High Commission of India by taoyni

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									                             High Commission of India
                                   Kuala Lumpur
                                 (Commercial Wing)
No.KUA/C/201/1/09                                                     15 January 2010

                 Economic and Commercial Report (ECR) - December 2009

                                       PART – I


(i) New Currency Declaration Requirement at All Entry and Exit Points of
Malaysia

As per a press statement by Bank Negara Malaysia (the country‟s central bank) on
23.12.2009, in line with the global effort to combat money laundering and terrorism
financing, effective 1 January 2010, travellers entering or leaving Malaysia with cash
and/or negotiable bearer instruments (e.g. traveller's cheques, bearer cheques) exceeding
an amount equivalent to USD10,000 must make a declaration in form Customs No.
22. The forms will be made available at counters located before the Customs Checkpoints
at all entry and exit points of Malaysia.

The press statement further says that this is a requirement under section 23 of the Anti-
Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA) and is in line
with the Special Recommendation IX by the Financial Action Task Force which requires
countries to have measures in place to detect the physical cross border transportation of
cash and negotiable bearer instruments. Travellers could be fined up to RM1 million
and/or face imprisonment not exceeding a term of one year if they fail to declare or make
a false declaration.

Bank Negara Malaysia has given following contact points for more information:

Royal Malaysian Customs Department

Public Relations Division
Royal Malaysian Customs Department Headquarters
Tel: 1-800-88-8855/+6 03-8882 4803/+6 03-8882 2929 or
E-mail: kastam@customs.gov.my/aduan@customs.gov.my
Website: http://www.customs.gov.my

Bank Negara Malaysia

BNMTELELINK (Customer Service Call Centre)
Tel: 1-300-88-5465 or
E-mail: bnmtelelink@bnm.gov.my
Website: http://www.bnm.gov.my
(i-a)    Central Bank of Malaysia Act 2009 Comes into Force

    o In a press statement, Bank Negara Malaysia announced coming into force of the
      Central Bank of Malaysia Act 2009 (The Act) with effect from 25.11.2009. With
      this, the Central Bank of Malaysia Act 1958 is repealed. The Act will enable Bank
      Negara Malaysia to more effectively manage emerging risks and challenges in
      performing its role and responsibilities as the nation's central bank. The Act
      provides greater clarity on the Central Bank's mandate and vests it with the
      necessary powers and instruments to achieve this mandate. Incorporated in the
      Act is a more robust governance framework that provides for a high degree of
      accountability and transparency. The principal objects of Bank Negara Malaysia
      are to promote monetary stability and financial stability conducive to the
      sustainable growth of the Malaysian economy. The primary objective of monetary
      policy is to maintain price stability while giving due regard to developments in
      the economy. The Act stipulates that monetary policy is to be autonomously
      formulated by the Monetary Policy Committee (MPC) and effectively
      implemented by Bank Negara Malaysia. Adequate safeguards have been
      incorporated in the Act with respect to the membership of the MPC, the decision
      making framework and requirements for transparency, disclosure and
      accountability. The new Act is available on the Bank Negara‟s (Malaysia‟s central
      bank) website www.bnm.gov.my


  ii)     Rate of Inflation

          The Consumer Price Index (CPI) stabilized in November 2009, registering a
          marginal decline of 0.1% on an annual basis (October: -1.6%). As in Oct 2009,
          the improvement in headline inflation was largely driven by the lapse in the
          adjustment to retail fuel prices last year. In addition, higher inflation was
          registered in the miscellaneous goods and services category at 4.8% (October:
          3.2%), caused by higher prices for jewellery, rings and precious stones.

  iii)    Total trade in USD, trade balance and its growth to 10 major countries

         During the Jan-Oct 09, total exports reduced by 20.7% to RM 448.6 billion
         (approx. US $ 102.41 billion) while total imports contracted by 21.4% to RM
         351.2 billion (approx. US $ 79.81 billion) as compared with the same reference
         period of 2008.

         However, Malaysia‟s external trade balance registered a surplus of RM 97.4
         billion ( - 18.1%) as against RM 118.8 billion during the corresponding period of
         2008.

