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National Roadmap to Double E-Commerce Growth by 2020

Ministry of International Trade and Industry, 29 November 2016

The National eCommerce Strategic Roadmap is expected to double the e-commerce annual growth rate from 10.8% in 2016 to 20.8% in 2020, as an effort to ensure that the sector becomes one of the primary drivers of growth in the Malaysian economy. The roadmap, launched by Prime Minister Datuk Seri Mohd Najib Razak on Oct 3, aims to boost the sector’s gross domestic product contribution to RM170 billion by 2020. Minister for International Trade and Industry (MITI) Dato’ Sri Mustapa Mohamed underlined the importance of the e-commerce agenda, saying it is a “very important subset” of the government’s digital economy master plan.

Mustapa said the roadmap is cognisant of current developments, particularly in the context of international trade agreements such as the Trans-Pacific Partnership Agreement (TPPA).

“TPPA, of course, has its e-commerce agenda and in some cases, we are probably more advanced than some of these agreements that we have negotiated,” Mustapa told reporters at a press briefing yesterday.

“What’s important is this roadmap has taken all current developments into consideration. If there is a need for a revision, there will be changes. It is not cast in stone,” he added.

The roadmap was drafted by the National e-Commerce Council (NECC), a coalition of 13 ministries and agencies, under which six thrust areas of intervention have been identified, including lifting non-tariff barriers, realigning existing economic incentives and promoting national brand to boost cross-border e-commerce.

Eleven programmes will be carried out under the roadmap, which will be led by different lead agencies such as MITI, SME Corp Malaysia, the Malaysian Investment Development Authority, Malaysian Communications and Multimedia Commission, Bank Negara Malaysia and the Finance Ministry. Mustapa did not discount the possibility of monetary incentives to promote the growth of e-commerce in Malaysia.

“The NECC is set up to listen to suggestions from industries and we will respond in a manner that will facilitate the growth of e-commerce in this country. At present, it is just to help them with regulatory aspects, but in the future there may be (monetary incentives),” Mustapa said.

Commenting on how the appointment of Jack Ma would fit into the e-commerce agenda, Mustapa said the government is confident that Ma will provide a lot of useful inputs into government policies.

“He is an iconic leader in this segment of the economy and his advice is being sought by many countries. All of us are looking forward to his coming here in March.”

On Nov 4, Chinese Internet tycoon Jack Ma was appointed as Malaysia’s digital economy advisor during Najib’s weeklong official visit to China. The founder and executive chairman of Alibaba Group Holding Ltd is expected to the launch of the country’s e-free trade zone in March next year. Meanwhile, Mustapa — when commenting on the TPPA — stressed that Malaysia continues to “keep an open mind” about it, saying that it is too early to take a definitive stand on the matter.

“Although (US President-elect Donald) Trump has come up with a statement on Nov 21, I think we have to wait for more clarity after Jan 20, 2017, after his inauguration (which will reveal) his new policies and also the people running the trade agenda under his administration,” he said, in response to Trump’s remarks.


