Dato’ Sri Mustapa Mohamed
Minister of International Trade and Industry
on the 2016 Budget
MITI Weekly Bulletin / www.miti.gov.my
incentive for ICAB is intended to strengthen
the ecosystem of testing, inspection, validation
and certification processes led by SIRIM in
which the proposed activities are critical to the
industry but may not available in Malaysia.
At present, it is estimated that there are
more than 600 laboratory tests in Malaysia, in
which more than 80% of the labs are small and
unable to provide testing services to proposed
sectors.
The
incentive
will
complement
Government’s effort to transform manufacturing
sector towards becoming more high-value,
diverse and complex product.
The testing and certification processes
include critical sectors that are major contributors
to the total exports. This includes Machinery &
Equipment, Electrical & Electronics, Chemical,
Food, Aerospace, and Medical Devices. Total
export of these industries increased from
RM323.5 billion in 2010 to RM354.1 billion in
2014. As of August 2015, total exports of these
sectors have reached RM247.7 billion.
These sectors were also identified
as part of the catalyst sectors to realise
the objectives of the 11th Malaysia Plan in
attracting private investment of RM291 billion
over the implementation period of 2016-2020.
“DRIVING Transformation, POWERING Growth”
YAB Perdana Menteri presented a
prudent, balanced, ‘mesra rakyat’ budget
which focuses on addressing the people's
concerns such as rising cost of living, enhanced
competitiveness of SMEs and nurturing the wellbeing of the Rakyat.
Malaysia’s
economic
fundamentals
remain strong. Despite uncertainties in the global
economy, Malaysia’s economic performance
registered 5.3 % growth in the first half of 2015.
It is estimated that national growth will expand
between 4.0 % to 5.0 % in 2016.
Following the momentum of the
increasing inflow of foreign direct investment,
the 2016 Budget continues to introduce new
measures to ensure Malaysia remains attractive
to investors. A total of RM 1.914 billion has been
allocated to MITI to implement the programmes
under this Budget. Of this, RM 539.2 million for
operating expenditure and RM1.375 billion for
development expenditure.
Among incentives to promote private
investments include:
Incentive for Independent Conformity
Assessment Bodies (ICAB)
The Government will make available
incentives to foster establishment of independent
conformity assessment services in Malaysia.The
Rubber City
A discussion paper on Kedah Rubber City
will be presented in Mesyuarat Jawatankuasa
Bersama Penyelarasan Industri (JBI) Kedah on
25 October 2015. The paper will be presented by
UPEN Kedah.
The development of Rubber City is
expected to provide a significant economic and
social impact to the Northern Corridor including the
the Southern Territory of Thailand. It is expected
that the gross development value of the city will
amount to RM11.2 billion and will provide 20,000
jobs opportunities.Components of the Rubber City
include:
a)
R&D;
b)
Raw materials;
c)
Investors Support;
d)
Human Capital;
e)
Incentive; and
MITI Weekly Bulletin / www.miti.gov.my
f)
Marketing.
NCIA and the Kedah State Government
are in the midst of appointing a land surveyor to
undertake land surveying tasks for the purpose
of land acquisition.
Under the 2016 Budget announcement, RM320
million has been allocated for the development
of Rubber City.
Aerospace Industry (MRO)
Aerospace industry is one the new growth
sectors identified under RMK-11. Inclusion of the
aerospace MRO activities for GST exemption
under the Approved Trader Scheme will help
to further enhance the growth of Malaysia’s
aerospace industry.
Small and Medium Enterprises (SMEs)
Budget 2016 has been very positive in
supporting the long- term development of SMEs.
A total of RM 10.5 billion has been allocated for
SMEs, including RM107 million under the SME
Master plan to continue in implementing the
High Impact Programmes. The focus has been
on enhancing access to financing by reducing
the cost of funds through the Shariah compliant
scheme;
developing
entrepreneurship;
promoting
automation
and
technology
transformation; modernising microenterprises,
formalising the agriculture sector through GST
registration and internationalisation of SMEs
and mid-tier companies to becoming global
champions. The Budget has also emphasised on
commercialisation of R&D products particularly
benefiting SMEs and to encourage innovation
activity among the youth and the bottom 40%
of the pyramid. Besides funding allocation for
SME development programmes, SMEs have
also been granted various tax incentives to
encourage R&D activity (double tax deduction)
and to promote exports (tax exempt on 10-15%
of export receipts). Overall, the initiatives under
Budget 2016 are in line with the direction of the
RMKe-11 and in meeting the SME Master plan
“DRIVING Transformation, POWERING Growth”
Special Reinvestment Allowance
The Government has agreed to provide
a special Reinvestment Allowance for 3 years
to companies in selected manufacturing and
agricultural sectors, whose RA have expired.
The special RA is equivalent to 60% of capital
expenditure incurred and could be offset against
70% of the statutory income.The incentive will be
made effective for year of assessment of 20162018.
