MONTHLY NEWS SCAN Tinjauan Berita Bulanan Compiled by IDS Vol. 18 Issue 6 IDS Online http://www.ids.org.my HIGHLIGHTS FOKUS • Euro crisis is over, says France’s Francois Hollande • US economy adds 175,000 jobs in May • Ekonomi negara dijangka terus baik • 15% sukuk growth seen • Sabah expects more investments • Najib lulus pinjaman RM235 juta bina loji rawatan air baru di Keningau INTERNATIONAL ANTARABANGSA Euro crisis is over, says France’s Francois Hollande: French President Francois Hollande has declared an end to the eurozone debt crisis, which has gripped the region for the past four years. “What you need to understand here in Japan is that the crisis in Europe is over,” he told Japanese business leaders on a trip to the Far East. Much of Europe is suffering from high unemployment and recession. As recently as April, there were fears about the future of the euro due to confusion over bailing out Cyprus. (9 June, BBC News) US economy adds 175,000 jobs in May: US employment rose by slightly more than economists had predicted during May. The latest US non-farm payrolls show that 175,000 jobs were created last month. But the unemployment rate increased slightly to 7.6%. Shares had mostly fallen in the run up to the figures, as investors worried that a strong report could lead the Fed to slow its bond-buying programme. That programme has fired up a rally in the US equities market this year. At close on Wall Street on Friday, the Dow Jones had climbed 207.50 points, or 1.38%, to 15248.12. The broader S&P 500 rose 20.82 points to 1643.38, while the Nasdaq added 45.17 points to 3469.22. (7 June, BBC News) World Bank cuts China growth forecast: The World Bank has cut its growth forecast for China amid warnings of slower but more stable 1 – 30 June 2013 global growth over the coming months. The bank now expects the China to grow 7.7% in 2013, down from its earlier projection of 8.4%. It also cut the forecast for global economic growth to 2.2% from 2.4%. The bank said growth in China, the world's second-largest economy, had slowed as policymakers look to rebalance its growth model. Over the past few decades China has relied heavily on exports and governmentled investment to boost its economy. (13 June, BBC News) U.K. unemployment declines as recovery gains momentum: economy: U.K. jobless claims fell more than economists forecast in May and a wider measure of unemployment also declined, providing further evidence that an economic recovery is under way. Jobless claims fell 8,600 from April to 1.51 million, leaving the rate at a 2 1/2-year low of 4.5 percent, the Office for National Statistics said today in London. Unemployment as measured by International Labour Organisation methods fell 5,000 in the three months through April to 2.51 million, a rate of 7.8 percent. Employment rose 24,000 to a record 29.8 million. (2 June, Bloomberg) Japan revises growth to 4.1% in first quarter in boost for Abe: Japan’s economy grew more than the government initially estimated in the first quarter, helping Prime Minister Shinzo Abe to sustain confidence in his campaign to defeat deflation. Gross domestic product expanded an annualized 4.1 percent, compared with a preliminary calculation of 3.5 percent, the Cabinet Office said in Tokyo today. The current-account surplus for April was 750 billion yen ($7.6 billion), the finance ministry said in a separate release. (10 June, Bloomberg) French jobless rate climbs to highest level in 15 years: French unemployment rose to 10.8% in the first quarter of the year - its highest level since 1998, official estimates have shown. The jobless rate grew from 10.5% in the last quarter of 2012, the official Insee statistics agency said. The French economy went into a recession after seeing GDP fall by 0.2% in the first quarter. President Francois Hollande has MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 – 30 June 2013 