happy chinese new year, 2018 weekly bulletin... · in 2018, chinese new year is ushered in on...

1MITI Tower, No. 7, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia Tel: +603 - 8000 8000 Fax: +603 - 6202 9446

Chinese New Year, also known as the Spring Festival, is the most important cultural festival to ethnic Chinese people all over the world. Malaysia too celebrates this festival as it has been an integral part of the rich tapestry of cultural diversity in this country for over a hundred years.In 2018, Chinese New Year is ushered in on February 16, the first day of the first new moon, according to the Lunar Calendar. Chinese New Year is a public holiday here in Malaysia and it is a time for traditions to hold sway with family reunions, over-flowing food and abundant cheer at its very core. Kinfolk and friends alike, from near and far, travel across the country and even from beyond its shores, to return home to family for this 15-day celebration. The colour of red and orange - signifying good luck and wealth - are splashed across all Chinese homes in various symbols and decorative adornments, culminating in the much anticipated ang pow or red packets. In this day and age of rapid technological transformation, increasingly smarter phones and robotics, it is indeed heart-warming for me to observe that here in Malaysia, traditions and heritage are not forgotten – indeed it is celebrated through lion dances and dragon performances to the beat of clashing cymbals and heart-pounding drums. This is indeed a sight to behold and I warmly welcome all in-coming tourists and expatriates here in Malaysia during this period to immerse themselves in this festivity and experience the many Chinese New Year ‘open-houses’ that is a uniquely Malaysian feature during any and all our festivities.

I have been informed by my many Chinese friends and colleagues that according to the Chinese zodiac, this is the year of the Earth Dog. I am also told that Earth Dogs – although quiet and reserved – are very direct and straight to the point. They are very loyal to family and friends, although they can be quite difficult to live with due to their high standards and changeable moods. They abhor any sort of injustice or unfair treatment and most importantly, can be depended upon to get the job done at the work-place.

The year 2018 promises to bring even more challenges as our nation ramps up its industrial competitiveness and further reform is carried out in our trade liberalisation agenda – with the ultimate objective of not only bringing a constant stream of high quality employment to our knowledge workers but also to take entrepreneurship to greater heights. The Malaysian community’s business acumen and entrepreneurial skills have substantially strengthened our economy and will continue to do so as we work together to overcome challenges brought directly by the global disruptions especially in technology and human capital development.

MITI will continue to strengthen our engagement, outreach and communication with the business community and the Rakyat at large to ensure that Malaysia continues to be at the forefront in addressing global economic challenges and bringing the benefits home. Enhanced competitiveness and business-driven productivity will be our underlying foundation. I strongly believe that the Ministry must deliver impactful services to the rakyat, who must ‘feel’ the direct benefits of MITI’s work.

As we welcome in the new lunar year and look forward to greater prosperity for our rakyat, it is my fervent hope that the Year of the Earth Dog will take Malaysia to ever greater heights of achievement. Let us all come together as one and be proud of NegaraKu.

As the lanterns are lit and the dumplings are served, I wish everyone a very happy and prosperous Chinese New Year 2018!Gong Xi Fa Cai! Xin Nian Kuai Le!

