Daily Archives: January 3, 2020

4th MAS-CSRC Supervisory Roundtable fosters greater capital market activities between Singapore and China

Wuhan, China, The Monetary Authority of Singapore (MAS) and the China Securities Regulatory Commission (CSRC) held the 4th MAS-CSRC Supervisory Roundtable on 27 December 2019, where both regulators agreed to foster greater cross-border capital market activities between Singapore and China and deepen supervisory cooperation. The Roundtable was co-chaired by MAS’ Deputy Managing Director Mr Ong Chong Tee and CSRC’s Vice Chairman Mr Fang Xinghai.

2 At the Roundtable, MAS and CSRC discussed recent regulatory developments in Singapore’s and China’s capital markets, including the opening up of China’s securities and futures industry, as well as Singapore’s efforts to strengthen market discipline in capital markets. Other topics included the use of data analytics in capital market supervision and the application of blockchain technology in capital markets.

3 Mr Ong said, Since the inaugural MAS-CSRC Supervisory Roundtable in April 2016, CSRC and MAS have strengthened our cooperation in many areas. The annual Roundtable is a valuable forum for both sides to have candid exchanges and close interactions on areas of mutual interest. This is important given the growing inter-connectivity and increased participation of Chinese and Singapore financial institutions in each other’s market, including in the areas of co-operation as discussed at the recent 15th Joint Council for Bilateral Cooperation.

Source: Monetary Authority of Singapore

Malaysia External Trade Statistics November 2019

KEY FACTS

Malaysia’s exports in November 2019, decreased 5.5% to RM80.8 billion year-on-year (y-o-y). Re-exports was valued at RM13.0 billion registering a decline of 18.4% y-o-y and accounted for 16.1% of total exports. Domestic exports also recorded a decrease of 2.6% or RM1.8 billion to RM67.8 billion.

Imports also slipped 3.6% y-o-y to RM74.3 billion.

On a month-on-month (m-o-m) basis, exports declined 10.8% from RM90.6 billion. In seasonally adjusted terms, exports also decreased 11.2%.

On a m-o-m basis, imports increased 1.4% or RM993.1 million from RM73.3 billion. In seasonally adjusted terms, imports increased 4.8%.

On a y-o-y basis, exports fell due to the decrease in exports to Singapore (-RM1.6 billion), Hong Kong (-RM1.3 billion),Japan (RM959.4 million), Thailand (-RM699.1 million) and Republic of Korea (-RM633.5 million). However, exports increased to China (+RM495.6 million) and the United States (+RM479.1 million).

On a y-o-y basis, lower imports were mainly from the European Union (-RM1.1 billion), Saudi Arabia (-RM1.0 billion), Singapore(RM834.6 million), Taiwan (-RM602.3 million), Thailand (-RM587.6 million) and Indonesia (-RM586.8 million). Meanwhile, higher imports were from China (+RM1.7 billion) and United Arab Emirates (+RM1.1 billion).

TRADE

Total trade amounted at RM155.1 billion, a contraction of 4.6% or RM7.5 billion in November 2019. It also posted a decline of RM8.8 billion (-5.4%) when compared to October 2019. The trade surplus which was valued at RM6.5 billion, shrank RM2.0 billion (-23.1%) from a year ago. It also registered a decrease of RM10.8 billion or 62.3% as compared to the previous monthTotal trade amounted at RM155.1 billion, a contraction of 4.6% or RM7.5 billion in November 2019. It also posted a decline of RM8.8 billion (-5.4%) when compared to October 2019. The trade surplus which was valued at RM6.5 billion, shrank RM2.0 billion (-23.1%) from a year ago. It also registered a decrease of RM10.8 billion or 62.3% as compared to the previous month.

EXPORTS

On a y-o-y basis, exports decreased 5.5% to RM80.8 billion. The main products which attributed to the decline were:

Electrical and electronic (E and E) products (34.1% of total exports), slipped RM3.6 billion (-11.6%) to RM27.6 billion;

Liquefied natural gas (LNG), which accounted for 4.0% of total exports declined RM1.8 billion or 35.9% to RM3.2 billion due to the decrease in both average unit value (-24.1%) and export volume (-15.6%);

Refined petroleum products, which accounted for 6.6% of total exports, decreased RM1.2 billion or 19.0% to RM5.3 billion due to the decrease in both average unit value (-15.4%) and export volume (-4.3%);

Crude petroleum, which contributed 2.7% to total exports dropped RM669.0 million or 23.4% to RM2.2 billion due to the decline in both average unit value (-18.7%) and export volume (-5.7%);

Palm oil and palm oil-based products (6.7% of total exports), shrank RM144.2 million (-2.6%) to RM5.4 billion. However, exports of palm oil, the major commodity in this group of products rose marginally RM34.1 million or 1.1% due to the increase in export volume (+2.1%) as average unit value decreased 1.0%; and

Natural rubber (0.3% of total exports) decreased RM32.3 million or 10.6% to RM272.5 million due to the decline in both export volume (-10.3%) and average unit value (-0.3%).

