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 Malaysia 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 Sabah 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, Bernama) 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, The Star) 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.