MITI Weekly Bulletin | www.miti.gov.my

Consumer Price Index (CPI)January - October 2016

Source: Department of Statistics, Malaysia

+2.1%

Jan - Oct 2016114.8

Jan - Oct 2015112.4

Inflation Rate for Main Groups January - October 2016 / January - October 2015

Year - on - Year

+0.3%Oct 2016

115.7

Sep 2016115.3

Month - on - Month

Food & Non-Alcoholic

Beverages+3.9%

Alcoholic Beverages &

Tobacco+21.0%

Clothing & Footwear

-0.3%

Housing, Water, Electricity, Fas &

Other Fuels+2.5%

Furnishings, Household Equipment & Routine Household

Maintenance+2.6%

Health

+2.8%Transport

-5.3%Communication

-1.4%

Recreation Services & Culture

+2.3%Education

+2.2%

Restaurants & Hotels+2.9%

Miscellaneous Goods & Services

+3.0%

+1.4%Oct 2016

114.8

Oct 2015113.0

Malaysia



Source: Department of Statistics, Malaysia

Inflation Rate for Food, January - October 2016/January - October 2015

Rice, Bread & Other Cereals

+1.1%

Meat+3.6%

Fish & Seafood

+6.6%Milk & Eggs

+0.8%Oils & Fats+0.5%

Fruits+5.2%

Vegetables+6.9%

+2.3%

Sugar, Jam, Honey, Chocolate & Confectionery

Food Products+5.9%

Food at Home +4.0%

Food away from Home +3.9%

Inflation Rate

by State, October 2016/October 2015

2.2%

1.7%

1.6%

1.3%

1.2%

1.2%

1.0%

0.9%

0.9%

0.9%

0.6%

0.5%

0.3%

1.4

Kuala Lumpur

Johor

Pulau Pinang

Selangor & Putrajaya

Negeri Sembilan

Melaka

Pahang

Kedah & Perlis

Sarawak

Kelantan

Terengganu

Perak

Sabah & Labuan

MALAYSIA

2.2

3.3

0

1

2

3

4

5

6

7

Jan

Feb

Ma

rA

pr

Ma

yJu

nJu

lA

ug

Sep

Oct

No

vD

ec Jan

Feb

Ma

rA

pr

Ma

yJu

nJu

lA

ug

Sep

Oct

No

vD

ec Jan

Feb

Ma

rA

pr

Ma

yJu

nJu

lA

ug

Sep

Oct

No

vD

ec Jan

Feb

Ma

rA

pr

Ma

yJu

nJu

lA

ug

Sep

Oct

No

vD

ec Jan

Feb

Ma

rA

pr

Ma

yJu

nJu

lA

ug

Sep

Oct

No

vD

ec Jan

Feb

Ma

rA

pr

Ma

yJu

nJu

lA

ug

Sep

Oct

2011 2012 2013 2014 2015 2016

Infl

atio

n R

ate

(%

)

Monthly Food Inflation, January 2011 - October 2016

Food At Home Food - Away From Home



Cambodia Economic Indicators 2015

Sources: ASEAN Statistics, IMF and WTO

2.8 %

18.5GDP (current prices)

US$ billionPopulation

15.4 million people

Inflation Rate

8.8Exports US$ billion

Land Area

181,035 km2

Unemployment Rate

0.2% (2014)

Rank: 79

Imports

Rank: 85 10.8US$ billion

1.5GDP Growth%

Rank: 82

19.7 US$ billion

Total Trade

1.7US$ billion

FDI Inflow

109.3 108.4134.1

166.0 153.7198.2

258.0 248.8 235.1 242.9 234.5

8.0 20.3 21.3 14.2 15.0 32.9 66.4128.5

193.7 183.0151.3

117.3 128.7155.5

180.3 168.7

231.0

324.5377.3

428.8 425.9385.9

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US$ million

Exports Imports Total Trade

Malaysia’s Trade with Cambodia, 2005 - 2015

Source: Department of Statistics, Malaysia.



International ReportTop 10 E-Commerce Businesses

in Asia, 2015The success of the top 10 ecommerce businesses of Asia is amazing and inspirational. The list below

covers the most important factors that led to their success, and shows their current status in the world.

1. Taobao (China)Business Model: C2C ecommerce marketplaceFounded: 2003, Hangzhou, ChinaFounder: Jack Ma (Alibaba Group)Operation: China (Delivery: Global)

2. Flipkart (India)Business Model: Ecommerce marketplaceFounders: Sachin Bansai, Binny BansalOperation: India

3. Alibaba.com (China)Business Model: B2B ecommerce marketplaceFounder: Jack Ma Operation: Worldwide

4. Snapdeal (India)Business Model: Ecommerce marketplaceFounders: Kunal Bahl, Rohit BansalOperation: India

5. Didi Kuaidi (China)Business Model: Online taxi-hailing serviceFounders: Cheng Wei, Joe Lee & Cheng WenOperation: China

