MALAYSIAN ECONOMY Second Quarter

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					MALAYSIAN ECONOMY
  Second Quarter 2011




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Quarterly Update
on the Malaysian Economy – 2nd Quarter 2011

Highlights

  ❐     Global growth expands at a modest pace
  ❐     Malaysian economy charts steady growth
  ❐     Growth driven by domestic economic activities
  ❐     Sustained growth momentum in the remaining quarters




International Performance                            expenditure and gross investment contracted
                                                     2.2% (Q1 2011: -1.1%) due to phasing out of
Global growth expanded moderately                    stimulus measures coupled with expenditure
                                                     and employment cuts by state and local
The global economy expanded at a slower              governments. However, steady growth in
pace in the second quarter of 2011. Growth           exports of 7.9% (Q1 2011: 8.9%) as well as robust
in the advanced economies moderated on               expansion in business investment for equipment
account of fiscal sustainability issues, financial   and software at 9.1% (Q1 2011: 13.4%)
stress and high unemployment. Also, supply           contributed significantly to overall GDP growth.
chain dislocations caused by the earthquake          The housing industry remained weak with sales
and tsunami in Japan led to a slowdown in            of new houses, housing starts and building
global manufacturing and trade activities.           permits contracting 3.6%, 3.7% and 0.3%
Furthermore, higher fuel prices impacted             (Q1 2011: -16.5%; -5.3%; -15.2%) respectively.
private consumption worldwide. Emerging and
developing economies, however, continued
                                                      5($/ *5266 '20(67,& 352'8&7 )25 6(/(&7(' &28175,(6
to register favourable growth, on account of               DQQXDO FKDQJH
resilient domestic demand.                                                                                                                     
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The United States (US) economy grew at a                  8QLWHG 6WDWHV                                                       
                                                          -DSDQ                                                             
slower rate of 1.6% (Q1 2011: 2.2%) in the second         8.                                                                 
                                                          (XUR $UHD                                                           
quarter of 2011. Weak consumer spending               $VLD
                                                                                                                       
and declining government expenditure                   &KLQD
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affected growth. Consumer spending rose                   ,QGLD   
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moderately by 2.1% (Q1 2011: 2.8%) as                  ,QGRQHVLD                                                                   
                                                       3KLOLSSLQHV                                                                QD
consumer confidence was impacted by high               6LQJDSRUH                                                           
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petrol prices, weak labour market conditions,          7KDLODQG
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a depressed housing market and stock                   ,QGLD )LVFDO \HDU $SULO  0DUFK


market volatility. Government consumption             6RXUFH 1DWLRQDO 6RXUFHV,0)
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Meanwhile, industrial output trended down,        The People’s Bank of China raised its policy
affected by the disruptive effect of the          rate by 25 basis points to 3.25% to contain
earthquake in Japan on supply chains.             inflation while the benchmark lending rate
The Institute for Supply Management (ISM)         was raised from 6.06% in February to 6.31%
manufacturing index fell to 56.4% (Q1 2011:       in April. In addition, the deposit reserve
                                                  requirement ratio for large financial institutions
61.1%), while the non-manufacturing index
                                                  was increased three times to reach 21.5%
dropped to 53.6% (Q1 2011: 58.8%). Labour
                                                  during the quarter.
market conditions deteriorated further with
the unemployment rate increasing to 9.1%          Japan’s economy continued to decline 1%
(Q1 2011: 8.9%) due to slower job creation        (Q1 2011: -1%), due to significantly lower
in the private sector. The Consumer Price         export growth and marginal decrease in
Index (CPI) rose to 3.5% (Q1 2011: 2.1%),         private consumption. Merchandised exports
the highest increase since the third quarter      grew 3.7% (Q1 2011: 12.9%), following supply
of 2008, following high fuel and food prices.     chain disruptions caused by the earthquake,
Meanwhile, the Federal Reserve Board (the         while imports surged 24.3% (Q1 2011: 22.7%),
                                                  mainly due to higher imports of liquefied
Fed) maintained its policy rate between
                                                  natural gas and petroleum as well as steel
0.00% - 0.25% to boost consumption and
                                                  products. Private consumption contracted
investment activities.
                                                  at a slower pace of 0.6% (Q1 2011: -1%)
                                                  following some improvements in consumer
In the euro area, GDP growth moderated to
                                                  sentiment. However, private investment by
1.7% (Q1 2011: 2.5%) amid concerns over the
                                                  residents and businesses grew 3.2% (Q1 2011:
widening sovereign debt crisis. The growth
                                                  5.2%) and 0.1% (Q1 2011: 2%) respectively,
performance was uneven among member
                                                  on account of reconstruction efforts. The CPI
countries. Germany and France continued
                                                  trended up to 0.3% (Q1 2011: 0%) mainly due
to perform better, albeit at a slower pace.
                                                  to food supply shortages following concerns
Germany’s GDP grew 2.8% (Q1 2011: 5%), led
                                                  over nuclear contamination.
by smaller export growth, while consumption
decreased and construction investment             In Korea, GDP grew 3.4% (Q1 2011: 4.2%) largely
weakened. Meanwhile, France grew 1.6%             on account of strong exports which expanded
(Q1 2011: 2.1%), contributed by higher            19.7% (Q1 2011: 29.6%), following increased
manufacturing output especially in electronic     demand for industrial parts and components,
equipment and the food sector.                    general machinery and chemical products.
                                                  Private consumption increased steadily by
China’s economy continued to register a robust
                                                  3.1% (Q1 2011: 2.8%) due to higher spending
growth of 9.5% (Q1 2011: 9.7%) supported
                                                  for transportation, housing and electricity. The
by strong domestic and external demand.
                                                  manufacturing sector continued to sustain
Merchandised exports increased 22.1% (Q1
                                                  strong growth of 7.3% (Q1 2011: 9.8%), following
2011: 26.4%), buoyed by robust demand
                                                  higher production in electrical equipment
for construction materials from Japan for
                                                  and motor vehicles. Meanwhile, wholesale
reconstruction efforts after the earthquake.
                                                  and retail trade rose 6% (Q1 2011: 5.6%)
Meanwhile, imports rose 23.1% (Q1 2011: 32.8%)
                                                  as household spending strengthened amid
reflecting healthy domestic demand. Similarly,
                                                  improvements in the labour market. The CPI
the manufacturing sector continued to grow
                                                  rose 4.2% (Q1 2011: 4.5%) attributed to higher
as reflected in the Purchasing Managers’
                                                  energy and commodity prices. The Bank of
Index (PMI) which averaged 51.9 points (Q1
                                                  Korea raised its benchmark policy rate to
2011: 52.8 points). Retail sales rose 18.2% (Q1
                                                  3.25% in June (March 2011: 3.00%) to curb
2011: 16.3%) following marked increases in the
                                                  inflationary pressures.
sales of petroleum, motor vehicles and food
essentials. The CPI rose 5.7% (Q1 2011: 5%)       In the ASEAN region, Singapore’s GDP
fuelled by rising prices of houses and food.      moderated sharply to 0.9% (Q1 2011: 9.3%),
                                                                                                                                                                                                                                               3

mainly due to a decline of 5.9% in the                                                                        as well as finance and insurance sub-sectors.
manufacturing sector and slower growth in                                                                     Despite lower electrical and electronics (E&E)
the services as well as construction sectors.                                                                 exports, the manufacturing sector registered
The contraction in manufacturing output                                                                       a growth of 2.1% (Q1 2011: 5.5%), supported
was partly due to weak global demand for                                                                      by strong growth in the domestic-oriented
biomedical devices and semiconductor chips.                                                                   industries. The construction sector grew
Indonesia’s economy continued to grow                                                                         marginally by 0.6% (Q1 2011: 3.8%) due to
strongly at 6.5% (Q1 2011: 6.5%), contributed                                                                 slower activities in the civil engineering sub-
by rapid growth in exports, in particular                                                                     sector. The agriculture sector rebounded 6.9%
agriculture and mineral commodities. Growth                                                                   (Q1 2011: -0.2%) supported by higher output
was further reinforced by strong investment                                                                   of palm oil and rubber. However, the mining
as well as buoyant domestic consumption.                                                                      sector declined 9.2% (Q1 2011: -4.2%) due
Bank Indonesia has maintained its policy                                                                      to shutdowns of oil and gas plants following
rate at 6.75% since February 2011 to keep                                                                     repair and maintenance works.
inflation at a manageable level. Inflation
was lower at 5.9% (Q1 2011: 6.8%) during
the quarter.                                                                                                   5($/ *5266 '20(67,& 352'8&7
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Malaysian Economy                                                                                                                                                                                               

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Growth remained steady                                                                                         *'3                                                                               

                                                                                                                'RP GHPDQG                                                                       

The Malaysian economy continued to expand,                                                                          &RQVXPSWLRQ                                                                      

albeit at a slower pace of 4% during the                                                                            ,QYHVWPHQW                                                               

second quarter (Q1 2011: 4.9%) amid growing                                                                     ([SRUWV                                                                     

uncertainties in the external environment. The                                                                  ,PSRUWV                                                                   

growth moderation was also partly attributed                                                                   ([FOXGLQJ FKDQJH LQ VWRFNV

to the high base, given the robust expansion                                                                  6RXUFH 'HSDUWPHQW RI 6WDWLVWLFV 0DOD\VLD


of 9% in the second quarter of 2010.

