MONTHLY NEWS SCAN Tinjauan Berita Bulanan Compiled by IDS Vol. 18 Issue 7 IDS Online http://www.ids.org.my HIGHLIGHTS FOKUS • G20 backs plan to stop global tax avoidance and evasion • ADB trims developing Asia’s growth forecasts on China slowdown • Plan to produce 50pc more biodiesel • Malaysia yakin AEC boleh direalisasikan • 500 more PPR flats for Kudat Hajiji • RM457 million to upgrade Pan Borneo INTERNATIONAL ANTARABANGSA G20 backs plan to stop global tax avoidance and evasion: Finance ministers from the G20 group of leading nations have formally backed plans to tackle international tax avoidance and evasion. A statement issued earlier supports the automatic exchange of tax information between countries. It also backs plans by the Organisation for Economic Cooperation and Development to stop firms moving their profits across borders to avoid taxes. The OECD said some firms “abuse” current rules to avoid tax. UK Chancellor George Osborne said the announcement, which came after a two-day G20 meeting in Moscow, was an “important step towards a global tax system that is fair and fit for purpose for the modern economy”. (20 July, BBC News) ADB trims developing Asia’s growth forecasts on China slowdown: Growth in developing Asia will be weaker than initially estimated this year and next amid a slower expansion in China and lackluster export demand from advanced nations, the Asian Development Bank said. The region’s gross domestic product will probably increase 6.3 percent in 2013 and 6.4 percent next year, the Manila-based lender said in a report today. In April, it forecast expansion of 6.6 percent this year and 6.7 percent in 2014. Growth in developing Asia will be weaker than initially estimated this year and next amid a slower expansion in China and lackluster export demand from advanced nations, the Asian Development Bank said. (16 July, Bloomberg) 1 – 31 July 2013 French business confidence rises to highest in 15 months: French business confidence rose to the highest in 15 months in July, indicating that improving demand is helping to support an economy that’s stagnated for the past two years. Sentiment (INSESYNT) among industrial executives increased to 95 in from 93 in June, national statistics office Insee in Paris said today. That’s above the reading of 94 that was the median forecast of 21 economists in a Bloomberg News survey. A broader index including the services, wholesale and construction industries climbed to 87 from 86. (23 July, Bloomberg) Australia core inflation accelerates as currency restraint wanes: Australia’s core consumer price growth accelerated last quarter and the cost of imported goods increased as the inflation-restraining influence of an elevated currency waned. The trimmed mean gauge of core prices rose 0.5 percent from the previous quarter, the Bureau of Statistics said in Sydney today, matching the median forecast of 22 economists surveyed by Bloomberg News. The weighted-median gauge of inflation, a second core measure that excludes the largest price increases and declines, advanced 0.7 percent, compared with economists’ estimates for a 0.5 percent gain. (24 July, Bloomberg) Japan sustains export growth on weak yen as EU shipments recover: Japan’s exports (JNTBEXPY) rose for a fourth straight month as weakness in the yen made the nation’s products more competitive and shipments to the European Union increased for the first time in 21 months. Exports gained 7.4 percent from a year earlier, the Finance Ministry said in Tokyo today, compared with the 10 percent median estimate of 26 economists surveyed by Bloomberg News. Imports climbed 11.8 percent, leaving a trade deficit of 180.8 billion yen ($1.8 billion). (24 July, Bloomberg) N.Z. inflation