pledged to boost jobs and growth, but demand has been sapped by the eurozone crisis. (6 June, BBC News) German central bank cuts growth forecasts for 2013 and 2014: Germany’s central bank has cut its growth forecast for the country, but says the outlook for the economy has “become brighter”. The Bundesbank expects the economy to grow by 0.3% this year, down from an earlier forecast of 0.4%. In 2014, it expects 1.5% growth, down from a previous estimate of 1.9%. The Bundesbank suggested that the worst could be over for the eurozone, saying that in the euro area “the economy appears to be bottoming out”. “Nevertheless, the Bundesbank sees continuing structural problems as standing in the way of a rapid improvement,” it added. “This is likely to place a major strain on the German economy.” (7 June, BBC News) Australia’s economic growth rate misses forecasts: Australia’s growth was lower than forecast in the first three months of the year, as a dip in investment offset gains in exports and consumer spending. The economy expanded at an annual rate of 2.5% in the January to March quarter. Compared with the previous three months, growth was 0.6%. Most analysts had forecast an annual growth rate of closer to 2.7%. Some analysts said that the weaker than expected data was likely to increase calls for a cut in interest rates. (5 June, BBC News) Eurozone’s manufacturing downturn eases in May: The pace of decline in the eurozone’s manufacturing sector eased in May as new orders picked up, according to a closely-watched survey. Markit’s Purchasing Managers’ Index (PMI) for the eurozone manufacturing sector rose to 48.3 from April’s 46.7, marking its highest level in 15 months. A reading below 50 indicates shrinking activity. However, the sector has now contracted for 22 months in a row, according to the Markit survey. In Germany, Europe’s largest economy, the PMI figure rose to 49.4, just below the 50 threshold and marking its highest level for three months. (3 June, BBC News) 1 NATIONAL NASIONAL 15% sukuk growth seen: The Islamic finance industry will grow 15% annually in the next decade, after syariah- compliant banking assets surged in Asia in the past year, according to a global standardssetting body. Holdings in Malaysia rose 27% to RM344bil in the 12 months to April 30, according to the central bank. In Indonesia, they climbed 43% to 144.3 trillion rupiah (US$15.2bil), official data show. Rising consumer demand for banking services was helping drive the market, Jaseem Ahmed, secretary general of the Kuala Lumpur-based Islamic Financial Services Board (IFSB), said in a June 21 interview. (29 June, The Star) Aktifkan peranan sektor ketiga: Kerajaan perlu memberi galakan kepada sektor ketiga yang diterajui oleh badan-badan bukan kerajaan (NGO) untuk bersama-sama membangunkan ekonomi negara. Pengerusi Majlis Amanah Rakyat (Mara), Datuk Seri Idris Jusoh berkata, langkah itu perlu kerana pembabitan sektor ketiga mampu mengurangkan bebanan dan tanggungjawab yang dipikul oleh kerajaan dalam membangunkan negara. Mengambil Turki sebagai contoh, Idris berkata, NGO-NGO di negara itu telah membuktikan bahawa sektor ketiga juga berupaya mengerak dan memakmurkan negara itu. (11 Jun, Utusan Malaysia) Manufacturing boosts April industrial output 3.2% on-year: Malaysia’s industrial production index (IPI) rose 3.2% in April from a year ago, boosted by the manufacturing and electricity sectors. The Statistics Department said on Monday the manufacturing and electricity indices rose 5.7% and 3.4% respectively. However, mining declined 3.6%. On the manufacturing sector, it said the increases were due to petroleum, chemical, rubber and plastic products (10.4%); transport equipment and other manufacturers (12.2%); and non-metallic mineral products, basic metal and fabricated (11 June, The Star) 1 – 30 June 2013 Export of medical devices projected to hit RM12.5bil: Malaysia’s