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PERUTUSAN RAYA 1435H YB MENTERI MITI

No. ISSN: 2180-0448

MITI Weekly Bulletin/ www.miti.gov.my

Assalamualaikum Warahmatullahi Wabarakatuh, Salam Sejahtera dan Salam 1Malaysia,

Allahu Akbar, Allahu Akbar, Allahu Akbar Walillah Hil Hamd.

Setinggi-tinggi kesyukuran dipanjatkan ke hadrat Ilahi kerana berkat keizinan dan rahmatNya kita dipertemukan lagi dengan bulan suci Ramadhan dan diberi kesempatan untuk menyambut Hari Raya Aidilftiri 1435.

Hari Raya Aidilfitri atau Hari Raya Puasa adalah hari kemenangan bagi umat Islam yang telah berjaya menyempurnakan rukun Islam iaitu berpuasa sebulan melawan hawa nafsu. Perjuangan melawan hawa nafsu ini lebih besar dari sekadar menahan lapar dan dahaga, bahkan merupakan satu manifestasi pendidikan kepada jiwa dan raga dalam menahan diri daripada

kelakuan dan percakapan yang dekat dengan sifat-sifat Mazmumah. Pada Syawal yang mulia ini, kita meraikan kemenangan dalam mengharungi cabaran dan dugaan sepanjang Ramadhan.

Berlatar-belakangkan keharmonian dan ketenteramaan hasil usaha dan visi kepimpinan, kita sewajarnya mensyukuri nikmat Tuhan ini bahawa tahun ini sambutan Aidilfitri dapat diraikan dalam kesederhanaan. Sewajarnya kesempatan ini diambil untuk mengukuhkan perpaduan dengan meluangkan masa untuk berkongsi kemeriahan aidilfitri bersama rakan, jiran dan masyarakat berbilang bangsa. Perpaduan merupakan asas kepada keamanan dan keharmonian. Kita berbangga kerana keamanan yang kita kecapi telah membolehkan negara mencatatkan kadar pertumbuhan ekonomi yang positif. Pada suku pertama tahun ini, Keluaran Dalam Negara Kasar telah bertumbuh 6.2% berbanding 4.2% pada suku pertama 2013. Sementara itu, bagi tempoh Januari-Mei 2014, perdagangan negara telah juga mencatatkan pertumbuhan sebanyak 10.2% berbanding tahun 2013. Nilai eksport negara telah melonjak naik ke RM319.0 billion. Jumlah pelaburan yang diluluskan pada tahun 2013 telah meningkat sebanyak 29.0%, mencapai RM70.8 billion berbanding RM54.9 billion pada tahun 2012. Daripada jumlah pelaburan ini, 92,988 bilangan pekerjaan akan diwujudkan. Pada suku pertama tahun 2014, pelaburan yang diluluskan bagi sektor pembuatan mencatatkan peningkatan 45.7% kepada RM17.1 billion berbanding RM11.7 billion pada suku pertama 2013. Pertumbuhan ekonomi negara akan memastikan kesejahteraan dan kemakmuran rakyat terus terjamin dan akan membolehkan Malaysia mencapai status negara maju pada 2020.

Oleh itu, di kesempatan hari yang mulia ini, marilah kita bersama-sama bertekad memperbaiki dan memantapkan lagi hubungan kita, bergerak bergandingan sebagai satu pasukan yang padu dengan penuh keikhlasan dalam menjalankan tugas. Semoga Allah S.W.T menganugerahkan natijah yang lebih baik dan kita semua mendapat keberkatan dari-Nya. Kita mempunyai tugasan yang mencabar dan perlu dilaksanakan dengan penuh tanggungjawab dan amanah bagi merealisasikan harapan rakyat dan menjadikan Malaysia sebuah negara yang hebat.

Akhir kata, saya dan keluarga MITI mengucapkan Selamat Hari Raya Aidil Fitri, Maaf Zahir dan Batin kepada seluruh rakyat Malaysia.