                                                                                                              Domestic demand grew 5.2% (Q1 2011: 6.9%),
 5($/ *5266 '20(67,& 352'8&7                                                                                  despite external uncertainties. This was largely
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                                                                                                              investment activities.
                                                                                   

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strong growth of 6.3% (Q1 2011: 6.4%) following                                                                             3DVVHQJHU FDU VDOHV                                             &UHGLW FRQVXPSWLRQ
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Private consumption expanded strongly                                                                                     Q2 2011 to 114 points (Q1 2011: 113.3 points),
by 6.4% (Q1 2011: 6.7%), fuelled by higher                                                                                suggesting a steady expansion in investment
disposable income following better job                                                                                    activities. The continued increase in private
prospects, firm commodity prices and a                                                                                    investment activity was also reflected by
strong stock market performance. The MIER                                                                                 indicators such as loans disbursed to business
Consumer Sentiments Index (CSI), although                                                                                 sector and manufacture of hydraulic cement
marginally lower remained above the 100-                                                                                  which registered growth rates of 14.9% and
point threshold at 107.9 points in the second                                                                             7.9% (Q1 2011: 14.3%; 10.4%) respectively.
quarter (Q1 2011: 108.2 points), reflecting
continued strong consumer confidence in the
economy. This was also reflected by major                                                                                 Sustained strong growth
consumption indicators such as imports of
consumption goods, motorcycle sales, service                                                                              The services sector sustained its growth
tax collection and credit card spending which                                                                             momentum in the second quarter of 2011,
recorded double-digit growth of 16.8%, 17.3%,                                                                             expanding 6.3% (Q1 2011: 6.4%) and
26.2% and 11.2% (Q1 2011: 5.3%; 10%; 23.5%                                                                                accounting for 58.4% of GDP (Q1 2011:
and 12.5%) respectively. However, sales of                                                                                58.3%). Growth was spurred by strong
passenger cars contracted 11.3% (Q1 2011:                                                                                 domestic consumption and business-related
7.1%), mainly due to disruptions in the supply                                                                            activities. All sub-sectors registered positive
chain caused by the earthquake and tsunami                                                                                growth driven by the intermediate services
in Japan. In addition, the implementation                                                                                 group which increased 6.1% (Q1 2011: 6.8%),
of the amended Hire-Purchase Act 1967 in                                                                                  supported by the finance and insurance
early June 2011 led to longer lead-time for                                                                               as well as real estate and business services
completion of the sales process, affecting                                                                                sub-sectors. Meanwhile, the final services
sales of passenger cars. Meanwhile, public                                                                                group grew 5.9% (Q1 2011: 5.1%) due to
consumption rose 4% (Q1 2011: 8.9%), attributed                                                                           strong performance of the wholesale and
to higher expenditure on emoluments as well                                                                               retail trade as well as accommodation and
as supplies and services.                                                                                                 restaurant sub-sectors.


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Gross Fixed Capital Formation registered a                                                                                The real estate and business services sub-
moderate growth of 3.2% (Q1 2011: 6.5%)                                                                                   sector recorded 7.6% growth (Q1 2011: 8.8%)
supported by private investment activities.                                                                               led by strong capital market and real estate
This was reflected by the Business Conditions                                                                             activities. During the quarter, the volume of
Index (BCI), which edged up marginally in                                                                                 equity market transactions grew 20.4% to
                                                                                                                                                                                                                        5

65.4 billion units valued at RM103.2 billion
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(Q1 2011: 65.3%; 102.1 billion units; RM131.8
                                                  3257 $&7,9,7<
billion). The FTSE Bursa Malaysia Kuala Lumpur     &RQWDLQHU +DQGOLQJ DW 0DMRU 3RUWV
Composite Index (FBM KLCI) rose 20.2% to          7(8V 
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1,579.07 points as at end-June 2011 (end-March     

2011: 17%; 1,545.13 points). Meanwhile, total
volume of property transactions recorded a         



double-digit growth of 21% to 112,307 units        


(Q1 2011: 8.2%; 99,451 units), while the value
                                                   

surged 43.5% to RM36.2 billion (Q1 2011:
10.4%; RM27.9 billion).                                     
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The finance and insurance sub-sector                            6RXUFH 6HYHQ PDMRU SRUWV .ODQJ -RKRU 3HQDQJ .XDQWDQ 7DQMXQJ 3HOHSDV %LQWXOX DQG .XFKLQJ

registered a firm growth of 5.6% (Q1 2011:
                                                  ',675,%87,9( 75$'(
6.8%) attributed to strong lending to the          9DOXH ,QGH[ E\ 6XEVHFWRU
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business and household sectors. During the              



quarter, total loan applications, approvals             



and disbursements increased 25.5%, 21.3% and            


8.5% (Q1 2011: 26.8%; 25%; 8.2%) respectively.              


The bulk of loans disbursed were mainly for             

working capital (51.5%), mostly channelled              

to the manufacturing (20.9%), wholesale
                                                        
and retail trade, accommodation and                                 4   4
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restaurant (16.8%) as well as construction                                          'LVWULEXWLYH WUDGH                                        5HWDLO WUDGH


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The wholesale and retail trade sub-sector          9DOXH $GGHG
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strengthened further by 7.3% (Q1 2011: 6.8%)      


driven by higher activities in the wholesale      

segment. During the quarter, the wholesale
trade value index surged 23.8% to 169.8           



points (Q1 2011: 14.5%; 153.4 points) largely     


contributed by solid, liquid and gaseous fuels
                                                  

as well as related products which rose 41.3%
(Q1 2011: 21.3%). Similarly, the retail trade            
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value index increased 7.3% to 154.9 points                                          9DOXH DGGHG

(Q1 2011: 8.3%; 152 points). However, the                       6RXUFH 'HSDUWPHQW RI 6WDWLVWLFV 0DOD\VLD

motor vehicle sales index grew marginally          (OHFWULFLW\ 6DOHV DQG 0D[LPXP 'HPDQG
by 0.4% to 126.6 points (Q1 2011: 5.5%; 130.8     *:KRXU

                                                     
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points) due to supply disruptions following the
devastating March earthquake and tsunami                                                                                                                                                                         




in Japan. Meanwhile, the accommodation                                                                                                                                                                           


and restaurant sub-sector expanded 5.9%                                                                                                                                                                          

(Q1 2011: 4%) attributed to strong domestic
demand and travel-related activities. The                                                                                                                                                                        



strong performance of both sub-sectors was                                                                                                                                                                       
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also reflected in firm credit card spending                                  ¶                           ¶                              ¶                              ¶                          ¶


and imports of consumption goods which                                              6DOHV OHIW VFDOH
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rose 11.2% and 16.8% (Q1 2011: 12.5%; 5.3%)
respectively.
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The communication sub-sector continued               trains, increased frequency and improved
to expand 6.5% (Q1 2011: 6.4%) driven by             facilities at stations. Meanwhile, KTM intercity
increased usage and a larger subscriber base         train passenger ridership grew 7.8% to 1.2
for cellular, broadband and 3G services. The         million passengers (Q1 2011: 7.2%; 1.1 million)
cellular phone subscriber base grew 12.1% with       while revenue rose 29.6% to RM29.2 million
a penetration rate of 123.5% to 35.3 million         (Q1 2011: 23.1%; RM25.9 million) on account
subscribers as at end-June 2011 (end-March           of growing Electric Train Service ridership,
2011: 11.9%; 121%; 34.5 million). The strong         particularly for the Kuala Lumpur – Ipoh
performance of the segment was supported by          route. KTMB cargo tonnage expanded 7.7%
attractive packages which stimulated demand          to 1.4 million tonnes, raising revenue by 7.1%
for voice, data and multimedia services. In          to RM30.4 million (Q1 2011: 7.8%; 1.4 million
addition, the favourable performance was             tonnes; 4%; RM30.1 million).
attributed to higher 3G subscriptions which
rose 24.1% to 9.8 million (end-March 2011:           Growth in the air transport passenger segment
29.6%; 9.7 million). Meanwhile, the number           improved further despite higher fuel prices.
of broadband subscribers grew 66.9% to 5.4           Total passengers on MAS and AirAsia rose 11.8%
million with a household penetration rate of         to 8 million (Q1 2011: 10.3%; 7.5 million) while
60.1% (end-March 2011: 68.1%; 4.9 million;           passenger volume at all airports nationwide
56.7%) spurred by rising demand for internet         expanded 13.4% to 16.5 million (Q1 2011:
access and wider network coverage. The total         11.8%; 15.4 million). This was spurred by
number of wireless hotspots also increased           increased connectivity, continuous promotion
to 16,851 locations nationwide (end-March            and offerings of attractive travel packages
2011: 14,061). In contrast, the number of            by airlines, particularly during the school
fixed line subscribers remained at 4.3 million       holidays. However, total air cargo handled
with a household penetration rate of 39.7%           at all airports contracted 4.9% to 225.4 million
(end-March 2011: 4.3 million; 40.1%).                tonnes (Q1 2011: 0.1%; 215.3 million) due to
                                                     lower exports of E&E products.
The transport and storage sub-sector recorded
a growth of 4.7% (Q1 2011: 4.3%) supported           The utilities sub-sector increased 2.4% (Q1
by steady travel and trade-related activities,       2011: 1.3%) mainly due to higher electricity
despite rising global fuel prices. Port activity     consumption, particularly in the industrial
expanded largely due to higher external demand,      and commercial segments. Electricity sales
particularly from intra-Asian trade. Container       rose 2.3% (Q1 2011: 1.2%) with maximum
throughput at seven major ports continued to         demand for electricity peaking at 15,476
rise 8.4% to 4.9 million TEUs (Q1 2011: 12.7%; 4.7   megawatts (MW) in May 2011 (Q1 2011:
million TEUs). Port Klang and Port of Tanjung        14,989 MW in March 2011). The other services
Pelepas accounted for 48.7% and 38.1% of total       sub-sector expanded 4.6% (Q1 2011: 3.9%)
container throughput respectively.                   largely attributed to higher private health and
                                                     education activities, while the government
In the land transport segment, traffic volume        services sub-sector grew 8.6% (Q1 2011: 9.4%)
on tolled highways rose 8.4% to 379.5 million        due to improvement in the public delivery
vehicles (Q1 2011: 11.2%; 370.1 million) due         system.
to increased travel, especially during the
school holidays. Total ridership on urban rail
services in the Klang Valley (Ampang Line,           Domestic-oriented industries led growth
Kelana Jaya Line, KL Monorail, Express Rail Link
and KTM Komuter) recorded a double-digit             Value-added of the manufacturing sector
growth of 16.6% to 47.2 million passengers           grew, albeit at a slower rate of 2.1% during
(Q1 2011: 9.9%; 44 million) following ongoing        the quarter (Q1 2011: 5.5%). Manufacturing
efforts to improve public transport in the Klang     output expanded 2.1% (Q1 2011: 6%) driven
Valley, including providing higher capacity          mainly by resource-based and domestic-
                                                                                                                                                                                                                                                                                    7