         Top ten export destinations during Jan-Oct‟09 were Singapore, China, US, Japan,
         Thailand, Hong Kong, South Korea, Australia, Netherlands and Indonesia.
         Exports to these countries accounted for around 71% of Malaysia‟s total exports.
       Top ten import sources during Jan-Oct‟ 09 were China, Japan, US, Singapore,
       Thailand, Indonesia, South Korea, Germany, Taiwan and Hong Kong. Imports
       from these countries amounted to around 75% of Malaysia‟s total imports.

iv)    The five principal export commodities

       1. Electrical & Electronic products
       2. Palm Oil & Palm Oil based Products
       3. Liquefied Natural Gas [LNG]
       4. Crude Petroleum
       5. Timber & Timber based Products

v)     The principal five import items (India’s rank in each of these categories
above including market share if we figure in the top five)

       1.   Machinery & Transport Equipment
       2.   Manufactured Goods
       3.   Chemical and chemical products
       4.   Mineral Fuels, Lubricants etc.
       5.   Food

vi)    India-Malaysia bilateral trade by top 10 commodities

       Bilateral total trade between India and Malaysia declined by 28% to RM
       20,632.67 million (USD 6068.42 million) in Jan-Oct. 2009 as compared with RM
       30,009.71 million (USD 8429.68 million) in the same period of 2008. Malaysia‟s
       exports to India were at RM 13,969.49 million (USD 4108.67 million) and
       imports from India were valued at RM 6663.18 million (USD 1959.75 million) in
       Jan-Oct. 2009.

       Please see Annexes-I & II for commodity-wise details.

vii)   Top five items of export from India to Malaysia and the top five items of
       import from Malaysia into India

       a) Export from India to Malaysia

       1. Frozen Bovine meat and fish
       2. Chemicals and chemical products
       3. Vegetables & Oilseeds
       4. Maize, Spices, Groundnut, Cashew nut
       5. Machinery, Appliances & Parts

       b) Import from Malaysia to India
         1. Palm Oil, Copra Palm kernel
         2. Animal & Vegetable Fats
         3. Mineral Fuels
         4 Cocoa powder/butter fat
         5. Electrical & Electronic Goods

(viii) India’s Investment interests

         Paper and Pulp Industry, Plantation, Palm oil and derivatives, Bio-diesel,
         Biotechnology, IT & IT-enabled services, human resource development, higher
         education, construction, pharmaceuticals, manufacturing, financial services, incl.
         capital market, banking, healthcare, tourism, agriculture, SME Development,
         energy, transport, chemical and chemical products, wood and wood products, etc.

ix)      Major trading agreements proposed/finalized and their impact on trade.

         The recently signed ASEAN-India FTA would come into effect from 1.1.2010
         and in all probability India-Malaysia bilateral trade would touch the higher marks.


x)       Executive Summary (Highlighting Action Points)

      1. Trade and Investment Missions to Malaysia to promote Indian exports, with the
         objective of narrowing the bilateral trade balance tilted in Malaysia‟s favour as of
         now.
      2. Conduct Market Surveys to identify „focus products‟ with export potential under
         Market Access Initiative (MAI)
      3. Organising Product-specific Exhibitions, Fairs, Buyer Seller Meets (BSM), etc.
         by the Indian trade promotion agencies.
      4. Ensure higher participation of Indian companies in Malaysian Exhibitions and
         Fairs.
      5. Malaysia has excellent infrastructure, abundant land, energy resources and water
         which are key elements for any business development. Indian companies can
         benefit by investing in Malaysia, particularly in the recently announced
         development corridors.



                                         PART – II

                   Bilateral Visits & Trade Policy/Promotion Measures

      o Malaysian Minister of Works Dato Shaziman bin Abu Mansor visited India from
        14-15 December 2009 at the invitation of Mr. Kamal Nath, Hon‟ble Minister for
        Road Transport & Highways. The visit focused on discussing the possibility of a
        G2G arrangement for development of National Highways in India.
o Malaysia‟s Minister of Plantation Industries and Commodities Tan Sri Bernard
  Giluk Dompok visited India and met Shri Anand Sharma, Hon‟ble Minister of
  Commerce & Industry at New Delhi on 15 December 2009. Since palm oil is a
  major item of Malaysia‟s export to India, both sides seek to strengthen their
  collaboration in this sector including plantation, refining etc.

o Confederation of Indian Industry brought 24 Indian companies to set up
  “Enterprise India Pavilion” at the 8th Malaysia International Trade & Consumer
  Fair popularly called “Expo Cintai”, held at MIECC, Mines Resort City, Malaysia
  during 2-6 December 2009. The Trade Fair was organized by the Kuala Lumpur
  Chinese Chamber of Commerce & Industry. Indian companies showcased
  handicrafts, handlooms, cosmetics and garments during the event.

o 5 Malaysian businesspersons, three from M/s Unimatex Sdn Bhd and one each
  from M/s Hextar Chemicals Sdn Bhd and M/s NG Bengtee Sdn Bhd visited
  Ahmedabad at the invitation of CHEMEXCIL, Mumbai for Buyer-Seller Meet
  from 13-14 Dec. 09.

o A 4-member delegation from the Rubber Industry Smallholders Development
  Authority (RISDA), Kuala Lumpur visited Kerala from 13-17 December 2009 to
  meet officials of the Rubber Board, India. The delegation was led by Mr. Omar
  bin Paimin, Director (Transfer of Technology and Ext. Division), RISDA,
  Malaysia. The propose of their visit was to exchange ideas and experiences in
  developing smallholders rubber processing centres, rubber cooperative, marketing
  of smallholders rubber products, cottage industry etc.