Malaysia continues to receive new
investments, while concurrently, existing investors
also undertake expansion and diversification of
their operations in the country. This is evident
through the performance of manufacturing sector.
During the period January-July 2015 a total
of 453 manufacturing projects were approved with
investments of RM53.5 billion, compared with 499
projects with investments of RM51.8 billion for the
period January-July 2014. For the full year 2014,
a total of 811 projects with investments worth
RM71.9 billion were approved.
A total of 259 projects with investments of
RM43.4 billion (81.1%) were new projects, while as
many as 194 projects with investments of RM10.1
billion (18.9%) were expansion/diversification.
In addition the Government has allocated:
•
RM 1 billion for the Syariah compliant
financing scheme;
•
RM60 million for Skim Anjakan Usahawan
dan Skim Peningkatan Kapasiti serta Keupayaan
PKS;
•
RM200 million for soft loan SME
Technology Transformation Fund.
•
RM18 million for Projek Transformasi
Kedai Runcit (TUKAR) and Automotive Workshop
MITI Weekly Bulletin / www.miti.gov.my
Modernisation (ATOM).
Export Promotion
For export promotion, RM235 million
is allocated to MATRADE under various
programmes; Program Promosi 1Malaysia,
Dana Eksport Perkhidmatan and Dana
Promosi Eksport.
Under human capital development
RM350 million is allocated under HRDF
training programmes.
For R&D, technology and innovation,
SMEs undertaking R&D projects can avail to
double tax deduction of up to RM50,000 per
assessment year. RM50 million is allocated for
the Public-Private Research Network (PPRN).
A total of RM235 million has been
allocated to MATRADE to strengthen the
country’s export of products and services.
The measures include an integrated export
promotional approach under the One Malaysia
Promotion. One Malaysia Promotion will
enhance cohesiveness and coordination in
Nation branding through closer Public-PrivatePartnership when undertaking promotion
abroad.
Financial support for internationalisation
of SMEs will ensure the achievement of
the objective to increase the contribution
of SMEs to exports to 23% by 2020. SMEs
export promotion initiatives will continue to be
supported through the Market Development
Grant (MDG).
Emphasis has also been given to
strengthen capacity building measures to grow
Malaysian SMEs and Mid-Tier companies to
become regional and global champions. SMEs
will be linked to Mid-Tier companies to support
their supply chain and expand exports.
The reduction of the value added criteria
for SMEs to enjoy income tax exemption on
increased exports will further incentivise SMEs
to grow their exports.
Efforts to increase the contribution
of services to exports will be further driven
through the Services Export Fund (SEF)
“DRIVING Transformation, POWERING Growth”
goals as well as in reducing the burden of SMEs
in the current economic situation.
Implementation of the SME Master plan,
the long-term agenda of SME development for
the country. For year 2016, a total of RM107
million has been allocated for implementation of
the six high impact programmes under the Plan:
•
Integrated Registration and Licensing
of Businesses Establishment, aims to creating
a single registration point to start or renew a
business;
•
Technology Commercialisation Platform
(TCP), is a national network of privately managed
platform to promote innovative ideas from the
proof-of-concept stage to commercialisation
through provision of a range of services including
technical, infrastructure and financial support;
•
SME Investment Partner (SIP) to provide
early stage financing to potential SMEs in the
form of debt, equity or a hybrid of both through
investment firms;
•
Going Export (GoEx) Programme to
develop exporters through comprehensive
support which include linkage to market expertise
and buyers and compliance to standards to
expedite internationalisation of services and
products;
•
Catalyst Programme to create homegrown
champions through a targeted approach with
support in the area of financing, market access
and human capital development.
•
Inclusive Innovation, designed to promote
transformation
of
communities
including
microenterprise in the rural areas through
innovation that will be supported by advisory,
support facilities and financing.
RM150
million
channeled
through
TERAJU for the implementation of various
programs including Skim Usahawan Permulaan
MITI Weekly Bulletin / www.miti.gov.my
“DRIVING Transformation, POWERING Growth”
to support various promotional activities and Bumiputera (SUPERB) and Program Syarikat
capacity building undertaken by Malaysian Bumiputera Berprestasi Tinggi (TERAS) will
ensure smooth implementation of Bumiputera
Service Providers.
development agenda. MITI will collaborate
with TERAJU to utilise the allocation to
Entrepreneurship Development
develop entrepreneurs under MITI.
MITI also welcomed the allocation
For entrepreneurship, a total of RM35 million is allocated for MaGIC under the Peneraju of RM500 million for micro Bumiputera
Hab Keusahawanan dan Inovasi Serantau. In entrepreneurs channeled through TEKUN
addition, RM10 million is allocated for start-up because this will further assist the micro
fund; Corporate Entrepreneurs Responsibility Bumiputera entrepreneurs in terms of liquidity
Fund. A total of RM 30 million is allocated for and to enhance their business.
youth entrepreneurs under the programmes
Global Entrepreneurship Community, BAHTERA, Jawatankuasa Kemahiran Industri (JKI)
GREAT, 1MET, National Innovation Competition
Under the Majlis Pembangunan Modal
and Projek Perintis Coding in schools. Another RM50 million is allocated to increase the youth Insan Negara (National Human Capital
Development Council) led by the Economic
entrepreneurship development activities.