Happy Chinese New Year, 20182018


MITI Weekly Bulletin | www.miti.gov.my

2017RM1,773.5 bil

2016RM1,485.8 bil

Exports

Total TradeTrade Summary, 2017 Trade Performance

2013 - 2017

2017RM935.4 bil

2016RM787.0 bil

Imports

2017RM838.1 bil

2016RM698.8 bil

Trade Balance

2017RM97.2 bil

2016RM88.1 bil

Exports

2017RM935.4

bil

2016RM787.0

bil

2015RM777.4

bil

2014RM765.4

bil

2013RM720.0

bil

Imports

2017RM838.1

bil

2016RM686.8

bil

2015RM695.8

bil

2014RM682.9

bil

2013RM648.7

bil

Total Trade

2017RM1,773.5

bil

2016RM1,485.8

bil

2015RM1,463.1

bil

2014RM1,448.4

bil

2013RM1,368.7

bil

71.382.5

91.6 88.197.2

0

20

40

60

80

100

2013 2014 2015 2016 2017

Source: Department of Statistics, Malaysia

Trade Balance, 2013-2017

19.4%

18.9%

19.9%

10.3%RM Billion



18.5% RM126.2 bil RM98.6 bil 28.0%

RM74.9 bil RM63.7 bil

RM88.7 bil RM80.2 bil 10.5%

Top Five Export Products, 2017

Electrical and Electronic Products

Chemicals & Chemical Products

RM343.0 bil RM287.8 bil 19.2%

Petroleum Products

Singapore

Country Year

PRC

Y-o-Y Growth2017 2016

USA

RM135.6 bil RM114.4 bil

Japan

Thailand

Export Destinations, 2017

14.6%17.5%

2016 2017

RM68.6 bil RM59.1 bil 16.1%

RM72.0 bil RM54.7 bil 31.7%

RM53.8 bil RM48.3 bil 11.5%

RM40.2 bil RM37.5 bil 7.2%

Palm Oil & Palm-Based

Agriculture products

Machinery, Equipment & Parts

Source: Department of Statistics, Malaysia

RM50.5bil RM44.1 bil

1

2

3

4

5

Top Five



International Report

Notes : * Methionine is an amino acid that can be transported into the cell via the l-type neural amino acid carrier (Ballatori, 2002). HS6D 293040Source:http://www.trademap.org/Index.aspx

Malaysia As The Largest Exporter Of Methionine*, 2016

TOP FiveExport Destinations

5

1234

PRC

Russian

Malaysia USD221.0 mil

USD90.6 mil

USD27.5 mil

USD15.5 mil

USD9.7 mil

Netherlands

Italy

1PRC

USD 80.2 Million

GermanyUSD 17.8

Million

2Viet NamUSD 16.0

Million

3

IndonesiaUSD 12.8

Million

4 NetherlandsUSD 12.7

Million

5



Note: *Provisional Data Source: Ministry of International Trade and Industry, Malaysia

0

20

40

60

80

100

120

140

0

50

100

150

200

250

300

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

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28 J

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4 Fe

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No. o

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ate

of O

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RM m

il.

Generalised System of Preferences (GSP)

Total FOB (RM mil.) Total CO

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

Number and Value of Preferential Certificates of Origin (PCOs)

0

1,000

2,000

3,000

4,000

5,000

6,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,00019

Nov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

ASEAN Trade in Goods Agreement (ATIGA)


0

500

1,000

1,500

2,000

2,500

0

200

400

600

800

1,000

1,200

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

ASEAN-China Free Trade Agreement (ACFTA)

Total CO Total FOB (RM mil.)

0

200

400

600

800

1,000

1,200

0

100

200

300

400

500

600

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

ASEAN-Korea Free Trade Agreement (AKFTA)


0

50

100

150

200

250

300

350

400

0

20

40

60

80

100

120

140

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

ASEAN-Japan Comprehensive Economic Partnership (AJCEP)


0

100

200

300

400

500

600

700

800

900

1,000

0

100

200

300

400

500

600

700

800

900

1,000

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

ASEAN-India Free Trade Agreement (AIFTA)


0

200

400

600

800

1,000

1,200

1,400

1,600

0

50

100

150

200

250

300

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)




Number and Value of Preferential Certificates of Origin (PCOs)

0

200

400

600

800

1,000

1,200

0

20

40

60

80

100

120

140

160

180

200

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-Japan Economic Partnership (MJEPA)


0

50

100

150

200

250

0

10

20

30

40

50

60

70

80

90

100

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-Pakistan Closer Economic Partnership (MPCEPA)


0

2

4

6

8

10

12

14

16

18

0.00

0.10

0.20

0.30

0.40

0.50

0.60

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-New Zealand Free Trade Agreement (MNZFTA)


0

20

40

60

80

100

120

0

5

10

15

20

25

30

35

40

45

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-Chile Free Trade Agreement (MCFTA)


0

50

100

150

200

250

300

350

400

450

500

0

50

100

150

200

250

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA)


0

100

200

300

400

500

600

700

0

10

20

30

40

50

60

70

80

90

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-Australia Free Trade Agreement (MAFTA)


0

50

100

150

200

250

300

350

0

50

100

150

200

250

300

350

19 N

ov

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

n

14 J

an

21 J

an

28 J

an

4 Fe

b

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-Turkey Free Trade Agreement (MTFTA)


Note: *Provisional Data Source: Ministry of International Trade and Industry, Malaysia



Source : Bank Negara, Malaysia

Malaysian Ringgit Exchange Rate with Selected Countries,January 2017 - January 2018