Dato’ Sri Mustapa MohamedMenteri Perdagangan Antarabangsa & Industri (MITI)

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Bilateral trade between Malaysia and Guinea is expected to see double-digit growth this year, says International Trade and Industry Minister Dato’ Sri Mustapa Mohamed. The Minister said Malaysia viewed Guinea as a growing market with a lot of potential to be exploited by Malaysian investors. Last year, trade between the two countries increased 11 per cent to US$44.95 million (RM139.34 million) with exports in favor of Malaysia at US$42.32 million (RM131.19 million). Palm oil was Malaysia’s main export.

Speaking to media after a closed door meeting with his counterpart, Marc Yombouno in Putrajaya,

Malaysia-Guinea Bilateral Trade To See Double-Digit Growth This Year

Source : Bernama,14 July 2014

Exclusive Interview with YB Menteri by China News Service

Minister of International Trade and Industry Dato’ Sri Mustapa Mohamed said in KL on 7 July that this year is the 40th anniversary of China-Malaysia diplomatic relations. He believed the relations between the two countries will move forward along the right track and hoped the two countries will achieve breakthrough in investment cooperation.

Minister Mustapa accepted an interview by China News Service team for the “New Century Silk Road-Chinese media’s journey of ten thousand miles” program at his office. Mustapa gave his opinion about the current and future development of China-Malaysia economic and trade relations as well as new opportunities that could be derived from the establishment of 21st Century Maritime Silk.

Mustapa said that Malaysia and China enjoy close relationship. Both countries are not only close neighbors but also have good cooperation in the areas of politics, economics, social, and cultural. This year is the 40th anniversary of Malaysia-China diplomatic relations and we have enjoyed close relations for the past 40 years. Most importantly, our trade relations have been upgraded in recent years. China has been Malaysia’s biggest trading partner since 2009. Last year, our trade reached US$106 billion and broke the 100 billion mark. At present, we have “marvelous” relationship in politics, economics, and social. “We believe our good relations will move forward along the right track and seek breakthrough in many areas”. “I believe the great relationship between China and Malaysia will pass on from generation to generation”.

Mustapa hoped that the bilateral investment could achieve breakthrough in two areas. First, he hoped for more Chinese investment in Malaysia. Currently, the direct investment from China to Malaysia was only 1 billion US$, while Malaysia’s investment to China already exceeded US$6 billion. Second, in terms of sectors, Malaysia wants to see more Chinese investment in high value-added, knowledge intensive projects and services. “As the bilateral economic and trade cooperation expands, I believe the bilateral trade target of US$160 billion can be achieved successfully by 2017.

Sources : China News Service and MITI Beijing

Monday, Mustapa said it was a follow-up to the visit by Guinea’s President, Alpha Conde to Malaysia two years ago.

“The country is rich in agriculture with more than six million hectares of land, a variety of mineral resources like iron and diamonds and also some petroleum,” he added. Meanwhile, Yombouno said Guinea recognised Malaysia as an advanced country and was keen to attract more entrepreneurs from this country. “We need Malaysia’s experience and expertise on Islamic finance while using Guinea as a staging point for investments in Africa,” he added

MITI in the news“D

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Exports to FTA Partners, 2000-2014 (January-May)MALAYSIA

Imports from FTA Partners, 2000-2014 (January-May)

7.3

25.7

11.9

48.8

79.8

36.2

9.2

29.2

14.411.5

97.0

39.1

0

20

40

60

80

100

120

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

(Jan

-Ma

y)

RM bi

llion

India Japan Australia PRC

12.3

106.3

44.5

65.556.4

23.1

6.1

16.5

8.6

2.716.4

6.10

20

40

60

80

100

120

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

(Jan

-May

)

RM b

illion

PRC Japan Australia India

23.8

83.6

114.3

59.3

15.322.9

10.117.9

0

50

100

150

200

250

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

(Jan

-M

ay)