To accelerate development of small Planning Unit, Prime Minister’s Department,
contractors, a total of RM500 million is allocated MITI has established the Jawatankuasa
under SME Bank for companies utilising the IBS Kemahiran Industri (JKI) with the following
Terms of Reference (TOR):
system.
Consult industry on talent/skills Green Technology Financing Scheme -
requirements;
is extended until 31 December 2017 with an
- Assess
the
human
resource
allocation of RM1.2 billion.
requirements
to
meet
the
needs
of
industry
so
Under Bumiputera development, RM150
million is allocated under TERAJU for programmes as to narrow the gap between skills supply
Skim Usahawan Permulaan Bumiputera and and demand; and
Work
with
training
providers
Program Syarikat Bumiputera Berprestasi -
Tinggi. In addition RM250 million is allocated to (educational/training institutions and Technical
Education & Vocational Training [TEVT]) and
Perbadanan Usahawan Nasional Berhad.
For micro financing, a total of RM600 accreditation providers (such as MQA and
million is allocated for Bumiputera entrepreneurs JPK) to develop training programmes that
and RM100 million for Indian entrepreneurs under meet the demands of industry through the
TEKUN. In addition RM50 million is allocated Single Governances Body.
to SME Bank for small Indian entrepreneurs.
Another RM200 million is allocated under micro 24. MITI will convene its first meeting in
financing for B40 by AIM. An allocation of RM100 early November 2015. The committee will
million is provided for Program Pembangunan comprise representatives from both public
Sosioekonomi Masyarakat India and RM90 and private sectors.
million for Chinese hawkers and petty traders,
Ministry of International Trade and Industry
including from KOJADI.
Malaysia
23 October 2015
Bumiputera Development
Malaysia’s Budget 2016
Economy 2016
IMPORTS OF
SERVICES
7.6%
MINING
5.5%
IMPORTS
MANUFACTURING
14.2%
SUPPLY:
RM1,807,168
MILLION
EXPORTS
DEMAND
EXPORTS
OF GOODS
35.4%
CONSTRUCTION
2.9%
SERVICES
33.8%
PRIVATE
CONSUMPTION
33.0%
DOMESTIC
DEMAND
DEMAND:
RM1,807,168
MILLION
DOMESTIC
PRODUCTION
PUBLIC
CONSUMPTION
PRIVATE
8.1%
INVESTMENT1
10.7%
PUBLIC
INVESTMENT1
5.5%
Note: 1 includes change in stocks
At constant 2010 prices
Federal Goverment Budget 2016
BORROWINGS
BORROWINGS
AND USE OF
GOVERNMENT'S
ASSETS
14.9%
INCOME TAX
43.9%
RM265,2241
MILLION
DEVELOPMENT
EXPENDITURE
INDIRECT TAX
21.9%
GENERAL
ADMINISTRATION
0.6%
SECURITY
1.9%
SOCIAL
4.9%
ECONOMIC
11.4%
OTHER
EXPENDITURE
10.8%
EMOLUMENTS
26.6%
RM265,2242
MILLION
REVENUE
NON-TAX
REVENUE
15.9%
OTHER DIRECT
TAX
3.4%
Note: 1 includes revenue, borrowings and use of Government’s assets.
2
Excludes contingency reserves.