oriented industries. Sales of manufacturing                                                                               Growth was also supported by output of
products continued to grow 11.9% to RM148.1                                                                               plastic (21.1%), chemical (2.8%) and food
billion (Q1 2011: 10.7%; RM143.8 billion). The                                                                            products (1.5%). However, the production
overall capacity utilisation rate in the sector                                                                           of transport equipment dipped by 15.2%
was sustained at 81.1% (Q1 2011: 82.8%).                                                                                  (Q1 2011: -3.9%), particularly motor vehicles
                                                                                                                          (-23.7%) as well as parts and accessories for
                                                                                                                          motor vehicles and engines (-12.6%). This was
 3(5)250$1&( 2) 7+( 0$18)$&785,1* 6(&725
                                                                                                                          due to the supply chain disruptions following
        DQQXDO FKDQJH                                                                                                   the earthquake catastrophe in Japan.
 
                                                                                                                          Production of export-oriented industries
 
                                                                                                                          declined 2.4% (Q1 2011: 4.7%) as a result of
 
                                                                                                                          component shortages arising from global supply
                                                                                                                        chain disruptions as well as slower external
                                                                                                                         demand for certain major manufactured
 
                                                                                                                          goods. Output of E&E products declined 8.9%
 
                                                                                                                          (Q1 2011: -9.6%) as key electronics and wafer
                                                                                                                          production facilities in Japan were unable to
 
            4    4 4
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                                                                                                                          operate in full capacity, thus affecting local
                         3URGXFWLRQ                               6DOHV                                   ([SRUWV
                                                                                                                          E&E manufacturing activities. This was also
         6RXUFH 'HSDUWPHQW RI 6WDWLVWLFV 0DOD\VLD
                                                                                                                          compounded by easing global chips sales.
                                                                                                                          Petroleum products expanded moderately
                                                                                                                          by 2.2% (Q1 2011: 26%) due to lower output
                                                                                                                          of crude oil during the quarter. However,
Output of domestic-oriented industries rose
                                                                                                                          strong output growth was recorded in the
7.2% (Q1 2011: 7.4%) with resource-based
                                                                                                                          rubber products (21.2%), machinery and
products and construction-related materials
                                                                                                                          equipment (12.6%) as well as textile, apparel
expanding robustly. Of significance, off-estate
                                                                                                                          and footwear (10%) sub-sectors.
processing registered an increase of 17.6%,
especially in the manufacture of palm oil-
                                                                                                                          0$18)$&785,1* 352'8&7,21 ,1'(;
based products. Construction-related materials                                                                             
such as non-metallic minerals and fabricated                                                                                    DQQXDO FKDQJH
                                                                                                                                                                                                                                                        
metal products grew strongly at 31.6% and                                                                                                                                                     4      4        4     4              4     4     4      4      4      4

20.6% respectively, in tandem with the                                                                                    2YHUDOO 0DQXIDFWXULQJ                                                                                   
                                                                                                                           ([SRUWRULHQWHG LQGXVWULHV                                                                           
higher growth in residential housing projects.                                                                                (OHFWULFDO DQG HOHFWURQLFV SURGXFWV
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              
                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                              
                                                                                                                              7H[WLOHV DSSDUHO DQG IRRWZHDU                                                                   
                                                                                                                              :RRG DQG ZRRG SURGXFWV                                                                           
                                                                                                                              5XEEHU SURGXFWV                                                                                    
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                                                                                                                              0HGLFDO RSWLFDO DQG VFLHQWLILF LQVWUXPHQWV                                                    

                                                                                                                           'RPHVWLFRULHQWHG LQGXVWULHV                                                                            
 352'8&7,21 2) 7+( 0$18)$&785,1* 6(&725                                                                                       &KHPLFDOV DQG FKHPLFDO SURGXFWV                                                                        
        DQQXDO FKDQJH                                                                                                       3ODVWLF SURGXFWV                                                                                      
                                                                                                                              %DVLF PHWDOV                                                                                      
                                                                                                                              )DEULFDWHG PHWDO SURGXFWV                                                                            
                                                                                                                              1RQPHWDOOLF PLQHUDOV                                                                          
                                                                                                                  
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                                                                                                                          6RXUFH 'HSDUWPHQW RI 6WDWLVWLFV 0DOD\VLD
                                                                                                                   


                                                                                                                  
                                                                                                                          Agriculture sector turned around
                                                                                                                 


                                                                                                                 
                                                                                                                          The agriculture sector rebounded 6.9%
            4    4 4
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                                                                                                           ¶            (Q1 2011: -0.2%), mainly driven by robust
                    ,QGXVWULDO 3URGXFWLRQ ,QGH[
                                                                           'RPHVWLFRULHQWHG ,QGXVWULHV                   performance of the oil palm and rubber
                                                                           0DQXIDFWXULQJ 3URGXFWLRQ ,QGH[
                                                                           ([SRUWRULHQWHG ,QGGXVWULHV                    sub-sectors. Value-added of oil palm turned
           6RXUFH 'HSDUWPHQW RI 6WDWLVWLFV 0DOD\VLD
                                                                                                                          around and posted a double-digit growth
8

of 22.3% (Q1 2011: -7.9%), largely attributed                                                                                maintenance of crude oil production facilities.
to higher yields of fresh fruit bunches and                                                                                  However, production of natural gas recorded
oil extraction rate of crude palm oil (CPO).                                                                                 a positive growth of 2.7% (Q1 2011: -0.9%),
Similarly, the rubber sub-sector expanded                                                                                    following higher external demand especially
strongly by 16.3% (Q1 2011: 2.6%) led by                                                                                     from Japan.
higher output of rubber (17%) as favourable
weather conditions and higher rubber prices                                                                                   0217+/< 0,1,1* 352'8&7,21 $1' 35,&(6
                                                                                                                              &UXGH RLO                                          3ULFH       1DWXUDO *DV                               ([SRUW XQLW YDOXH
spurred tapping activity. In addition, the                                                                                    
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livestock and other agriculture sub-sectors
grew significantly by 9.4% and 7.3% (Q1 2011:                                                                                 
                                                                                                                                                                                                                                           


9.6%; 9.7%) respectively. The fishing sub-sector,                                                                             
                                                                                                                                                                                                                                           


however, contracted 3.8% (Q1 2011: 7.7%)                                                                                                                                                                                                   
                                                                                                                              
due to the decline in marine landings and                                                                                                                                                                                                   

aquaculture produce.                                                                                                          
                                                                                                                                                                                                                                            

                                                                                                                              
                                                                                                                                                                                                                                            
 0217+/< $*5,&8/785$/ 352'8&7,21 $1' $9(5$*( 35,&(6
                                                                                                                                                                                                                                         
                                                                                                                                    - $ - 2 - $ - 2 - $ - 2 - $ - 2 - $                              - $ - 2 - $ - 2 - $ - 2 - $ - 2 - $
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                                                                                                                             Construction sector supported by housing
                                                                                                           

                                                                 
                                                                                                                             activities
                                                                                                              

 

                                                      
                                                                 
                                                                                                                   
                                                                                                                             The construction sector grew marginally by
                                                                                                                             0.6% (Q1 2011: 3.8%) mainly due to lower
 
