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Cambodia-Indonesia goods trade balloons by 48% in 2022


The merchandise trade volume between Cambodia and Indonesia totalled $948.533 million in 2022, surging by 48.27 per cent over a year earlier, with Cambodian imports constituting a 96.12 per cent share, inching up by 1.08 percentage points on a yearly basis, according to the General Department of Customs and Excise (GDCE).

In 2022, Cambodian goods exports to and imports from Indonesia amounted to $36.839 million and $911.694 million, respectively, up 15.9 per cent and 49.96 per cent year-on-year, expanding the Kingdom’s trade deficit with the archipelago nation by 51.84 per cent to $874.854 million, from $576.167 million in 2021.

Last month alone, the Cambodian-Indonesian merchandise trade volume was to the tune of $118.29 million, up 63.8 per cent from $72.20 million in December 2021 and up 102.9 per cent from $58.30 million in November 2022.

The Kingdom’s exports accounted for just over $3.5 million, up 33 per cent year-on-year but down 12 per cent month-on-month, while imports came to nearly $114.8 million, up 65.0 per cent year-on-year and up 111.3 per cent month-on-month.

December was the best month for both two-way trade and Cambodian exports to Indonesia last year, with May in second-place recording $96.20 million and $94.60 million, while the top two for imports were September and July at $5.19 million and $4.16 million, GDCE statistics indicate.

The Kingdom’s free trade agreements (FTA) have become a big draw for Indonesian and other foreign investors, particularly the bilateral deals with China and South Korea, as well as the Regional Comprehensive Economic Partnership (RCEP), Cambodia Chamber of Commerce vice-president Lim Heng told the Post on January 19.

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Source: The Phnom Penh Post

MSMEs must adopt digitalisation to compete globally, says Matrade

 THE Malaysia External Trade Development Corp (Matrade) said it will continue in its efforts to ensure Malaysian micro, small and medium enterprises (MSMEs) remain a part of the global supply chain and be prepared for any adverse changes in global economic conditions. 

Matrade CEO Datuk Mohd Mustafa Abdul Aziz said Matrade is placing a strong emphasis on high-value industries, developing access into new and emerging markets and creating partnerships that are in line with its key pillars — digitalisation, adopting values of sustainability and being guided by the National Trade Blueprint (NTBp).

“We should be proud that we have strengths in high-value industries like electric and electronic (E&E), machinery and equipment, aerospace, halal, medical devices, pharmaceuticals, healthcare, construction, chemicals and energy — to name a few — for a country with only 33 million people,” he said in a statement on Dec 29. 

He said although foreign investments played a significant role in the growth of Malaysia’s trade over the last few decades, it is also important to highlight that local MSMEs contributed 37.4% of Malaysia’s GDP and 11.7% to overall Malaysia’s exports for 2021. 

“Nonetheless, we still need to pursue the goal of a 25% contribution by MSMEs to the nation’s export by 2025 as set under the 12th Malaysia Plan and the National Entrepreneurship Policy (DKN),” he added. 

He noted that along with the advancement of technology, cross-border e-commerce opportunities are also growing. 

“Hence, it is vital for Malaysian MSMEs to adopt digitalisation to be more competitive globally,” Mohd Mustafa said. 

In 2021, he remarked that the gross value added of e-commerce amounted to RM201.1 billion, an increase of RM37.2 billion in 2021 with a growth of 22.7%. 

He added that Mid-Tier Companies (MTCs) have also made significant efforts in contributing 30% of the GDP and 22% of our Malaysian workforce. Despite making up only 1% of businesses in Malaysia, MTCs play an important role in developing a competitive domestic supply chain, where 75% or more than 7,000 SMEs are involved in the MTCs export supply chain. 

Mohd Mustafa said the requirement to compete in international markets has changed significantly over the past few years. Buyers no longer base their decisions on price solely. Policymakers, numerous stakeholders, and consumers now have different expectations and are more concerned about the significance of adopting sustainability measures. 