Source : Ministry of Finance, Malaysia
MITI Weekly Bulletin / www.miti.gov.my
DEBT SERVICE
CHARGES
10.0%
SUBSIDIES
9.8%
GRANTS & TRANSFERS
TO STATE
GOVERNMENTS
2.9%
OPERATING
EXPENDITURE
SUPPLIES AND
SERVICES
13.7%
RETIREMENT
CHARGES
7.4%
“DRIVING Transformation, POWERING Growth”
IMPORTS
OF GOODS
30.7%
EXPORTS OF
SERVICES
7.3%
AGRICULTURE
5.3%
MALAYSIA
Inflation Rate (%), Jan 2014 - Sept 2015
Year on Year change of Consumer Price Index
Index
4.0
3.0
3.4
2.6
1.0
Sept
Aug
July
June
May
Apr
Mar
Feb
Jan
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
0.0
2015
2014
Consumer Price Index (CPI)
by Major Categories, Sept 2015
Transport
106.9 ( 3.8%)
Clothing
and Footwear
98.1( 0.6%)
Housing, Water,
Electricity, Gas and
Other Fuels
112.8 ( 2.7%)
Education
113.2 ( 2.5%)
Recreation Services
and Culture
107.3 ( 2.5%)
Health
116.6 ( 4.9%)
Communication
100.3 ( 3.0%)
Food And Non-Alcoholic
Beverages
122.2 ( 4.8%)
Note : % change year-on-year
-The Consumer Price Index (CPI) measures the percentage change through time in the cost of purchasing a constant basket of goods
and services representing the average pattern of purchases made by a particular population in a specified time period
Source : Department of Statistics, Malaysia
MITI Weekly Bulletin / www.miti.gov.my
“DRIVING Transformation, POWERING Growth”
2.0
Life Expectancy , 2014
Top 10 Highest Life Expectancy, 2014
Rank Country
Life expectancy
1 Monaco
2 Macau
3Japan
4 Singapore
5 San Marino
Rank Country
89.57
84.48
84.46
84.38
83.18
Life expectancy
6 Hong Kong 82.78
7 Andorra 82.65
8 Switzerland82.39
9 Guernsey
82.39
10 Australia
82.07
Source :http://www.infoplease.com/world/countries/highest-life-expectancy.html
“DRIVING Transformation, POWERING Growth”
Malaysia Life Expectancy at Birth, 1991 - 2014e
Years
80
74.7
75
2014e
2013e
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
65
2012p
71.2
70
Source : Department of Statistics, Malaysia
Malaysia Life Expectancy for Female 1991 - 2014e
Years
Malaysia Life Expectancy for Male 1991 - 2014e
Years
78
77.2
75
72.5
76
74
70
73.4
69.2
Source : Department of Statistics, Malaysia
Note : P - Preliminary
e - estimated
MITI Weekly Bulletin / www.miti.gov.my
Source : Department of Statistics, Malaysia
2014e
2013e
2011
2012p
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
65
1991
2014e
2013e
2012p
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
70
1991
72
’
and You’
The ASEAN
Competitiveness
Index
2015-2016
Denver, Colorado
(Ranks out of 144 economies)
6th Pillar: Goods Market Efficiency
6
Malaysia
5.42*
30
80
Philippines
4.24*
83
Viet Nam
4.23*
93
Cambodia
4.15*
USA
Thailand
4.69*
55
Indonesia
4.43*
76
Lao PDR
4.27*
Myanmar
130
Note:
3.62*
“DRIVING Transformation, POWERING Growth”
USA 1
Singapore
5.72*
* Score - value scale ranges from 1-7
- Brunei is not included in the survey
Source: http://reports.weforum.org/global-competitiveness-report-2015-2016/
The Global Competitiveness Index defines competitiveness as the set of institutions, policies, and factors that
determine the level of productivity. The components of the Global Competitiveness Index are grouped into 12
categories, the pillars of competitiveness. The 6th Pillar is the Goods and Markets Pillar. Countries with efficient
goods markets are well positioned to produce the right mix of products and services given their particular supplyand-demand conditions, as well as to ensure that these goods can be most effectively traded in the economy.
MITI’s ASEAN Portal can be accessed via http://www.miti.gov.my/cms/aec2015 .jsp.
MITI Weekly Bulletin / www.miti.gov.my
International Report
China GDP Growth Rates
Q1 2011 - Q2 2015
Percent(%)
10.2
9.9
9.4
8.7
8.0
Q2
Q3
2011
Q4
Q1
Q2
Source: www.tradingeconomics.com
Q3
Q4
2012
7.9
7.5
Q1
Q2
Q3
2013
7.6
7.3 7.4 7.2 7.2
7.0 7.0 6.9
Q4
Q1
Q2
Q3
2014
Q4
Q1
Q2
“DRIVING Transformation, POWERING Growth”
Q1
8.0 7.8
7.5 7.4
Q3
2015
Q2
Q3
2011
Q4
Q1
Q2
Q3
Q4
2012
Global Export
Q1
Q2
Q3
Q1
2013
Q3
Global Import
Q4
557.9
513.5
646.0
635.0
570.8
Q2
2014
Sources: National Bureau of Statistics of China and World Trade Atlas
MITI Weekly Bulletin / www.miti.gov.my
Q4
491.3
595.4
562.2
544.1
508.9
554.2
541.3
524.6
430.1
506.7
518.1
474.8
372.9
402.9
496.5
506.9
484.9
474.8
504.8
500.7
478.4
465.4
470.9
461.8
455.7
428.9
454.4
428.1
400.4
399.7
Q1
458.6
US$ billion
Q1
Q2
2015
DID YOU KNOW?