        - $ - 2 - $ - 2 - $ - 2 - $ - 2 - $
                                                             
                                                                       - $ - 2 - $ - 2 - $ - 2 - $ - 2 - $
                                                                                                                            construction activities in the civil engineering
          ¶     ¶     ¶     ¶     ¶                            ¶      ¶    ¶     ¶     ¶
                                                                                                                             sub-sector. However, the continuous expansion
                 3URGXFWLRQ            3ULFH                                   3URGXFWLRQ          3ULFH 605
                                                                                                                             in the residential and non-residential sub-
        6RXUFH 0DOD\VLDQ 3DOP 2LO %RDUG                              6RXUFH 0DOD\VLDQ 5XEEHU %RDUG
                                                                                                                             sectors supported the growth of the sector.
                                                                                                                             The civil engineering sub-sector declined
'$,/< 3$/0 2,/ 6327 35,&(6                                       '$,/< %5(177$3,6 2,/ 35,&(6
50WRQQH                                                       86' SHU EDUUHO                                            9.6% (Q1 2011: 2.9%) due to the contraction
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                                                                                                                             in the number of projects at 6.5%. However,
                                                            
                                                                                                                             growth in the residential sub-sector posted
                                                                                                                             a strong growth of 11.4% (Q1 2011: 7%) on
                                                                                                          86'

                                                                                                             86'
                                                                                                                             account of increased housing projects in
                                                                 
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                                                                                                                             Kuala Lumpur, Penang, Selangor and Sabah.
                                                  50
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Lower output of crude oil                                                                                                                                                                                                                       




Value-added of the mining sector contracted                                                                                     
                                                                                                                                      4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
                                                                                                                                                                                                                                                  

                                                                                                                                          ¶         ¶         ¶         ¶         ¶       ¶
9.2% (Q1 2011: -4.2%) mainly due to lower                                                                                                      6WRUH\ WHUUDFHG                                                 /RZFRVW IODWV
production of crude oil. The production                                                                                                       &RQGRPLQLXPV DSDUWPHQWV         IODWV                              /RZFRVW KRXVHV
                                                                                                                                              6LQJOH VWRUH\ WHUUDFHG                                              2WKHUV
of crude oil and condensates decreased                                                                                                                                                                     3   3UHOLPLQDU\

17.8% (Q1 2011: -7.3%) following repair and                                                                                         6RXUFH 1$3,& 9DOXDWLRQ        3URSHUW\ 6HUYLFHV 'HSDUWPHQW
                                                                                                                                                                                                                                                      9

The growth was also driven by increased                                                                              Prices in the transport group were also higher
launches of housing and growing demand                                                                               by 5.7% (Q1 2011: 4.4%), contributing 0.8
for affordable homes. In addition, the non-                                                                          percentage point to the CPI. The higher
residential sub-sector grew 1.2% (Q1 2011:                                                                           prices were due to the hikes in retail prices of
5.5%) in tandem with the expansion of office                                                                         petrol RON97 by 10 sen a litre on 2 April and
space and commercial buildings.                                                                                      5 May 2011. The increase in this group was,
                                                                                                                     however, partly mitigated by a subsequent
                                                                                                                     10 sen reduction in the petrol price on 16
Prices                                                                                                               June 2011.

Inflation continued to trend upward
                                                                                                                      &21680(5 $1' 352'8&(5 35,&( ,1',&(6

Headline inflation, as measured by the annual                                                                         &RQVXPHU 3ULFH ,QGH[&3,
                                                                                                                      $QQXDO FKDQJH  
                                                                                                                     
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change in the Consumer Price Index (CPI),
continued to increase 3.3% in the second                                                                                                                                                                                                 

                                                                                                                                                                                                                                          
quarter of 2011 (Q1 2011: 2.8%), marking the                                                                                                                                                                                             


sixth consecutive quarterly increase. This was                                                                        
                                                                                                                                                                              
                                                                                                                                                                                                                                            
                                                                                                                                                                              
mainly driven by higher prices in the food                                                                                                                                               
                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                              

and non-alcoholic beverages, transport as
                                                                                                                                                                                                                                        
well as housing, water, electricity, gas and
other fuels groups, which accounted for                                                                                                                                                                                               


79.7% of the CPI increase.                                                                                            
                                                                                                                           - $ - 2 - $ - 2 - $ - 2 - $ - 2 - $
                                                                                                                                                                                   
                                                                                                                                                                                               - $ - 2 - $ - 2 - $ - 2 - $ - 2 - $
                                                                                                                                                                                                                                              

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                                                                                                                                  &3,             7UDQVSRUW                 ULJKW                      33,           ,PSRUWV            ULJKW
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    )RRG DQG 1RQ$OFRKROLF %HYHUDJHV                                                                         
                                 7UDQVSRUW                                                
                                                                                                                     Meanwhile, prices in the housing, water,
         +RXVLQJ :DWHU (OHFWULFLW\ *DV
                       DQG 2WKHU )XHOV                                                                           electricity, gas and other fuels group rose
                  5HVWDXUDQWV DQG +RWHOV                                                                         1.8% (Q1 2011: 1.5%) and contributed 0.4
     $OFRKROLF %HYHUDJHV DQG 7REDFFR                              
     0LVFHOODQHRXV *RRGV DQG 6HUYLFHV                           
                                                                                                                     percentage point to the increase in CPI. This
        5HFUHDWLRQ 6HUYLFHV DQG &XOWXUH                                                                          was partly due to the increase in the average
     )XUQLVKLQJV +RXVHKROG (TXLSPHQW
  DQG 5RXWLQH +RXVHKROG 0DLQWHQDQFH                                                                              electricity tariff by 2.23 sen per kilowatt hour
                                (GXFDWLRQ

                                    +HDOWK
                                                           

                                                           
                                                                                                                     (kWh) to 33.54 sen kWh effective 1 June 2011.
                         &RPPXQLFDWLRQ                   
                                                                                                                     However, the impact of the tariff adjustment
                  &ORWKLQJ DQG )RRWZHDU                                                                         was limited as 75% or 4.4 million domestic
                                                                                           
                                                                                                                     users who consume less than 300 kWh per
                                                                                                 3HUFHQWDJH SRLQWV
 1RWH 7RWDO PD\ QRW DGG XS GXH WR URXQGLQJ
 6RXUFH 'HSDUWPHQW RI 6WDWLVWLFV 0DOD\VLD
                                                                                                                     month were not affected. As in the previous
                                                                                                                     quarter, prices in the clothing and footwear
                                                                                                                     group continued to drop 0.3% (Q1 2011: -0.5%),
                                                                                                                     mitigating slightly the impact of the overall
During the quarter, prices in the food and                                                                           price increases during the quarter.
non-alcoholic beverages rose further by
4.7% (Q1 2011: 4.3%) and contributed 1.4
percentage points to the CPI. Within this                                                                                  [In July 2011, inflation rose 3.4% (June
group, prices in food at home and food                                                                                     2011: 3.5%). This was contributed by higher
away from home categories increased 5%                                                                                     prices in the food and non-alcoholic
and 4% (Q1 2011: 4.8%; 3.7%) respectively. The                                                                             beverages (4.9%), transport (4.8%) as
price increases were due to higher demand                                                                                  well as housing, water, electricity, gas
during the school holidays as well as supply                                                                               and other fuels (1.9%) groups. For the
constraints. The removal of another 10 sen                                                                                 first seven months of 2011, inflation was
per kilogramme in sugar subsidy effective                                                                                  higher at 3.1% compared with 1.5% during
10 May 2011 also contributed partly to the                                                                                 the same period in 2010]
price increase in this group.
10

The Producer Price Index (PPI), a measure             59.4% of total retrenchments (Q1 2011: 24.6%; 644).
of changes in the prices of commodities               Fewer workers were laid off in the manufacturing
charged by domestic producers and those               (370) and construction (45) sectors.
paid by importers, increased 10.2% in the
second quarter of 2011 (Q1 2011: 7.4%). This            /$%285 0$5.(7
                                                        5HWUHQFKPHQWV DQG 9DFDQFLHV 

was on account of significant price increases           5HWUHQFKPHQW
                                                        
in local production materials. The much higher
PPI for local production of 13.6% (Q1 2011:              


9.9%) was the result of strong price increases           


in the animal and vegetables oils and fats               


(35.3%); crude materials, inedible (33.3%)               

as well as mineral fuels, lubricants (25.5%)             

groups. Meanwhile, the PPI for imports rose                      -    $
                                                                          ¶
                                                                                -   2   -    $
                                                                                                 ¶
                                                                                                       -   2   -   $
                                                                                                                       ¶
                                                                                                                             -   2   -   $
                                                                                                                                             ¶
                                                                                                                                                   -   2   -    $
                                                                                                                                                               ¶

2.8% (Q1 2011: 1.8%), attributed to higher              9DFDQFLHV
                                                        

prices in the mineral fuels, lubricants group           


by 14.9%.                                               

                                                        

                                                        


Employment                                               

                                                             
                                                                 -    $         -   2   -    $         -   2   -   $         -   2   -   $         -   2   -    $
                                                                          ¶                    ¶                   ¶                   ¶               ¶
Stable labour market                                             6RXUFH 0LQLVWU\ RI +XPDQ 5HVRXUFH 0DOD\VLD




