mwb vol 279

TPP Ministerial Meeting in SingaporeThe TPP Ministerial Meeting was held from 22-25 February 2014 in Singapore. The meeting was preceded by technical level discussions at the chief negotiators level on the various outstanding issues. The aim of the Ministerial meeting was to consider the possible options and explore compromises on the outstanding issues from the December 2013 meeting.

The intensive four-day meeting focused on market access and text. Ministers made progress on a number of outstanding

Ministry of International Trade and Industry, February 25, 2014

issues but significant gaps remain in the more difficult areas such as IPR, state owned enterprises and environment. In these areas, Ministers decided on options for negotiators to work on to find the appropriate compromises.

In the area of market access, Ministers exchanged information on the state of play in the various bilateral negotiations. This is an important area which remains outstanding. Ministers discussed the viable options in moving forward negotiations in the area of market access, and further bilateral negotiations would continue.

Malaysia continued to seek flexibility and carve outs to deal with our areas of concerns such as government procurement, environment, labour, intellectual property rights and state owned enterprises.

In the area of goods market access, Malaysia is prepared to undertake comprehensive commitments, but this would depend on the overall balance of the negotiations. Malaysia has thus far made good progress in the bilateral discussions on market access.

On tobacco, Malaysian officials convened informal consultations with officials from a number of countries to pursue an exception from the TPP for tobacco and tobacco products.

Overall, there is still a lot of work that remains to be undertaken by the negotiators. Negotiators will be consulting on a suitable timetable to continue work with a view to find a solution to the remaining issues.

Malaysia will continue to undertake domestic engagement with various stakeholders to share with them the outcome of the Singapore meeting and the way forward.

No. ISSN: 2180-0448

MITI Weekly Bulletin/ www.miti.gov.my

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Source : Department of Statistics, Malaysia

MALAYSIA

Trade in Services, Q1 2012 - Q4 2013

26.7 28.6 30.1 31.6 29.8 30.5 31.333.8

31.8 33.0 32.4 33.8 33.2 34.2 35.6 37.6

58.661.6 62.5

65.463.0 64.7

66.871.4

10.0

30.0

50.0

70.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2012 2013

RM billion

Export Import Total Trade


Trade in Services, 2013

Note : * year-on-year growth

MITI Weekly Bulletin/www.miti.gov.my

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14.0

15.2

16.317.1

16.1 16.515.8

17.7

3.4 3.3 3.5 3.5 3.3 3.4 3.7 3.9

1.9 2.4 2.1 2.3 2.1 2.3 2.1 2.3

1.01.0 1.0 1.0 0.9 0.7 0.8 1.1

6.5 6.67.2

7.7 7.4 7.6

8.8 8.8

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2012 2013

RM billion

Travel Transport Telecommunications, computer and information services Construction Other Services

Export of Services, Q1 2012 - Q4 2013

Import of Services, Q1 2012 - Q4 2013

10.110.8 10.6

10.2 10.211.0

11.7 11.9

8.58.8 8.8

9.5 9.2 9.2 9.310.0

1.9 2.3 1.9 2.4 2.2 2.4 2.6 2.9

1.8 2.01.6 1.8

1.41.8

2.3 2.5

9.69.1

9.4 9.9 10.19.8 9.7

10.4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2012 2013

RM billion

Transport Travel Telecommunications, computer and information services Construction Other Services

Other Services, Q4 2013I n s u r a n c e and pension services

559

Maintenance and repair services n.i.e.

242

F i n a n c i a l services 186

P e r s o n a l , cultural and recreat iona l services

170

Government goods and services n.i.e.

53

Charges for the use of i n t e l l e c t u a l property n.i.e.

35

Other business services 7,539

Other Services, Q4 2013Charges for the use of i n t e l l e c t u a l property n.i.e.

1,108

P e r s o n a l , cultural and recreat iona l services

828

I n s u r a n c e and pension services

807

F i n a n c i a l services 302

"Maintenance and repair services n.i.e. "

210

Government goods and services n.i.e.

180

Other business services 6,927


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Foreign Direct Investment, 2004-2013


Export of Badminton Racquets, 2008 - 2013


RM billion

13.2

17.9

20.2

33.4

23.9

5.1

29.2

37.3

31.1

38.8

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Note: HS code 950659000 - Badminton or similar raquets wheter or not strung

748.1

654.2

364.1389.2

275.6

681.0

100

200

300

400

500

600

700

800

900

1,000

2008 2009 2010 2011 2012 2013

RM thousand

Top 3 Export Sources, 2013

PRCRM370,660

Australia RM103,258

Sri Lanka RM52,909

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Import of Badminton Racquets, 2008 - 2013