He said Malaysian exporters must invest in developing sustainable export strategies that promote and adopt ESG principles in their production process and global supply chains to meet changing market requirements. 

Therefore, he said, MSMEs development programmes must be catered to help MSMEs become globally competitive. Business governance and operations including community care must be centred on socioeconomic trends. He said MSMEs need the relevant certifications, standards, labelling and global endorsement to compete on a global scale and in high-value markets. To do this, we must keep up our effective facilitation while pragmatically modifying some programmes to fully realise their global potential in the current economic climate.

“Our MSMEs must be prepared for the digital age, which goes beyond simply having websites and includes exposing them to cutting-edge technology like the metaverse,” said Mohd Mustafa, adding that another key area is e-commerce marketing, which is fast becoming a necessity for companies to remain relevant. 

He pointed out that Matrade has long introduced a programme called the eTrade Programme (now eTrade 2.0) to expedite the learning and adoption of e-commerce marketing as a tool to export among our MSMEs. 

“We must develop new capabilities in order to further diversify our strengths. With regard to international trade, Matrade urges all relevant parties to work with us to develop new areas of strength such as the services sector and environmentally friendly and highly innovative sectors,” he said. 

Currently, he said, Matrade has forged high-value partnerships with industry players across various segments namely, Google LLC, DHL Express, CIMB Group Holdings Bhd, Malaysian Green Technology and Climate Change Corp (MGTC), Sirim Bhd and Bank Islam Malaysia Bhd, among many others. 

As Malaysia endeavours to strengthen existing partnerships and forge new ones with nations in the region, he said the country’s commitment to free trade and open economies will bolster Malaysia’s capabilities to compete in the international market and ensure economic prosperity for years to come. 

Meanwhile, Mohd Mustafa said the presence of Malaysian businesses in the global supply chain contributes to its stability and the country can undoubtedly continue to solidify its position as a strong and reliable trading nation. 

“Malaysia can benefit from opportunities brought about by greater globalisation and regional economic integration through the Regional Comprehensive Economic Partnership and Comprehensive and Progressive Agreement for Trans-Pacific Partnership by utilising its strategic location. 

“Additionally, globalisation has immense potential for Malaysia, offering wider access to markets, investment and resources to facilitate Malaysia’s economic growth,” he said. 

As Malaysia continues to pursue greater international trade, he said many opportunities can be leveraged over the next three to five years. 

He said Malaysia is expected to see a surge in demand for its products and services, provided the readiness of local companies is addressed and pragmatic in the market access approach. 

Mohd Mustafa also said Malaysia’s move to position itself at the forefront of the digital economy by leveraging its expertise in technology, communications infrastructure and local knowledge will be a key catalyst to the country’s export growth. 

“Most initiatives in Malaysia are focused on providing better access to resources such as finance, technology, skills and talent, and these efforts help improve Malaysia’s infrastructure and connectivity to the global economy. 

“We must continue to strengthen our presence in international trade through the World Trade Organisation and other regional organisations as well as encourage the use of free trade agreements as an instrument to boost market access,” he said. 

Mohd Mustafa said Malaysia must also be ready for changes in the nature of international trade, such as growing tariffs, protectionism and production costs. 

“We must work concertedly to make sure that its trade laws are adaptable to these developments and that Malaysia is in a good position to take advantage of emerging opportunities in global trade, such as the digitalisation of processes, blockchain technology and e-commerce platforms. 

“Finally, our companies must continue to invest in their human capital and foster innovation through education and training. Investments in upskilling its workforce will help Malaysian companies remain competitive by developing innovative skills and technologies to strengthen its position in both the domestic and international markets,” he said. 

Malaysia must also keep its commitment to sustainable development, which is essential for the country’s long-term development and success in the rapidly evolving global trade environment, he said. 

Malaysia can leverage on trade agreements to strengthen manufacturing, increase exports

PUR: Trade and Industry deputy minister Liew Chin Tong believes that Malaysia can take advantage of the trade agreements that have been signed with other countries to strengthen manufacturing and increase exports.