RM b

illion

PRC Japan Australia India

Total Trade with FTA Partners, 2000-2014 (January-May)

Source : Department of Statistics, Malaysia

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MITI Weekly Bulletin/www.miti.gov.my

SMEs in MalaysiaCategory Micro Small Medium

Manufacturing

Services andother sectors

Sales turnover of less than RM300,000 toless than RM1.5 mil or employees from 5 to less than 75

Sales turnover from RM300,000 to less than RM3 mil or employees from 5 to less than 30

Sales turnover of lessthan RM300,000 or employees of less than 5

Sales turnover of less than RM300,000 or employees of less than 5

Sales turnover from RM15 mil to not exceeding RM50 mil or employees from 75 to not exceeding 200

Sales turnover from RM3 mil to not exceeding RM20 mil or employees from 30 to not exceeding 75

New SME definition based on size

Comparison of SME definition criteria used across countries

Source : Various sources from SME agencies and authorities

Major Export Products with FTA Partners, January-May 2014

India

Source : Department of Statistics, Malaysia

AustraliaJapanPRC

16.9

3.8 3.4

RM bil.E&E

Chemicals& Chemical Products Palm

Oil

18.8

6.8

1.6

RM bil.

LNG

E&E

WoodProducts

0

2

4

6

8

6.0

1.7 1.6

RM bil.CrudePetroleum

Petroleum Products

E&E

Crude Petroleum

Palm Oil2.8

2.3

1.7

RM bil.

E&E


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SME GDP growth and overall GDP

6.4

10.0

6.5

0.2

8.3

7.06.0

5.0~6.0

5.6

6.3

4.8

-1.5

7.4

5.15.6 4.5~5.0

-4

-2

0

2

4

6

8

10

12

2006 2007 2008 2009 2010 2011 2012p 2013f

(Yea

r-on

-yea

r gro

wth

%)

SME growth Overall GDP growth

Sources: Department of Statistics, Malaysia and SME Corporation Malaysia

International Report

SME Operating Cost Structure

44.9

45.9

46.5

49.7

45.7

17.0

18.9

18.0

19.7

17.6

8.7

8.0

9.4

6.4

8.7

7.7

10.1

7.1

6.3

7.5

8.2

4.8

6.2

3.9

7.3

6.5

6.2

5.5

6.5

6.2

6.9

6.2

7.3

7.6

7.1

0 20 40 60 80 100

Services

Agriculture

Manufacturing

Construction

Overall

(%)Raw material and other input cost Labour/Staff cost Utilities costTransport cost Rental cost Financing/Borrowing costOther cost

Source : SME Corporation Malaysia

Ease of Passage

Malaysia is among the Top 10 countries whose passports enable visa-free entry to the highest number of destinations (163 countries).

Source : Movehub.com

The most powerful passports in the world


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Top Ten Countries with the highest Inflation Rate, 2014*

9.8

10.5

10.8

11.0

11.0

12.1

12.3

18.3

28.5

29.8

0 5 10 15 20 25 30

Argentina

Yemen

Sudan

Pakistan

Uzbekistan

Egypt

Eritrea

Iran

Venezuela

Belarus

(%)

Source : www.statista.comNote: e=Estimate figure

Indonesia’s Trade Performance, January-May 2014

50

55

60

65

70

75

Exports Imports

73.474.2

US

$ bi

llion

3.8% 5.8%

Main export destinations for non-oil & gas products:-ASEAN (Malaysia 2nd destination)PRCEU andUSA

Main import sources for non-oil & gas products:-ASEAN (Malaysia 3rd main source)JapanEU andUSA

Sources: Indonesia’s National Statistics Bureau and MITI Jakarta

Bilateral Trade Indonesia - Malaysia (Jan-May 2014)Exports = US$3.5 bil. Imports = US$4.3 bil.

