The Seventh Trade Policy Review of Malaysia Weekly Bulletin... · The Seventh Trade Policy Review of Malaysia . 14 and 16 February 2018, Geneva, Switzerland. MEDIA STATEMENT. Malaysia

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

The Seventh Trade Policy Review of Malaysia 14 and 16 February 2018, Geneva, Switzerland

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Malaysia underwent her 7th Trade Policy Review (TPR) at the World Trade Organization (WTO), Geneva, Switzerland on 14 -16 February 2018. The 4-yearly exercise was participated by an inter-Ministerial team led by Datuk Seri J. Jayasiri, the Secretary-General of the Ministry of International Trade and Industry (MITI). Other ministries and agencies in the delegation include the Ministry of Finance (MOF); Ministry of Agriculture and Agro-based Industries (MOA); Ministry of Primary Industries and Commodities (MPIC); Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC); Economic Planning Unit, Prime Minister’s Department (EPU); Bank Negara Malaysia (BNM); Royal Malaysian Customs Department (RMCD); and Intellectual Property Corporation of Malaysia (MyIPO).

The TPR is an exercise mandated by the WTO Agreement to ensure transparency of trade policies and measures. All 164 WTO Members have to undergo the TPR process and the frequency of each country’s review varies according to its share of world trade. Malaysia’s 7th TPR was undertaken for the review period of 2014 to 2017.

Malaysia’s 7th TPR session was chaired by Ambassador Juan Carlos Gonzalez, Colombia’s Permanent Representative to the WTO. Peru’s Permanent Representative to the WTO served as the discussant. The 7th TPR saw Malaysia receiving 476 written questions from 27 Members mainly including Argentina, Brazil, Chile, China, the European Union, Japan, Singapore, Ukraine and United States. The questions covered a wide range of subjects including Malaysia’s Intellectual Property Rights and competition policy, foreign investment regime, import licencing procedures, import tariff structure, sanitary and phytosanitary measures, services sector in particular for finance and energy sub-sectors, and e-commerce. Malaysia shared with WTO Members the economic development and reforms that took place throughout the period under review.

Forty-three WTO Members took part in the question and answer process during the 2-day TPR exercise. This has been a record number for Malaysia ever since her first TPR in 1993. Members commended Malaysia on her impressive economic achievement prudent trade and economic policies. Malaysia was also commended for actively pursuing trade openness through unilateral reforms, regional and bilateral trade arrangements, and multilateral rule-making. Members recognised that Malaysia’s successful diversification of its economy and economic reforms had contributed to continued growth despite external challenges. The bold move to rationalise subsidies on fuel and sugar among others indicate Malaysia’s willingness to move towards a market-oriented mechanism. Business friendly initiatives such as improvement of the Companies Act was also welcomed as it leads to the reduction in the cost of doing business.

While members noted the commendable efforts by Malaysia, improvements were also suggested on an array of issues such as Malaysia’s compliance with the Customs Valuation Agreement, timely notification of Malaysia’s various agricultural support programme as well as the import licencing regime. These improvements would ensure transparency as well as be in line with Malaysia’s commitments in the. In line with the efforts to address emerging issues at the WTO, Malaysia expressed her willingness to exchange of views and share experience on the Micro, Small and Medium Enterprises (MSMEs) and E-Commerce.

Datuk Seri J. Jayasiri in his closing remarks at the TPR reaffirmed Malaysia’s commitment to the multilateral trading system by highlighting the continued efforts of Malaysia in pursuing current issues as well as new areas of interest to the WTO. In addition, Malaysia assured that WTO rules and principles always were adhered to in our negotiating free trade arrangements.

MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY16 FEBRUARY 2018


MITI Weekly Bulletin | www.miti.gov.my

Malaysia Economy Q4 2017Gross Domestic Product Growth Rate

Annual 2015 -2017

GDP at Constant 2010 PricesRM307.9 billion

5.8 4.9 4.7 4.6 4.1 4.0 4.3 4.5 5.6 5.8 6.2 5.9

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

5.0% 4.2%

2016

5.9%

20172015

2015 2016 2017

GDP at Current 2010 PricesRM355.7 billion

GNI Percapita at Current PricesRM42,930

Source: Department of Statistics, Malaysia

GDP Composition, Q4 2017

ServicesRM168.7 bil

6.2%

Manufacturig RM70.3 bil

ConstructionRM13.3 bil

Mining & QuarringRM25.3 bil

AgricultureRM25.6 bil

Import DutiesRM4.6 bil

5.4%

5.8%

14.8%

0.5%

10.7%

GDP at Constant 2010 Prices

RM307.9billion



Source: Department of Statistics, Malaysia

GDP Composition, Q4 2017Services: Percentage Share at Constant 2010 Prices

Wholesale Retail & Trade

RM47.8 bil28.3% Government

ServicesRM28.1bil16.6%

Utilities & Other Services

RM20.7bil12.2%

Finance & InsuranceRM20.6bil12.2%

Information & Communication-

RM17.8bil10.6%

Real Estate &Business Services

RM13.7 bil8.1%

Transportation & StorageRM11.0 bil

6.5%

Food and Beverage &

AccomodationRM9.1bil

5.4%

ServicesRM168.7 bil

Manufacturing: Percentage Share at Constant 2010 PricesPetroleum, Chemical, Rubber And Plastic Products

RM21.0 bil , 29.8%Electrical, Electronic And Optical Product

RM19.1 bil , 27.2%Transport Equipment, Other Manufacturing and Repair

RM8.2 bil ,11.6%Non-Metallic Mineral Products, Basic Metal

and Fabricated Metal ProductsRM8.1 bil , 11.5%

Vegetable and Animal Oils & Fats And Food Processing RM6.5 bil , 9.3%

Wood Products, Furniture, Paper Products and Printing RM3.9 bil , 5.6%

Beverages and Tobacco ProductsRM2.3 bil , 3.3%

Textiles, Wearing Apparel And Leather Products RM1.2 bil , 1.7%

ManufacturingRM70.3 bil



International Report

Notes : * HS6D 151620Source:http://www.trademap.org/Index.aspx

Malaysia as The Largest Exporter of Vegetable Fats and Oils and their Fractions, Partly or

Wholly Hydrogenated, Inter-Esterified*, 2016

TOP FiveExport Destinations

1 MalaysiaUSD1,734.9 mil

2IndonesiaUSD312.5 mil

3 NetherlandsUSD233.4 mil

4 GermanyUSD212.4 mil

5 USAUSD128.6 mil

1 PRCUSD443.7 mil

2 USAUSD187.5 mil

3 TurkeyUSD110.3 mil

4 NertherlandsUSD105.4 mil

5 ROKUSD79.4 mil



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

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

11 F

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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.

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

5,00026

Nov

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

11 F

eb

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

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

11 F

eb

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

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

11 F

eb

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

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

11 F

eb

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

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

11 F

eb

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

1,800

0

50

100

150

200

250

300

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

11 F

eb

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

50

100

150

200

25026

Nov

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

11 F

eb

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

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

11 F

eb

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

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

11 F

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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

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

11 F

eb

No. o

f Cer

tific

ate

of O

rigin

RM m

il.

Malaysia-Chile Free Trade Agreement (MCFTA)


0

100

200

300

400

500

600

0

50

100

150

200

250

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

11 F

eb

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

26 N

ov

3 D

ec

10 D

ec

17 D

ec

24 D

ec

31 D

ec

7 Ja

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14 J

an

21 J

an

28 J

an

4 Fe

b

11 F

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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

400

0

50

100

150

200

250

300

350

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

11 F

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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