He said a strong and robust manufacturing sector, particularly the Small and Medium Enterprise (SME), could sustain a good economy and employment for the country.

"Malaysia has the manufacturing sectors contribution to Gross Domestic Product (GDP) hovering around below 25 per cent and previously, we are at more than 30 per cent," he told the media at the CityPlus Business Outlook Forum 2023 here today.

He said Malaysia could also create and groom more local brands and increase the production of locally made products for the global market.

"If we produce better local products then we have the market access which will provide us with more benefits, and I am cautiously optimistic about the overall economy and SME sector for this year," he said. – Bernama



Sustainability remains priority of packaging industry this year

Sustainability concerns will continue to drive the priorities of the packaging industry this year, with a focus on carbon emissions and reducing the environmental impact of waste, according to trend forecaster WGSN.
 
In a report, WGSN senior trend forecaster for packaging Katie Raath said sustainability remains the top priority of the industry and brands as they strive to reduce emissions and tackle issues with “forever waste” and fossil fuel-based materials.
 
Raath identified forgoing forever waste among the five key packaging directions which involves reducing the environmental impact of packaging’s end-of-life stage through intelligent materials choice.
 
“Globally, we produce twice as much plastic packaging waste than 20 years ago, with the vast majority ending in landfill, where it takes up to 450 years to decompose and only 9% successfully recycled,” she said.
 
Raath said 2023 will see a huge movement away from ‘forever waste’ materials, such as fossil fuel-based plastics.
 
This will take the form of alternative bioplastics, a shift towards fiber-based alternatives to plastic packaging, while alternative organic materials will also come to the fore, she added.
 
Raath said other key packaging directions this year are Less is more involving reducing impact by lightweighting and downsizing and eliminating excess; Net-zero normalized or bringing down carbon emissions to meet pledged sustainability targets by 2024; Paper where possible in which fiber-based options will be the star materials of 2023; and Refill and reuse go mainstream in which reusable and refillable packaging will roll out at scale, prompted by legislation around single-use plastic waste.
 
“The most effective way to reduce packaging waste is to eliminate unnecessary packaging altogether,” she said.
 
Raath said this year will see a big push towards eliminating unnecessary packaging elements and rightsizing of packaging and adapting products to water-free formulas.
 
She advised industry players and brands to explore waterless formats for products to hugely reduce the volume and weight of packaging required, and simplify and minimize packaging elements.
 
“2023 will see packaging manufacturers and brands attack the issue of carbon emissions from a variety of angles - such as power sources, materials, formats and engineering- as manufacturers work towards net-zero packaging,” she added.
 
Raath underscored the need to switch at least part of packaging supply to manufacturers who are using green energy, and minimize unnecessary secondary packaging on brand and choosing lightweight and lower-impact materials for primary packs.
 
“Paper will be the star packaging material of 2023, offering a variety of environmental benefits compared to plastic and aluminium alternatives, given its lower carbon emissions and easy biodegradability even in landfill conditions,” she said.
 
Raath said 2023 will also see an increasing focus on transforming packaging into a circular economy that seeks to eliminate waste by retaining materials within the system.
 
“Refill and reuse packaging schemes will become commonplace as consumers gravitate towards brands that prioritize sustainable packaging,” she said.
 
Packaging that can be refilled at home has great potential to build brand loyalty with highly desirable forever packaging and subscription model refills, she added.
 
Raath said brand-owned reusable packaging schemes for e-commerce and food delivery will also hit a tipping point.
 
Meanwhile, access to the WGSN report was facilitated by the Design Center of the Philippines.
 

UN highlights importance of enabling legal environment to benefit from FTAs

There is a strong need for developing countries to create an enabling legal environment for electronic transactions, as digital trade and cross-border e-commerce become increasingly crucial components in trade deals, according to a legal expert.