The labour market remained stable with
the unemployment rate remaining at 3% in              Monetary and Financial Developments
May 2011 for the third consecutive month.
The labour force in May 2011 stood at 12.5            Monetary aggregates rose strongly
million of which 12.1 million were employed
in different sectors of the economy.                  The monetary aggregates increased at
                                                      double-digit levels during the second
Job vacancies registered with JobsMalaysia            quarter of 2011. M1, or narrow money, which
                                                      represented transactional balances, grew
decreased slightly to 9.6% to 514,189 in the
                                                      14.5% on account of higher demand deposits
second quarter of 2011 (Q1 2011: 568,717).
                                                      while M3, or broad money, rose 12.4% as at
The services sector accounted for the largest
                                                      end-June 2011 (end-March 2011: 14%; 8%).
share of vacancies at 193,261, contributing
to 37.6% of total vacancies, with the bulk
from the finance, insurance, real estate and            021(7$5< $**5(*$7(6
business sub-sectors (106,207 or 55% of job             $QQXDO
                                                        JURZWK  

vacancies in the services sector). This was             


followed by the manufacturing (182,140) as
                                                        
well as agriculture, forestry and fishing (69,574)                                                0


sectors. The number of active jobseekers                                                                                                                           

declined further to 350,330 as at end-June                                                                                                                           


2011 (end-March 2011: 358,270).                                                       0




                                                         
Meanwhile, retrenchments declined from the
preceding quarter by 57.8% to 1,105 workers              
                                                                 0DU -XQ 6HSW 'HF 0DU -XQ 6HSW 'HF 0DU -XQ 6HSW 'HF 0DU -XQ 6HSW 'HF 0DU -XQ
(Q1 2011: 2,621). The bulk of retrenchments were                           ¶                    ¶                   ¶                    ¶             ¶

from the services sector (656 workers) contributing              6RXUFH %DQN 1HJDUD 0DOD\VLD
                                                                                                                                                                                                                                                  11

The expansion of M3 was mainly supported
by higher net external operations of RM69                                                        ,17(5(67 5$7(6 2) &200(5&,$/ %$1.6
                                                                                                  
billion and extension of credit to the
private sector of RM41.2 billion.
                                                                                                                                                                 (QG0DU                                      (QG-XQH 


                                                                                                       %DVH OHQGLQJ                                                                                                      
Overnight Policy Rate raised                                                                           $YHUDJH OHQGLQJ                                                                                                   
                                                                                                       6DYLQJV GHSRVLW                                                                                                   
                                                                                                       )L[HG GHSRVLW
The Overnight Policy Rate (OPR) was                                                                             PRQWK                                                                                                  
raised 25 basis points (bps) for the first                                                                      PRQWK                                                                                                  
                                                                                                                PRQWK                                                                                                  
time since July 2010 to 3.00% on 5 May                                                                          PRQWK                                                                                                  
2011, with the economy on a steady                                                                             PRQWK                                                                                                  

growth path. Meanwhile, the Statutory
                                                                                                 6RXUFH %DQN 1HJDUD 0DOD\VLD
Reserve Requirement (SRR) ratio was
raised the second time this year from
2.00% to 3.00%, effective 16 May 2011
to manage the large liquidity build-up,                                                   Strong private financing
which may lead to financial imbalances.
Subsequently, the average base lending                                                    During the second quarter, gross private sector
rate (BLR) of commercial banks increased                                                  financing raised through the banking system and
27 bps to 6.54% and the average lending                                                   capital market grew 10.9% to RM225.6 billion
rate (ALR) edged up to 5.07% as at end-                                                   (Q1 2011: 6.4%; RM202 billion). This was largely
June 2011 (end-March 2011: 6.27%; 5.06%).                                                 attributed to the higher loan disbursements of
The savings deposit rate also rose                                                        8.4% to RM200.8 billion as well as larger issuance
correspondingly to 1.14% (end-March 2011:                                                 of private debt securities (PDS), which rose 50.6%
1.01%) while interest rates for fixed deposits                                            to RM20.9 billion (Q1 2011: 8.2%, RM188.6 billion;
of 1-month to 12-month maturity increased                                                 174.8%, RM12.2 billion). However, equity issuances
to between 2.95% and 3.23% at end-June                                                    shrank 9.7% on an annual basis to RM3.8 billion
2011 (end-March 2011: 2.71%; 2.98%).                                                      (Q1 2011: -89.9%; RM1.1 billion).


                                                                                           *5266 35,9$7( 6(&725 ),1$1&,1* 7+528*+ 7+( %$1.,1* 6<67(0
  [On 7 July 2011, the OPR was left unchanged                                              $1' &$3,7$/ 0$5.(7

  at 3.00%. The SRR, however, was raised                                                   50 ELOOLRQ
                                                                                           
                                                                                                                                                                                                                                            50 ELOOLRQ
                                                                                                                                                                                                                                                  

  by another 100 bps to 4.00%, effective                                                                                                                                                                             
                                                                                                                                                                                                                                          

                                                                                                                                                                                                                             
  16 July 2011]                                                                            
                                                                                                                                       
                                                                                                                                                                        
                                                                                                                                                                                                                                        
                                                                                                                                                       
                                                                                                                                    
                                                                                                                                                               
                                                                                                                                                                                                                                               
                                                                                                    


  OVERNIGHT POLICY RATE (OPR), BASE LENDING RATE (BLR)                                                                                                                                                                                         
  AND AVERAGE LENDING RATE (ALR)
  %
                                                                                                                                                                                                                                                
  7
                                                                                   6.54

  6                                                                                                                                                                                                                                              
                                                                                                       4   4 4           4      4      4 4           4      4       4 4        4       4     4 4            4     4 4
                                                                                                              ¶                            ¶                               ¶                          ¶                     ¶
  5                                                                                5.07
                                                                                                                /RDQV GLVEXUVHG                                                *URVV 3'6 LVVXHG                                     (TXLW\


  4                                                                                                 6RXUFH %DQN 1HJDUD 0DOD\VLD



  3                                                                                3.00
                                                                                          Lending activities continued to expand
  2                                                                                       during the second quarter of the year. Loan
  1
                                                                                          applications and approvals accelerated 25.5%
         Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun
               ‘07               ‘08             ‘09              ‘10           ‘11       and 21.4% (Q1 2011: 26.8%; 25%) respectively.
                     OPR                         BLR                     ALR              Meanwhile, total loans outstanding increased
      Source: Bank Negara Malaysia.                                                       13.5% to RM947.7 billion as at end-June 2011,
12

 %$1.,1* 6<67(0 /2$16 28767$1',1* $1' *52:7+                                                                                                                   Funds raised increased substantially
 50 ELOOLRQ
                                                                                                                                                     Fund raising activity in the capital market
                                                                                                                                              

                                                                                                                           
                                                                                                                                                           continued to increase during the second
                                                                                                      
                                                                                                              
                                                                                                                      
                                                                                                                                                       
                                                                                                                                                                quarter of 2011. Gross funds raised in the
  
                                                                                      
                                                                                              
                                                                                                                                                       
                                                                                                                                                                capital market increased 55.8% to RM51.5 billion
                                                                              
                                                                 

                                             
                                                                                                                                                           (Q1 2011: 9.2%; RM38 billion), attributed to
                  
                           
                                        
                                                                                                                                                               the higher issuance of Malaysian Government
          
  
                                                                                                                                                                Securities (MGS), Government Investment
  
                                                                                                                                                               Issues (GII) and PDS. The increase was due
                                                                                                                                                                to several large issuances, mainly from the
  
          0DU -XQ 6HSW 'HF 0DU -XQ 6HSW 'HF 0DU -XQ 6HSW 'HF 0DU -XQ 6HSW 'HF 0DU -XQ
                                                                                                                                                       
                                                                                                                                                                finance, insurance, real estate and business
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                                                                                                                                                                well as electricity, gas and water sectors.
                                                                                                                                                                However, net funds raised by the public
   /2$1 $33529$/6 $1' ',6%856(0(176 %< 6(/(&7(' 6(&7256                                                                                                        sector declined 36.2% to RM3.5 billion (Q1
   9$/8( $1' 6+$5(                                                                                                                                              2011: 58.5%; RM24.6 billion), due to higher
                  $33529$/6
              $SU   -XQH 
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                                                                                                                                                                redemption on government securities and
                50 ELOOLRQ                                                                          50 ELOOLRQ                                    savings bonds. In contrast, net funds raised
                                          3ULPDU\ DJULFXOWXUH
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                                                                                                                                                                43.9% to RM17.3 billion (Q1 2011: -27.5%;
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                                                                                                                                                                RM5.1 billion).
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                                                 )LQDQFH LQVXUDQFH                                                                             &RQVWUXFWLRQ     %< 38%/,& 6(&725                                                   
                                                DQG EXVLQHVV VHUYLFHV           )LQDQFH LQVXUDQFH                                            50E  
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of which 54.8% was from the household sector                                                                                                                     %< 35,9$7( 6(&725                                               

(end-March 2011: 13.2%; RM912.1 billion; 55.3%).                                                                                                                 6KDUHV:DUUDQWV
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During the quarter, outstanding household                                                                                                                          3ULYDWH 'HEW 6HFXULWLHV                                    

loans grew 12.8% to RM519.6 billion (end-                                                                                                                          /HVV 5HGHPSWLRQV                                                  


March 2011: 13.2%; RM504.2 billion).                                                                                                                             727$/                                                         