slows, adding to signs of rate pause until 2014: New Zealand consumer prices increased less than economists expected last quarter as import prices dropped, adding to signs a period of recordlow interest rates will be prolonged for the rest of this year. Consumer prices rose 0.2 percent from the first quarter, when they gained 0.4 percent, Statistics New Zealand said in Wellington today. That’s less than the 0.3 percent median estimate in a MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 1 – 31 July 2013 Bloomberg News survey of 13 economists. Prices gained 0.7 percent from a year earlier, the slowest since 1999 and less than the 0.8 percent estimate. (16 July, Bloomberg) Russian June industrial output expands less than forecast: Russian industrial output expanded less than economists forecast in June as manufacturing contracted for a second month. Output at factories, mines and utilities advanced 0.1 percent in June compared with a year earlier, following a 1.4 percent drop the previous month, the Federal Statistics Service in Moscow said in an e-mailed report. The median estimate of 17 economists in a Bloomberg survey was for a 0.5 percent increase. The world’s largest energy exporter has struggled to shelter its economy from slowing demand in China, its largest single trade partner, as sluggish capital spending and domestic sales limit the pace of factory output. (15 July, Bloomberg) China’s economic growth at 7.5% in April to June period: China’s economic growth slowed in the April to June period, the second straight quarter of weaker expansion. The world’s second biggest economy grew by 7.5% compared to the previous year, down from 7.7% in the January to March period, data showed. The figures were in line with analyst expectations. After decades of blistering growth in China, analysts say authorities now seem ready to accept a slower pace of expansion. The figures showed that weak trade data and actions by authorities to rein in bank lending contributed to the slower growth. (15 July, BBC News) US budget surplus highest in five years in June: The US government reported a budget surplus of $116.5bn (£77.02bn) in June, the most in five years. The improving US economy meant that tax receipts were higher than expected. Also, government spending plunged by 47% due to package of spending cuts and tax increases passed in January, know as the sequester. Government owned mortgage firms, Fannie Mae and Freddie Mac, added $66.3bn (£43.8bn) in payments. They have been in public ownership since 2008. Despite that strong month, the Congressional Budget Office forecasts the annual deficit will be $670bn (£443bn) when the budget year ends on Sept. 30. (11 July, BBC News) 1 NATIONAL NASIONAL Plan to produce 50pc more biodiesel: Malaysia is expected to increase biodiesel production by 50 per cent to 375,000 tonnes this year due to price differential between crude oil and palm oil prices that is favourable in the export market. Plantation Industries and Commodities Minister Datuk Seri Douglas Uggah Embas said currently, palm oil price is averaging at around RM2,300 per tonne while petroleum is being sold at around US$108 (RM343) per barrel. (23 July, Business Times) Malaysia yakin AEC boleh direalisasi: Malaysia yakin Komuniti Ekonomi ASEAN (AEC) boleh direalisasikan menjelang 2015 memandangkan 80 peratus daripada tindakan yang diputuskan sudah pun dilaksanakan oleh negara-negara anggota. Menteri Perdagangan Antarabangsa dan Industri, Datuk Seri Mustapa Mohamed berkata, dalam kes Malaysia, 88 peratus daripada langkah-langkah itu sudah dilaksanakan. Bercakap kepada pemberita selepas melancarkan Forum Kepimpinan ASEAN ke-10, Mustapa berkata, usahawan Malaysia sudah