export of medical devices is expected to hit RM12.5bil this year compared with RM11.7bil in 2011. The Association of Malaysian Medical Industries (AMMI) outgoing chairman Daniel Lim said of the RM12.5bil, about RM4.5bil worth of devices was expected to be exported by AMMI members. Speaking at a briefing prior to AMMI AGM, Lim said that AMMI’s 43 members produced RM4.9bil worth medical device products last year, of which 82% or RM4.3bil was exported and the remainder sold in Malaysia (23 June, The Star) May inflation rate up 1.7% onyear: Malaysia’s inflation rate in May, measured by the consumer price index, rose 1.7% from a year ago, mainly due to food and nonalcoholic beverages and non-food. The Statistics Department said on Friday the index for food and nonalcoholic beverages and non-food increased 3.0% and 1.2% respectively from a year ago. It said the CPI, when compared with April, increased by 0.2%. For the period January to May, the inflation rate increased by 2.1% to 104.5 compared with 102.4 in the previous corresponding period (22 June, The Star) Subsidi jejaskan industri gas: Harga gas perlu ditentukan oleh pasaran kerana pemberian subsidi secara berterusan bagi bahan bakar itu telah menjejaskan industri tersebut. Presiden dan Ketua Pegawai Eksekutif Petroliam Nasional Bhd., Tan Sri Shamsul Azhar Abbas berkata, peserta industri kini sudah mempunyai fleksibiliti untuk menguruskan risiko, jaminan keselamatan dan memenuhi permintaan berdasarkan harga yang ditentukan pasaran. Menurut beliau, pemberian subsidi telah menyebabkan kepincangan ketelusan, mengurangkan persaingan dan menghalang kemasukan pelaburan baru. (5 Jun, Utusan Malaysia) Gabenor Bank Negara Malaysia (BNM), Tan Sri Zeti Akhtar Aziz berkata, Keluaran Dalam Negara Kasar (KDNK) akan kekal memandangkan ekonomi domestik kukuh, permintaan perbelanjaan tinggi, aktiviti pelaburan dan pelaburan swasta yang memberangsangkan. “Kita masih yakin pertumbuhan ekonomi akan berada sekitar empat hingga lima peratus. (8 Jun, Utusan Malaysia) Harga minyak sawit dijangka terendah 20 bulan: Harga minyak sawit mentah dijangka mengalami penurunan sebanyak sembilan peratus kepada paras terendah dalam tempoh 20 bulan ekoran kelembapan di China dan Eropah yang mengekang permintaan. Pengarah di Godrej International Ltd., Dorab Mistry berkata, kontrak hadapan bakal menjunam serendah RM2,700 berbanding RM2,968 setan metrik ekoran tiadanya rangsangan baru Amerika Syarikat (AS) untuk menghidupkan kembali pertumbuhan menolak unjuran asal harga komoditi tersebut bakal mencecah RM4,000 setan metrik. (9 Jun, Utusan Malaysia) Kepentingan negara jadi keutamaan dalam TPP: Kepentingan negara menjadi perkara paling utama yang menjadi pegangan Malaysia semasa mengadakan rundingan Perkongsian Trans-Pasifik (TPP). Menurut Menteri Perdagangan Antarabangsa dan Industri, Datuk Seri Mustapa Mohamed, perkara ini telah diamalkan dalam setiap rundingan yang membabitkan perdagangan dengan negara-negara luar termasuklah semasa rundingan Perjanjian Perdagangan Bebas (FTA) sebelum ini. Katanya, dalam rundingan TPP kali ini, perkara yang membabitkan perolehan kerajaan turut dibincangkan kerana negaranegara menganggotai TPP menunjukkan minat terhadap pasaran Malaysia. (21 Jun, Utusan Malaysia) Eksport jatuh tidak jejas KDNK: Pertumbuhan ekonomi negara dijangka kekal sekitar empat hingga lima peratus pada tahun ini, walaupun eksport mengalami penyusutan berbanding tahun lalu. MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 2 LOCAL TEMPATAN Sabah expects more investments: Sabah Chief Minister Datuk Seri Musa Aman expects more investors to come to the state this year and this will help boost its economy. He said this confidence was based on the good investment performance in the first quarter of the year, which saw Sabah getting the highest private investments of RM10bil. The value of investments in various sectors