   Other Bilateral/Multilateral Economic Matters (not involving India)


o ASEAN, China, Japan, South Korea and the Monetary Authority of Hong Kong
  (total 14) signed a plan to set up a US $ 120 billion emergency fund known as the
  “Chiang Mai Initiative Multilateralisation” – Asia‟s first move to devise a safety
  net to shield itself from a financial crisis. The fund is likely to take effect from
  March 2010. China and Japan are the two largest contributors to the fund, each
  committing US $ 38.4 billion or 32% followed by South Korea at US $ 19.2
  billion or 16%. Malaysia, Indonesia, Thailand and Singapore are equally
  committed to US $ 4.77 billion or 3.97%. The agreement aims to address
  difficulties in balance of payments and short term liquidity.

                          PART – III : Miscellaneous

o The international reserves of Bank Negara Malaysia amounted to RM331.3
  billion (equivalent to USD96.7 billion) as at 31 December 2009.
   o From 1 November to 29 December 2009, the Ringgit depreciated marginally by
     0.9% against the U.S. dollar. The Ringgit appreciated against the Pound Sterling
     (2.7%) and the Euro (2.6%), but depreciated against the Japanese Yen (-0.4%).
   o At the Monetary Policy Committee (MPC) meeting on 24.11.2009, Bank Negara
     Malaysia decided to leave the Overnight Policy Rate (OPR) unchanged at 2.00
     percent.


A list of local trade enquiries received in December 2009 is attached as Annex.-III.



                                                                                       Annex I
                  Malaysia's Exports Jan - Oct 2009
                                                RM Mil       US$ Million
   Commodity      Malaysia's Malaysia's          Export to   Malaysia
                                                India as %   Export to
                   Global     Export to India       of       India
                                                global
                                                exports
Food               12999.06             89.10       0.69%            26.15
Bev & tobacco       2062.00             15.72       0.76%             4.61
Crude materials    10441.91          1066.50       10.21%           312.99
Mineral Fuels      65298.63          4326.89        6.63%          1269.81
Animal & Veg.
Oil                35847.00          2380.27       6.64%            698.54
Chemicals          27214.51          1615.35       5.94%            474.06
Mfg. Goods         41025.06           988.32       2.41%            290.04
Mach & Trans      207285.69          3034.11       1.46%            890.42
MISC Mfd
Articles           42697.72            409.16      0.96%            120.08
MISC Trans
NES                 3709.02            44.09       1.19%             12.94
Total:            448580.59         13969.50       3.11%           4099.63




                  Malaysia's Imports Jan - Oct 2009
                                               RM Mil        US$ Million
                                                  Import
   Commodity      Malaysia's Malaysia's            from      Malaysia
                               Import from      India as %   Import from
                   Global          India             of      India
                                               global
                                               imports
Food               22231.15           1870.04        8.41%          548.80
Bev & tobacco       1671.34             73.47        4.40%           21.56
Crude materials    11469.40            249.91        2.18%           73.34
Mineral Fuels      29042.90            640.67        2.21%          188.02
Animal & Veg.       3967.25             75.66        1.91%           22.20
Oil
Chemicals           32324.36           1211.84         3.75%          355.64
Mfg. Goods          43177.13           1512.04         3.50%          443.74
Mach & Trans       177944.06            824.96         0.46%          242.10
MISC Mfd
Articles            20885.22            162.19         0.78%           47.60
MISC Trans
NES                  8490.35             42.41         0.50%           12.45
Total:             351203.15           6663.19         1.90%         1955.45

* Miscellaneous Transactions Not elsewhere specified


US$1 =
RM3.4075

                                                                               Annex II
                  Malaysia’s Exports Oct 2009
                                                 RM Mil        US$ Million
  Commodity       Malaysia’s   Malaysia’s         Export to    Malaysia
                                                 India as %    Export to
                    Global     Export to India       of        India
                                                 global
                                                 exports
Food                 1449.70             16.68       1.15%              4.90
Bev & tobacco         209.12              1.88       0.90%              0.55
Crude materials      1391.32            105.33       7.57%             30.91
Mineral Fuels        8117.89            444.53       5.48%            130.46
Animal & Veg.
Oil                  3963.23            299.68         7.56%           87.95
Chemicals            3148.75            121.75         3.87%           35.73
Mfg. Goods           4541.38             96.87         2.13%           28.43
Mach & Trans        25939.18            241.19         0.93%           70.78
MISC Mfd
Articles             5017.24             55.97         1.12%           16.42
MISC Trans
NES                   459.51              4.77         1.04%            1.40
Total:              54237.33           1388.65         2.56%          407.53