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Loans disbursed to businesses totalling RM134.8
billion were largely to finance working capital                                                                                                                 Yields on 1-year MGS increased 2 bps to
(Q1 2011: RM122.1 billion). Loan disbursements                                                                                                                  2.96% (Q1 2011: 9 bps; 2.94%) in response to
were mostly channelled to the manufacturing                                                                                                                     the May increase in OPR. Meanwhile, yields
sector (20.9%) followed by the wholesale and                                                                                                                    on 5-year and 10-year MGS declined 15 bps
retail trade, accommodation and restaurants                                                                                                                     and 17 bps to 3.50% and 3.93% respectively,
(16.8%) and finance, insurance and business                                                                                                                     reflecting the sustained demand from non-
services (9.3%) sectors (Q1 2011: 21.9%; 16.3%;                                                                                                                 residents and concerns of slowing global
7.9%). Disbursements to the household sector                                                                                                                    growth (Q1 2011: 27 bps and 6 bps; 3.65%
increased 10% to RM66.1 billion, accounting                                                                                                                     and 4.10%).
for 32.9% of total loans disbursed (Q1 2011:
RM66.6 billion; 35.3%) and were mainly for                                                                                                                      The yields for higher rated 5-year private
consumption credit and purchase of residential                                                                                                                  bonds (AA and above) were relatively stable
properties.                                                                                                                                                     with yields for AAA-rated and AA-rated at
                                                                                                                                                                                                                                           13

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       6RXUFH )XOO\ $XWRPDWHG 6\VWHP IRU ,VVXLQJ7HQGHULQJ )$67 %DQN 1HJDUD 0DOD\VLD                             6RXUFH %DQN 1HJDUD 0DOD\VLD




4.09% and 4.77% (Q1 2011: 4.11% and 4.76%)                                                                    June 2011 (end-March 2011: 14.4%; 12.8%).
respectively. In contrast, yields of lower rated                                                              Banking system total deposits grew 11.5% to
bonds (A and BBB) declined 25 bps and 5 bps                                                                   RM1.21 trillion as at end-June 2011 (end-March
(Q1 2011: -2 bps and 3 bps), reflecting better                                                                2011: 9.5%; RM1.17 trillion). Pre-tax profits of
credit conditions in that segment following                                                                   the banking sector were sustained at RM6.6
improved outlook for the economy. Overall                                                                     billion in the second quarter, supported mainly
PDS yields were in the range of 4.09% and                                                                     by higher financing and net interest income
11.41% (Q1 2011: 4.11% and 11.46%).                                                                           (Q1 2011: RM6.9 billion). The quality of loan
                                                                                                              portfolios in the banking system improved
                                                                                                              further with net impaired loans ratio at 2% as
  35,9$7( '(%7 6(&85,7,(6 3'6 <($5 <,(/'6                                                                at end-June 2011 (end-March 2011: 2.2%).
  
                                                                                                      


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Banking system stayed resilient

The banking system remained robust supported                                                                  Bullish stock market
by strong capitalisation, steady profitability
and improved asset quality. The risk-weighted                                                                 The FBM KLCI improved further in the second
capital ratio (RWCR) and core capital ratio                                                                   quarter of 2011 despite increasing global
(CCR) of the banking system remained high                                                                     market volatility. The positive performance of
at 13.9% and 12.3% respectively as at end-                                                                    the local stock market was partly on account of
14

increased economic activities and the ongoing                                                                                                    Mixed performance of the ringgit
Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP)                                                                                                        The ringgit continued to appreciate against
as well as strong domestic and corporate                                                                                                         the US dollar (USD) in the second quarter
fundamentals. The FBM KLCI gained 20.2%                                                                                                          of 2011 as slow growth and unfavourable
to 1,579.07 points, recording a new all-time                                                                                                     economic data in the US dampened market
high as at end-June 2011 (end-March 2011:                                                                                                        sentiment, prompting investors to move to
17%; 1,545.13 points). This was boosted by                                                                                                       emerging market assets in search of higher
the higher participation of retail investors                                                                                                     returns. On 28 April, the ringgit reached a
and strong foreign buying momentum.                                                                                                              new high against the USD at RM2.9615. During
                                                                                                                                                 the period, the ringgit rose slightly higher
Market capitalisation increased RM297.87                                                                                                         against the US dollar and the pound by 0.2%
billion or 28.5% to RM1,342.22 billion as at                                                                                                     and 0.1% respectively but eased against the
end-June 2011 (end-March 2011: RM1,310.99                                                                                                        euro and yen by 2.4% and 2.5% respectively.
billion). Total turnover rose 20.4% to 65.4                                                                                                      Meanwhile, the ringgit weakened against
billion units, valued at RM103.2 billion during                                                                                                  most regional currencies in the range of
the second quarter (Q1 2011: 65.3%; 102.1                                                                                                        -3.74% to -0.02%.
billion units; RM131.8 billion).
                                                                                                                                                    [During the period end-June 2011 to 19
                                                                                                                                                    August 2011, the ringgit gained against
                                                                                                                                                    the USD and the euro, boosted by
   [The FBM KLCI retreated to 1,483.98 points                                                                                                       higher inflows arising from the positive
   on 19 August 2011, in tandem with other                                                                                                          sentiment on growth prospects in the
   regional markets, triggered by a massive                                                                                                         region. However, the ringgit’s performance
   sell-off on Wall Street following the recent                                                                                                     was mixed against other regional
   US sovereign rating downgrade. Increasing                                                                                                        currencies]
   concerns over the global economic
   slowdown with the unresolved European                                                                                                         Federal Government Finance
   debt crisis and the possibility of the US
   going into a double-dip recession resulted                                                                                                    Strong revenue collection
   in investors fleeing the equities market to
   other safe assets or holding on to cash]                                                                                                      The Federal Government revenue increased
                                                                                                                                                 by 18.3% to RM49.6 billion (Q1 2011: 38.4%;
                                                                                                                                                 RM39.8 billion) in the second quarter of 2011
                                                                                                                                                 on account of robust collection in tax revenue
                                                                                                                                                 despite slower growth in non-tax revenues.
 3(5)250$1&( 2) 5,1**,7 $*$,167 6(/(&7(' &855(1&,(6                                                                                               )('(5$/ *29(510(17 ),1$1&,$/ 326,7,21 50 ELOOLRQ

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                                                                          FKDQJH                                                        FKDQJH                 5HYHQXH                          7RWDO ([SHQGLWXUH                    2YHUDOO %DODQFH
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                                                                                                                                                                                                                                                 15

Tax revenue, comprising 68.9% of total                                                                                                 )('(5$/ *29(510(17 '(%7 $1'
revenue, rebounded strongly by 26% to                                                                                                  )('(5$/ *29(510(17 5(&29(5$%/( /2$16
RM34.2 billion (Q1 2011: 81.6%; 49.3%; RM32.4                                                                                          50 ELOOLRQ                                 50 ELOOLRQ   50 ELOOLRQ                                  50 ELOOLRQ
                                                                                                                                                                                                                                        
billion) due to higher collection from direct
taxes at RM26.1 billion (Q1 2011: RM25
billion). This was mainly contributed by                                                                                                                                                                                                 


receipts from individual income tax and
stamp duties which increased 61.1% and                                                                                                                                                                                                   


25.4%, respectively in line with continued
expansion of the domestic economy. In                                                                                                                                                                                                    

addition, crude oil prices (TAPIS) which
averaged USD124 per barrel (Q1 2011:                                                                                                                                                                                                          
                                                                                                                                             4 4 4 4 4 4 4 4 4 4 4 4 4 4               4 4 4 4 4 4 4 4 4 4 4 4 4 4
USD109 per barrel) during the quarter                                                                                                            ¶         ¶         ¶      ¶                    ¶         ¶         ¶      ¶

boosted proceeds from petroleum income                                                                                                              )HGHUDO *RYHUQPHQW 'HEW                                 )HGHUDO *RYHUQPHQW 5HFRYHUDEOH /RDQV


tax (RM6.3 billion).