E-commerce is increasingly being recognized and promoted in global and regional free trade agreements (FTAs) through provisions for adopting an enabling environment, said Luca Castellani, a legal officer in the Secretariat of the United Nations Commission on International Trade Law (UNCITRAL).

Countries that eye membership in FTAs will therefore do well to note such trends and respond accordingly, he added.

UNCITRAL is the core legal body of the UN system in the field of commercial law tasked to modernize and harmonize the rules of international business. The commission deals with the law on electronic transactions, electronic contracting, and electronic signatures.

Castellani said an enabling legal environment for digital trade can be established through adopting treaties and harmonizing national laws based on uniform legal standards.

These uniform legal standards may have global coverage, such as the UNCITRAL legislative texts, or regional, such as the APEC Data Privacy Pathfinder and APEC Cross Border Privacy Rules.

Focusing on UNCITRAL texts, Castellani said these will help in implementing treaties for countries that want to advance their engagement in the digital economy and realize the benefits from these agreements.

UNCITRAL texts pertaining to e-commerce include the following:

•    UNCITRAL Model Law on Electronic Commerce (MLEC), which has been enacted in over 80 states
•    UNCITRAL Model Law on Electronic Signatures, enacted in about 40 states
•    UN Convention on the Use of Electronic Communications in International Contracts (ECC), which has 16 state parties and over 20 states enacting its provisions domestically
•    UNCITRAL Model Law on Electronic Transferable Records, enacted in seven jurisdictions
•    UNCITRAL Model Law on the Use and Cross-Border Recognition of Identity Management and Trust Services

Castellani noted how two mega trade deals, namely, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), extend strong support for an enabling legal environment.

Chapter 14 of the CPTPP promotes e-commerce and paperless trade facilitation by providing for the mutual recognition and interoperability of electronic transactions, authentication and signatures. The chapter also explicitly refers to a duty to adopt UNCITRAL texts and allows the use of specific technologies for certain types of transactions.

RCEP, on the other hand, states that each party shall adopt or maintain a legal framework governing electronic transactions, mentioning the use of MLEC, ECC, or other applicable international conventions and model laws relating to e-commerce.

Said Castellani: “UNCITRAL texts have been adopted in more than 100 states, many of them developing and least developed countries” that seek to engage in digital trade and cross-border e-commerce.

He said the adoption of enabling legal texts is needed to balance regulation of e-commerce that can be detrimental to digital trade growth. He also mentioned the need to ensure adequate resources, robust capacity building, and determined implementation since these are the biggest challenges in the creation of an enabling legal environment.

Updating the e-Commerce Act

In the case of the Philippines, the United Nations Economic and Social Commission for Asia and the Pacific and the Bureau of Customs introduced in mid-2022 the “Readiness Assessment for Cross-Border Paperless Trade: Philippines” report.

The readiness report conducted a legal and technical assessment of the Philippines’ readiness for cross-border paperless trade and found the country falling short. It recommended the updating of the Electronic Commerce Act or e-Commerce Act to ease the requirements for the recognition of electronic and digital signatures and facilitate cross-border paperless trade in the country.

By amending the e-Commerce Act, it can become consistent with the UN’s Model Law on Electronic Commerce and Electronic Communications Convention, the report added. The MLEC provides internationally acceptable rules for removing legal obstacles and increasing legal predictability for e-commerce, while the ECC aims to facilitate the use of electronic communications in international trade.

Moreover, the report found that implementation remained uneven among agencies and stakeholders in the Philippines.

“Implementation in paperless trade and cross-border paperless trade [has] room for further improvements. The Philippines could reduce trade costs and improve its competitiveness by accelerating its efforts to digitalize trade procedures,” the paper said.

Exports rise 16% to over $22B, trade deficit dips


Cambodia’s total merchandise exports reached $22.483 billion in 2022, rising by 16.44 per cent over 2020, narrowing its international trade deficit by 20.60 per cent to $7.459 billion, according to the General Department of Customs and Excise (GDCE).

