IMPLEMENTATION PLAN OF IMTS 2010, MSITS 2010 & BPM6 Mr. Zainuddin Ahmad Mr. Zanol Jamil MALAYSIA Page 1 Outline Page 2 1. Overview of DOSM 2. Implementation Plan: 2.1 IMTS 2010 2.2 MSITS & BPM6 3. Conclusion DOSM Organisation Chart Page 3 Malaysia Trade Performance Cumulative (USD Billion) Year-on-Year (%) 2009 2010 Jan-Nov Jan-Nov Exports 154.3 180.3 16.9 Imports 121.5 149.1 22.7 Total Trade 275.8 329.4 19.4 Page 4 Malaysia World Ranking Ranking (from 198 countries) 2008 2009 Total Trade 27 24 Export 21 21 Import 28 27 Page 5 Malaysia Exports by Major Products (Jan-Nov 2010) Value (USD) Contribution (%) E&E Products 70.8 billion 39.3 Palm Oil & Palm-Based Products 17.5 billion 9.7 LNG 10.8 billion 6.0 Crude Petroleum 8.8 billion 4.9 Petroleum Products 7.0 billion 3.9 Product Page 6 Malaysia Exports by Top 5 Countries (Jan-Nov 2010) Value (USD) Conribution (%) Republic of Singapore 24.0 billion 13.3 People’s Republic of China 22.8 billion 12.7 European Union (EU) 19.4 billion 10.8 Japan 18.6 billion 10.3 United States of America 17.3 billion 9.6 Country Page 7 Percentage share of GDP 2008 (%) 2009 (%) Export 99.9 89.6 Import 86.6 75.6 Total Trade 186.5 165.2 Page 8 Implementation of IMTS 2010 Page 9 Awareness Session 1. IMTS 2010 Awareness Session (Internal) - was held 6 August 2010 2. IMTS 2010 Awareness Session (External) - was held 1 December 2010 - attended by Economic Planning Unit, Ministry of International Trade and Industry, Royal Malaysian Custom Department, Ministry of Finance etc. Page 10 Awareness Session 3. Training on IMTS 2010 - plan to be held on June 2011 - will involve officers from External Trade Statistics Division and stakeholders Page 11 Implementation of New Recommendations of IMTS 2010 Page 12 IMTS 2010 Implementation Plan Chapter I: Coverage and Time of Recording New encouragement 1. Goods for processing as well as goods resulting from such processing where no change of ownership takes place: Include and explicitly identify (preferably by special coding) in your trade statistics (para. 1.21) DOSM has formed a committee to study on how to capture this information. Chapter II: Trade System New recommendation 2. Reimports and re-exports: Include and identify (code) separately for analytical purposes (paras. 2.16 and 2.18) Page 13 Malaysia has implemented this recommendation. IMTS 2010 Chapter III: Commodity Classifications New recommendation 3. Standard International Trade Classification (SITC): Use SITC for the dissemination and the analysis of trade statistics according to user requirements (para. 3.19) Page 14 Implementation Plan Malaysia has implemented this recommendation. IMTS 2010 Implementation Plan Chapter VI: Partner Country New recommendation 4. Calculation of trade balances: Use Malaysia has implemented this imports by country of origin and exports recommendation. by country of last known destination (para. 6.27) Chapter VII: Mode Of Transport New recommendation 5. Compilation of mode of transport: Compile and disseminate international merchandise trade statistics by mode of transport at the most detailed commodity level (as a new data dimension) (para. 7.1) Page 15 Currently, Malaysia’s mode of transport data are derived from entry/exit point. In future, Malaysia will extract this information directly from the source documents. Plan to be implemented in 2014. IMTS 2010 Implementation Plan Chapter VII: Mode Of Transport New recommendation 6. Recording of mode of transport: Record Malaysia has implemented this as mode of transport the means of recommendation. transport used when goods enter or leave the economic territory (para. 7.1) New recommendation 7. Classification: Clearly indicate the contents of the categories used; countries are encouraged to follow the suggested classification for the compilation and reporting of trade statistics by mode of transport (paras. 