Total Trade = US$7.8 bil


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Source : http://www.gold.org/investments/statistics/gold_price_chart/

Source : Bank Negara, Malaysia

Silver

Gold

US$/MT

US$/grammeUS$/oz

Source : http://econ.worldbank.org-

Malaysian Ringgit Exchange Rate with Japanese Yen and Korean Won January 2013-June 2014

Gold and Silver Prices, 17 January 2013-18 July 2014

Aluminium, Nickel and Cooper Prices, January 2013-June 2014

0

5000

10000

15000

20000

25000

Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14

Aluminum Copper Nickel

US$18,629

US$6,821

US$1,839

0.24

0.25

0.26

0.27

0.28

0.29

0.30

0.31

0.32

2.70

2.80

2.90

3.00

3.10

3.20

3.30

3.40

3.50

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June

2013 2014

Japanese Yen (JPY100) Korean Won (KRW100)100 KRW = RM0.32

100 JPY = RM 3.15

18

20

22

24

26

28

30

35

36

37

38

39

40

41

42

43

44

45

17Jan

24Jan

30Jan

7Feb

14Feb

21Feb

28Feb

7Mar

14Mar

21Mar

28Mar

4Apr

11Apr

18Apr

25Apr

2May

9May

16May

23May

30May

6Jun

13Jun

20Jun

27Jun

4Jul

11Jul

18Jul


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Notes: The preference giving countries under the GSP scheme Norway,Switzerland, Belarus, the Russian Federation , Kazakhstan and Liechtenstein.

Number of CertificatesValue of Preferential Certificates of Origin

AJCEP: ASEAN-Japan Comprehensive Economic Partnership (Implemented since 1 February 2009)

ACFTA: ASEAN-China Free Trade Agreement (Implemented since 1 July 2003) AKFTA: ASEAN-Korea Free Trade Agreement (Implemented since 1 July 2006)

AANZFTA: ASEAN-Australia-New Zealand Free Trade Agreement (Implemented since 1 January 2010)AIFTA: ASEAN-India Free Trade Agreement (Implemented since 1 January 2010)

ATIGA: ASEAN Trade in Goods Agreement (Implemented since 1 May 2010)

Value of Preferential Certificates of Origin

Number of Certificates

MICECA: Malaysia-India Comprehensive Economic Cooperation Agreement (Implemented since 1 July 2011)

MNZFTA: Malaysia-New Zealand Free Trade Agreement (Implemented since 1 August 2010)MCFTA: Malaysia-Chile Free Trade Agreement (Implemented since 25 February 2012)

Number of Certificates

MPCEPA: Malaysia-Pakistan Closer Economic Partnership Agreement (Implemented since 1 January 2008)



MAFTA: Malaysia-Australia Free Trade Agreement (Implemented since 1 January 2013)

AANZFTA AIFTA AJCEP ATIGA ACFTA AKFTA

25 May 2014 845 647 217 4,319 1,563 815

02 Jun 2014 815 590 203 4,854 1,235 800

08 Jun 2014 785 539 236 3,870 1358 746

15 Jun 2014 787 505 243 4,068 1,266 840

22 Jun 2014 871 650 196 4,585 1,293 906

29 Jun 2014 683 476 220 4,344 1,127 713

06 Jul 2014 392 276 104 2,135 733 318

13 Jul 2014 780 552 199 4,444 1,089 806

MICECA MNZFTA MCFTA MAFTA

25 May 2014 262 13 89 34402 Jun 2014 276 2 49 37108 Jun 2014 279 11 76 37215 Jun 2014 252 0 35 29722 Jun 2014 243 6 321 32129 Jun 2014 296 3 60 29206 Jul 2014 133 3 32 15813 Jul 2014 281 6 65 376

MJEPA MPCEPA GSP

25 May 2014 772 207 1362 Jun 2014 1,003 144 1698 Jun 2014 800 167 132

15 Jun 2014 837 125 10922 Jun 2014 791 136 14429 Jun 2014 752 154 15906 Jul 2014 409 54 5513 Jul 2014 843 133 130

MJEPA: Malaysia-Japan Economic Partnership Agreement (Implemented since 13 July 2006)