The 2022 international merchandise trade came in at $52.425 billion, up 9.19 per cent on a yearly basis, with imports accounting for $29.942 billion, up 4.32 per cent.

GDCE figures show that exports have increased each year since at least 2016 – 16.71 per cent in 2016, 13.01 per cent in 2017, 12.54 per cent in 2018, 16.79 per cent in 2019, 24.36 per cent in 2020, 5.27 per cent in 2021, and most recently, 16.44 per cent or nearly one-sixth in 2022.

Cambodia Chamber of Commerce vice-president Lim Heng believes that the trend will continue in 2023, as the Kingdom’s bilateral and multilateral free trade agreements (FTA) and preferential trade arrangements with the EU and US springboard local products into the international marketplace.

He also assured that the trade deficit is not a significant cause for concern, arguing that imports largely comprise raw materials and components used in the production of export goods, or in the construction of infrastructure aimed at promoting investment in the Kingdom.

“I believe that revenues from Cambodia’s exports will continue to increase in 2023, as the number of new investment projects keeps ticking up,” Heng said.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, remarked that the double-digit increase in merchandise exports underscores the relative strength of the Cambodian economy, despite the stagnation seen elsewhere as a result of Covid-19, elevated oil prices, the Ukraine conflict, and geopolitical conflicts between major powers.

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Author: Hin Pisei
Source: The Phnom Penh Post

Publication date: 10 January 2023

Australia, Cambodia issue market research booklets to boost trade


The Cambodian Ministry of Commerce and the Australian Embassy, along with relevant institutions, on 9 January co-launched two key market research publications and a Single Digital Platform development project.

It is hoped the market information booklets – Cambodian Crops with Prospects for the EU and RCEP Markets and Cambodia and Unlocking Global Markets by Leveraging Free Trade Agreements (FTA) – will serve as guides to unlock long-term benefits for Cambodia’s agricultural sector.

Minister of Commerce Pan Sorasak said Cambodian Crops with Prospects for the EU and RCEP Markets offer important insights into market demand, consumer preferences, sanitary and phytosanitary biosecurity measures, non-tariff barriers to trade, product utilisation, key competitors and potential windows of opportunity.

“Promising crops included in this report are fresh mango, cashew, chilli, sweet potato, palm sugar, avocado, sesame and processed fruits.

“This information, if used strategically, has the potential to generate long-term benefits for Cambodian agriculture,” Sorasak said.

The Cambodia and Unlocking Global Markets by Leveraging Free Trade Agreements booklet provides up-to-date and easy-to-understand information on the bilateral and regional free trade agreements Cambodia is a signatory to, such as RCEP, the Cambodia-China FTA and the Cambodia-Korea FTA, he added.

“The booklet will help agri-food enterprises, producers, exporters, business associations and other relevant stakeholders to access market diversification opportunities and enjoy the benefits of these FTAs,” Sorasak said.

The Single Digital Platform will emulate Australia’s own FTA portal and act as a comprehensive resource for exporters and importers exploring the benefits of Cambodia’s FTAs.

According to the ministry, the platform will also provide information on rules of origin, procedures to register as an exporter and the ability to obtain certificates of origin.

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Source: The Phnom Penh Post

Export of new energy will boost Sarawak’s income to RM11b in 2025, says premier

KUCHING, Dec 18 — Sarawak’s income is expected to increase to RM11 billion in 2025 once its new source of energy can be exported, said Premier Datuk Patinggi Tan Sri Abang Johari Openg.

He was cited in a Sarawak Public Communications Unit (Ukas) report as saying Sarawak can be proud of being the most advanced state in the country in the development of new energy such as hydrogen and with regard to carbon storage.

“These are all new ways to increase income. When we can generate income, only then would investment come in. When we have income, we can modernise our economy. We can set up a Sovereign Wealth Fund.

“Furthermore, we need to save the income because we need liquidity. Our savings must be there,” he was quoted saying during the closing of the High-Performance Team (HPT) Retreat 2022 for Sarawak Civil Service at the Langkawi International Convention Centre in Kedah on Saturday.

