mwb vol 304

Public and Private Sectors Commitment Necessary To Improve Malaysia’s Competitiveness

Enhancing Malaysia’s competitiveness requires concerted efforts and commitment from both the public and private sectors, says International Trade and Industry Minister Dato’ Sri Mustapa Mohamed. He said the existing strong public-private sector collaboration would be intensified to ensure the momentum to achieve a developed nation status remained high.

The minister also said the government would ensure the successful implementation of the National Transformation Policy which encompassed the economic and government transformation programmes.“This commitment does not only serve to facilitate the ease-of-doing business but also encourage the private sector to step up efforts to invest in technology and pursue innovation continuously,” he said in a statement.

Malaysia continues its upward trend making it among the top 20 most competitive economies. The Global Competitiveness Report (GCR) 2014-2015 of the World Economic Forum ranked Malaysia 20th out of 144 economies compared with its 24th

position out of 148 countries recorded previously. With an enhanced competitiveness performance, Malaysia (20th) was ahead of developed economies such as Austria (21st), Australia (22nd), France (23rd), Ireland (25th) and South Korea (26th).

Among Asia-Pacific countries, Malaysia improved to sixth position out of 28 countries from seventh in 2013 after Singapore, Japan, Hong Kong, Taiwan and New Zealand. The GCR is an annual report published by the World Economic Forum based on the Global Competitiveness Index that integrates both macro and micro economic aspects of competitiveness.

It uses 70 per cent perception data obtained through the Executive Opinion Survey from high level private sector executives and 30 per cent statistical data. Elsewhere, Malaysia ranked an outstanding fourth in the Financial Market Development pillar, reflecting its efforts to position itself as the leading center of global Islamic finance.

Despite the positive trend in Malaysia’s competitive performance, Mustapa said the ministry and its agency, Malaysia Productivity Corporation, would continue their leading roles in coordinating efforts to enhance Malaysia’s competitiveness.

“This would include the indicators in the Global Competitiveness Report and other similar reports as baseline information for competitiveness strategy formulation,” he said.

Source: Bernama, 4 September 2014

MITI in the news

“Malaysia is on a journey. The destination is clear: high-income nation, advanced economy status. Just like any journey, there may be some bumps along the way. We may need to adjust our course to avoid roadblocks. But the important thing is our destination remains the same. “

NajibRazak.com

MITI Weekly Bulletin/ www.miti.gov.my

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MITI Begins Investigation on Anti-dumping on Import of Steel Bar From China and South Korea

Source : Ministry of International Trade and Industry, 6 August 2014

The Ministry of International Trade and Industry (MITI) today said it has decided to initiate a preliminary investigation on imports of steel concrete reinforcing bar in straight length form originating from China and South Korea.

In a statement today, MITI said it had received a petition from a domestic producer for the imposition of anti-dumping duty on imports of the steel products.

“The petitioner alleges that imports of steel concrete reinforcing bar in straight length form originating from China and South Korea are being dumped into Malaysia at a price much lower than the price in the domestic market of the alleged countries, and this is causing material injury to the local market in Malaysia,” MITI said.

The petitioner further claims that imports from the alleged countries have increased in absolute terms.

As a result, the petitioner had suffered material injury, among others, increase in import volume, price undercutting, price depression, price suppression, reduction in employment and wages, loss of profit and return on investment.

MITI said in accordance with the Countervailing and Anti-Dumping Duties Act 1993 and its related Regulations, a preliminary determination would be made within 120 days from the date of the initiation.

“If the final determination is affirmative, the Government may impose an anti-dumping duty at the rate that is necessary to prevent further injury,” MITI added.

MALAYSIATrade Performance, January-July 2013 and January-July 2014

10.7%*

5.8%*

Jan-Jul 2014

Jan-Jul 2013Exports Imports

RM

398.

5 bi

l.R

M44

1.3

bil.

RM37

1.1

bil.

RM

392.

8 bi

l.

40

45

50

55

60

65

70

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

2013 2014

Exports

Imports

61.1

57.5

RM billion

Note: * y-o-y growthSource : Department of Statistics, Malaysia


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Exports Imports

0 20 40 60 80 100 120 140 160

E&E

Petroleum Products

LNG

Chemicals & Chemical Products

Palm Oil

144.0

43.1

37.0

29.3

27.0

130.2

34.9

33.3

27.5

25.6

Jan - Jul 2014Jan - Jul 2013

0 20 40 60 80 100 120

E&E

Petroleum Products

Chemicals & Chemical Products

Machinery, appliances & parts

Transport Equipment

104.8

49.0

36.3

33.2

22.6

101.4

40.7

31.7

31.2

23.1

Jan - Jul 2014Jan - Jul 2013

Top Five Products, January-July 2013 and January-July 2014

RM billion RM billion

Source : Department of Statistics, Malaysia

Top Five Trading Partners, January-July 2014

0

20

40

60

80

100

120

140

0 1 2 3 4 5 6 7 8 9 10

Notes : 1. Figure in parentheses refers to the value of Malaysia’s trade with these five countries for the period of January-July 2014; and percentage change y-o-y. 2.The size of bubbles reflects the share of Malaysia’s trade with these countries in January-July 2014.