6. Rakuten (Japan)Business Model: Electronic ecommerce marketplaceFounder: Hiroshi MikitaniOperation: Japan; worldwide through acquisitions

7. Coupang (South Korea)Business Model: Ecommerce marketplaceFounder: Bom KimOperation: South Korea

8. Lazada (Southeast Asia)Business Model: Ecommerce marketplaceFounders: Alexander Samwer, Marc Samwer, Oliver SamwerOperation: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam

9. Grab Taxi (Southeast Asia)Business Model: Taxi Booking AppFounders: Anthony Tan, Tan Hooi LingOperation: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam

10. Meituan (China)Business Model: Daily Deal WebsiteFounder: Wang XingOperation: China

Source: https://www.techinasia.com/talk/top-10-ecommerce-businesses-asia-startups-learn



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

0

50

100

150

200

250

0

5

10

15

20

25

30

35

40

45

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

No. o

f Cer

tific

ate

of O

rigin

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.

Source: Ministry of International Trade and Industry, Malaysia

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

5,00011

Sep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

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

100

200

300

400

500

600

700

800

900

1,000

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

ASEAN-China Free Trade Agreement (ACFTA)


0

200

400

600

800

1,000

1,200

0

100

200

300

400

500

600

700

800

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

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

0

20

40

60

80

100

120

140

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

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

0

20

40

60

80

100

120

140

160

180

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

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

0

50

100

150

200

250

300

350

400

450

500

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

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


Note: * Provisional data



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

Source: Ministry of International Trade and Industry, Malaysia

0

100

200

300

400

500

600

700

800

900

1,000

0

20

40

60

80

100

120

140

160

180

200

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-Japan Economic Partnership (MJEPA)


0

50

100

150

200

250

0

20

40

60

80

100

120

140

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-Pakistan Closer Economic Partnership (MPCEPA)


0

5

10

15

20

25

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-New Zealand Free Trade Agreement (MNZFTA)


0

10

20

30

40

50

60

70

80

90

100

0

5

10

15

20

25

30

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-China Free Trade Agreement (MCFTA)


0

50

100

150

200

250

300

350

400

450

0

10

20

30

40

50

60

70

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

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

0

20

40

60

80

100

120

140

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

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

0

50

100

150

200

250

300

350

11 S

ep

18 S

ep

25 S

ep

2 O

ct

9 O

ct

16 O

ct

23 O

ct

30 O

ct

6 N

ov

13 N

ov

20 N

ov

27 N

ov

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-Turkey Free Trade Agreement (MTFTA)


Note: * Provisional data



Source : Bank Negara Malaysia

Malaysian Ringgit Exchange Rate with Selected Countries,January 2015 - November 2016

US Dollar

Chinese Yuan

Thai Baht

Japanese Yen

Singapore Dollar

New Taiwan Dollar

3.58

4.33

2.60

2.80

3.00

3.20

3.40

3.60

3.80

4.00

4.20

4.40

4.60

Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ovD

ec Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ov

2015 2016

RM

USD 1 = RM

0.58

0.63

0.52

0.54

0.56

0.58

0.60

0.62

0.64

0.66

0.68

0.70

Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ovD

ec Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ov

2015 2016

RM

CNY 1 = RM

10.94

12.27

9.50

10.00

10.50

11.00

11.50

12.00

12.50

Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ovD

ec Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ov

2015 2016

RM

THB 100 = RM

3.03

4.01

2.20

2.40

2.60

2.80

3.00

3.20

3.40

3.60

3.80

4.00

4.20

Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ovD

ec Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ov

2015 2016RM

JPY 100 = RM

2.68

3.07

2.40

2.50

2.60

2.70

2.80

2.90

3.00

3.10

3.20

Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ovD

ec Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ov2015 2016

RM

SGD 1 = RM

11.33

13.65

8.00

9.00

10.00

11.00

12.00

13.00

14.00

Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ovD

ec Jan

Feb

Ma

rA

prM

ay

Jun Jul

Aug Se

pO

ctN

ov

2015 2016

RM

TWD 100 = RM



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 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.