Abang Johari called on the state’s civil servants to adopt a culture of innovation in line with the rapidly changing world, stressing that the future depends on utilisation of new methods – including the use of technology – when performing daily tasks.

“That is why we (Sarawak government) implemented the digital economy (policy) and I (had) instructed the State Secretary to immediately organise the International Digital Economy Conference Sarawak (in 2017) because we know that technology is advancing and the world depends on technology.

“And the new economy is based on digital methods,” he said.

At the same time, the Premier hoped civil servants would be aware of every initiative implemented by the Sarawak government, especially the Post Covid-19 Development Strategy (PCDS) 2030 to facilitate better public service delivery.

“All state civil servants need to understand and have a shared commitment to achieve what has been outlined in the PCDS, of which is to drive Sarawak to become a developed state in Malaysia with a high income,” he said.

Abang Johari also said allocations will be provided to enable officers at the middle management level to continue their studies even abroad and improve their skills and competency.

“If they want to advance themselves to PhD level, if there are institutions that can accept them, we can do it, and this includes (going to) Harvard University, Massachusetts Institute of Technology (MIT), Oxford University, Stanford University or Silicon Valley. We must give exposure to civil servants.

“And I will provide allocation for civil servants to continue their studies,” he said.

Meanwhile, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki said Sarawak civil servants have given their commitment to ensure that the state’s agenda will be successfully achieved.

He said Abang Johari, whom he named as ‘Father of Innovation’ had moved fast in introducing numerous innovative ideas since assuming the state’s leadership.

“As such, the Sarawak civil service must also move as fast as the Premier to keep up with his momentum,” he said.

The State Secretary also said all heads of departments will continue to go frequently to the ground to keep tabs of the developments going on in all districts.

He also paid tribute to past state secretaries Tan Sri Datuk Amar Mohamad Morshidi Abdul Ghani and Datuk Amar Jaul Samion as pioneers in initiating the annual retreat which served as an effective avenue to bring Sarawak forward.

The four-day retreat is attended by more than 200 heads of departments and officers from all the state agencies, departments, statutory bodies, local authorities and GLCs.

The retreat ‘themed Revisit, Rethink and Recharge’ aimed to gauge new ideas and innovations to enhance the service of the state civil service.

A total of eight papers were presented and deliberated, namely SCS Talent Development and Management; Enforcement and Safety; Rural Transformation; Digital Economy; Revenue Reengineering for Local Authorities; Post Covid-19 Development Strategy 2030; Development of Local Talent Management and Foreign Workers; and Residents and District Offices Divisional Transformation.

Also present were state Transport Minister Dato Sri Lee Kim Shin; State Attorney General Datuk Seri Talat Mahmood Abdul Rashid; State Financial Secretary Datuk Seri Dr Wan Lizozman Wan Omar; deputy state secretaries; permanent secretaries; and heads of departments. — Borneo Post

Source : Malay Mail

Matrade eyes more engagement from Sarawak SMEs for exports

KUCHING (Dec 20): The Malaysia External Trade Development Corporation (Matrade) hopes to see more small and medium enterprises (SMEs) from Sarawak taking part in exports, especially in the halal markets, with its vast opportunities worldwide.

This comes as the corporation will organise 252 programmes next year to help companies get involved in export activities.

Matrade deputy chief officer Sharimahton Mat Saleh encouraged Malaysian companies especially from Sarawak to use the facilities provided by Matrade to promote their products and services and expand their overseas market reach.

“Agencies (here in Sarawak) are very helpful in pushing SMEs to the global stage,” she said during a seminar on ‘Halal Potential, and Market Readiness for Halal Products’ in Kuching earlier today.

“Sarawak is the only state with offices in Singapore, Brunei and Kalimantan, which signifies the state’s agenda to push for exports compared to other states.

“Sarawak even held its own initiatives to do its own export awareness initiatives. We can see their focus on the internalisation agenda. We like to see Sarawak brands expand not just nationally but also globally.”