Source: Ministry of International Trade and Industry, Malaysia

Number and Value of Preferential Certificates of Origin (PCOs)

25 May 2 Jun 8 Jun 15 Jun 22 Jun 29 Jun 6 Jul 13 JulAANZFTA 86 78 74 69 83 57 48 74AIFTA 723 162 1,144 300 494 80 62 142AJCEP 75 99 78 77 59 69 48 81

0

200

400

600

800

1,000

1,200

1,400

RM

mill

ion

25 May 2 Jun 8 Jun 15 Jun 22 Jun 29 Jun 6 Jul 13 JulATIGA 628 1,081 1,380 9,322 9,219 9,259 302 796ACFTA 768 357 625 272 649 520 437 406AKFTA 344 175 104 1,017 522 151 58 143

0

2,000

4,000

6,000

8,000

10,000

12,000

RM m

iliio

n

25 May 2 Jun 8 Jun 15 Jun 22 Jun 29 Jun 6 Jul 13 JulMICECA 67.40 45.95 35.47 50.72 30.03 49.21 22.05 45.95MNZFTA 0.20 0.07 0.16 0.00 0.40 0.14 0.06 0.11MCFTA 13.42 7.97 8.24 5.64 22.17 7.23 7.80 12.76MAFTA 25.80 29.93 25.01 28.40 22.17 27.34 11.60 24.25

0

10

20

30

40

50

60

70

80

RM

mill

ion

25 May 2 Jun 8 Jun 15 Jun 22 Jun 29 Jun 6 Jul 13 JulMJEPA 133 132 170 109 136 123 79 127MPCEPA 74 46 67 21 28 50 8 21GSP 28 19 17 17 19 27 14 25

0

50

100

150

200

250

RM m

illio

n


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Commodity 18 July 2014 (US$)

% Change* 2013i 2012i 2011i

Crude Petroleum (per bbl) 101.6 1.2 88.1-108.6 77.7-109.5 80.3-112.7

Crude Palm Oil (per MT) 863.7 unchanged 805.5 1,000.4 1,124.0

Raw Sugar (per MT) 366.0 0.4 361.6 473.8 647.0

Rubber SMR 20 (per MT) 1,671.5 0.9 2,390.8 952.5 1,348.3

Cocoa SMC 2 (per MT) 2,736.1 1.1 1,933.1 2,128.9 2,644.8

Coal (per MT) 60.5 0.5

Scrap Iron HMS (per MT) 380.0 (High) 370.0 (Low)

unchangedunchanged 485.6 444.7 491.0

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 (18 July 2014)

US$101.6 per bbl Crude Palm Oil(18 July 2014)

US$863.7 per MT

Lowest (US$ per bbl)

10 Jan 2014: 92.319 Apr 2013: 88.1

Highest

(US$ per bbl) 13 Jun 2014: 107.6

Sep 2013: 110.2

Highest

(US$ per MT)14 Mar 2014: 982.515 Nov 2013: 925.0

Lowest (US$ per MT)