However, exports of timber and timber-based products, which accounted for 2.5% of total exports increased RM53.7 million or 2.7%.

On a m-o-m basis, exports declined RM9.8 billion (-10.8%) from RM90.6 billion. The main products which contributed to the decrease were:

E and E products dropped RM9.8 billion (-26.2%) from RM37.4 billion;

LNG, declined RM412.7 million (-11.4%) from RM3.6 billion due to the decrease in both export volume (-8.6%) and average unit value (-3.0%);

Palm oil and palm oil-based products decreased RM190.7 million or 3.4% from RM5.6 billion. Exports of palm oil shrank RM70.5 million or 2.2% due to the lower in export volume (-3.9%) as average unit value rose 1.8%;

Timber and timber-based products fell RM62.6 million (-3.0%) from RM2.1 billion; and

Natural rubber decreased RM27.6 million or 9.2% from RM300.0 million due to the decrease in both export volume (-6.2%) and average unit value (-3.2%).

Nevertheless, the following products recorded an increase:

Refined petroleum products increased RM427.5 million or 8.8% from RM4.9 billion due to the increase in both export volume (+7.2%) and average unit value (+1.5%); and

Crude petroleum grew RM318.8 million or 17.0% from RM1.9 billion due to the growth in export volume (+19.5%) as average unit value decreased 2.1%.

Exports to Country of Destination

The two major destinations for Malaysia’s exports in November 2019 were China and Singapore.

Exports to China amounted to RM12.5 billion, which accounted for 15.5% of total exports, increased RM495.6 million (+4.1%) as compared to the previous year. The main products which attributed to the rise were:

Iron and steel bars, rods, angles, shapes and sections, which contributed 2.3% of total exports surged RM289.4 million from RM58.0 thousand; and

Ingots and other primary forms, of iron or steel (3.1% of total exports), increased RM282.4 million to RM388.7 million.

Exports to Singapore which were valued at RM11.5 billion declined RM1.6 billion (-12.5%). The main product which attributed to the decrease was E and E products, which contributed 39.4% of total exports fell RM1.4 billion (-23.4%) to RM4.5 billion.

Seasonally Adjusted Export Value

On a m-o-m basis seasonally adjusted terms, exports declined RM9.8 billion (-11.2%) to RM77.2 billion.

IMPORTS

On a y-o-y basis, imports declined RM2.8 billion or 3.6% to RM74.3 billion. The decline in imports was mainly attributed to capital goods.

Capital Goods

Imports of capital goods, which accounted for 13.2% of total imports, dropped RM443.2 million (-4.3%) to RM9.8 billion due to the decline in both transport equipment, industrial (-RM289.8 million, -21.1%) and capital goods (except transport equipment) (-RM153.4 million, -1.7%).

Consumption Goods

Imports of consumption goods which constituted 9.1% of total imports recorded an increase of RM125.9 million (+1.9%) to RM6.8 billion. The growth was mainly attributed to food and beverages, primary, mainly for household consumption (+RM144.0 million, +18.7%), and non-durables (+RM82.0 million, +5.0%). However, imports of durables decreased RM97.5 million or 9.6%.

Intermediate Goods

These goods which constituted 55.2% of total imports rose RM727.1 million (+1.8%) to RM41.0 billion. The increase was mainly attributed to parts and accessories of capital goods (except transport equipment) (+RM1.7 billion, +14.2%) and industrial supplies, primary (+RM947.5 million, +44.2%). However, fuel and lubricants, processed, others and fuel and lubricants, primary decreased RM947.0 million (-36.9%) and RM629.7 million (-26.3%) respectively.

On a m-o-m basis, imports increased RM993.1 million or 1.4% from RM73.3 billion. All main categories of imports by end use recorded increases.

Intermediate Goods

These goods soared RM3.5 billion (+9.3%) from RM37.5 billion. The main components contributed to the increase were parts and accessories of capital goods (except transport equipment) (+RM5.3 billion, +61.6%). Nevertheless, imports of fuel and lubricants, primary and industrial supplies, processed recorded a decrease of RM628.0 million (-26.2%) and RM517.8 million (-3.1%) respectively.

Capital Goods

Imports of capital goods increased RM1.3 billion (+15.4%) from RM8.5 billion due to the increase in both capital goods (except transport equipment) (+RM763.8 million, +9.6%) and transport equipment, industrial (+RM545.2 million, +100.8%).