Touching on halal markets, Sharimahton said Malaysia remains as one of the leaders in the halal product market. According to data from the Global Islamic Economy Indicator (GIEI), Malaysia remains in the lead as the top halal exporting country for the eighth year in a row.

“The ecosystem in Malaysia is comprehensive, from certification from Jakim which is very sought after, in spite of how hard it is to get,” she added.

“This mirrors international demand for halal products from Malaysia.

“Muslim consumers on a global scale acknowledge Malaysia’s halal certification on quality and safety. Green sustainability is an element that is already taken into account in this certification.


“These certs will help expand Malaysia export to the 200 countries worldwide.”

Matrade’s upcoming event, the Malaysian International Halal Exhibition (Mihas), which is dubbed as the largest halal trade event in the world, remains the main event to promote the export of Malaysian halal products and services.

According to Matrade Sarawak director Zamzuri Mohamed, Matrade has a good working relationship with the Sarawak Ministry of International Trade, Industry and Investment (Mintred) in helping to increase the marketability of products produced by Sarawak companies to the international market.

“Matrade Sarawak will continue to establish strategic cooperation with various ministries, agencies, trade associations and chambers of commerce in carrying out export-based activities, which can open up more market access and increase export opportunities for the Sarawak business community.”

Also organised in conjunction with Mihas 2023 is the International Sourcing Programme where Matrade brings foreign buyers to Malaysia to hold business matching sessions with Malaysian companies.

This seminar was organised to raise awareness and a deep understanding of the global halal market as a future growth driver. In addition, seminar participants were also exposed to the best strategies in promoting halal products.

The 19th edition of the Malaysia International Halal Exhibition (Mihas) will be organized from 12 to 15 September 2023 with the theme “Leading the Halal World”. The next edition will be organised as a hybrid at MITEC, Kuala Lumpur.

 Source: The Borneo Post

Tengku Zafrul: Malaysia on strong footing to attract quality investments

KUALA LUMPUR (Jan 5): Malaysia’s economy is on a strong footing to attract quality investments, said International Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz.

In an interview with CNBC this morning, he said that although challenges still remain due to global economic uncertainties, China’s move to reopen its borders next week bodes well for Malaysia, as China is the nation’s largest trading partner.

“The move will help our exports and economy. Domestically, efforts focusing on environmental, social and corporate governance (ESG) principles in key sectors, enhancing the ease of doing business, and moving up on the value chain in sectors that we are strong in will also help cushion the impact of global economic headwinds.

“Malaysia is forecasting a four per cent growth in 2023. Our (growth) numbers are looking good, inflation is at four per cent and the unemployment rate is at 3.6 per cent,” he said.

Tengku Zafrul added that Malaysia is expected to register a gross domestic product (GDP) growth of 8.0-9.0 per cent in 2022.

For the first nine months of 2022, the nation’s economy expanded by 9.3 per cent, he said, adding that the country registered a 14.2 per cent GDP growth in the third quarter of 2022 amid robust domestic and external demand as well as an improved labour market.

During the interview, Tengku Zafrul also noted several possible concerns that could affect the global economic growth prospects, namely monetary and fiscal tightening, global tensions such as the Ukraine-Russia war which disrupted supply chains as well as exporters’ capacity in meeting ESG market demands.

CPTPP to continue

The minister said the Unity Government, led by Prime Minister, Datuk Seri Anwar Ibrahim, is very much committed to the nation’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into effect on Nov 29, 2022 in Malaysia.

Replying to a question on whether there would be a new re-evaluation of the 11-member trade deal, Tengku Zafrul said that the Prime Minister himself had signed all the necessary administrative agreements to ensure that exports and imports can continue under the ratified deal.

“There were obviously some issues that were raised by various groups and we have addressed that by taking a number of actions to mitigate some of the concerns, so we are very much committed to participating in it,” he said.