bersiap-sedia, terutama dalam langkah-langkah pembangunan kapasiti bagi meningkatkan daya tahan. (19 Julai, Utusan Malaysia) May industrial production growth exceeds expectations: Malaysia’s industrial production index (IP) rose 3.4% in May from a year ago, exceeding economist expectations of a 2% growth. Citigroup Inc economist Kit Wei Zheng, who has maintained gross domestic product (GDP) growth at 5.2% year-on-year, said in a report that the April-to-May data continued to point to a pick-up in second-quarter GDP. “Manufacturing appears on track to provide a sequential boost – April-toMay seasonally-adjusted manufacturing industrial production levels were 3.4% above their firstquarter average – while mining is now above water at 0.3% above the first quarter,” he pointed out. (12 July, The Star) 50,016 tonnes. Compared with April, production increased by 7,135 tonnes (16.6% month-on-month or m-o-m). According to the Statistics Department, the level of stocks in May was 122,908 tonnes, which meant an increase of 11.1% y-o-y and decreasing by 13.5% m-o-m. Meanwhile, exports of natural rubber inched up 1% y-o-y and 3.9% m-o-m to 63,429 tonnes in May. The main export destinations were China (38.9%), followed by Germany (14%), Iran (7.8%), the United States (4.5%), Finland (4.2%), Brazil (2.9%), South Africa (2.2%) and Portugal (2.1%).Imports of natural rubber in May increased by 8,876 tonnes or 14.2% y-o-y to 71,264 tonnes. (13 July, The Star) Malaysia’s June inflation rise 1.8% from year ago: Malaysia’s inflation rate for June rose 1.8% as prices of food & non-alcoholic beverages and non-food items increased. However, the increase was slightly lower than economists’ expectations of a 1.9%. The Statistics Department said on Friday the Consumer Price Index (CPI), which measures the inflation rate, rose 1.8% from 104.8 to 106.7. When compared with May, the CPI increased by 0.1%. It said the CPI for January to June increased by 1.6% to 106.3 from 104.6 in the previous corresponding period. The department said the higher CPI for the six-month period was due to notable increases in food and non-alcoholic beverages (3.3%), housing, water, electricity, gas and other fuels (1.6%) and transport (0.6%). (19 July, The Star) Hubungan dagangan Malaysia, China kukuh: Hubungan dagangan Malaysia dan China kini ditingkatkan menerusi Taman Perindustrian Kuantan Malaysia-China (MCKIP) dan Taman Perindustrian ChinaMalaysia Qinzhou (QIP) di Guangxi, China. Menteri Perdagangan Antarabangsa dan Industri, Datuk Seri Mustapa Mohamed berkata, perkembangan kedua-dua projek tersebut berkembang baik dan menggalakkan kerjasama pelaburan yang saling memberi manfaat. Katanya, kerjasama itu akan meningkatkan hubungan dua hala dengan rakan dagangan terbesar Malaysia sejak 2009. “Pelaburan tersebut berada di landasan yang betul dan hubungan akan terus kukuh dengan projek pelaburan ini,” katanya. (16 Julai, Utusan Malaysia) Malaysia rancang pelbagaikan eksport ke Jepun: Malaysia mahu mempelbagaikan produk eksportnya ke Jepun bagi mengurangkan kebergantungan kepada eksport sedia ada serta memberi lebih banyak pilihan kepada pasaran negara itu. Menteri Perdagangan Antarabangsa dan Industri, Datuk Seri Mustapa Mohamed berkata, hampir separuh daripada eksport Malaysia ke Jepun merupakan gas asli cecair (LNG) manakala selebihnya merupakan produk berasaskan perkayuan dan barangan elektrik serta elektronik. “Malaysia sebenarnya mempunyai pelbagai produk yang mampu ditawarkan kepada Jepun selain daripada LNG. (2 Julai, Utusan Malaysia) Better May industrial output growth takes market by surprise: Industrial output grew by a faster pace of 3.4 per cent in May compared to a year ago, taking the market by surprise