for the whole of last year reached RM13.7bil. “We hope that more investors will come to Sabah and we now lead the other states in being able to attract investments,” he said on Saturday. (25 June, The Star) Najib lulus pinjaman RM235 juta bina loji rawatan air baru di Keningau: Datuk Seri Najib Tun Razak hari ini mengumumkan bahawa kerajaan Persekutuan meluluskan pinjaman berjumlah RM235 juta kepada kerajaan negeri Sabah untuk membina sebuah loji rawatan air baharu untuk manfaat kira-kira 200,000 penduduk Keningau. Perdana Menteri berkata pada masa ini segala dokumen mengenainya sedang disiapkan dan projek berkenaan akan dilaksanakan sebaik sahaja proses penyediaan dokumen berkenaan selesai. (17 Jun, New Sabah Times) RM6.3 juta peruntukan pelancongan Sandakan: Kira-kira RM6.3 juta diperuntukkan untuk membangunkan sektor pelancongan di sini yang membabitkan sebuah Pusat Konservasi Beruang Matahari Borneo (BSBCC) termasuk Orang Utan dan juga Hutan Simpan. Bercakap kepada pemberita petang kelmarin, Menteri Pelancongan Malaysia, Datuk Seri Dr. Ng Yen Yen, memberitahu sebanyak RM1.6 juta diperuntukkan untuk membangunkan BSBCC di Pusat Pemuliharaan Orang Utan Sepilok itu termasuklah menjalankan kajian pendidikan dan pameran untuk menarik lebih ramai pelancong berkunjung ke pusat yang kini menjadi daya tarikan sebagai pusat sedunia ini. (13 Jun, New Sabah Times) Lok Kawi – Sindumin road to be upgraded: The government will 1 – 30 June 2013 upgrade the Lok Kawi-Sindumin road to reduce traffic congestion and provide better facility to road users. Minister of Foreign Affairs, Datuk Seri Anifah Aman said the government was very concerned about the needs of the people and would try to provide them the best infrastructure facilities. “Tan Sri Bernard Dompok and I have requested the Prime Minister, Datuk Seri Najib Tun Razak for the Lok Kawi-Sindumin road to be upgraded. (11 June, New Sabah Times) 1,875 keluarga miskin terima bantuan 1Azam: Seramai 1,875 keluarga miskin di Sabah yang berdaftar dengan e-Kasih dikenal pasti sebagai penerima bantuan di bawah program Akhiri Zaman Miskin atau Teman 1Azam. Pembantu Menteri Pembangunan Sumber dan Teknologi Maklumat negeri, Datuk Jainab Ahmad berkata, setiap daerah akan menerima 75 bantuan peralatan untuk memulakan perniagaan. “Ia merupakan satu pendekatan yang mengoptimumkan potensi individu berdasarkan bidang kemahiran mereka supaya tidak terus bergantung kepada bantuan kerajaan,” katanya selepas majlis penyerahan barangan bantuan program Teman 1Azam di Penampang, dekat Kota Kinabalu semalam. (29 Jun, Utusan Malaysia) Projek naiktaraf jalan raya di tiga kampung disambut baik rakyat: Projek naik taraf jalan di tiga kampung dalam kawasan Dewan Undangan Negeri (DUN) Sook kawasan Parlimen Pensiangan yang telah lama dinantikan penduduk kini bakal dilaksana pada bila-bila masa. Melalui lawatan kerja yang dilakukan oleh Menteri Kerja Raya Malaysia, Datuk Shaziman Abu Mansoor, barubaru ini telah mengumumkan peruntukan Kerajaan Persekutuan sebanyak RM11 juta bagi tujuan naik taraf jalan yang akan memberi manfaat kepada 3,000 penduduk di sekitarnya disambut dengan penuh kegembiraan. (29 Jun, New Sabah Times) K’jaan lulus RM54j atasi masalah air di Menumbok: Tidak ada masalah yang tidak boleh diselesaikan justeru kerajaan akan sentiasa bersedia mendengar setiap permasalahan yang disuarakan oleh rakyat. “Sebagai contoh banyak masalah-masalah utama yang berkaitan dengan keperluan pembangunan untuk rakyat dilaksanakan untuk diselesaikan seperti projek RM54 juta untuk kerjakerja membaik pulih bekalan air ke Menumbok,” kata Setiausaha Politik kepada Menteri Pembangunan Infrastruktur Isnin Haji Aliasnih. Beliau berkata kerja-kerja mengganti paip utama dari Loji Limbawang ke Kayul sedang dilaksanakan oleh kontraktor. Isnin yang juga Timbalan Ketua Umno Bahagian Beaufort berkata demikian semasa merasmikan mesyuarat berkelompok 