Ringgit to strengthen further

When asked if the worse is over for the ringgit, which depreciated by six per cent in 2022, Tengku Zafrul said he is optimistic that the local currency will continue to strengthen in 2023, given Malaysia’s growth forecast for the year.

“I think the key point here is what is going to happen to the US dollar. From my point of view, I think the (US) dollar has reached a comfortable level,” he added. – Bernama

Source : The Borneo Post

Myanmar and Bangladesh’s government signed the Memorandum of Understanding on rice trade

Depending on to the Government-to-Government pact between Myanmar and Bangladesh, Myanmar has conveyed over 165,000 tonnes of white rice to Bangladesh, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade on 8 September this year.

As stated by this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027.
Following the MoU, Bangladesh’s Directorate General of Food and Myanmar Rice Federation signed a sales contract for 200,000 tonnes of Myanmar’s white rice (five per cent broken) to be exported to Bangladesh.

 According to the sales contract, Myanmar has exported over 165,000 tonnes of white rice to Bangladesh as of 2 January 2022. The remaining will be delivered by the deadline.
As per the MoU between Myanmar and Bangladesh on the rice trade, 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes of rice to Bangladesh with Chinese yuan payment between October 2022 and January 2023. See detailed more the following link… https://www.gnlm.com.mm/myanmar-ships-over-165000-tonnes-of-rice-to-bangladesh-under-g-to-g-pact/

 

Author: NN/EMM

Source: The Global New light of Myanmar

Published date: 7.1.2023

 

FDI inflows slightly decrease in 2022

This year, the total foreign direct investment (FDI) inflows reported a decrease of 11 per cent, while disbursement saw an increase of 13.5 per cent compared to last year.
The total newly-registered capital, adjusted capital, capital contributions, and share purchases stood at $27.7 billion in 2022, equivalent to 89 per cent of last year, according to the Ministry of Planning and Investment's Foreign Investment Agency.
Specifically, 2,036 projects were granted investment registration certificates over the year with total registered capital of almost $12.5 billion, down 18.4 per cent from last year. Adjusted capital reached over $10.1 billion, up 12.2 per cent on-year. A very similar number of projects registered for capital adjustment this year.
There were 3,566 capital contributions and share purchases as of December 20, equivalent to $5.2 billion (a decrease of 25.2 per cent over 2021). One bright spot was disbursed capital, which topped $22.4 billion over the year (13.5 per cent higher than in 2021).
The FIA census also showed that foreign investments were seen in 19 out of the 21 economic sectors during the period. Of which, processing and manufacturing took the lead with $16.8 billion. Real estate was next with a total investment of $4.5 billion, followed by electricity production and distribution with $2.3 billion and scientific and technological activities with $1.3 billion.
It is also worth noting that wholesale and retail, processing and manufacturing, and scientific and technological activities were the sectors with the largest number of newly-registered projects, accounting for 30 per cent, 25.1 per cent, and 16.3 per cent of respectively.
By partner, 108 countries and territories poured money into Vietnam this year. Singapore was on top with $6.5 billion, accounting for 23.3 per cent of the total foreign investment into the country. South Korea came second with $4.9 billion and Japan was third with $4.8 billion. Other names further down the list included China, Hong Kong, and Taiwan. Ho Chi Minh City attracted the largest amount of FDI at just under $4 billion, followed by Binh Duong with $3.1 billion, and Quang Ninh with $2.4 billion.
The export turnover of foreign-invested enterprises (FIE) continued increasing by about 12 per cent on-year to roughly $276.5 billion, making up about 74 per cent of the country's total export value. Their import turnover was estimated at $234.7 billion, up 7.4 per cent on-year and accounting for 65.1 per cent of the total.
The FIE trade surplus was $41.8 billion (including crude oil) or $39.5 billion (excluding crude oil). Local businesses reported a trade deficit of $30.8 billion.
The over 36,278 valid foreign-invested projects accumulated across the country boasted total registered capital of more than $438.7 billion. Their disbursement was about $274 billion, equivalent to 62.5 per cent of the valid registered capital.

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