Malaysia Singapore Philippines Thailand Indonesia Vietnam

Population (mil) 29.9 5.4 105.7 67.5 251.2 92.5

Inflation Rate (%) 2.1 2.4 4.1 2.2 0.61 6.6Unemployment Rate (%) 3.41 1.9 6.52 0.84 5.9e 4.5

GDP in Current Prices (US$ bil) 312.4 316.0e 272.2e 400.9e 418.2e 170.0e

Total Trade (US$ bil) 434.5 783.3 105.8 479.3 369.2 240.43

Exports (US$ bil) 228.4 410.3 49.4 228.5 182.6 120.6

Import (US$ bil) 206.0 373.0 56.4 250.7 186.6 119.8

ASEAN 6Key Economic Indicators, 2013

Source : International Monetary Fund, Country National Statistics, Country Central Bank

Source : Department of Statistics, MalaysiaNote: HS code 950659000 - Badminton or similar raquets wheter or not strung

2,859.2

3,679.4

4,435.9

2,370.8

1,582.8

2,187.9

1,000

2,000

3,000

4,000

5,000

2008 2009 2010 2011 2012 2013

RM thousand

Hong Kong SARRM1,629,201

France RM255,868

ROKRM160,827

Top 3 Import Sources, 2013

Notes: e - estimate 1 - as at December 2013 2 - as at October 2013 3 - January to November 2013 4 - as at Q3 2013

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Source : http://www.exchange-rates.org

Source : http://www.gold.org/investments/statistics/gold_price_chart/

18

20

22

24

26

28

30

35

36

37

38

39

40

41

42

43

6 dec 13 dec 20 dec 27 dec 3 jan 10 jan 17 jan 24 jan 30 jan 7 feb 14 feb 21 feb

gold/usd/grammesilver /usd/oz

US$/ozUS$/gramme

0

5000

10000

15000

20000

Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14

Aluminum Copper Nickel

Aluminium, Nickel, Copper Prices, January 2013 - February 2014

Gold and Silver Prices, 6 December - 21 February 2014

Select Currencies Performance Against USD year-to-date

5.0%

3.3%

1.8%1.4%

1.0%0.7% 0.5% 0.4% 0.2% -1.8% -3.6%

Peso Won AUD NZD Euro S'poreDollar

Rupee SwissFranc

Rupiah

Ringgit Yen

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Source: Ministry of International Trade and Industry, Malaysia

AANZFTA AIFTA AJCEP ATIGA ACFTA AKFTA

29 Dec 2013 772 438 185 3,572 1,304 679

5 Jan 2014 762 326 218 3,738 1,205 395

12 Jan 2014 1,075 345 224 4,639 1,367 897

19 Jan 2014 507 456 613 2,872 766 613

26 Jan 2014 1,122 466 247 4,749 976 1,020

2 Feb 2014 787 416 189 3,290 912 780

9 Feb 2014 611 421 223 3,158 1,113 796

16 Feb 2014 704 474 246 4,101 1,519 736

Number of CertificatesValue of Preferential Certificates of Origin

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)

AANZFTA: ASEAN-Australia-New Zealand Free Trade Agreement (Implemented since 1 January 2010)AIFTA: ASEAN-India Free Trade Agreement (Implemented since 1 January 2010)

ATIGA: ASEAN Trade in Goods Agreement (Implemented since 1 May 2010)

Value of Preferential Certificates of Origin

Number of Certificates

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)

MJEPA MPCEPA GSP

29 Dec 2013 674 140 2,599

5 Jan 2014 697 121 1,140 110 89 174 107 152 131

12 Jan 2014 901 175 110

19 Jan 2014 830 109 89

26 Jan 2014 1,008 149 174 107 152 131

2 Feb 2014 796 143 107 152 131

9 Feb 2014 821 185 152

16 Feb 2014 815 150 131

Number of Certificates

Notes: The preference giving countries under the GSP scheme are members of the European Union, Norway, Switzerland, Belarus, the Russian Federation and Turkey.

MJEPA: Malaysia-Japan Economic Partnership Agreement (Implemented since 13 July 2006)

MPCEPA: Malaysia-Pakistan Closer Economic Partnership Agreement (Implemented since 1 January 2008)



MAFTA: Malaysia-Australia Free Trade Agreement (Implemented since 1 January 2013)

MICECA MNZFTA MCFTA MAFTA

29 Dec 2013 220 9 46 3695 Jan 2014 213 5 33 356

12 Jan 2014 244 16 46 36419 Jan 2014 181 4 27 18526 Jan 2014 273 13 49 4312 Feb 2014 262 2 47 2269 Feb 2014 216 7 44 275

16 Feb 2014 222 2 65 240

29 Dec 5 Jan 12 Jan 19 Jan 26 Jan 2 Feb 9 Feb 16 FebAANZFTA 62 62 95 49 110 74 51 60AIFTA 77 80 79 91 137 102 120 105AJCEP 47 82 84 33 91 116 60 115