US Dollar

Euro

South Korean Won

Pound Sterling

Australian Dollar

Brunei Dollar

4.4596

3.9578

3.70

3.80

3.90

4.00

4.10

4.20

4.30

4.40

4.50

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

2017 2018

RM

USD 1 = RM

4.7389

5.0606

4.8189

4.50

4.60

4.70

4.80

4.90

5.00

5.10


2017 2018

RM

EUR 1 = RM

0.3778

0.3915

0.3712

0.36

0.37

0.37

0.38

0.38

0.39

0.39

0.40


2017 2018

RM

KRW 100 = RM

5.4963

5.6062

5.4557

5.35

5.40

5.45

5.50

5.55

5.60

5.65


2017 2018RM

GBP 1 = RM

3.3241

3.4124

3.1427

2.95

3.00

3.05

3.10

3.15

3.20

3.25

3.30

3.35

3.40

3.45


2017 2018

RM

AUD 1 = RM

3.1214

3.1583

2.9736

2.85

2.90

2.95

3.00

3.05

3.10

3.15

3.20


2017 2018

RM

BND 1 = RM



Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Iron and Steel Industry Federation, and Bloomberg.

Commodity Prices

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

CRUDE PETROLEUM (BRENT)-per bbl-

9 Feb 2018 : US$62.8, 8.4%*Average Pricei : 2017: US$55.0 2016: US$45.3

CRUDE PALM OIL-per MT-

9 Feb 2018 : US$656.0, 2.2%*Average Pricei : 2017: US$719.7 2016: US$702.2

RUBBER SMR 20-per MT-

9 Feb 2018 : US$1,437.5, 4.0%*Average Pricei : 2017: US$1,646.6 2016: US$1,394.5

COAL -per MT-9 Feb 2018 : US$64.6, 0.4%Average Pricei : 2017: US$57.2 2016: US$45.6

COCOA SMC 2-per MT-

9 Feb 2018 : US$1,371.1, 2.2%*Average Pricei : 2017: US$1,439.0 2016: US$1,609.8

SCRAP IRON HMS-per MT-

9 Feb 2018 : US$390.0 (high), unchanged US$370.0 (low), unchangedAverage Pricei : 2017: US$314.5 2016: US$243.2

HIGHEST and LOWEST 2017/2018

Highest 26 Jan 2018 : US$70.5 29 Dec 2017 : US$66.9

Lowest

9 Feb 2018 : US$62.8

23 June 2017 : US$45.5

Crude Petroleum

(Brent)-per bbl-

Highest 12 Jan 2018 : US$687.5 20 Jan 2017 : US$843.0

Lowest

30 June 2017 : US$650.0 9 Feb 2018 : US$656.0

Crude Palm Oil -per MT-

Domestic Prices9 Feb 2018

Steel Bars(per MT)

RM2,600 – RM2,750

Billets(per MT)

RM2,300 – RM2,400

SUGAR -per lbs-9 Feb 2018 : US¢ 13.6, 0.6%*Average Pricei : 2017: US¢15.8 2016: US¢18.2



Commodity Price Trends

Sources: Ministry of International Trade and Industry Malaysia, Malaysian Palm Oil Board, Malaysian Rubber Board, Malaysian Cocoa Board, Malaysian Pepper Board, Bloomberg and Czarnikow Group, World Bank, World Gold Council, The Wall Street Journal.

714.0

692.5 693.0

676.5

661.0656.7

675.6

687.5

678.0

666.0

671.0

656.0

620

630

640

650

660

670

680

690

700

710

720

24 Nov 30 Nov 8 Dec 15 Dec 22 Dec 29 Dec 5 Jan 12 Jan 19 Jan 26 Jan 2 Feb 9 Feb

US$

/mt

Crude Palm Oil

1,517.2

1,443.6

1,259.8

1,320.6

1,320.11,329.4

1,301.8

1,334.8

1,384.51,367.7

1,401.6

1,371.1

1,200

1,250

1,300

1,350

1,400

1,450

1,500

1,550


US$

/mt

Cocoa

15.5

15.0

14.1

13.7

14.6

15.215.1

14.2

13.313.4

13.613.6

12.0

12.5

13.0

13.5

14.0

14.5

15.0

15.5

16.0


US¢

/lbs

Sugar

1,428.0

1,397.0

1,416.5

1,462.0

1,425.5

1,452.5 1,456.0

1,523.51,536.5

1,547.0

1,497.0

1,437.5

1,300

1,350

1,400

1,450

1,500

1,550

1,600

24 Nov 30 Nov 8 Dec 15 Dec 22 Dec 29 Dec 5 Jan 12 Jan 19 Jan 26 Jan 2 Feb 9 FebU

S$/m

t

Rubber SMR 20

6,90

0 7,08

8

7,11

3 7,28

1

6,91

7

6,85

1

6,73

0

6,33

7

6,08

5

5,96

5

4,51

6

3,98

4

4,36

6 4,60

5

4,17

0 4,47

4

4,46

3

3,97

4

2,95

0

3,47

6

4,11

4

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

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

2016 2017

USD

/ to

nne

Black Pepper



Sources: Ministry of International Trade and Industry Malaysia, , Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group, World Bank, World Gold Council, The Wall Street Journal.