Philippine Peso

Vietnamese Dong

Hong Kong Dollar

Indonesian Rupiah

Indian Rupee

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

8.9685

7.8384

7.20

7.40

7.60

7.80

8.00

8.20

8.40

8.60

8.80

9.00

9.20


2017 2018

RM

PHP 100 = RM

0.0197

0.0174

0.0160

0.0165

0.0170

0.0175

0.0180

0.0185

0.0190

0.0195

0.0200


2017 2018

RM

VND 100 = RM

57.4972

50.6090

46.00

48.00

50.00

52.00

54.00

56.00

58.00

60.00


2017 2018

RM

HKD 100 = RM

0.0334

0.0296

0.027

0.028

0.029

0.030

0.031

0.032

0.033

0.034


2017 2018

RM

IDR 100 = RM

6.5503

6.8277

6.2202

5.90

6.00

6.10

6.20

6.30

6.40

6.50

6.60

6.70

6.80

6.90


2017 2018

RM

INR 100 = 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-

16 Feb 2018 : US$64.8, 3.3%*Average Pricei : 2017: US$55.0 2016: US$45.3

CRUDE PALM OIL-per MT-

15 Feb 2018 : US$675.6, 2.9%*Average Pricei : 2017: US$719.7 2016: US$702.2

RUBBER SMR 20-per MT-

15 Feb 2018 : US$1,448.5, 0.8%*Average Pricei : 2017: US$1,646.6 2016: US$1,394.5

COAL -per MT-16 Feb 2018 : US$64.3, 0.4%Average Pricei : 2017: US$57.2 2016: US$45.6

COCOA SMC 2-per MT-

15 Feb 2018 : US$1,386.6, 1.1%*Average Pricei : 2017: US$1,439.0 2016: US$1,609.8

SCRAP IRON HMS-per MT-

15 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 Prices15 Feb 2018

Steel Bars(per MT)

RM2,600 – RM2,750

Billets(per MT)

RM2,300 – RM2,400

SUGAR -per lbs-16 Feb 2018 : US¢ 13.3, 2.0%*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.

692.5 693.0

676.5

661.0

656.7

675.6

687.5

678.0

666.0

671.0

656.5

675.6

630

640

650

660

670

680

690

700

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

US$

/mt

Crude Palm Oil

1,443.6

1,259.8

1,320.6

1,320.11,329.4

1,301.8

1,334.8

1,384.5

1,367.7

1,401.6

1,371.1

1,386.6

1,200

1,250

1,300

1,350

1,400

1,450

1,500


US$

/mt

Cocoa

15.0

14.1

13.7

14.6

15.215.1

14.2

13.313.4

13.613.6

13.3

12.0

12.5

13.0

13.5

14.0

14.5

15.0

15.5


US¢

/lbs

Sugar

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

1,437.51,448.5

1,300

1,350

1,400

1,450

1,500

1,550

1,600


US$

/mt

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.

65.0 65.0 65.0 65.0

65.3

65.2

64.4

64.6 64.6

64.8

64.6

64.3

63.6

63.8

64.0

64.2

64.4

64.6

64.8

65.0

65.2

65.4

1 Dec 8 Dec 15 Dec 22 Dec 29 Dec 5Jan 12Jan 19Jan 26Jan 2 Feb 9 Feb 16 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

eNickel

58.457.4 57.3

58.5

60.461.4

64.363.4

66.165.5

59.2

61.7

63.7 63.4 63.2

65.366.9

67.6

69.968.6

70.5

68.6

62.8

64.8

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.