Consumption Goods

Imports of these goods registered an increase of RM625.9 million (+10.2%) from RM6.1 billion. The increase was due to durables (+RM183.4 million, +25.0%), semi-durables (+RM179.5 million, +16.6%), and food and beverages, processed, mainly for household consumption (+RM146.5 million, +8.5%).

Imports by Country of Origin

The two main sources of Malaysia’s import in November 2019 were China and Singapore.

Imports from China which registered RM16.6 billion rose RM1.7 billion (+11.5%) when compared to November 2018. The main products which attributed to the growth were:

Refined petroleum products (8.0% of total imports), increased RM1.2 billion to RM1.3 billion; and

E and E products, which contributed 36.8% of total imports grew RM316.8 million or 5.5% to RM6.1 billion.

Imports from Singapore amounted to RM8.4 billion decreased RM834.6 million (-9.1%) from a year ago. The main product which attributed to the decrease were refined petroleum products (35.1% of total imports), decreased RM789.2 million or 21.2% to RM2.9 billion.

Seasonally Adjusted Import Value

On a m-o-m basis seasonally adjusted terms, imports increased RM3.3 billion (+4.8%) to RM73.3 billion.

Source: Department of Statistics Malaysia

Malaysia External Trade Indices November 2019

Exports

On a month-on-month basis, in November 2019, the export unit value index recorded a drop of 0.5% to 115.5 points which was mainly attributed to the decrease in the index of mineral fuels (-2.6%), inedible crude materials (-0.8%) and machinery & transport equipment (-0.3%). Meanwhile, the export volume index recorded a decline of 10.3% to 131.4 points. The decline was led by the decrease in the index of machinery & transport equipment (-22.9%), inedible crude materials (-12.9%) and animal & vegetable oils & fats (-5.0%). In seasonally adjusted terms, the export volume index fell 9.9% to 126.9 points.

When compared to the previous year, both export unit value and volume indices declined 0.6% and 5.0% respectively.

Imports

In November 2019, the import unit value index declined marginally by 0.1% to 117.2 points as compared to the previous month, which was due to the drop in the index of inedible crude materials (-0.4%) followed by machinery & transport equipment (-0.2%) and chemicals (-0.2%). In contrast, the import volume index increased 1.4% to 144.0 points. The increase was mainly contributed by the growth in the index of mineral fuels (+12.3%), miscellaneous manufactured articles (+9.6%) and chemicals (+3.9%). In seasonally adjusted terms, the import volume index in November 2019 registered a growth of 2.8% to 140.7 points.

On a year-on-year basis, both import unit value and volume indices shrank 2.3% and 1.4% respectively.

Terms of trade

Malaysia’s terms of trade fell 0.5% to 98.6 points when compared with October 2019. On a year-on-year basis, Malaysia’s terms of trade registered a rise of 1.8% from 96.9 points.

Source: Department of Statistics Malaysia

Malaysia External Trade Indices November 2019

Exports

On a month-on-month basis, in November 2019, the export unit value index recorded a drop of 0.5% to 115.5 points which was mainly attributed to the decrease in the index of mineral fuels (-2.6%), inedible crude materials (-0.8%) and machinery & transport equipment (-0.3%). Meanwhile, the export volume index recorded a decline of 10.3% to 131.4 points. The decline was led by the decrease in the index of machinery & transport equipment (-22.9%), inedible crude materials (-12.9%) and animal & vegetable oils & fats (-5.0%). In seasonally adjusted terms, the export volume index fell 9.9% to 126.9 points.

When compared to the previous year, both export unit value and volume indices declined 0.6% and 5.0% respectively.

Imports

In November 2019, the import unit value index declined marginally by 0.1% to 117.2 points as compared to the previous month, which was due to the drop in the index of inedible crude materials (-0.4%) followed by machinery & transport equipment (-0.2%) and chemicals (-0.2%). In contrast, the import volume index increased 1.4% to 144.0 points. The increase was mainly contributed by the growth in the index of mineral fuels (+12.3%), miscellaneous manufactured articles (+9.6%) and chemicals (+3.9%). In seasonally adjusted terms, the import volume index in November 2019 registered a growth of 2.8% to 140.7 points.

On a year-on-year basis, both import unit value and volume indices shrank 2.3% and 1.4% respectively.

Terms of trade

Malaysia’s terms of trade fell 0.5% to 98.6 points when compared with October 2019. On a year-on-year basis, Malaysia’s terms of trade registered a rise of 1.8% from 96.9 points.

Source: Department of Statistics Malaysia