62.6

65.0 65.0 65.0 65.0

65.365.2

64.464.6 64.6

64.8

64.6

61.0

61.5

62.0

62.5

63.0

63.5

64.0

64.5

65.0

65.5

66.0

24 Nov 1 Dec 8 Dec 15 Dec 22 Dec 29 Dec 5 Jan 12 Jan 19 Jan 26 Jan 2 Feb 9 Feb

US$

/t

Coal

1,79

1 1,86

1 1,90

1

1,92

1

1,91

3

1,88

5

1,90

3

2,03

0 2,09

6 2,13

1

2,09

7

2,08

0

2,21

0

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300


2017 2018

US$/

tonn

e

Aluminium5,

755 5,

941

5,82

5

5,68

4

5,60

0 5,72

0 5,98

5

6,48

6

6,57

7 6,80

8

6,82

7

6,83

4 7,06

6

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500


2017 2018

US$/

tonn

e

Copper

9,97

1 10,6

43

10,2

05

9,60

9

9,15

5

8,93

2 9,49

1

10,8

90

11,2

16

11,3

36 11

,972

11,4

95

12,8

65

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000


2017 2018

US$/

tonn

e

Nickel

59.0 58.457.4 57.3

58.5

60.461.4

64.363.4

66.165.5

59.2

63.9 63.7 63.4 63.2

65.366.9

67.6

69.968.6

70.5

68.6

62.8

40

45

50

55

60

65

70

75


US$

/bbl

Crude Petroleum

CrudePetroleum(WTI)/bblCrudePetroleum(Brent)/bbl




Sources: Ministry of International Trade and Industry Malaysia, Malaysian Iron and Steel Industry Federation, Bloomberg and Czarnikow Group, World Bank.

933.0 937.0

895.0885.0

930.0940.0

969.0

940.0

1,014.01,020.0

1,000.0

972.0

800.0

850.0

900.0

950.0

1,000.0

1,050.0


US$

/oz

Platinum

330.0

350.0 350.0 350.0

395.0390.0 390.0

420.0 420.0

400.0

390.0 390.0

310.0

340.0 340.0 340.0

380.0 380.0 380.0

400.0 400.0

380.0

370.0 370.0

250

270

290

310

330

350

370

390

410

430

450


US$

/mt

Scrap Iron

ScrapIron/MT(High)ScrapIron/MT(Low)

80.4

1

89.4

4

87.6

5

70.2

2

62.4

3

57.4

8

67.7

4

76.0

7

71.5

3

61.6

6 64.2

4

72.2

5 76.3

4

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0


2017 2018U

S$/d

mtu

Iron Ore

17.1

16.4

15.8

16.1

16.3

17.0

17.3

17.117.1

17.4

17.0

16.4

15.0

15.5

16.0

16.5

17.0

17.5


US$

/oz

Silver

41.5

41.0

40.2 40.3

40.7

41.5

42.4

42.7 42.9

43.5

42.8

42.3

38.0

39.0

40.0

41.0

42.0

43.0

44.0


US$

/oz

Gold



MITI PROGRAMMEMalaysia Digital Economy Forum 2018 #MyDEF2018

8 February 2018




MITI PROGRAMMESweden–Southeast Asia Business Summit 2018

6 February 2018


MITI PROGRAMMEAnnouncement of Malaysia’s Trade Performance 2017

6 February 2018



MITI Minister ll with the RakyatMaljis Penyampaian Sumbangan Tahun Baru Cina

di Tanjung Malim


Turun Padang PROGRAMME


ME

DIA

STA

TE

ME

NT

SEMINAR ON THE DUTCH APPROACH TO INNOVATION AND HIGH TECH DEVELOPMENT8 FEBRUARY 2018, KUALA LUMPUR, MALAYSIA

The Seminar on the Dutch Approach to Innovation and High Tech Development held today is a joint effort by the Ministry of International Trade and Industry (MITI) Malaysia, the Embassy of the Kingdom of the Netherlands to Malaysia and Brainport Eindhoven.