Top 10 Best Airports in the World
6. Munich International Airport, Germany (MUC)
2. Seoul Incheon International Airport, South Korea (ICN)
7. Helsinki Airport, Finland (HEL)
3. Tokyo Haneda International Airport, Japan (HND)
8. Vancouver International Airport, Canada (YVR)
4. Taipei Taoyuan International Airport, Taiwan (TPE)
9. Kuala Lumpur International Airport, Malaysia (KUL)
5. Hong Kong International Airport, Hong Kong (HKG) 10. Zurich Kloten International Airport, Switzerland (ZRH)
Source: http://www.sleepinginairports.net/2015/best-airports-world.htm
MITI Weekly Bulletin / www.miti.gov.my
“DRIVING Transformation, POWERING Growth”
1. Singapore Changi International Airport, Singapore (SIN)
Malaysian Ringgit Exchange Rate with
Australian Dollar and Hong Kong Dollar
AUD = RM
100 HKD = RM
3.10
58.00
1 AUD = RM 3.04
3.05
56.00
100 HKD = RM 55.63
54.00
3.00
52.00
2.95
50.00
2.90
48.00
46.00
2.85
44.00
2.80
2.75
42.00
40.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2014
2015
Source : Bank Negara, Malaysia
Gold Prices, 19 June - 23 October 2015
Gold
US$/Gram
39.0
38.7
38.0
37.5
37.0
37.3
36.5
36.0
35.5
35.0
23 Oct
16 Oct
9 Oct
2 Oct
25 Sep
18 Sep
11 Sep
28 Aug
21 Aug
14 Aug
7 Aug
31 Jul
24 Jul
16 Jul
10 Jul
3 Jul
26 Jun
19 Jun
34.0
4 Sep
34.5
Source : http://www.gold.org/investments/statistics/gold_price_chart/
Silver and Platinum Prices, 19 June - 23 October 2015
Silver
US$/Oz
16.5
1,100.0
16.1
15.5
16.0 1,060.0
1,040.0
15.0
1,020.0
14.5
980.0
1,000.0
1008.0
960.0
14.0
940.0
13.5
920.0
19 Jun
26 Jun
3 Jul
10 Jul
16 Jul
24 Jul
31 Jul
7 Aug
14 Aug
21 Aug
28 Aug
4 Sep
11 Sep
18 Sep
25 Sep
2 Oct
9 Oct
16 Oct
23 Oct
13.0
1,085.5
1,080.0
900.0
http://online.wsj.com/mdc/public/page/2_3023-cashprices.html?mod=topnav_2_3023
MITI Weekly Bulletin / www.miti.gov.my
19 Jun
26 Jun
3 Jul
10 Jul
16 Jul
24 Jul
31 Jul
7 Aug
14 Aug
21 Aug
28 Aug
4 Sep
11 Sep
18 Sep
25 Sep
2 Oct
9 Oct
16 Oct
23 Oct
16.0
Platinum
US$/Oz
“DRIVING Transformation, POWERING Growth”
38.5
Number and Value of Preferential Certificates of Origin (PCOs)
Number of Certificates (Provisional data)
30 Aug 2015
6 Sep 2015
4 Oct 2015
11 Oct 2015
18 Oct 2015
AANZFTA
916
727
13 Sep 2015 20 Sep 2015 27 Sep 2015
868
674
1,017
1,026
875
815
AIFTA
780
577
614
574
597
776
643
569
AJCEP
210
195
236
167
197
241
250
122
ATIGA
4,358
4,506
4,346
3,955
4,037
4,837
4,481
3,871
ACFTA
1,461
1,242
1,307
1,021
1,035
1,582
1,552
1,276
AKFTA
744
755
825
609
755
778
837
576
MICECA
305
239
250
274
302
311
338
235
MNZFTA
3
2
21
2
7
6
10
2
MCFTA
71
65
77
42
57
77
71
58
MAFTA
436
318
414
368
390
417
481
421
MJEPA
966
771
732
754
824
927
679
799
MPCEPA
170
109
155
115
130
153
113
150
GSP
129
144
123
122
159
176
103
127
MTFTA
283
152
321
141
172
202
217
125
Notes: The preference giving countries under the GSP scheme are Cambodia, the Russian Federation, Japan, Switzerland, and Norway.
ATIGA: ASEAN Trade in Goods Agreement
(Implemented since 1 May 2010)
AJCEP: ASEAN-Japan Comprehensive Economic Partnership
(Implemented since 1 February 2009)
ACFTA: ASEAN-China Free Trade Agreement
(Implemented since 1 July 2003)
AKFTA: ASEAN-Korea Free Trade Agreement
(Implemented since 1 July 2006)
AIFTA: ASEAN-India Free Trade Agreement
(Implemented since 1 January 2010)
Value of Preferential Certificates of Origin
1,800
600
1,600
1,400
1,200
400
RM million
RM million
500
300
1,000
800
600
200
400
100
0
200
0
30 Aug
6 Sep
13 Sep
20 Sep
27 Sep
4 Oct
11 Oct
18 Oct
30 Aug
6 Sep
13 Sep
20 Sep
27 Sep
4 Oct
11 Oct
18 Oct
AANZFTA
85
78
82
70
124
109
88
197
ATIGA
1,272
754
681
766
659
944
849
1,660
AIFTA
209
188
156
522
153
252
182
147
ACFTA
557
435
902
341
480
901
645
602
AJCEP
58
91
110
67
89
122
102
46
AKFTA
160
172
851
123
271
150
659
108
180
60
160
140
120
40
RM million
RM million
50
30
20
100
80
60
40
10
0
20
0
30 Aug
6 Sep
13 Sep
20 Sep
27 Sep
4 Oct
11 Oct
18 Oct
30 Aug
6 Sep
13 Sep
20 Sep
27 Sep
4 Oct
11 Oct
18 Oct