13 Jun 2014: 848.8 4 Jan 2013: 800.0

18 July 2014 domestic prices for :1.Billets (per MT) : RM1,700 – RM1,750 2.Steel bars (per MT) : RM1,970 - RM2,120

Commodity Price Trends, 18 April-18 July 2014

Highest & Lowest Prices, 2013/2014

Weekly Commodity Prices

18 Apr 25 Apr 2 May 9 May 16 May 23 May 30 May 6 Jun 13 Jun 20 Jun 27 Jun 4 Jul 11 Jul 18 Jul Crude Petroleum/bbl 104.2 101.9 100.2 100.3 101.6 103.8 103.4 102.4 107.6 106.6 106.7 104.6 102.8 101.6 Rubber SMR 20/MT 1,808.0 1,715.0 1,739.0 1,674.0 1,723.5 1,725.0 1,695.0 1,660.5 1,685.0 1,736.0 1,792.5 1,747.0 1,687.0 1,671.5 Cocoa SMC 2/MT 2,586.0 2,608.6 2,517.9 2,516.3 2,517.9 2,643.1 2,629.9 2,690.6 2,675.4 2,690.6 2,736.1 2,720.9 2,705.7 2,736.1 Crude Palm Oil/MT 900.5 915.8 913.6 913.6 898.5 906.0 893.0 856.3 848.8 849.5 868.0 867.0 863.7 863.7 Scrap Iron/MT 395.0 395.0 395.0 395.0 395.0 380.0 380.0 380.0 380.0 380.0 380.0 380.0 380.0 380.0 Raw Sugar/MT 368.5 385.3 382.3 368.8 394.5 384.0 364.8 364.5 365.3 381.0 390.5 371.5 367.5 366.0 Iron Ore/MT 150.0 150.0 150.0 150.0 150.0 140.0 140.0 140.0 140.0 140.0 140.0 140.0 140.0 140.0 Coal/MT 67.8 67.2 67.2 70.2 69.3 69.3 62.0 60.9 60.4 59.5 61.5 61.5 60.2 60.5

Crude Petroleum

Crude Palm Oil

Rubber SMR 20

Cocoa SMC 2

Scrap Iron

Raw Sugar

Coal 0

500

1,000

1,500

2,000

2,500

3,000

96

98

100

102

104

106

108

110

US$/MTUS

$/bb

l

Iron Ore

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‘Thinking Globally, Prospering Regionally’PART 3

ASEANEconomic Community

“SHARED MARKET, SHARED BENEFITS” “FROM TEN to ONE” With reduced barriers to trade and investment, investors can move more freely in the region, have greater access to capital and benefit from moving goods easily across borders.

EXAMPLE: Four years before ASEAN was established, the Jebsen & Jessen Group of Companies started small in the region. Today, it is a US$866 million operation and a model of regional integration with entities in nine out of the ten ASEAN nations, thanks to greater liberalisation of markets. As ASEAN grew, the company expanded from trading into chemical manufacturing and other operations, taking advantage of ASEAN as a platform for growth. Benefitting from regional integration, the company has moved into technology, communications and other pursuits and is one of the first industrial companies in Southeast Asia to be carbon neutral, offsetting its emissions for all operations.

EXAMPLE: Jollibee, one of the region’s most successful and fastest-growing fast-food chains, has benefitted greatly from integration, allowing it to build an efficient supply chain that helps keep prices down. It sources both processed and basic ingredients from suppliers in its home country and around the region, enabling the company “to share its good food to more ASEAN people at very affordable prices.”

EXAMPLE: The liberalisation of air services within the ASEAN region and outside the region with Dialogue Partners will enable greater air connectivity, which will in turn lower fares for the carriage of goods and passengers, and provide businessmen and the travelling public with more options. ASEAN signed its first air services agreement with China in 2011 and expanded the agreement in 2012. ASEAN will embark on greater engagement with its Dialogue Partners to conclude more liberal air services agreements.

EXAMPLE: The establishment of the ASEAN Community- Based Tourism Standard will empower local communities to enjoy the benefits of their tourism potential by improving the quality of visitor experiences through partnerships with the private sector, which ultimately will provide more opportunities for youth employment and entrepreneurship.

“SIMPLIFIED RULES, GREATER ACCESS” “TRADING ON A BIGGER STAGE”

Trade in the region will be facilitated through simple, harmonised and streamlined trade and customs documentation as well as rules and procedures.

EXAMPLE: Denso Corporation, a manufacturing company with operations in five ASEAN countries, has benefited from the trade facilitation provisions of ATIGA and the pilot self-certification system. Employing more than 22,000 people and with US$2.9 billion of investments in ASEAN, the company has seen a reduction in document processing time and costs for its trade-related activities, contributing to the increase of its exports to the ASEAN market.

