Malaysia felt the impact of the global financial crisis, but through sound policy and hard work began to emerge from the crisis at the end of 2009 The world economy in 2009 underwent a major financial crisis. While the U.S., Europe and Japan were hardest hit, Malaysia did not escape economic contraction, but it was among the first countries to show signs of recovery due to the Government’s timely stimulus measures and sound fiscal policy.  The U.S. experienced a 2.4% contraction in real GDP, Europe’s economy shrunk by 4.1% and Japan saw a 5.2% contraction.  World total merchandise trade was down 23% in 2009, and total commercial services trade declines by 14%.  ASEAN saw slower GDP growth of 1.3% in 2009, compared with 4.4% growth in 2008. Malaysia’s economy shrunk in the first three quarters of 2009, but grew by 4.4% in the last three months of the year. Malaysia’s trading volume fell in 2009, in line with the global slowdown, but experienced much smaller...

Asean Economic Community (AEC) will be established in January 2015. The establishment of the AEC will enable the 10 ASEAN member countries to work hand-in-hand in making the region a dynamic business destination. To date, 3 key agreements have been implemented to enhance free flow of goods, services and investment. ASEAN countries are working on opening up the services sector and remove barriers to allow for free flow of trade in services within the region. The article by the Secretary General of MITI, Y.Bhg. Tan Sri Abdul Rahman Mamat, sheds light on Realising ASEAN vision via AEC.

The Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) will come into effect on 1 July 2011. The free trade agreement addresses issues related to the liberalisation of trade in goods, trade in services, investments and economic cooperation. It is Malaysia’s fourth bilateral FTA after Japan, Pakistan and New Zealand.The benefits provided by MICECA are in addition to those already made available under the ASEAN-India Trade in Goods Agreement (AITIG) which was implemented on 1 January 2010. Under MICECA, Malaysia and India will progressively reduce or eliminate tariffs on an agreed list of industrial and agricultural products between 1 July 2011 and 31 December 2019. Malaysian exporters will enjoy free duty market access for rubber products, chemical products and electrical equipment from 1 July 2011. Imports from India into Malaysia will enjoy zero or lower duties for live animals and meat, textile materials and manufactures of metal beginning 1 July 2011. For...

The 43rd ASEAN Economic Ministers (AEM) Meeting was officially declared open by H.E. Professor Dr. Boediono, Vice President of the Republic of Indonesia in Manado in Northern Sulawesi, Indonesia.Following the opening ceremony, H.E Dr.Mari Elka Pangestu, Minister of Trade Indonesia chaired the 25th ASEAN Free Trade Area (AEM-AFTA) Council Meeting, the first of the series of meetings that will be held over the next three days. The focus of the discussions by Ministers at the AFTA Council Meeting was on initiatives aimed at further facilitating trade within the region. The initiatives discussed include elimination of non-tariff barriers that impede trade, simplification of rules and procedures of doing business and enhancing use of ICT in customs clearance of goods within the region. Y.B. Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry represented Malaysia at the 25th AEM-AFTA Council Meeting. The Ministers agreed that there is a need to institute an...

 

LANDING in Balikpapan after a 2-hour direct AirAsia flight from Kuala Lumpur makes you realise how close you are to some of Indonesia’s most bustling cities. My trip to Balikpapan was sparked off by a meeting I had some four months earlier with the city’s personable mayor, Bapak Rizal Effendi in Jakarta at a lunch for editors from Indonesia’s largest newspaper group, Jawa Pos. He convinced me that it is important to promote Malaysia in cities outside Jakarta. At the time I promised him that I’d visit his city the premier commercial hub in the booming natural resource province of East Kalimantan within the next four months. It wasn’t easy to arrange but with the Asean Economic Ministers’ Meeting set for Manado, I was able to pack in a quick trip to Pak Rizal’s home city. With a population of just over 600,000, Balikpapan is a thoroughly business-focused city framed by the Makassar Straits on one side and countless rolling hills on the other. There is an...