as activities in the mining and electricity sectors improved. Economists have described the May data as decent to support a better gross domestic product (GDP) showing for the second quarter. The Statistics Department said the manufacturing sector grew by 3.1 per cent, supported by mining (4.1 per cent) and electricity (4.8 per cent). “The major sub-sectors which registered increases in manufacturing output were transport equipment and other manufactures (17.3 per cent), metals and minerals (4.8 per cent), and petroleum, chemical, rubber and plastic products (4.2 per cent).” (12 July, Business Times) Bank Negara keeps key interest rate unchanged at 3pc: Bank Negara Malaysia left the Overnight Policy Rate unchanged at 3.00 per cent yesterday, citing risks from the weakness in the external sector. The unchanged stance of the key benchmark interest rate, which determines the rate of borrowing costs for banks, has been described as one of the longest pause since July 2011. The monetary policy committee described the current stance of monetary policy to be appropriate given the outlook for inflation and growth. CIMB Investment Bank said the central bank had no “compelling” reason to act. (12 July, Business Times) Natural rubber output down in May: The production of natural rubber in May fell by 19,857 tonnes (28.4% year-on-year or y-o-y) to 1 – 31 July 2013 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 2 LOCAL TEMPATAN 500 more PPR flats for Kudat – Hajiji: The BN Government will be building another 500 units of the People’s Housing Programme, or PPR flats, here soon in addition to the 500 units already completed. State Local Government and Housing Minister Datuk Hj Hajiji Hj Noor announced this while on a one-day official visit here. It was his first visit outstation since the May 5 election. As part of his programme, he visited the 500 completed units at Taman Ehsan, alongside local assemblyman Datuk Teo Chee Kang, who is also Special Functions Minister. (9 July, The Borneo Post) RM457 million to upgrade Pan Borneo: The federal government has approved RM457 million to upgrade the Pan Borneo Road linking Sabah, Brunei and Sarawak for the period 2012 to 2015. Deputy Works Minister, Datuk Rosnah Abdul Rashid Shirlin said Sabah and Sarawak each received RM50 million last year to implement the project. The upgrading work will involve among others, adding another lane to the 2,230-kilometre double-lane road. Rosnah said the tender for the upgrading project will not be limited to Sabah bumiputera contractors only because the Ministry’s policy is to allow others who are also capable and interested to take part in the tender process. (23 July, New Sabah Times) Pasar baharu RM5j di Kota Belud: Masalah kesesakan lalu lintas dan pengguna tidak selesa di Pasar Besar Kota Belud bakal berakhir apabila kerajaan bersetuju membina sebuah pasar baharu bernilai antara RM3 juta hingga RM5 juta bagi menggantikan pasar lama itu yang sudah uzur dan tidak lagi sesuai digunakan pada masa ini. Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan yang juga Ahli Parlimen Kota Belud, Datuk Abdul Rahman Dahlan berkata, pasar baharu tersebut akan dibina dalam waktu terdekat di kawasan pinggir pekan Kota Belud. (16 Julai, Utusan Malaysia) sama tahun lalu. Timbalan Ketua Menteri, Datuk Seri Yahya Hussin berkata, bagi tempoh sama, jumlah saham dan yuran anggota meningkat sebanyak 22 peratus kepada RM88.8 juta berbanding RM72.8 juta sebelum itu. “Nilai aset koperasi-koperasi juga meningkat sebanyak 15 peratus kepada RM511.2 juta pada tempoh sama berbanding RM444 juta pada tahun sebelumnya. (12 Julai, Utusan Malaysia) UMS introduces seaweed mini estate project in Semporna: Universiti Malaysia