0

20

40

60

80

100

120

140

160

RM

mill

ion

29 Dec 5 Jan 12 Jan 19 Jan 26 Jan 2 Feb 9 Feb 16 FebATIGA 481 598 905 2,062 772 523 506 590ACFTA 743 2,125 1,321 1,688 419 8,835 343 830AKFTA 124 1,355 531 96 573 161 933 724

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

RM

mil

iio

n

29 Dec 5 Jan 12 Jan 19 Jan 26 Jan 2 Feb 9 Feb 16 FebMICECA 38.28 18.21 58.08 45.91 46.49 34.87 84.72 64.67MNZFTA 0.15 0.03 0.63 0.14 0.23 0.01 0.15 0.03MCFTA 6.04 5.13 7.64 4.45 6.42 5.37 7.87 8.06MAFTA 31.12 39.29 36.56 13.28 439.55 18.86 24.84 13.45

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

RM

mill

ion

29 Dec 5 Jan 12 Jan 19 Jan 26 Jan 2 Feb 9 Feb 16 FebMJEPA 98 132 153 115 558 135 145 125MPCEPA 11 35 69 24 268 49 147 41GSP 287 153 31 18 25 18 27 36

0

100

200

300

400

500

600

RM

mil

lio

n

Number and Value of Preferential Certificates of Origin (PCOs)“D

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Commodity 21 Feb 2014 (US$)

% Change* 2013i 2012i 2011i

Crude Petroleum (per bbl) 103.0 3.0 88.1-108.6 77.7-109.5 80.3-112.7

Crude Palm Oil (per MT) 906.0 4.3 805.5 1,000.4 1,124.0

Raw Sugar (per MT) 353.5 3.1 361.6 473.8 647.0

Rubber SMR 20 (per MT) 1,981.5 1.6 2,390.8 952.5 1,348.3

Cocoa SMC (per MT) 2,658.0 unchanged 1,933.1 2,128.9 2,644.8

Srap Iron HMS (per MT) 395.0 (High) 385.0 (Low)

unchangedunchanged 485.6 444.7 491.0

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

Highest & Lowest Prices, 2013/2014

Crude Petroleum (21 Feb 2014)

US$103.0 per bblCrude Palm Oil(21 Feb 2014)

US$906.0 per MT

Lowest (US$ per bbl)

10 Jan 2014: 92.319 Apr 2013: 88.1

Highest(US$ per bbl)

21 Feb 2014: 103.0 Sep 2013: 110.2

Highest(US$ per MT)

21 Feb 2014: 895.0 15 Nov 2013: 925.0

Lowest (US$ per MT)

30 Jan 2014: 855.0 4 Jan 2013: 800.0

21 Feb 2014 domestic prices for :1.Billets (per MT) : RM1,700 – RM1,750 2.Steel bars (per MT) : RM2,100 - RM2,250

6 Dec 13 Dec 20 Dec 27 Dec 3 Jan 10 Jan 17 Jan 24 Jan 30 Jan 7 Feb 14 Feb 21 FebCrude Petroleum/bbl 97.4 97.5 99.2 99.4 94.2 92.3 94.2 97.3 96.7 97.6 100.2 103.2SMR 20/MT 2331.0 2359.5 2324.5 2,316.0 2,238.0 2,204.0 2,197.0 2,147.0 1,932.0 1,864.0 1,949.5 1,981.5Cocoa SMC 2/MT 2,444 2,427 2,392 2,532.3 2,411.3 2,466.6 2,490.5 2,490.5 2,649.6 2,658.0 2,658.0 2,658.0Crude Palm Oil/MT 915.0 924.5 897.0 897.0 895.0 876.9 858.5 856.5 855.0 860.5 869.0 906.0Scrap Iron/MT 400.0 400.0 400.0 415.0 415.0 410.0 410.0 410.0 395.0 395.0 395.0 395.0Raw Sugar/MT 352.3 357.5 352.3 352.8 351.5 342.5 332.5 323.8 323.0 346.5 342.8 353.5Iron Ore/MT 170.0 170.0 170.0 170.0 170.0 170.0 170.0 170.0 160.0 160.0 160.0 160.0

Crude Petroleum

Crude Palm Oil

SMR 20

Cocoa SMC 2

Scrap Iron

Raw Sugar

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

86.0

88.0

90.0

92.0

94.0

96.0

98.0

100.0

102.0

104.0

US

$/M

TUS

$/b

bl

Iron Ore

Commodity Price Trend, 6 December 2013 - 21 February 2014

Weekly Commodity Price

Source : 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

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Local Automotive News

The government is yet to receive any application from carmakers for the energy efficient vehicles (EEV) incentives as announced in the National Automotive Policy (NAP) 2014, as carmakers are still working on their proposal papers.