PRC(RM117.0 bil., 5.9%)

14.0%13.6%

9.6%

5.5%

8.0%

Japan(RM80.3 bil., 2.0%)

Thailand(RM46.1 bil., 3.4%)

Singapore(RM113.5 bil., 7.9%)

USA(RM66.8 bil., 7.4%)R

M b

illio

n

Growth (%)

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MITI Weekly Bulletin/www.miti.gov.my

Source: http://populationpyramid.net

Population Pyramid of the Selected Countries, 2020Malaysia: 32.9 million PRC: 1,432.9 million Singapore: 6.1 million

Age Age Age

World Population, 20207, 716.7 million

Brazil: 211.1million South Africa: 55.1 million India: 1,353.3 millionAge Age Age

Japan: 125.4 millionAge

USA: 338.0 million Germany: 81.9 millionAge Age

Note: Estimated figures


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

Silver

Gold

US$/MT

US$/grammeUS$/oz

Source : http://econ.worldbank.org-

Malaysian Ringgit Exchange Rate with US Dollar and Euro January 2013-August 2014

Gold and Silver Prices, 3 January-29 August 2014

Aluminium, Nickel and Copper Prices, January 2013-August 2014

0

5000

10000

15000

20000

25000

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 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14

Aluminium Copper Nickel

US$18,600

US$7,002

US$2,030

18

20

22

24

26

28

30

35

36

37

38

39

40

41

42

43

44

45

3 Jan 10 Jan 17 Jan 24 Jan 30 Jan 7 Feb 14 Feb 21 Feb 28 Feb 7 Mar 14 Mar 21 Mar 28 Mar 4 Apr 11 Apr 18 Apr 25 Apr 2 May 9 May 16 May 23 May 30 May 6 Jun 13 Jun 20 Jun 27 Jun 4 Jul 11 Jul 18 Jul 1 Aug 8 Aug 15 Aug 22 Aug 29 Aug

3.503.603.703.803.904.004.104.204.304.404.504.60

2.902.953.003.053.103.153.203.253.303.353.40

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug

2013 2014

US Dollar (USD) Euro (EUR)1 EUR = RM 4.23

1 USD = RM 3.18

Source : Bank Negara, Malaysia


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Weekly Number and Value of Preferential Certificates of Origin (PCOs)

Source: Ministry of International Trade and Industry, Malaysia

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)

Number of Certificates

Notes: The preference giving countries under the GSP scheme are Japan, Switzerland, the Russian Federation, Norway and Kazakhstan.

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



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

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

AANZFTA AIFTA AJCEP ATIGA ACFTA AKFTA

13 Jul 2014 780 552 199 4,444 1,089 806

20 Jul 2014 807 513 137 4,153 1,205 872

27 Jul 2014 796 547 226 4,115 1,418 849

3 Aug 2014 182 178 130 128 461 282

10 Aug 2014 981 552 228 4,202 1,375 697

17 Aug 2014 923 608 183 4,533 1,300 740

24 Aug 2014 921 641 211 4,797 1,541 883

31 Aug 2014 863 617 140 4,295 1,412 689

MICECA MNZFTA MCFTA MAFTA

13 Jul 2014 281 6 65 37620 Jul 2014 250 16 50 35827 Jul 2014 243 8 48 4023 Aug 2014 82 1 27 128

10 Aug 2014 310 13 67 46617 Aug 2014 305 4 44 41624 Aug 2014 345 3 84 44931 Aug 2014 323 12 66 336

MJEPA MPCEPA GSP

13 Jul 2014 843 133 13020 Jul 2014 730 127 24327 Jul 2014 705 151 1393 Aug 2014 376 30 46

10 Aug 2014 838 161 14917 Aug 2014 659 188 10924 Aug 2014 882 184 18031 Aug 2014 822 160 145

13 Jul 20 Jul 27 Jul 3 Aug 10 Aug 17 Aug 24 Aug 31 AugAANZFTA 74 67 82 35 98 101 98 89AIFTA 142 535 121 33 145 164 194 161AJCEP 81 30 93 66 88 50 70 82

0

100

200

300

400

500

600

RM m

illio

n

13 Jul 20 Jul 27 Jul 3 Aug 10 Aug 17 Aug 24 Aug 31 AugATIGA 796 646 643 10 657 4,493 9,254 9,125ACFTA 406 356 624 116 669 354 829 739AKFTA 143 598 244 213 335 138 648 312

0

2,000

4,000

6,000

8,000

10,000

12,000

RM m

iliio

n

13 Jul 20 Jul 27 Jul 3 Aug 10 Aug 17 Aug 24 Aug 31 AugMICECA 45.95 35.63 54.12 9.60 54.55 63.28 46.40 54.69MNZFTA 0.11 0.32 0.14 0.14 0.23 0.11 0.03 0.32MCFTA 12.76 6.41 6.38 2.71 8.04 7.37 14.07 8.08MAFTA 24.25 29.89 32.67 9.56 33.85 27.45 36.14 28.93