MITI Weekly Bulletin | www.miti.gov.my

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MITI Weekly Bulletin | www.miti.gov.my

EXAMPLE: Sony EMCS (Malaysia), a manufacturer of audio and video products as well as household appliances, uses the listed testing laboratory in Malaysia. Television sets are tested prior to export, and the test results are accepted by regulatory authorities in importing ASEAN countries. For ASEAN consumers, this arrangement ensures that imported electronic goods are safe and comply with all relevant standards.

EXAMPLE: Simplified rules, greater transparency and enhanced regulatory coherence for trading and investment provide incentives for young entrepreneurs to launch businesses that take advantage of a unified market to expand and target regional consumers. With the “buzz” increasing around the AEC, young people, especially from the SME sector, can also be expected to reach out to partners in neighbouring states to build synergies.

“ASEAN: HOME FOR YOUR INVESTMENT” “PARTNERS IN BUSINESS”

A more conducive business environment will encourage investors who are not yet in ASEAN to do business in the region, provide greater confidence among current investors to expand their investments and increase intra- ASEAN investment.

EXAMPLE: Prudential Insurance has been in the region for 80 years, expanding rapidly in the ASEAN era. The company calls itself “as much an Asian company as a British one.” Active in seven ASEAN countries and still expanding, the company “sees its future as intertwined with the future of ASEAN.”

EXAMPLE: Caterpillar, an international heavy equipment company, has made a major commitment to ASEAN as it sees the labour force expanding and a growing commitment to building modern infrastructure. From the company’s vantage point, “ASEAN provides many opportunities. At the same time, each country is highly distinct. Each country in the region offers its unique challenges and opportunities. The future is bright for ASEAN.”

EXAMPLE: India’s Fortis and the Bangkok Hospital Group have built up considerable expertise and experience in Singapore, Malaysia and Thailand. Similar partnerships provide better healthcare for the general public.

EXAMPLE: For young people, lowered barriers to foreign investment and greater integration are providing better educational services in the context of the AEC. Student mobility, the transfer of academic credits and the creation of research clusters will help improve ASEAN’s higher education system and provide support to the estimated 6,500 higher education institutions and 12 million students in the ten Member States.

“MAKING CAPITAL WORK FOR YOU” “EXPANDING ACCESS TO FINANCE”

A more robust ASEAN financial sector translates into stronger financial intermediation, capacity and risk management to support national and regional growth, and stronger cooperation to reduce vulnerabilities to external shocks and market volatility.

EXAMPLE: The seven ASEAN Exchanges have a combined market capitalisation of approximately US$2.9 trillion with more than 3,600 companies listed on their exchanges. Since the launch of ASEAN Exchanges in April 2011, a number of key initiatives have been rolled out. Some of these include the ASEAN Trading Link, the ASEAN Stars and the Invest ASEAN Retail Roadshow. These initiatives have created significant awareness of ASEAN as an attractive location for retail and institutional investors. The collaboration will jointly promote the development of ASEAN as an asset class and increase liquidity by streamlining access to ASEAN capital markets.

EXAMPLE: CIMB, a strong advocate of regional financial integration, thinks of itself as an ASEAN bank. Now operating in nine out of the ten ASEAN countries, the bank has what it calls a “multi-local” business model that strongly relies on local expertise to deepen its involvement and branch network into rural and urban areas in many countries at once.

EXAMPLE: With a more developed banking sector, small and medium enterprises and entrepreneurs will have better access to financial services. In addition, initiatives on financial inclusion and financial literacy will support individuals in their own financial planning.


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“ASEAN PROFESSIONALS ON THE MOVE” “BEST PEOPLE AND BEST PRACTICES”

The diversity of talent found in the ten Member States is a major benefit for ASEAN employers as they build regional companies.

EXAMPLE: ASEAN has come up with an information and communications technology (ICT) skill standards and certification framework in order to develop human capital and enable the free flow of ICT professionals within the region. The framework focuses on five key ICT areas: software development, ICT project management, enterprise architecture design, network and system administration and information system and network security.