7.2-7.3) Page 16 Mode of transport that are relevant to Malaysia: - sea, railway, road, air, pipeline, cable (detailed product are available). And for postal, homogenous code assigned. IMTS 2010 Chapter VIII: Data Compilation Strategies New recommendation 8. Use of customs records: Use customs records as the main and normally preferred data source (para. 8.2) New recommendation 9. Institutional arrangements: Consider the establishment of the institutional arrangements necessary to ensure the compilation of high quality trade statistics as a matter of high priority and periodically review their effectiveness (para. 8.17) Page 17 Implementation Plan 99% transactions from customs declarations.The balance (1%) are from Free Zone Area, Duty Free Shop and Power Producer Company. Malaysia has established good networking/ relationship with Royal Malaysian Customs. Meeting • has regular technical meeting • top management meeting IMTS 2010 Implementation Plan Chapter IX: Data Quality And Metadata New recommendation 10. Metadata categories: Cover at least the categories of metadata provided in para. 9.23 (para. 9.23) New recommendation 11. Metadata as high priority: View the development of metadata as a high priority and consider their dissemination an integral part of the dissemination of international merchandise trade statistics (para. 9.25) Page 18 Presently, Malaysia follows IMF recommendation. DOSM follows OECD and IMF guidelines (since 2005). IMTS 2010 Implementation Plan Chapter X: Dissemination New recommendation 12. Data dissemination: Treat all users equally and disseminate data without preference to any national or international user group. Choose the dissemination format that best suits the users’ needs (para. 10.13) DOSM releases data through: 1) website i) Malaysia External Trade Statistics System (3 & 4 digits SITC/HS), ii) softcopy publication (pdf format), iii) highlights and key statistics; 2) hardcopy publication. Page 19 Implementation Plan of MSITS 2010 and BPM6 Page 20 Malaysia in Brief CONTRIBUTION OF SERVICES SECTOR: i. GDP 2009 = 57.4% ii. Tenth Malaysia Plan (2011-2015) = Projected 61.1% ITS 2009 • Exports = RM101.3 billion • Imports = RM 96.6 billion Page 21 Data sources • International Transaction Reporting System (ITRS)-Central Bank • Enterprise surveys - Transport • Surveys of travellers and household expenditure surveys • Official sources and government transactions Page 22 DOSM Plans Towards Implementation MSITS 2010 and BPM6 Developmental works: 1. Construct Frame on ITS 2. Construct Frame on Specific Services: Manufacturing Services and Maintenance & Repair 3. Inward FATS 4. Outward FATS Page 23 Developmental work 1: Construct Frame on ITS • Collaborate with other relevant agencies • • • Page 24 Malaysia Investment Development Authority (MIDA) Central Bank (BNM) Companies Commission of Malaysia Developmental work 2: Construct frame on Manufacturing Services and Maintenance & Repair Page 25 Developmental work 3: Inward FATS Data Sources Tap variables for construct Inward FATS from Economic Census 2011 In the Census, incorporate question on: • Percentage of foreign equity ownership (establishments report more than 50% are classified as Inward FATS) • Country of Ultimate Controlling Institutional Unit (UCI) Page 26 Developmental work 3: Inward FATS (con’t) Page 27 Developmental work 3: Inward FATS (con’t) Page 28 Developmental work 4: Outward FATS Survey of Outward Foreign Affiliate (SOFA) Annual survey Commenced in August 2010 - collect data for reference year 2008 & 2009 Collect statistics on economic activities of the affiliates abroad The information is collected via their parent companies in Malaysia Canvassing about 488 companies The frame is sourced from Joint Survey of International Investment Position (IIP) Page 29 Developmental work 4: Outward FATS (con’t) Outward FATS Variables Collected Page 30 1 Sales/Turnover/Output 2 Employment 3 Depreciation of fixed assets 4 Export of Goods and Services 5 Import of Goods and services 6 Number of Enterprises 7 Total Assets/Total Liabilities 8 Compensation of employee (COE) 9 Taxes on income 10 Research and Development expenditures 11 Purchases of goods and services Conclusion IMTS 2010: some new recommendations have been implemented. Malaysia will prioritize other recommendations. DOSM plans to apply BPM6 at the end of year 2014. Implementation of BPM6 need further detail study. Page 31 Thank you Page 32