Pelancaran laporan Kedudukan Daya Saing Malaysia (GCR) 2011 -2012 telah berlangsung pada 7 September 2011 bertempat di Kementerian Perdagangan Antarabangsa dan Industri oleh YB Dato’ Sri Mustapa Mohamed, Menteri Perdagangan Antarabangsa dan Industri. Malaysia berada pada kedudukan ke-21 di kalangan 142 buah negara, meningkat lima anak tangga berbanding tahun lepas (GCR 2010-2011: ke-26/139). Pencapaian indeks skor yang lebih tinggi kepada 5.08 (GCR 2010-2011: 4.88 ) berbanding skor maksimum 7 menggambarkan asas ekonomi Malaysia yang kukuh dan perubahan positif dalam persepsi responden.Malaysia mengatasi lima negara yang sebelum ini berada di kedudukan lebih baik iaitu Israel (ke-22), Luxembourg (ke-23), Korea (ke-24), New Zealand (ke-25) dan Emiriah Arab Bersatu (ke-27). Di kalangan negara di Asia Pasific, Malaysia adalah yang keenam paling berdaya saing selepas Singapura, Jepun, Hong Kong, Taiwan dan Australia, manakala di kalangan negara ASEAN pula di tempat kedua selepas...

YB Dato Sri Mustapa Mohamad, Minister of International Trade and Industry (MITI), stressed that the uncertain global economic scenario reflects the importance of the multilateral trading system in ensuring that economies resist protectionism. MITI Minister said this in the APEC Ministerial Meeting held in Honolulu, United States of America, on 11 November 2011. Minister Mustapa highlighted that the WTO has been an important body in ensuring that global trade is conducted according to rules and disciplines that have been collectively agreed, and that markets are kept open. Dato’ Sri Mustapa also drew attention to the fact that global supply chains are more integrated today and therefore vulnerable to the impacts of natural disaster, as seen in the Fukushima incident and the Thai floods. “Given our interdependence, we must resist protectionism and instead focus on measures that facilitate trade.” On the Doha Round, MITI Minister noted that negotiations over...

Sidang Kemuncak ASEAN ke 19 telah membincangkan beberapa cadangan ekonomi yang telah dikemukakan oleh Majlis Komuniti Ekonomi ASEAN. Dalam keadaan ekonomi dunia yang tidak menentu dan juga keraguan terhadap pemulihan segera ekonomi Eropah, pemimpin-pemimpin ASEAN dan rakan-rakan dialog telah bersetuju supaya ASEAN dan negara-negara Asia Timur perlu bekerjasama dan mempercepatkan integrasi ekonomi rantau ini. Pada keseluruhannya, kadar pelaksanaan purata langkah-langkah AEC bagi Fasa 1 dan 2 adalah 75.6 peratus.Kadar pelaksanaan purata bagi Malaysia untuk kedua-dua fasa adalah 88.55 peratus. Ini menunjukkan bahawa ASEAN menghadapi cabaran untuk merealisasikan Komuniti Ekonomi ASEAN pada tahun 2015, kecuali ASEAN menggandakan usaha bagi melaksanakan langkah-langkah integrasi ekonomi yang telah dipersetujui. Maklum balas yang diterima daripada sektor swasta menunjukkan bahawa ASEAN perlu memberi keutamaan kepada aspek-aspek berikut: (i) fasilitasi perdagangan; (ii) standard...

 

Media Statement by:

Dato’ Sri Mustapa Mohamed Minister of International Trade and Industry   Strong FDI Performance for the First Nine Months of 2011  

1.   Malaysia’s Foreign Direct Investment (FDI) for the first nine months of 2011 was recorded at RM26.4 billion compared with RM18.6 billion for the same period in 2010 indicating a 42 per cent growth. This is based on the latest figure released by the Department of Statistics, Malaysia (DOSM). For the record, total FDI for the whole of last year was RM29.3 billion, while in 2009, total FDI was RM5.0 billion.   2.   Based on the FDI flows for the first nine months, it is likely that this year’s total FDI will exceed last year’s figure.   3.   While the FDI inflows for Q1 and Q2 2011 were strong which stood at RM10.1 billion and RM11.07 billion respectively, the inflow of FDI in Q3 moderated to RM5.17 billion. This is partly due to weaker external economic conditions, especially in the Euro Zone and the...