                  Malaysia’s Imports Oct 2009
                                                 RM Mil        US$ Million
                                                   Import
  Commodity       Malaysia’s   Malaysia’s           from       Malaysia
                                import from      India as %    Import from
                    Global         India              of       India
                                                 global
                                                 imports
Food                 2400.82            212.81        8.86%            62.45
Bev & tobacco         148.82              2.54        1.70%             0.74
Crude materials      1426.86             31.52        2.21%             9.25
 Mineral Fuels        4660.49            199.34         4.28%     58.50
 Animal & Veg.
 Oil                   486.28              7.85         1.62%      2.31
 Chemicals            3671.40            108.34         2.95%     31.80
 Mfg. Goods           5133.50            145.39         2.83%     42.67
 Mach & Trans        21523.57             86.80         0.40%     25.47
 MISC Mfd
 Articles             2528.08             17.30         0.68%      5.08
 MISC Trans
 NES                   784.92              3.86         0.49%      1.13
 Total:              42764.73            815.75         1.91%    239.40

 * Miscellaneous Transactions Not elsewhere specified


 US$1 =
 RM3.4075


                                                                           Annex III


LOCAL TRADE QUERIES FROM- 01- 12-09 TO 31-12-09)


Sl.             CONTACT                                 AREA OF INTEREST
No.
1.  Mr. James Lee                                 REFRIGERATORS
    Koxler Equipment Sdn Bhd
    PT1, 18th Mile,
    Kg Pulau Meranti,
    Jalan Puchong,
    47100 Puchong,
    Selangor.
    Tel:+603 8060 0273
    Fax: +603 8060 0275
    H/P: +6016 2188128
    Email: koxler07@yahoo.com

2.    Mr. Fam Lian Fatt                           INVESTMENT IN INDIA
      Formosa Shyen Horng Metal Sdn
      Bhd
      Lot 2033, Jalan Perindustrian
      Mahkota 7, Taman Perindustrian
      Mahkota,
      43700 Beranang,
      Selangor.
      Tel: +603 8724 4662
     Fax: +603 8724 4661
     E-mail: fam@formosa.com.my

3.   Mr. S.A Sultan Ahmad                LOOKING FOR CONTACT
     Founder, Shabnutro Healthcare       DETAILS / ADDRESS OF
     7, Jalan P9 G1/5,                   TRANSLATION SERVICES IN
     Precinct 9, 62250                   INDIA
     Putrajaya
     Tel/Fax: +603 8888 0977
     H/P: +6016 2320977
     Email: vc@shanutro.com

4.   Mr. Alvin                           INVESTMENT IN SHARE
     Tel: +6019 7503636                  TRADING IN INDIA
     Email: luxtrees@yahoo.com

5.   Ms. Cassandra P.T. Yap              INVESTMENT IN INDIA
     Power Point Management Ltd
     A-312, 3rd Floor Block A,
     Kelana Square
     17, Jalan SS7/26, 47301
     Petaling Jaya, Selangor.
     Tel: +603 7804 2179
     Fax: +603 7805 4179
     E-mail: malaysia@powerpoint-
     group.com

6.   Mr. Nachiah Ramloo                  IMPORT
     H/P: +6012 7202236 / 016 7114236
     E-mail: ramloo.nachiah@epcos.com    CHEMICALS (ALUMINIUM
                                         HYDROXIDE)
7    Raymond NEO                         Import of Glass
     Capital Glass Pte Ltd
     sales@capitalglass.com.sg

8    Alvin Yap Soon Yew                  Import of
     Product Executive                   Inorganic Chemicals (Acid,
     Kong Long Huat Chemicals Sdn.       Alkali, etc.)
     Bhd.                                - Organic Chemicals
     Tel: +603-6254 8769 (Direct Line)   (Plasticizers, Solvents)
     Fax: +603-6258 2222                 - Fine/Electronic Grade
     Mobile: +6016-201 0831              Chemicals
     No. 23, Jln 3/3C Sri Utara,
     Off Jln Ipoh, Mukim Batu,
     68100 Kuala Lumpur, Malaysia.
     Website: www.klhchem.com.my

								
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