0

10

20

30

40

50

60

70

RM

mill

ion

13 Jul 20 Jul 27 Jul 3 Aug 10 Aug 17 Aug 24 Aug 31 AugMJEPA 127 131 128 455 105 108 608 384MPCEPA 21 22 43 8 37 78 24 82GSP 25 26 39 10 82 15 30 23

0

100

200

300

400

500

600

700

RM m

illio

n


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Crude Petroleum (29 August 2014)US$94.6 per bbl Crude Palm Oil

(29 August 2014)US$693.0 per MT

Lowest (US$ per bbl)

10 Jan 2014: 92.319 Apr 2013: 88.1

Highest

(US$ per bbl) 13 Jun 2014: 107.6

Sep 2013: 110.2

Highest

(US$ per MT)14 Mar 2014: 982.515 Nov 2013: 925.0

Lowest (US$ per MT)

29 Aug 2014: 693.0 4 Jan 2013: 800.0

29 August 2014 domestic prices for :1. Billets (per MT) : RM1,700 – RM1,750 2. Steel bars (per MT) : RM1,900 - RM2,050

Commodity Price Trends, 18 July-29 August 2014

Highest & Lowest Prices, 2013/2014

Commodity Prices

CommodityCrude

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)29 Aug 2014

(US$) 94.6 693.0 345.5 1,614.5 2,827.0 59.0 380.0 (high)370.0 (low)

% change* 0.1 3.8 2.4 2.0 5.1 1.8 unchangedunchanged

2013i 88.1 - 108.6 805.5 361.6 2,390.8 1,933.1 .. 485.62012i 77.7 - 109.5 1,000.4 473.8 952.5 2,128.9 .. 444.72011i 80.3 - 112.7 1,124.0 647.0 1,348.3 2,644.8 .. 491.0

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

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

Source :

18 Jul 1 Aug 8 Aug 15 Aug 22 Aug 29 Aug Rubber SMR 20/MT 1,671.5 1695.5 1660.5 1666.5 1647.5 1614.5 Cocoa SMC 2/MT 2,736.1 2,789.1 2,819.4 2,827.0 2,827.0 2,683.0 Crude Palm Oil/MT 863.7 822.0 792.0 750.0 720.0 693.0 Raw Sugar/MT 366.0 354.3 339.5 340.5 337.5 345.5

Rubber SMR 20

Cocoa SMC 2

Crude Palm Oil

Raw Sugar

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

US$

/MT

18 Jul 1 Aug 8 Aug 15 Aug 22 Aug 29 Aug Crude Petroleum/bbl 101.6 98.5 95.7 93.8 94.5 94.6 Scrap Iron/MT 380.0 380.0 380.0 380.0 380.0 380.0 Iron Ore/MT 140.0 140.0 140.0 130.0 130.0 130.0 Coal/MT 60.5 60.5 60.0 60.1 59.0 57.2

Crude Petroleum

Scrap Iron

Iron Ore

Coal

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

88.0

90.0

92.0

94.0

96.0

98.0

100.0

102.0

104.0

US$

/MTUS$

/bb

l

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US Trade in Goods and Services, July 2014

Exports$198.0 billion 0.9%

Source : MITI Washington

Imports$238.6 billion

0.7%

Trade Balance-$40.6 billion

-0.5%

Total Trade$436.6 billion 0.8%

Trade Balance

AGGREGATE MEASUREMENT OF SUPPORT (AMS)

The annual level of support expressed in monetary terms for all domestic support measures where government funds are used to subsidize farm production and incomes. Price support can be provided either through administered prices (involving transfers from consumers) or through certain types of direct payments from governments.

TOTAL AGGREGATE MEASUREMENT OF SUPPORT (TOTAL AMS)

The sum of all domestic support provided to agricultural producers. It is the total of all AMS for basic agricultural products and all AMS not aimed at a specific product.

HOW TO CALCULATE?

Price support is generally measured by multiplying the gap between the applied administered price and a specified fixed external reference price (“world market price”) by the quantity of production eligible to receive the administered price.

Example:Wheat• Intervention price for wheat = $225 per

tonne• Fixed external reference price (world market

price) = $110 per tonne• Domestic production of wheat = 2,000,000

tonneWheat AMS($225-$110) X 2,000,000 TONNES = $290,000,000

Source:www.wto.org/english/tratop_e/agric_e/ag_intro03_domestic_e.htm

AGGREGATE MEASUREMENT OF SUPPORT

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Source : MATRADE

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TEL : +609 583 3888FAX : +609 583 3022EMAIL: [email protected]: www.basisbay.com


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Name : AMIN ANISDesignation : Administrative AssistantRegional Office : SarawakJob Description : Responsible for processing

Certificate of OriginEmail : [email protected] Details : 082-257196

MITI Regional Office

Name : SHAKIRA ABDULLAHDesignation : Administrative AssistantRegional Office : SabahJob Description : Responsible for processing

Certificate of OriginEmail : [email protected] Details : 088-239061

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mwb vol 304

Documents

global competitiveness

industry miti

world economic forum

concerted efforts

coordinating efforts

developed economies

competitive economies

south koreasource