MICECA
47.98
47.81
35.16
38.17
50.45
55.99
44.26
38.35
MJEPA
162
113
131
165
157
154
112
117
MNZFTA
0.10
0.01
0.45
0.07
0.42
0.09
0.10
0.06
MPCEPA
41
11
53
59
16
20
12
24
MCFTA
24.53
43.73
55.92
6.16
20.31
11.12
30.17
9.81
GSP
21
32
23
48
39
32
44
24
MAFTA
35.63
30.60
30.81
32.08
35.02
40.40
44.61
35.02
MTFTA
89
112
144
55
62
72
147
42
Source: Ministry of International Trade and Industry, Malaysia
MITI Weekly Bulletin / www.miti.gov.my
“DRIVING Transformation, POWERING Growth”
MPCEPA: Malaysia-Pakistan Closer Economic Partnership
Agreement (Implemented since 1 January 2008)
MJEPA: Malaysia-Japan Economic Partnership
Agreement (Implemented since 13 July 2006)
MICECA: Malaysia-India Comprehensive Economic
Cooperation Agreement (Implemented since 1 July 2011)
MNZFTA: Malaysia-New Zealand Free Trade Agreement
(Implemented since 1 August 2010)
MCFTA: Malaysia-Chile Free Trade Agreement
(Implemented since 25 February 2012)
MAFTA: Malaysia-Australia Free Trade Agreement
(Implemented since 1 January 2013)
MTFTA: Malaysia-Turkey Free Trade Agreement
(Implemented since 1 August 2015)
AANZFTA: ASEAN-Australia-New Zealand Free Trade Agreement
(Implemented since 1 January 2010)
Commodity Prices
Commodity
Crude
Petroleum
(per bbl)
Crude
Palm Oil
(per MT)
Raw
Sugar
(per MT)
Rubber
SMR 20
(per MT)
Cocoa
SMC 2
(per MT)
Coal
(per MT)
Scrap Iron
HMS
(per MT)
23 Oct 2015
(US$)
44.6
580.0
305.0
1,262.5
2,084.1
46.2
210 (high)
195 (low)
% change*
5.6
1.0
2.3
1.4
2.7
0.3
unchanged
unchanged
2014i
54.6 - 107.6
823.3
352.3
1,718.3
2,615.8
59.8
370.0
2013i
88.1 - 108.6
805.5
361.6
2,390.8
1,933.1
..
485.6
Highest and Lowest Prices, 2014/2015
Crude Petroleum
(23 Oct 2015)
US$44.6 per bbl
Highest
(US$ per bbl)
Lowest
(US$ per bbl)
2015
29 May 2015: 60.3
2015
21 Aug 2015: 40.5
2014
13 June 2014: 107.6
2014
26 Dec 2014: 54.6
Average Domestic
Prices, 9 Oct 2015
Billets
(per MT)
RM1,300 - RM1,350
Crude Palm Oil
(23 Oct 2015)
US$580.0 per MT
Highest
(US$ per MT)
Lowest
(US$ per MT)
2015
16 Jan 2015: 701.0
2015
4 Sep 2015: 500.5
2014
14 Mar 2014: 982.5
2014
26 Dec 2014: 664.0
Steel Bars
(per MT)
RM1,500 - RM1,600
Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board,
Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group.
MITI Weekly Bulletin / www.miti.gov.my
“DRIVING Transformation, POWERING Growth”
Notes: All figures have been rounded to the nearest decimal point
* Refer to % change from the previous week’s price
i Average price in the year except otherwise indicated
n.a Not availble
Commodity Price Trends
Rubber SMR 20
Crude Palm Oil
1,400
620
600
599.5
1,343.5
1,350
580.0
580
584.0
1,341.5
586.0
577.5
1,302.5
1,300
553.5
551.0
1,285.0
540
1,262.5
529.5
1,200
512.5
500.5
503.5
1,150
480
7 Aug 14 Aug 21 Aug 28 Aug 4 Sep 11 Sep 18 Sep 25 Sep 2 Oct
9 Oct 16 Oct 23 Oct
9 Oct 16 Oct 23 Oct
Black Pepper
Cocoa
2,300
8,500
7,967
8,000
2,231.5
7,822
7,894
7,707
7,500
2,115.5
2,058.02,094.5
2,047.3
2,033.5
2,000
2,044.3 2,009.8
2,034.5
2,030.2
2,021.6
7,296
7,507
2,084.1
7,286 7,267
USD/ tonne
2,100
7,853
7,806
1,910.4
7,000
7,034
6,864
6,742
6,469
6,500
6,000
1,900
6,940
7,148
7,063
6,515
6,245
5,740
5,779
5,843
5,500
1,800
31 Jul 7 Aug 14 Aug 21 Aug 28 Aug 4 Sep 11 Sep 18 Sep 25 Sep 2 Oct 9 Oct 16 Oct 23 Oct
2014
* until 23 October 2015
Oct
Sep
Jul
Aug
Jun
Apr
May
Mar
Jan
Feb
Dec
Oct
Nov
Sep
Jul
Aug
Jun
Apr
May
Mar
Jan
1,700
Feb
5,000
2015
Raw Sugar
Crude Petroleum
55
320
53
305.0
300
51
298.0
292.3
48.6
47
US$/bbl
274.8
US$/mt
50.1
49
280
260
254.0
245.3
240
249.0
43
245.8
48.1
47.1
45.5
48.6
47.5
46.1
45.2
43.9
47.3
45.7
44.6
48.1
39
37
35
200
45.5
44.7
44.6
9 Oct 16 Oct 23 Oct
40.5
Crude Petroleum (WTI)/bbl
Crude Petroleum (Brent)/bbl
31 Jul 7 Aug 14 Aug 21 Aug 28 Aug 4 Sep 11 Sep 18 Sep 25 Sep 2 Oct 9 Oct 16 Oct 23 Oct
Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Pepper Board, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group, World Bank.