EXAMPLE: Mutual Recognition Arrangements (MRAs) such as ASEAN’s MRA in engineering and architectural services provide for recognition and registration of certified professionals to practice in other ASEAN countries. The MRAs will also change the way ASEAN professionals think about their careers as the prospect of marketing and utilising their skills across the ASEAN region becomes more attainable.

EXAMPLE: AirAsia, the regional low-cost air carrier, has expanded its network greatly ahead of the open skies policy under the AEC. But as important as hardware and landing rights are, the company’s employees are the key to success. “People are our greatest asset,” the company says. Its mechanics, pilots, cabin crew and others come from many different ASEAN countries, allowing the airline to benefit from ASEAN’s diversity. EXAMPLE: Under the MRA on Tourism Professionals signed in 2012, training and education institutions using the Common ASEAN Tourism Curriculum will help improve their graduates’ eligibility to work in other Member States. This opens up great opportunities to enhance the quality of services and human resources in the tourism industry.

What comes next?

ASEAN is committed to fulfill the 2007 pledge to implement the ASEAN Economic Community by the end of 2015. That said, many of the AEC deliverables have already been realised between 2007 and now, and our businesses are already enjoying the fruits of greater ASEAN integration as a result. ASEAN has now focused its attention on the implementation of remaining deliverables under the AEC. While there are challenges that we will face in completing the task, ASEAN’s commitment to implementing the AEC remains undiminished.

AEC 2015 will also not be the end of ASEAN integration efforts. At their annual summit meeting in Brunei Darussalam in 2013, the ASEAN heads of state committed to creating a “Post-2015 Vision” that builds on the blueprint for an ASEAN Community and the Master Plan on ASEAN Connectivity. The leaders’ goal is to realise a community that is “politically cohesive, economically integrated, socially responsible and a truly people-oriented, people-centred and rules-based ASEAN.”

The heads of state, leaders in the private sector and other experts know that regional integration and the building of a single market for the AEC is a process that is just beginning. It will continue past 2015 as barriers are lowered, connectivity is enhanced, infrastructure is built and legal frameworks are refined to fit the community. New situations will emerge, fears must be overcome, unforeseen consequences will be encountered and solutions will be found.

Our ASEAN people, in all their diversity and creativity, are the most crucial factor on our journey. We need to continually engage the private sector as the key partner in making the AEC a success. We encourage ASEAN businesses in particular to think of ASEAN as a whole and develop their own ASEAN strategies, leveraging on the AEC initiatives and the opportunities they present. This is a golden opportunity for the region’s growing business community. Seize the moment. Get involved!

“2015: JUST THE BEGINNING”

Source: Excerp from ‘Thinking Globally, Prospering Regionally’, ASEAN Economic Community 2015, published by ASEAN Secretariat.

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“Our deepest condolences to families and friends of passengers and crew members of flight MH17. May their souls rest in peace...“

R E M E M B E R I N G MH17

Ukraine Macroeconomic Indicators

2013 GDP Growth 0.1% (US$177.8 bil.) GDP Per capita US$3,919.4 Inflation rate -0.3% Population 45.4 mil. persons Ethnic Composition Ukrainian : 77.8% Russian : 17.3% Others : 4.9%

Ukraine’s Trade Performance (2013)

Export to the world : US$63.3 bil. Import from the world : US$77.0 bil.Major export products:i) Semi-finished Products Of Iron Or Non-alloy Steel;ii) Corn (Maize) andiii) Iron Ores And Concentrates

Major import products:

i) Petroleum Gases And Other Gaseous Hydrocarbons;ii) Petroleum Oils& Oils From Bituminous andiii) Motor Cars And Other Motor Vehicles

Sources : CIA World Factbook, International Monetary Fund (IMF), World Trade Atlas (WTA) and Department of Statistics, Malaysia

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“DR

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