Malaysian Automotive Institute (MAI) CEO Madani Sahari said carmakers need to submit a viable plan since the incentives for EEV duty exemptions will be customised accordingly to carmakers who are interested to participate in the programme. "They (carmakers) are discussing with their management and we're waiting for them to submit their proposals. Nobody has submitted so far but many discussions have been ongoing with many original equipment manufacturers (OEM) because they want to understand what kind of proposal (to submit), what are the categories and more," he told reporters at the signing of a memorandum of understanding (MoU) between MAI and Perodua here yesterday. Describing it as "work in progress", he said the government is waiting for the proposals from the OEMs, as many have the intention to expand.

"All of them are now working on the proposal papers now," he said.

Madani said previously in the normal context, the government provides incentives such as tax holiday or pioneer status, but carmakers may have different requests now, which the government will also consider.

NAP 2014 mentioned that the customised incentives include a mix of lower taxes, grants and other incentives. On the issue of the approved permits (AP), Madani said the government has started talking to stakeholders and is currently studying the matter.

During the NAP 2014 announcement last month, the government decided that an in-depth study will be undertaken to assess the impact of the termination of the open AP by Dec 31, 2015 and franchise AP by Dec 31, 2020. Earlier at the event, MAI and Perodua formed a partnership on the development programme for Perodua's vendors and dealers. It was witnessed by International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

Perodua will provide an initial fund of RM260 million for auto vendors and dealers, while MAI will evaluate the business proposals by these parties to determine whether the vendors are worthy of receiving funds. The funds allocated will be over five years. This financing facility is designed to help local auto vendors in terms of improving operational efficiency by way of technology, cost management and boost productivity to global standards.The MoU was signed between MAI and Perodua Manufacturing Sdn Bhd for the vendors development programme as well as with Perodua Sales Sdn Bhd for dealers development programme.

Mustapa said this collaboration will build capabilities of Malaysian vendors to export components overseas and will support Malaysia in its aim to be an EEV hub.

Goverment Yet to Receive Application for EEV Incentives

Source : Malaysia Automotive Institute

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Success StoryTeras Intergrasi Sdn. Bhd.

Teras Integrasi Sdn Bhd is a success story in a niche industry. It is a Bumiputera company, established in 2001 by a group of qualified and experienced personnel from truck scales business and the background covers weighing engineering and information technology. The company was formed to address what the group felt was a need to improve the quality of products and services in industrial weighing systems. The core business is mainly in providing technical expertise and supplying high quality and traceability weighing system which includes truck scale systems, industrial weighing system, laboratory & analytical balances, automated process weighing system and customized weighing software solutions. Their customers come from various fields such as Palm Oil Mills, Paper Mills, Steel Mills, and industries such as Oil & Gas, Manufacturing, Quarry, and Construction. Truck scales are available with steel deck and concrete deck weighbridges designed for applications that range from light commercial to extreme heavy duty with the latest weighing technologies. In its formative years the company faced the heavy task of overcoming the problems of being an unknown player in the market. Lack of customer confidence was a big obstacle. However the presence of experienced technical staff helped to gradually win over the doubters. A year later in 2002 they got their initial breakthrough when they won a contract with a GLC.

Mohamad Zulkiflee Bin ArshadManaging Director

Source : SME Bank

With the momentum generated the company was able to achieve rapid growth. They graduated from being a General Dealer for Switzerland-based industry giant Mettler-Toledo to an Authorised Dealer in 2005. Mettler-Toledo which is the world’s largest manufacturer of industrial scales and analytical instruments was so sufficiently impressed by the company’s fast-rising performance that by 2007 they had granted them the status of Master Dealer. The company was able to gear itself up for its big push for Master Dealer status in 2006 when they obtained their loan from SME Bank. The incoming funds allowed them to ramp up their sales and marketing operations, which resulted in great growth in sales and ultimately secured the coveted Master Dealer status. Today, the company that operates out of its headquarters in Putra Heights in Subang, Selangor is viewed as a successful Bumiputra company that is able to provide industrial scale products of international quality, claiming a total of more than 500 units built around Malaysia and South East Asia. The combination of skilled staff, high quality products and unstinting support from its principals has given Teras Integrasi Sdn Bhd the confidence to look to the future with optimism, and the company is currently planning for further diversification of their product range as well as expansion into the South East Asian markets.

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Outcome-Based Budgeting (OBB) Validation Workshop18 - 21 February 2014

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mwb vol 279

Documents

area of market access

singapore meeting

day meeting

area of goods market

0q1 q2 q3 q4 q1 q2 q3

8q1 q2 q3 q4 q1 q2 q3

various outstanding

import of services