MITI Weekly Bulletin / www.miti.gov.my
48.0
42.5
228.0
7 Aug 14 Aug 21 Aug 28 Aug 4 Sep 11 Sep 18 Sep 25 Sep 2 Oct
50.5
49.6
49.6
41
240.0
228.5
49.0
45
234.0
220
52.7
52.2
“DRIVING Transformation, POWERING Growth”
7 Aug 14 Aug 21 Aug 28 Aug 4 Sep 11 Sep 18 Sep 25 Sep 2 Oct
US$/mt
1,262.5
1,243.5
1,216.5
522.0
500
1,279.5 1,280.5
1,250.5
1,250
520
2,200
1,281.5
US$/mt
US$/mt
560
Commodity Price Trends
Copper
Aluminium
2,100
2,056
2,030
7,400 7,291
7,200
2,000
1,990
1,946
US$/ tonne
1,900
1,909
1,800
1,819
1,815
1,727
1,804
1,774
1,751
1,700
1,695
1,705
6,674
6,446
6,200
6,295
6,042
5,940
6,000
5,831
5,833
5,729
5,457
5,400
1,590
5,217
5,127
5,200
1,548
5,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2014
6,650
6,400
5,600
1,640
1,500
6,713
6,737
5,800
1,688
1,600
6,872
6,821
6,600
1,818
1,839
1,811
6,891
6,800
US$/ tonne
1,948
7,113
7,002
7,149
7,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2015
2014
2015
47.6
19,401
19,118
47.4
19,000
18,629 18,600
17,000
18,035
47.2
47.3
47.3
47.3
47.0
15,962
15,812 15,807
15,678
46.8
14,574
US$/mt
US$/ tonne
47.3
47.2
17,374
15,000
47.3
14,849
14,101 14,204
13,756
13,000
13,511
46.9
46.9
46.6
46.6
46.4
46.4
12,831 12,825
46.4
46.2
11,000
46.2
11,413
46.0
10,386
9,938
9,000
45.8
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2014
45.6
2015
7 Aug 14 Aug 21 Aug 28 Aug 4 Sep 11 Sep 18 Sep 25 Sep 2 Oct
9 Oct 16 Oct 23 Oct
Iron Ore
Scrap Iron
140.0
300
130.0 128.1
280.0
280
280.0
270.0
120.0
270.0
110.0
260.0
260.0
260.0
260.0
250.0
250.0
250.0
240.0
240
230.0
220
111.8
100.6
250.0
230.0
114.6
100.0
US$/dmtu
260
US$/mt
121.4
280.0
230.0
230.0
90.0
96.1
81.0
80.0
230.0
82.4
210.0
210.0
210.0
200
68.0
68.0
60.0
50.0
195.0
Scrap Iron/MT(Low)
63.0
60.0
58.0
63.0
56.0
52.0
57.0
52.0
40.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
180
15 May 29 May 5 Jun 19 Jun
74.0
70.0
220.0
Scrap Iron/MT (High)
92.6
92.7
3 Jul
24 Jul 7 Aug 14 Aug 28 Aug 11 Sep 25 Sep 9 Oct
2014
2015
Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Pepper Board, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group, World Bank.
MITI Weekly Bulletin / www.miti.gov.my
“DRIVING Transformation, POWERING Growth”
Coal
Nickel
2.
Oilfield Services
•
Provision of wireline equipment and logging
services
•
Integrated wellhead maintenance services
•
Asset Integrated Solution (A.I.S)
•
Integrated Chemical Solutions
Deleum provides a diverse range of supporting
Other oilfield products and technical specialized products and services for the oil & gas •
industry, particularly the exploration and production services
•
Decommissioning of platforms and wells
sector.
3.
Maintenance, Repair and Overhaul
•
Repair, servicing, maintenance and overhaul CORE BUSINESS:
of motors, generators, transformers and pumps
1.