The event is a follow-up to the recent visit of the Minister of International Trade and Industry Malaysia, YB Dato’ Sri Mustapa Mohamed to the Brainport Industries Campus in Eindhoven, as part of his trade and investment mission to Europe in October 2017. Brainport is a High Tech centre in the Netherlands with more than 140 companies and institutes, and some 10,000 researchers, developers and entrepreneurs, working on developing future technologies and products. Leading anchor companies such as ASML, PHILIPS, NXP, KMWE Group, DAF and VDL are active in Brainport and regularly undertake new areas of research including Integrated Photonics, Artificial Intelligence and Virtual Intelligence.

The Seminar was held in conjunction with the visit of H.E. Minister Sigrid Kaag to Malaysia from 8 to 9 February 2018. This is Mrs. Kaag’s first trade visit since taking up her appointment as the Dutch Minister for Foreign Trade and Development Cooperation last October. Her delegation includes the Chairman of the Confederation of Netherlands Industry and Employers, Mr. Hans de Boer as well as CEOs from 30 Dutch companies.

The main objective of the Seminar was to create awareness of the technological development that can be generated by the successful collaboration of government, industry and research institutes. The Seminar was attended by more than 250 participants, from the public and private sectors, local

universities as well as research institutions. Specific panel discussions were held focusing on the Dutch experience on Industry 4.0, as well as Brainport Eindhoven’s success formula, including the adaptation of the triple helix model elsewhere around the globe. Malaysia’s own National Industry 4.0 policy framework is expected to be announced by mid-2018.

Both Minister Mustapa and Minister Kaag also took the opportunity to discuss a number of bilateral issues of interest to Malaysia and the Netherlands including the opportunities to further the bilateral trade and investment relation, the possible re-launch of the Malaysia-EU FTA this year as well as recent developments on the multilateral front. At the side-line of the Seminar, there were also business-matching sessions organised by the Dutch Embassy in collaboration with MIDA, involving 15 Dutch companies and more than 70 Malaysian companies and SMEs.

Economic relations between Malaysia and the Netherlands have seen an upward trend in recent years. In 2017, Malaysia’s trade with Netherlands reached RM34.8 billion, whereby 77.4 per cent was contributed by exports. Malaysia’s exports to Netherlands grew by 22.7 per cent, while Malaysia’s imports from Netherlands increased by 11.7 per cent.

In 2017, the Netherlands ranked as Malaysia’s 14th largest trading partner. She was also Malaysia’s 12th largest export destination and 20th largest import source. Among the EU Member States, the Netherlands was Malaysia’s largest export destination, as well as second largest trading partner and import source.

As at September 2017, 337 projects with participation of Dutch companies valued at RM27.3 billion have been approved in Malaysia, making the Netherlands Malaysia’s second largest investor from the

EU, behind Germany. These investments are in key sectors such as electrical & electronics, petroleum products (including petrochemicals), food manufacturing and chemical & chemical products. Notable Dutch companies operating in Malaysia includes Shell, Dutch Lady, Unilever, Philips, Vopak and KMWE.

Besides the RM3.18 billion Global Business Services Centre established by Shell in Kuala Lumpur which employs over 1,700 people, a number of Dutch companies have also chosen Malaysia to set up their regional establishment including Benchmark Electronics, Mylaps BV and Kraton Polymers BV. There is strong interest in the Malaysian economy within the Dutch business community and many are leveraging on Malaysia's strategic position as their gateway to ASEAN. An increasing number of Malaysian companies is also choosing the Netherlands as their regional hub for Europe.

Ministry of International Trade and Industry (MITI)8 February 2018




Source: http://www.miti.gov.my/index.php/glossary

Balance of Payments (BOP)The difference in total value between payments into and out of a country over a period.

Any transaction that causes money to flow into a country is a credit to its BOP account (i.e. sources of funds for a nation, such as exports or the receipts of loans and investments, are recorded as positive or surplus items) and any transaction that causes money to flow out is a debit (i.e. uses of funds, such as for imports or to invest in foreign countries, are recorded as negative or deficit items). Transactions taken into account include payments for the country’s exports and imports of goods, services, financial capital, and financial transfers.

The BOP includes:• the current account, which mainly measures the flows of goods and services;• the capital account, which consists of capital transfers and the acquisition and disposal of non-produced, non-

financial assets; and• the financial account, which records investment flows.