937.0

895.0885.0

930.0940.0

969.0

940.0

1,014.01,020.0

1,000.0

972.0

1,008.0

800.0

850.0

900.0

950.0

1,000.0

1,050.0


US$

/oz

Platinum

350.0 350.0 350.0

395.0390.0 390.0

420.0 420.0

400.0

390.0 390.0 390.0

340.0 340.0 340.0

380.0 380.0 380.0

400.0 400.0

380.0

370.0 370.0 370.0

250

270

290

310

330

350

370

390

410

430

450


US$

/mt

Scrap Iron

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

80.41

89.44

87.65

70.22

62.43

57.48

67.74

76.07

71.53

61.66 64.24

72.25 76

.34

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0


2017 2018

US$

/dm

tu

Iron Ore

16.4

15.8

16.1

16.3

17.0

17.3

17.117.1

17.4

17.0

16.4

16.8

15.0

15.5

16.0

16.5

17.0

17.5


US$

/oz

Silver

41.0

40.240.3

40.7

41.5

42.4

42.742.9

43.5

42.8

42.3

43.5

38.0

39.0

40.0

41.0

42.0

43.0

44.0


US$

/oz

Gold



7th Trade Policy Review (TPR) of Malaysia 14-16 February 2018, Geneva


MITI PROGRAMME



MITI PROGRAMMEMeeting between YB Dato’ Sri Mustapa Mohamed, Minister of MITI and

Vendor & PROTON Distributor ,15 February 2018


MITI Weekly Bulletin | www.miti.gov.myMITI PROGRAMMEY-Biz Challenge 2018, 13 February 2018


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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



AnnouncementMITI Weekly Bulletin | www.miti.gov.my



MITI Day 2018


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




Withholding Tax

For 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

“We are inviting the public to take part in the online consultation on the proposed National Industry 4.0 Policy Review. The public online consultation will remain open until 2 March 2018. http://grp.miti.gov.my/index.php/public_consultation/view/40”



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

Best PracticesMethods or techniques that have consistently shown results superior to those achieved with other means, and that are used as a benchmark. The term is often used to describe the process of developing and following a standard way of doing things that multiple organisations can use.

BGBank Guarantee - A Bank Guarantee is a written undertaking given by a bank to a third party (beneficiary), for payment in lieu of a debt, or performance of an obligation by another person liable in the first instance.

Big DataA term for data sets that are so large or complex that pose challenges for traditional data processing applications to deal with. Challenges include analysis, capture, data curation, search, sharing, storage, transfer, visualization, querying, updating and information privacy.

Big Data AnalyticsThe process of examining large data sets containing a variety of data types (i.e. big data) to uncover hidden patterns, unknown correlations, market trends, customer preferences and other useful business information. Generates insights that lead to better decisions and strategic business moves.

Bilateral TradeThe exchange of goods between two countries.

Bilateral trade agreements give preference to certain countries in commercial relationships, facilitating trade and investment between the home country and the foreign country by reducing or eliminating tariffs, import quotas, export restraints and other trade barriers. Bilateral trade agreements can also help minimize trade deficits.

Binding CommitmentsIn the WTO, when countries agree to open their markets for goods or services, they “bind” their commitments. For goods, these bindings amount to ceilings on customs tariff rates. Sometimes countries tax imports at rates that are lower than the bound rates. Frequently this is the case in developing countries. In developed countries the rates actually charged and the bound rates tend to be the same.

BMCBudget and Management Committee - advises SOM on issues concerning budget, administration and project management. BMC also monitors and evaluates project management activities of Committees and Working Groups and submits reports on the efficiency of those projects to SOM. It is one of SOM’s four committees (the other three are Committee on Trade and Investment – CTI, Economic Committee – EC, Steering Committee on Economic and Technical Cooperation – SCE). Pre 1999 BMC was known as the Budget and Administrative Committee (BAC).

Bonded WarehouseDesignated area, approved by the Royal Malaysian Customs (RMC) under Section 65 of the Customs Act 1967, for storing dutiable goods.

A country can change its bindings, but only after negotiating with its trading partners, which could mean compensating them for loss of trade.


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MITI @ Your Service

on receiving yourPH.D from Universiti Putra Malaysia

Dr. Rashidi SaidDirectorMultilateral Trade Policy & Negotiationemail:[email protected]

Congratulations

Documents

The Seventh Trade Policy Review of Malaysia Weekly Bulletin... · The Seventh Trade Policy Review of Malaysia . 14 and 16 February 2018, Geneva, Switzerland. MEDIA STATEMENT. Malaysia