CRUDE PETROLEUM (BRENT)-per bbl-

2 Dec 2016 : US$54.5, 15.3%*

Average Pricei : 2015: US$53.6 2014: US$99.5

CRUDE PALM OIL-per MT-

2 Dec 2016 : US$770.0, 2.8%*

Average Pricei : 2015: US$616.9 2014: US$823.3

RUBBER SMR 20-per MT-

2 Dec 2016 : US$1,711.0, 1.9%*

Average Pricei : 2015: US$1.364.3 2014: US$1,718.3

COAL -per MT-2 Dec 2016 : US$44.1, unchangedAverage Pricei : 2015: US$49.9 2014: US$59.8

COCOA SMC 2-per MT-

2 Dec 2016 : US$1,770.5, 1.5%*

Average Pricei : 2015: US$2,077.0 2014: US$2,615.8

SCRAP IRON HMS-per MT-

2 Dec 2016 : US300.0 (high), unchanged US$285.0 (low), unchangedAverage Pricei : 2015: US$239.6 2014: US$370.0

HIGHEST and LOWEST 2015/2016

Highest 2 Dec 2016 : US$54.5 15 May 2015 : US$66.8

Lowest

15 January 2016 : US$28.9

18 December 2015 : US$36.9

Crude Petroleum

(Brent)-per bbl-

Highest 15 Sept. 2016 : US$785.5 16 January 2015 : US$701.0

Lowest

15 January 2016 : US$545.5

4 September 2015 : US$500.5

Crude Palm Oil -per MT-

Domestic Prices2 December 2016

Steel Bars(per MT)

RM2,050 – RM2,200

Billets(per MT)

RM1,900 – RM1,950

SUGAR -per lbs-2 Dec 2016 : US¢ 19.1, 3.6%*

Average Pricei : 2015: US¢13.2 2014: US¢16.6



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.

785.5

770.5 772.5

740.0

691.5

707.5

741.5 743.0 745.5 744.0749.0

770.0

640

660

680

700

720

740

760

780

800

15 Sep 23 Sep 30 Sep 7 Oct 14 Oct 21 Oct 28 Oct 4 Nov 11 Nov 18 Nov 25 Nov 2 Dec

US$

/mt

Crude Palm Oil

2,107.3

2,202.4

2,056.4

2,118.7

2,005.9

2,075.1 2,072.9

1,995.7

1,841.0

1,790.6

1,797.3

1,770.5

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300


US$

/mt

Cocoa

21.2

22.7

23.0

23.4

22.922.7

22.2

21.7 21.7

20.2

19.8

19.1

18.0

19.0

20.0

21.0

22.0

23.0

24.0


US¢

/lbs

Sugar

1,337.5

1,467.0

1,368.5

1,473.5

1,545.5

1,456.5

1,504.01,489.5

1,684.5

1,688.0

1,744.5

1,711.0

1,200

1,300

1,400

1,500

1,600

1,700

1,800


US$

/mt

Rubber SMR 20

7,591

7,286 7,267

7,853

7,148 7,063

7,296

6,742 6,940

7,029

6,963

7,008

6,900

7,088

7,113

7,281

6,917 6,851 6,730

6,337

6,085 5,965

4,516

3,813 3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

2015 2016

USD

/ to

nne

Black Pepper

* until 2 December 2016




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.