                                                                                                                                      lower sales of new passenger vehicles which
 )('(5$/ *29(510(17 ),1$1&,$/ 326,7,21 50 ELOOLRQ
                                                                                                                                      were impacted by recent amendments to
                                                        
                                                                        
                                                                                                     
                                                                                                                 
                                                                                                                                  the Hire-Purchase Act 1967.
                                   4     4      4    4                   4     4     4     4                   4     4

 5HYHQXH                                                                       Meanwhile, proceeds from non-tax revenue,
 2SHUDWLQJ H[SHQGLWXUH                                                     
 &XUUHQW EDODQFH                                                                             comprising 31.1% of total revenue, grew by
 *URVV GHYHORSPHQW H[S                                                            
                                                                                                                                      4.1% to RM15.4 billion. This was contributed
 /RDQ UHFRYHULHV         
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                                                                                                                                      mainly by receipts from licences and permits,
 2YHUDOO EDODQFH                                                         
                                                                                                                                      in particular road tax, while dividend income
  WR *'3                                                                                                                  from PETRONAS remained unchanged at
 0HPR ,WHP                                                                                                                           RM12 billion.
 7RWDO )HG *RYW 'HEW                                              
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     3UHOLPLQDU\                                                                                                                      Lower development expenditure
     %XGJHW



                                                                                                                                      Federal Government total expenditure
Receipts from indirect taxes increased 4.5%                                                                                           contracted by 0.5% to RM48.9 billion (Q1 2011:
to RM8.1 billion (Q1 2011: 12.3%; RM7.5 billion)                                                                                      15%; RM45.1 billion) in the second quarter
in the light of resilient private consumption                                                                                         of 2011 partly due to the high base effect
and higher business activities. Service tax                                                                                           in 2010, contributed by stimulus spending of
collection posted a double-digit growth                                                                                               RM5 billion in development expenditure.
of 26.5% to RM1.2 billion (Q1 2011: 23.4%;
RM1 billion) following the upward revision in                                                                                         Nevertheless, operating expenditure, which
                                                                                                                                      accounted for 83% of total expenditure,
service tax of one percentage point to 6% this
                                                                                                                                      increased 9.5% to RM40.6 billion (Q1 2011:
year. Sales tax on locally manufactured and
                                                                                                                                      21.2%; RM38.7 billion). This was on account
imported products remained firm at RM2.1
                                                                                                                                      of higher disbursements for pensions and
billion (Q1 2011: RM1.9 billion). Likewise, export                                                                                    gratuities, supplies and services as well as
duties remained stable at RM537 million due                                                                                           emoluments which rose 18.2%, 14.3% and 4.8%
to firm crude oil prices despite a decline in                                                                                         respectively. Likewise, payment on subsidies
production and export volume during the                                                                                               increased by 7.6% to RM7 billion due to
quarter. However, receipts from excise duties                                                                                         higher expenditure on fuel subsidies at RM5.2
contracted 5.3% to RM2.8 billion (Q1 2011:                                                                                            billion, following higher WTI crude oil prices,
5.8%; RM2.8 billion), partly due to slower motor                                                                                      which averaged USD102.5 per barrel during
vehicle registration. This was attributed to                                                                                          the quarter (Q1 2011: USD94 per barrel).
16

Transfers to statutory bodies and expenditure                                                                          requirements was met through domestic
on debt service charges also increased by                                                                              sources on account of ample liquidity in
20.2% and 9.6% to RM4.2 billion and RM3.4                                                                              the financial system. Debt service charges
billion respectively. However, transfers to                                                                            remained manageable at RM3.4 billion or
states declined markedly by 11.2% to RM998                                                                             8.4% of operating expenditure (Q1 2011:
million (Q1 2011: RM1.6 billion).                                                                                      RM4.5 billion; 11.6%).

Development expenditure declined 31.3%                                                                                 National debt or external debt of the nation
to RM8.3 billion (Q1 2011: -12%; RM6.4                                                                                 was higher at RM241.7 billion or 29.1% of
billion) as spending was mainly on carry-                                                                              GDP as at end-June 2011 (end-March 2011:
forward projects from the Ninth Malaysia                                                                               RM233.5 billion, 28.1% of GDP) largely due
Plan. Expenditure under the current Plan is                                                                            to net borrowing in medium and long-term
expected to accelerate in the subsequent                                                                               debt. The debt was mainly denominated
quarters as planned projects take off. The                                                                             in USD (66.1%), yen (7.8%), euro (4%) and
trade and industry (RM1.8 billion), transport                                                                          others (22.1%).
(RM1.7 billion), education (RM1.5 billion)
and utilities (RM761 million) sub-sectors                                                                              Accounting for 61.9% of national debt,
accounted for 69.1% of development                                                                                     medium and long-term debt increased 5.1%
expenditure.                                                                                                           to RM149.5 billion (end-March 2011: 60.9%;
                                                                                                                       -3.7%; RM142.3 billion). This was largely due
With revenue collection firmly outpacing total                                                                         to higher debt incurred by the private sector
expenditure, Federal Government registered                                                                             which increased markedly by 10.6% to RM72
a surplus of RM825 million (Q1 2011: - RM5.2                                                                           billion (end-March 2011: 1.2%; RM65.1 billion).
billion) during the quarter.                                                                                           While the Federal Government recorded a
                                                                                                                       marginal increase in debt to RM16.2 billion
                                                                                                                       (end-March 2011: RM15.9 billion), the debt
Domestic sources of borrowing                                                                                          of non-financial public enterprises (NFPEs)
                                                                                                                       remained stable at RM61.4 billion (end-March
As at end-June 2011, Federal Government                                                                                2011: RM61.3 billion). The private sector, NFPEs
gross borrowing totalled RM51.2 billion,                                                                               and the Federal Government accounted for
comprising mainly MGS (RM31.5 billion) and                                                                             48.2%, 41.1% and 10.8% of the medium and
GII (RM19.5 billion). Thus, Federal Government                                                                         long-term debt respectively.
debt after netting out repayments increased
to RM437.2 billion or 52.7% of GDP (end-                                                                               The short-term external debt increased
March: RM430.2 billion; 51.8% of GDP). Of                                                                              marginally by 1.2% to RM92.2 billion (end-
this, domestic debt comprised RM421 billion                                                                            March 2011: 14.7%; RM91.1 billion) mainly
or 96.3% of the total. The bulk of financing                                                                           on account of higher inter-bank borrowings.
                                                                                                                       In contrast, the debt of the NFPEs declined
(;7(51$/ '(%7
                                                                                                                       sharply by 85.7% to RM0.3 billion (end-March
50 ELOOLRQ                                           *'3
                                                            ([WHUQDO GHEW
                                                            VHUYLFH UDWLR  
                                                                                                      ([WHUQDO GHEW
                                                                                                   VHUYLFH UDWLR  
                                                                                                                       2011: 10.5%; RM2.1 billion). The banking sector
                                                                                                           
                                                                                                                       remained the major holder of short-term
                                                                                                                       debt at RM81.1 billion or 87.9% of the total,
                                                                                                                
                                                                                                                    followed by the non-banking sector (RM10.8
                                  *'3
                                                      
                                                                                                                
                                                                                                                       billion) and NFPEs (RM0.3 billion).


                                                                                                                


 
                                                      
                                                                                                                       External Position
                                                                                                                


                                                                                                                       Strong commodity exports
                                                                                                              
      4 4 4 4 4 4 4 4 4 4 4 4 4 4                  4 4 4 4 4 4 4 4 4 4 4 4 4 4
             ¶         ¶          ¶      ¶                    ¶          ¶       ¶         ¶

              1)3(V ORQJWHUP          3ULYDWH VKRUWWHUP               'HEW VHUYLFH UDWLR
                                                                                                                       Malaysia’s total trade grew 7.8% to RM313.4
             )HG JRYW ORQJWHUP        3ULYDWH ORQJWHUP                                                               billion (Q1 2011: 8.1%; RM301 billion), with gross
      6RXUFH %DQN 1HJDUD 0DOD\VLD                                                                                    exports expanding 8.3% to RM170.2 billion
                                                                                                                                                                                                                                                                 17

  0(5&+$1',6( 75$'( %$/$1&(
                                                                                                                        electronic gadgets as well as strong demand
 50 ELOOLRQ                                                                                                50 ELOOLRQ
                                                                                                                        for renewable energy devices such as solar
                                                                                                                   panels and light emitting diodes (LEDs).
 
                                                                                                                 
                                                                                                                        Meanwhile, export growth of non-E&E products
                                                                                                                        remained strong at 11.2% to RM64.9 billion
 

                                                                                                                 
                                                                                                                        (Q1 2011: 12.9%; RM65.6 billion) across major
 
                                                                                                                        sub-sectors during the quarter. Growth was
                                                                                                                        mainly contributed by chemicals, chemical
 
                                                                                                                 
                                                                                                                        and plastics, petroleum as well as iron, steel
                                                                                                                        and metal products. Exports of chemicals,
     
          4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
                                                                                                                       chemical and plastics products increased
               
         
         
         
        
       

                                                                                                                        further by 9.1% (Q1 2011: 8.8%) backed by
                   7UDGH %DODQFH                                             ([SRUWV
                                                                             ,PSRUWV
                                                                                        ULJKW VFDOH                     organic chemicals (13.7%) and plastics in
          6RXUFH 'HSDUWPHQW RI 6WDWLVWLFV 0DOD\VLD                                                                   primary forms (1.3%). Following strong demand
                                                                                                                        from regional and emerging markets as
                                                                                                                        well as rising prices, exports of petroleum
(Q1 2011: 4.8%; RM166.4 billion) on account
                                                                                                                        products rose 26.3% (Q1 2011: 59.2%). Similarly,
of higher commodity exports and strong
                                                                                                                        shipments of iron, steel and metal products
regional demand. Gross imports increased 7.1%
                                                                                                                        accelerated further by 15.3% (Q1 2011: 11.2%)
to RM143.2 billion (Q1 2011: 12.4%; RM134.6
                                                                                                                        underpinned by strong external demand
billion) driven mainly by imports of intermediate
                                                                                                                        for non-ferrous metal (28.6%) as well as iron
and consumption goods. Consequently, the
                                                                                                                        and steel products (16.1%). Export receipts
trade account recorded a surplus of RM27.1
                                                                                                                        of other non-E&E products, namely food,
billion (Q1 2011: RM31.8 billion).
                                                                                                                        beverages and tobacco (20.7%), textiles,
                                                                                                                        apparel and footwear (17.4%) as well as
Exports of manufactured goods expanded
                                                                                                                        non-metallic mineral products (12.3%) also
2.6% to RM123.5 billion (Q1 2011: 2.4%; RM122.7
                                                                                                                        performed positively. In contrast, exports of
billion) driven by higher external demand for
                                                                                                                        transport equipment and rubber products
non-E&E products. Exports of E&E products
                                                                                                                        dropped to 6.1% and 0.4% (Q1 2011: -19.3%;
declined 5.5% to RM58.6 billion (Q1 2011:
                                                                                                                        12.9%) respectively.
-7.5%; RM57.1 billion) due to lower shipments
of electronic equipment and parts (-23.6%)
                                                                                                                        Primary agriculture exports surged 45.5%
as well as machinery and electrical products
                                                                                                                        to RM21.5 billion (Q1 2011: 26.6%; RM19.7
(-4.4%). However, earnings from semiconductors
increased further to 11.7% (Q1 2011: 7.9%)                                                                              billion) supported by higher earnings of
backed by sustained global spending on                                                                                  palm oil and rubber. Exports earnings of
                                                                                                                        palm oil increased 40.8% to RM15.1 billion