7 cawangan Umno KDM Kebulu pada Isnin. (13 June, New Sabah Times) RM14.5 juta untuk golongan nelayan: Sebanyak RM14.5 juta disalurkan oleh kerajaan kepada golongan nelayan di Sabah menerusi Program Pembaikan Rumah Nelayan, Kementerian Pertanian dan Industri Asas Tani, sehingga setakat Jun 2012. Kelmarin, seramai 120 nelayan di daerah ini turut menerima wang bantuan mereka iaitu sebanyak RM12,000 seorang, yang melibatkan peruntukan bernilai RM 1.4 juta. Wang bantuan berkenaan disampaikan oleh Ahli Parlimen Semporna merangkap Menteri Kemajuan Luar Bandar dan Wilayah, Datuk Seri Mohd Shafie Apdal dalam satu majlis di Semporna. (6 Jun, New Sabah Times) RM11 juta naik taraf jalan di Pensiangan: Lebih 3,000 penduduk Kampung Mailo, Sodomon dan Biah Skim di sini mampu menarik nafas lega apabila kerajaan mengotakan janji membina kemudahan jalan raya yang lebih baik bagi menghubungkan kampung mereka ke jalan utama Keningau-Nabawan. Kementerian Kerja Raya pada Mac lalu menerima permohonan daripada Ahli Parlimen Pensiangan, Tan Sri Joseph Kurup untuk menaik taraf kedua-dua batang Jalan Mailo Sodomon sepanjang 1.85 kilometer dan Jalan Biah Skim sepanjang 5.23 kilometer. Menteri Kerja Raya, Datuk Seri Shaziman Abu Mansor berkata, susulan daripada itu pihak kementerian telah bersetuju meluluskan peruntukan sebanyak RM11 juta, iaitu RM5 juta untuk Jalan Mailo Sodomon dan Jalan Biah Skim; RM3 juta untuk Jalan Lingkaran Biah serta RM2 juta untuk jalan kecil. (26 Jun, Utusan Malaysia) MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 3 SELECTED FACTS AND FIGURES FAKTA MUTAKHIR (Source: 11 June, The Department of Statistics Malaysia) PRODUCT PRICE INDEX, MALAYSIA (2005=100) Index Percentage change PPI Domestic Economy Local Production Import May 2012 Apr 2012 May 2013 129.5 137.6 113.4 124.5 130.5 112.6 123.5 129.3 111.9 Apr 2012May 2013 -0.8 -0.9 -0.6 May 2012May 2013 -4.6 -6.0 -1.4 (Source: 28 June, Department of Statistics Malaysia) GROSS FIXED CAPITAL FORMATION (GFCF) - TYPE OF ASSETS AT CONSTANT 2005 PRICES, 2012 Other assets, 1.6% Biological cultivated resources, 1.5% Transport equipment, 13.5% Structure, 46.9% Intellectual property products, 9.4% ICT equipment & other machinery & equipment 27.1% (Source: 25 June, The Department of Statistics Malaysia) INTERNATIONAL MERCHANDISE IMPORTS, AUSTRALIA, MAY 2013 1 – 30 June 2013 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 4 March 2013 April 2013 May 2013 $m $m $m Food and live animals 800 737 830 Beverages and tobacco 164 168 164 Crude materials, inedible, except fuels 152 208 241 3 318 3 357 3 646 32 47 37 Chemicals and related products, n.e.s. 2 018 1 922 2 132 Manufactured goods classified chiefly by material 2 019 1 929 2 277 Machinery and transport equipment 6 985 7 108 7 575 Miscellaneous manufactured articles 2 020 2 222 2 447 550 926 758 18 059 18 623 20 106 Mineral fuels, lubricants and related materials Animal and vegetable oils, fats and waxes Commodities and transactions not classified elsewhere in the SITC TOTAL (Source: 19 June, Australian Bureau of Statistics) THE CONSUMER PRICE INDEX FOR JAPAN IN MAY 2013 WAS 99.8(2010=100) Index Monthly Change(%) Annual Change(%) All items 99.8 0.1 -0.3 (All items, less imputed rent) 99.9 0.2 -0.3 Food 98.7 -0.1 -1.5 Housing 99.1 -0.1 -0.4 Fuel, light and water charges 111.7 2.2 4.6 Furniture and household utensils 90.0 -0.5 -2.5 Clothes and footwear 101.3 -0.1 0.1 Medical care 98.0 0.1 -0.8 Transportation and communication 102.8 0.0 0.5 Education 98.8 0.0 0.5 Culture and recreation 93.7 0.3 -1.6 Miscellaneous 104.3 0.0 0.6 All items, less fresh food 100.0 0.2 0.0 All items, less food (less alcoholic beverages) and energy 98.5 0.1 -0.4 Goods 99.4 0.2 -0.6 Services 100.1 0.0 0.0 (10 Major Group Index) (Goods and Service Group Index) (Source: 28 June, Japan Statistic Bureau) 1 – 30 June 2013 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 5