efforts in month-on-month price increases supply (-1.2 per cent) and electricity trade facilitation initiatives as well as (June: 44 per cent; May: 36 per cent), & gas supply (-0.6 per cent). (29 July, strengthens the resilience of suggesting a further normalisation of Bernama) supply chains in APEC.(27 July, price pressures,” it said. (30 July, Bernama) Bernama) Manufactured, agriculture goods record double-digit growth in June: Malaysia’s current account to Exports grows 8.8pct in June, trade rebound in 2021: Malaysia’s current expands 2.2pct: Malaysia’s exports Exports of manufactured goods in account surplus, which has backed the rebounded in June to post its highest June 2020, which made up 87.5 per economy against its long-running monthly trade surplus ever recorded. cent of total exports, picked up by fiscal deficit, should recover to up to June exports grew 8.8 per cent year- 13.7 per cent year-on-year (y-o-y) to three per cent next year, said S&P on-year (y-o-y) to RM82.87 billion RM72.48 billion, according to the Global Ratings. But before that, the while total trade expanded by 2.2 per Ministry of International Trade and surplus is expected to shrink to cent to RM144.84 billion, Industry (MITI). It said the expansion between 1.0 per cent and 2.0 per cent International Trade and Industry was due mainly to higher demand of the country's gross domestic Ministry said. Imports dropped 5.6 per for electrical and electronics products, product (GDP) this year. This would cent to RM61.98 billion, resulting in a rubber products, other manufactures be due to lower prices of oil and gas trade surplus of RM20.89 billion in particularly solid-state storage and palm oil, said S&P Global June, a growth of 98.7 per cent y-o-y. devices, optical and scientific sovereign and international public The ministry said trade increases were equipment, machinery, equipment and finance ratings director and lead recorded primarily with China, the parts, wood products, iron and steel analyst for Asia Pacific Andrew US, Hong Kong and Vietnam.