BOP account is prepared in a single currency, typically the domestic currency for the country concerned.

BOP is an important subject to be studied for a few reasons:

• it provides detailed information concerning the demand and supply of a country’s currency. (e.g. if Malaysia imports more than it exports, then this means that the supply of Ringgit is likely to exceed the demand in the foreign exchanging market, ceteris paribus. One can thus infer that the Ringgit would be under pressure to depreciate against other currencies. On the other hand, if Malaysia exports more than it imports, then the Ringgit would be likely to appreciate)

• BOP data may signal its potential as a business partner for the rest of the world. If a country is grappling with a major BOP difficulty, it may not be able to expand imports from the outside world. Instead, the country may be tempted impose measures to restrict imports and discourage capital outflows in order to improve the BOP situation. On the other hand, a country experiencing a significant BOP surplus would be more likely to expand imports, offering marketing opportunities for foreign enterprises, and less likely to impose foreign exchange restrictions.

• BOP data can be used to evaluate the performance of the country in international economic competition. Suppose a country is experiencing trade deficits year after year. This trade data may then signal that the country’s domestic industries lack international competitiveness.

BECBroad Economic Categories - Was originally devised mainly for the summarization of data on international trade by large economic classes of commodities. In addition, it was designed to serve as a means for converting external trade data compiled on the Standard International Trade Classification (SITC) into end use categories that are meaningful within the framework of the System of National Accounts (SNA) namely capital goods, intermediate goods and consumption goods. Each category of the BEC is defined in terms of divisions, groups, sub-groups and basic headings of SITC.

BEFBusiness Enabling Framework - Document prepared by the regulator in support of a regulatory proposal, following consultation with affected parties. It records the key steps taken during the development of the proposal, and includes assessment of the cost benefits of each option.


AnnouncementMITI Weekly Bulletin | www.miti.gov.my


Investment Incentives Portal (i-Incentives)I-Incentives is a portal that provides information on investment incentives offered by the Federal Government of Malaysia. The incentives information stored in the portal cater for all three sectors of the economy; manufacturing, services and primary. They also cover all types of incentives offered by the Federal Government; tax exemptions, grants, soft loans and other types of incentives such as equity funding, regional establishment status, training and other facilitation programmes.

The portal has been developed by Incentive Coordination and Collaboration Office (ICCO) in MIDA with the aim to improve the central coordination of all incentive offerings. This initiative is to enhance the effectiveness of the government’s incentive mechanism by increasing transparency, eliminating duplication and linking investment incentives to performance.

Visit i-Incentives portal at https://incentives.mida.gov.my

Contacts:

S.SivaDirectorIncentive Coordination and Collaboration Office (ICCO)

Level 19, MIDA Sentral No.5, Jalan Stesen Sentral 5 Kuala Lumpur Sentral 50470 Kuala Lumpur

E: [email protected], [email protected]

T: +603-22673502



NOTIFICATION ON THE IMPLEMENTATION OF e-FORM D ATIGA VIAASEAN SINGLE WINDOW (ASW) PLATFORM BY MALAYSIA – LIVE OPERATION PHASE

Pursuant to the notification on the implementation of e-form D ATIGA via ASW platform for live implementation phase (kindly refer to the link http://www.miti.gov.my/index.php/pages/view/3794), it is a pleasure to inform that Malaysia will be joining the live operation e-form D ATIGA phase starting 1 January 2018.Exporters are encouraged to use the e-form D ATIGA for preferential treatment under ATIGA during import clearance by importer for exportation to Indonesia, Singapore, Thailand and Vietnam.Attached herewith is the slide on ‘e-form D ATIGA via ASW platform’ as reference. For any further queries, please contact the help desk e-form D ATIGA: 03-6208 4747/4748/4749

Thank you.DirectorTrade and Industry Cooperation SectionMinistry Of International Trade and Industry18 December 2017


Withholding TaxFor more information on Withholding Tax, please visit LHDN’s website via this link: http://www.hasil.gov.my/bt_goindex.php?bt_kump=2&bt_skum=6&bt_posi=1&bt_unit=5&bt_sequ=1&bt_lgv=2

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

For more information on Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)please visit MITI’s website via this link: http://fta.miti.gov.my/index.php/pages/view/71?mid=40

Industry 4.0For more information on Industry 4.0, please visit MITI’s website via this link: http://www.miti.gov.my/index.php/pages/view/industry4.0?mid=559



MITI Day 2018


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