44.1 44.1 44.1 44.1 44.1 44.1 44.1 44.1 44.1 44.1 44.1 44.1

43.5

43.6

43.7

43.8

43.9

44.0

44.1

44.2


US$

/mt

Coal

1,815

1,818

1,774

1,819

1,804

1,688

1,640

1,548

1,590

1,516

1,468

1,497

1,481

1,531

1,531

1,571 1,551

1,591

1,629 1,641

1,589

1,663

1,737

1,400

1,450

1,500

1,550

1,600

1,650

1,700

1,750

1,800

1,850

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

2015 2016

US$

/ to

nne

Aluminium

5,831

5,729

5,940 6,042

6,295

5,833

5,457

5,127

5,217 5,216

4,800

4,639

4,472 4,599

4,954

4,873

4,695 4,633

4,865 4,759 4,716

4,726

5,451

4,000

4,500

5,000

5,500

6,000

6,500

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

2015 2016

US$

/ to

nne

Copper

14,849 14,574

13,756

12,831

13,511

12,825

11,413

10,386 9,938

10,317

9,244

8,708 8,507 8,299

8,717

8,879 8,660

8,906

10,263

10,366

10,176 10,251

11,129

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000

16,000

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

2015 2016

US$

/ to

nne

Nickel

43.944.5

48.2

49.850.4

50.9

48.7

44.143.4

45.746.1

51.7

46.645.9

49.1

51.9 52.0 51.8

49.7

45.644.8

46.947.2

54.5

38

40

42

44

46

48

50

52

54

56


US$

/bbl

Crude Petroleum

Crude Petroleum (WTI)/bbl Crude Petroleum (Brent)/bbl




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

1,033.0

1,057.0

1,036.0

977.0

935.0929.0

974.0

1,005.0

976.0

925.0 925.0920.0

850.0

900.0

950.0

1,000.0

1,050.0

1,100.0


US$

/oz

Platinum

240.0

220.0230.0 230.0 230.0

240.0 240.0250.0

290.0295.0

300.0 300.0

220.0

200.0210.0 210.0

220.0230.0 230.0

240.0

270.0280.0

285.0 285.0

100

150

200

250

300

350


US$

/mt

Scrap Iron

Scrap Iron/MT (High) Scrap Iron/MT(Low)

68.0

63.0

58.0

52.0

60.0

63.0

52.0

56.0

57.0

53.0

47.0

41.042.0

47.0

56.0

61.0

55.0

52.0

57.0

61.0

58.059.0

73.0

38.0

43.0

48.0

53.0

58.0

63.0

68.0

73.0

78.0

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

2015 2016

US$

/dm

tu

Iron Ore

19.0

19.819.7

17.617.4 17.5

17.8

18.418.6

16.716.4

16.6

15.0

16.0

17.0

18.0

19.0

20.0

21.0


US$

/oz

Silver

42.1

43.0

42.5

40.5 40.2

40.7 40.9

41.9

39.8

38.9

38.2

37.7

35.0

36.0

37.0

38.0

39.0

40.0

41.0

42.0

43.0

44.0


US$

/oz

Gold



Launching of Malaysia Promotion Programme in Sydney3 December 2016

MITI PROGRAMME



ASEAN ECONOMIC INTEGRATIONMastura Ahmad MustafaSenior [email protected]

Ahmad Hisham IdrisDirector

Zarina Md. YusufPrincipal Assistant Director

Principal Assistant Director






Guna Seelan a/l Balakrishnan

Noor Hazreen Ahmad Murad

Noraini Abrahim

Emmy Josefina Jamil

Mohammad Ishamudin Ismail

Mas Aidiff Mas’ut

Senior Assistant Director

Zuriana Ibrahim





Assistant Director

Assistant Director

PA toSenior Director

PA toDirector

Senior Administrative

Assistant

Administrative Assistant



Operational Assistant

Mohd Firdaus Mohd Ali

Siti Nur Ramizah Abd. Razak

Mohd Faizol Isma Amzan

Rizman Shahrin Abdul Razak

Ahmad Bakhtiar Abd. Razak

Nor Hazirah Kan Hussin Kan

Azzalina Mohamed Aziz

Nurulyana Afifie Abdullah

Fuziah Abdullah

Nur Ayunni Che Ya

Jawaiziana Wailid

Mawarni Sahar

Hazman Hashim

MITI @ Your Service



Statement by Financial Markets Committee: Initiative to Develop the Onshore Financial Market