Sabah (UMS) has introduced a seaweed mini estate project in Semporna to develop seaweed as one of the country’s export commodities. The mini estate is UMS’ pilot project which is aimed at generating income and contributing to the nation’s Gross Domestic Product (GDP) growth. According to UMS Vice Chancellor, Professor Datuk Dr Mohd Harun Abdullah, the seaweed mini estate development, spearheaded by UMS since 2010, consists of two phases that run concurrently. The first phase (2011-2020) focuses on infrastructure development and the mini estate management including the appointment of leading companies and identifying a suitable location for seaweed cultivation particularly in Semporna. (4 July, New Sabah Times) Penduduk Daerah Kecil Pegalungan bakal nikmati bekalan air bersih: Penduduk di sekitar pekan Daerah Kecil Pegalungan akan menikmati bekalan air bersih tidak lama apabila tadahan pengambilan air yang kini dalam pembinaan siap kelak. Ahli Dewan Undangan Negeri (Adun) Nabawan Datuk Bobbey A. Suan berkata, tadahan pengambilan air (water intake) bekalan air bersih akan memberi manfaat kepada penduduk di sekitar pekan daerah kecil itu bagi jangka panjang. Menurut Bobbey, peruntukan yang dipohon kepada Kerajaan Persekutuan untuk membiayai projek bekalan air bersih itu berjumlah RM24 juta. (23 Julai, New Sabah Times) Industri pelancongan di Sabah berkembang positif: Di sebalik insiden pencerobohan yang berlaku di Lahad Datu, industri pelancongan di negeri ini masih menunjukkan perkembangan positif dari segi jumlah ketibaan pelancong. Timbalan Ketua Menteri merangkap Menteri Pembangunan Industri, Datuk Raymond Tan berkata melihat kepada peningkatan jumlah pelancong yang semakin baik, beliau percaya industri pelancongan di negeri ini akan meningkat. Katanya, pada tahun ini sasaran ketibaan pelancong datang ke Sabah adalah seramai 3 juta orang dan daripada jumlah itu, ia dijangka akan menyumbang sebanyak RM5.4 bilion kepada industri pelancongan. Pada tahun lalu, ketibaan pelancong ke negeri ini adalah seramai 2.84 juta dengan jumlah penerimaan pelancong hampir RM5.2 bilion. (5 Julai, The Borneo Post) RM46mil allocation to upgrade Ranau, Tambunan roads: More than RM46 million has been allocated by the Federal government for the upgrading of roads in the villages of Pahu-Sintuong-Tuong, Tambunan for as far as 11 kilometres and Himbaan-Terelobou Road, Ranau for as far as seven kilometres. Deputy Chief Minister cum Infrastructure Development Minister Tan Sri Joseph Pairin Kitingan said the upgrading of the roads is an effort under the 10th Malaysia Plan (10MP). He was speaking to the media in Kundasang, Ranau after a day's working visit to Kundasang and Tambunan on Friday. He said the upgrading of the roads would make life easier for local residents in relation to the nearby town centre, especially in improving the socioeconomic sectors of tourism, agriculture and so on. (28 July, Daily Express) Dua stesen janakuasa di Sabah beroperasi suku pertama tahun depan: Projek pembinaan dua buah stesen janakuasa bebas (IPP) di sini dijangka siap tidak lama lagi dan bakal beroperasi selewat-lewatnya Mac ini bagi menjana kapasiti elektrik lebih stabil kepada penduduk di Sabah. Menteri Tenaga, Teknologi Hijau dan Air, Datuk Seri Dr. Maximus Ongkili berkata, dua stesen janakuasa tersebut iaitu Stesen Janakuasa Kimanis Power akan membekalkan tenaga elektrik sebanyak 385 MegaWatt (MW) dan Stesen Janakuasa SPR Energy sejumlah 100MW secara berperingkat-peringkat. Katanya, tambahan kapasiti dari dua buah stesen tersebut akan menjadikan kapasiti penjanaan di seluruh Sabah dan Wilayah Persekutuan Labuan meningkat kepada 1,596.71MW, sekali gus mengurangkan masalah gangguan bekalan elektrik. (27 