Power and Machinery
•
Integrated corrosion, inspection and •
Provision of gas turbine packages
mitigation for surface preparation
•
Supply of gas turbines parts
•
Composite repair and structural integrity
•
Gas turbines overhaul, maintenance and •
Equipment repair for oil and gas, and technical services
general industries
•
Combined heat and power plant
•
Supply, installation, repair and maintenance of ACCREDITATION AND CERTIFICATION
valves and flow regulators
•
ISO 9001:2008
•
Other production related equipment and services
Deleum’s participation in the Oil & Gas industry dates
back to 1982 where its wholly owned subsidiary Deleum
Services Sdn Bhd established itself in Malaysia’s oil and
gas industry.
Add: No. 2, Jalan Bangsar Utama 9,
Bangsar 59000, Kuala Lumpur
Tel: 603 2295 7788
Fax: 603 2295 7777
Email: nanyusri.nanrahimy@deleum.com
Website: www.deleum.com
MITI Weekly Bulletin / www.miti.gov.my
“DRIVING Transformation, POWERING Growth”
KEY CLIENTS & PROJECTS:
Announcement
World Trade Report 2015
The Report is available at this link https://www.wto.org/english/res_e/booksp_e/
MITI Weekly Bulletin / www.miti.gov.my
“DRIVING Transformation, POWERING Growth”
The WTO DG launched the World Trade Report 2015 today. The theme for this year
Report is ''Speeding up Trade: Benefits and Challenges of Implementing the WTO
Trade Facilitation Agreement''. Assessment on the potential impacts of TFA was
made based on two economic models, i.e. the Computable General Equilibrium
(CGE) and Gravity Model. Main findings:
1. Benefits:
• With full implementation of the TFA, trade costs will be reduced by an
average of 14.3%;
• CGE simulations predict export gains between USD750 billion
and USD1 trillion per annum, depending on the
implementation time-frame and coverage;
• Between 2015 -2030, implementation of TFA will add around 2.7% growth
in world export and 0.5% growth in world GDP annually;
• Gravity model estimates global exports will increase between USD1.1
trillion and USD3.6 trillion, depending on the
extent to which the provisions of the TFA are implemented;
• Implementing TFA will create significant export diversification gains, in
terms of products and export destinations, for developing countries, and particularly LDCs:
-Increase in the number of products exported by destination with full implementation of TFA:Developing
countries between 18.4% and 20% while LDCs between 32.9% to 35.6%; and
-Increase in the number of export destinations by product with full implementation of TFA: Developing
countries between 22% and 33.2% while LDCs between 39.2% to 59.3%;
• Increase opportunity for implementing developing countries to participate in global value chains;
• Greater participation of SMEs in global trade with elimination of obstacles in the form of burdensome trade
procedures, customs and trade regulations; and
• Developing countries and LDCs implementing TFA are also expected to:
- attract more FDI;
- improve revenue collection; and
- reduce incidence of corruption.
2. Challenges:
• The cost of implementing TFA. Varies from one country to another, depending on its specific
circumstance, e.g. customs modenisation and upgrading of infrastructure; and
• Require strong political will, i.e. highest level of commitment to ensure successful trade
facilitation reform.
Apart from the benefits and challenges of implementing TFA, the Report also provided a brief summary of the trade
situation in 2014 and early 2015 (First Part of the Report):
1. A modest 2.5% growth of world merchandise trade volume in 2014;
2. Export growth in 2014:
• developed countries 2.0%;
• developing and emerging economies 3.1%; and
• Asia 4.7%.
3. Import growth in 2014:
• developed countries 2.9%;
• developing and emerging economies 1.8%; and
• Asia 3.4%.
4. Real world GDP at market exchange rates in 2014:
• developed countries 1.7%;
• developing and emerging economies 4.2%; and
• Asia 4.0%.
5. Malaysia's ranking:
• merchandise:
i) Exporters - 23 (17 - excluding intra-EU); and
ii) Importers - 25 (18 - excluding intra-EU).
•
commercial services:
i) Exporters - Not among top 30 (19 - excluding intra-EU); and
ii) Importers - 30 (19 - excluding intra-EU).
Global Transformation Forum
Kuala Lumpur Convention Centre
21 - 23 October 2015
MITI Programme
“DRIVING Transformation, POWERING Growth”
MITI Weekly Bulletin / www.miti.gov.my
Info Session
TRANS-PACIFIC PARTNERSHIP AGREEMENT (TPPA)
23 October 2015
“DRIVING Transformation, POWERING Growth”
MITI Weekly Bulletin / www.miti.gov.my
@ YOUR SERVICE
Name
: Muhammad Abd Ghani
Designation
: Assistant IT Officer
Job Description : Responsible for the network, ICT security and
VC.
Division
: Information management
Contact No : 603-6200 0341
Email : muhdghani@miti.gov.my
: Zainatul Akma Che Mat Zain
: Assistant IT Officer
: Assist and maintain the international trade system and application
Division : Information management
Contact No : 603-6200 0194
Email: zainatulakma@miti.gov.my
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