As part of the strategy to broaden and deepen the Malaysian financial markets, the Financial Markets Committee, in collaboration with Bank Negara Malaysia (BNM), would like to announce several measures intended to enhance the liquidity of the foreign exchange (FX) market with effect from 5 December 2016:

Liberalisation and deregulation of the onshore ringgit hedging market

• To provide greater flexibility for market participants to manage foreign exchange (FX) risks, residents (including resident fund managers) may freely and actively hedge their USD and CNH exposures up to a limit of RM 6 million per client per bank. A one-time declaration of non-participation in speculative activity would suffice.

• Resident and non-resident fund managers can now actively manage their FX exposure up to 25% of their invested assets. To qualify for this arrangement, registration with BNM would suffice.

• To broaden accessibility of foreign investors and corporates to the onshore FX market, offshore non-resident financial institutions may participate in the Appointed Overseas Office1 (AOO) framework which will be accorded additional flexibilities on ringgit transactions. These flexibilities include FX hedging (own account/on behalf of client) for current and financial account based on commitment, opening of ringgit account (book-keeping) and extension of ringgit trade financing.

Streamlining treatment for investment in foreign currency assets

Resident entities with domestic ringgit borrowing are free to invest in foreign currency assets both onshore and abroad up to the prudential limit of RM50 million. Residents without domestic ringgit borrowing shall continue to enjoy flexibility of investing in foreign currency assets both onshore and abroad up to any amount. This gives equal treatment for residents with ringgit borrowings investing in foreign currency assets whether in the onshore or offshore market.

Incentives and treatment of export proceeds

Exporters can retain up to 25% of export proceeds in foreign currency. They may hold higher balances with approval from BNM to meet their obligations in foreign currency. Payment by resident exporters for settlement of domestic trade in goods and services is now to be made fully in ringgit. All ringgit proceeds from exports can earn a higher rate of return via a special deposit facility. The special deposit facility for ringgit proceeds will be offered to exporters via all commercial banks and receive a rate of 3.25% per annum. This facility will be offered until 31 December 2017 subject to further review.

Foreign currency arising from conversion of export proceeds will be used to ensure continuous liquidity of foreign currency in the onshore market. In addition to the newly announced hedging measures, exporters are also able to hedge and unhedge up to 6 months of their foreign currency obligations.

These measures are intended to promote a deeper, more transparent and well-functioning onshore FX market where genuine investors and market participants can effectively manage their market risks with greater flexibility to hedge on the onshore market. A deep and liquid onshore FX market will enable investors to better manage against volatile currency movements.

The above measures are part of a series of market development initiatives by the Financial Markets Committee. The aspiration is to have a highly developed, liquid and deep FX market in Malaysia commensurate with the growth of the economy and the increasingly sophisticated needs of the users.

To facilitate enquiries, members of public may contact 03-2698 6089, 03-2692 8736, 03-2691 6473, 03-2691 3164 or 03-2693 0772 (Monday to Friday from 9 a.m. to 5 p.m.; Saturday and Sunday from 9 a.m. to 1 p.m.) or email [email protected] starting from 3 December 2016.

Note: 1 Appointed Overseas Office refers to appointed overseas parent company, subsidiary company, sister company, head office or branch of a licensed onshore bank’s banking group, excluding a licensed international Islamic bank.

Source: http://www.bnm.gov.my/index.php?ch=en_press&pg=en_press&ac=4316&lang=en

Press Release2 December 2016



Dear Readers,

Kindly click the link below for any comments in this issue. MWB reserves the right to edit and republish letters as reprints.

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CONGRATULATIONS...MITI Weekly Bulletin Editorial Committee wishes

to congratulate YBhg Tan Sri Dr Lim Wee Chai

on his election as the new President of the Federation of Malaysian Manufacturers (FMM)

for 2016/2017.

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