Julai, Utusan Malaysia) Perolehan koperasi meningkat: Gerakan koperasi di Sabah mencatat prestasi memberangsangkan dengan jumlah perolehannya sehingga 31 Mei lalu meningkat sebanyak 19 peratus iaitu RM279 juta, berbanding hanya RM235.7 juta bagi tempoh 1 – 31 July 2013 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 3 SELECTED FACTS AND FIGURES FAKTA MUTAKHIR SINGAPORE’S EXTERNAL TRADE – JUNE 2013 (Source: 17 July, Singapore Department of Statistics) TABLE 1: CONSUMER PRICE INDEX FOR MAIN GROUPS, MALAYSIA (2010=100) Index Group % Change Wt. Jun 2012 May 2013 Jun 2013 TOTAL 100.0 104.8 106.6 106.7 104.6 106.3 0.1 1.8 1.6 Food & Non-Alcoholic Beverages 30.3 107.7 110.8 111.2 107.0 110.5 0.4 3.2 3.3 Alcoholic Beverages & Tobacco 2.2 104.7 106.7 109.1 104.6 107.1 2.2 4.2 2.4 Clothing and Footwear 3.4 99.2 98.8 98.6 99.5 98.8 -0.2 -0.6 -0.7 Housing, Water, Electricity, Gas & Other Fuels 22.6 103.2 105.3 105.3 103.0 104.6 0.0 2.0 1.6 Furnishings, Household Equip. & Routine Household Maintenance 4.1 103.8 105.3 105.5 103.5 105.2 0.2 1.6 1.6 Health 1.3 104.6 106.8 106.6 104.3 106.4 -0.2 1.9 2.0 Transport 14.9 105.0 105.7 105.3 105.0 105.6 -0.4 0.3 0.6 Communication 5.7 99.1 98.5 98.4 99.3 98.6 -0.1 -0.7 -0.7 Recreation Services & Culture 4.6 103.2 103.0 103.0 103.2 103.1 0.0 -0.2 -0.1 Education 1.4 104.7 107.2 107.3 104.6 106.9 0.1 2.5 2.2 Restaurants and Hotels 3.2 109.0 111.3 111.4 108.5 110.9 0.1 2.2 2.2 Miscellaneous Goods & Services 6.3 104.1 104.3 104.1 104.0 104.9 -0.2 0.0 0.9 Non-Food 69.7 103.5 104.8 104.7 103.6 104.5 -0.1 1.2 0.9 Durable Goods 6.5 100.1 98.3 98.2 100.5 99.1 -0.1 -1.9 -1.4 Semi-Durable Goods 4.4 100.1 99.7 99.5 100.3 99.7 -0.2 -0.6 -0.6 Non-Durable Goods 41.6 106.0 108.0 108.1 105.7 107.8 0.1 2.0 2.0 Services 47.5 104.9 107.1 107.2 104.6 106.6 0.1 2.2 1.9 Jan - Jun Jan - Jun Jun 2013/ Jun 2013/ 2012 2013 May 2013 Jun 2012 (Source:19 July, Department of Statistics Malaysia) CONSUMER PRICE INDEX, AUSTRALIA, JUNE 2013 1 – 31 July 2013 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 4 Jan - Jun 2013/2012 Weighted average of eight capital cities Mar Qtr 2013 to Jun Qtr 2013 % change Jun Qtr 2012 to Jun Qtr 2013 % change 0.4 0.1 1.3 2.7 0.6 1.0 1.9 -0.9 0.4 -0.8 -0.1 0.3 2.4 1.1 4.0 -0.3 5.3 0.1 6.6 -0.5 2.2 -0.1 5.7 2.7 0.5 0.5 0.7 2.3 2.2 2.6 All groups CPI Food and non-alcoholic beverages Alcohol and tobacco Clothing and footwear Housing Furnishings, household equipment and services Health Transport Communication Recreation and culture Education Insurance and financial services CPI analytical series All groups CPI, seasonally adjusted Trimmed mean Weighted median (Source: 24 July, Australian Bureau of Statistics) INDUSTRIAL PRODUCTION INDEX, MALAYSIA Sector Seasonally adjusted index Index % changes Month-on-Month 115.9 -0.2 90.7 2.9 126.4 -1.1 135.9 -1.0 IPI Mining index Manufacturing index Electricity index Original index % changes Year-on-Year 117.0 3.4 89.2 4.1 128.0 3.1 142.4 4.8 Index (Source: 11 July, Department of Statistics Malaysia) DECREASE IN SALES VALUE OF MANUFACTURING INDUSTRIES (Percentage change from corresponding month of preceding year) Industries Sales value (RM million) Manufacture of refined petroleum products Manufacture of computer and computer peripherals Manufacture of basic iron and steel products Manufacture of other basic industries chemicals except fertilizers and nitrogen compounds Manufacture of semi-conductor devices Decrease May, 2012 May, 2013 (RM million) % 12,850.5 11,259.2 1,591.3 12.4 2,538.2 2,079.9 458.3 18.1 2,213.8 1,824.4 389.4 17.6 2,433.7 2,154.5 279.2 11.5 4,110.4 3,972.6 137.8 3.4 (Source: 11 July, Department of Statistics Malaysia) 1 – 31 July 2013 MONTHLY NEWS SCAN (Tinjauan Berita Bulanan) 5