 (;3257 3(5)250$1&( 2) 0$18)$&785(' *22'6
        DQQXDO FKDQJH                                                                                                 EXPORTS OF MANUFACTURED GOODS
                                                                                                                        (% annual change)
                                                                                                                                                                          2009                    2009              2010                2010                 2011
                                                                                                               
                                                                                                                                                                                   Q1     Q2        Q3      Q4              Q1     Q2      Q3     Q4      Q1     Q2
                                                                                                               
                                                                                                                    Total manufacturing exports                       -12.6   -19.4   -22.3     -17.4   12.1    12.9   32.3   17.3      6.0    1.5    2.4     2.6
                                                                                                                     Electronics, electrical machinery and appliances -10.9   -19.0   -23.0     -16.1   18.3     9.7   36.3   16.1      3.9   -8.0    -7.5   -5.5
                                                                                                                     Chemicals, chemical and plastic products         -15.7   -28.8   -23.7     -19.3   15.4    21.4   50.0   22.1     10.6   10.3    8.8     9.1
                                                                                                               
                                                                                                                         Iron, steel and metal products                   -22.1   -28.7   -21.4     -26.0   -10.1   15.5   26.3   17.4     -4.2   25.1   11.2    15.3
                                                                                                                
                                                                                                                         Machinery and equipment                          -10.5   -17.8   -19.5      -9.3    6.7    12.2   16.7   24.8      8.0    1.3    4.8     2.2
                                                                                                                
                                                                                                                     Transport equipment                              12.8    23.0    -14.0     18.5    29.1    -8.3   36.8    -8.2   -30.0 -27.9    -19.3   -6.1

                                                                                                                   Petroleum products                               -31.1   -42.2   -49.9     -34.9   23.4    29.1   29.6   39.3     17.1   32.6   59.2    26.3
                                                                                                              
                                                                                                                         Rubber products                                   -2.6    -5.3    -5.1     -11.8   14.2    28.4   36.6   32.9     24.1   21.7   12.9    -0.4
                                                                                                              
                                                                                                                         Wood products                                    -14.7   -17.8   -18.7     -20.5   - 1.2    5.5   21.0    9.4      4.8   -9.1    -7.2    3.4
                                                                                                              
                                                                                                                         Food, beverages and tobacco                      -14.5    -1.3   -14.3     -28.9    -9.1   14.5    4.6    7.4     20.1   25.4   18.5    20.7
                                                                                                              
            4    4         4    4   4    4         4   4   4   4         4   4     4         4
                       ¶                         ¶                       ¶                    ¶                  Textiles, apparel and footwear                   -14.1    -9.3   -15.2     -21.5    -8.6    3.0   -0.7    2.0      0.8    9.6   16.7    17.4

                                                                                                                         Non-metallic mineral products                     -1.1   15.2     6.0      -10.4    -9.4   -4.9   -2.1   -11.1   -11.5    5.9   15.2    12.3
                   7RWDO ([SRUWV                                             0DQXIDFWXUHG *RRGV
                                                                                                                         Other manufactured goods                          -4.7    -9.3    -5.9      -5.0    0.7    20.2   35.9   20.3     15.4   12.8    5.4    10.1

          6RXUFH 'HSDUWPHQW RI 6WDWLVWLFV 0DOD\VLD                                                                     Source: Department of Statistics, Malaysia.
18

(Q1 2011: 19.9%; RM13.6 billion) on higher       foreign direct investment (FDI). The reserves
export volume of 2.1% or 4.4 million tonnes      level remained useable and unencumbered
as well as higher export price of RM3,444.2      and is adequate to finance 9.6 months of
per tonne (Q1 2011: -13.8%; 3.8 million          retained imports and 4.5 times the short-term
tonnes; RM3,556.1 per tonne) respectively.       external debt.
China remained the top importer of palm
oil with total shipments of 1.7 million tonnes
(Q1 2011: 0.8 million tonnes). Meanwhile,         ,17(51$7,21$/ 5(6(59(6

rubber earnings increased further by 75.1%        86' ELOOLRQ                                                                                                                   PRQWKWLPHV
                                                                                                                                                                                      
to RM3.6 billion (Q1 2011: 76%; RM3.8 billion)
on account of a 22% increase in rubber                                                                                                                                                

shipments. In addition, significantly higher
rubber prices at RM14.48 per kilogramme                                                                                                                                               


also contributed to increased earnings.
                                                                                                                                                                                       



Mineral exports rose significantly by 13.2%                                                                                                                                            

to RM20.1 billion (Q1 2011: 0.1%; RM19.3
billion) driven mainly by higher prices.           
                                                         -      $     -      2   -   $         -   2   -   $         -   2     -   $         -   2   -   $         -   2    -    $
                                                                                                                                                                                         


Export receipts of LNG increased 25.1% to                           
                  
                   
                     
                   
                


                                                                          5HVHUYHV                                           5HVHUYHVVKRUWWHUP H[WHUQDO GHEW
RM11.1 billion (Q1 2011: 6.9%; RM10.7 billion)                                                                               0RQWKV RI UHWDLQHG LPSRUWV
                                                                                                                                                                           ULJKW VFDOH



following higher shipments as well as prices.            6RXUFH %DQN 1HJDUD 0DOD\VLD


However, export receipts of crude petroleum
increased marginally by 0.2% to RM8.3 billion
(Q1 2011: -11.2%; RM7.8 billion) on account
of higher prices (44%) despite lower export         [The reserves position as at end-July
volume (-30.4%).                                    2011 amounted to RM409.6 billion
                                                    (USD135.4 billion). This is sufficient to
Gross imports registered a growth of 7.1%           finance 9.6 months of retained imports
(Q1 2011: 12.4%) with expansion across all          and is 4.4 times the short-term external
major categories. Imports of intermediate           debt]
goods increased 4.8% (Q1 2011: 13.9%)
in tandem with the moderating growth
in the manufacturing sector. Imports of
capital goods grew 3.5% (Q1 2011: 9.3%)          Outlook
supported by higher imports of transport
equipment for industrial use. As household       Modest global prospects
income continued to increase, imports for
consumption goods surged 16.8% (Q1 2011:         Global growth is expected to continue at
5.3%) with food and transport equipment          a modest pace, led by sustained growth
accounting for 45.1% of total consumption        in emerging and developing economies.
goods imported.                                  The recent moderation in global oil and
                                                 commodity prices will impact positively on
                                                 consumer spending and reduce inflationary
International reserves remained strong           pressures. Meanwhile, the recovery from
                                                 the supply chain disruptions arising from
As at end-June 2011, Malaysia’s international    Japan’s earthquake is expected to pave
reserves increased significantly by RM61.7       the way for global industrial output to
billion to RM406.3 billion or USD134.3 billion   rebound. In addition, raising of the US
(end-March 2011: RM344.5 billion; USD113.8       government debt ceiling to avoid default;
billion). The increase in reserves was partly    the Fed’s commitment to maintain its policy
due to continued trade surplus and inflows of    rate close to zero through mid-2013; and
                                                                                                                                               19

the European Central Bank’s intervention in                                                       On the domestic front, the Malaysian
the bond market is likely to have positive                                                        economy is expected to sustain its growth
outcomes on financial markets and investor                                                        momentum in the remaining quarters of
confidence.                                                                                       2011. This was reflected by the Leading
                                                                                                  Index, which grew by an average of 1.9%
                                                                                                  in the first six months of 2011.
  *'3 $1' 7+( /($',1*                        &2,1&,'(17 ,1',&(6
      DQQXDO FKDQJH                                                                             On the demand side, growth will emanate
                                                                                                  from private consumption and investment
                                                                                          
                                                                                                  activities as well as acceleration of public
                                                                                              expenditure. Consumer spending will be
                                                                                           
                                                                                                  supported by steady increase in disposable
                                                                                                  income as well as firm commodity prices, while
                                                                                           
                                                                                                  private investment is expected to increase,
                                                                                              given improved corporate earnings and
 
                                                                                                  high utilisation rate in most industries. On the
                                                                                            
                                                                                                  supply side, growth will be supported by the
 
       4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4        
                                                                                                  expansion in the services and manufacturing
           ¶         ¶         ¶         ¶         ¶         ¶      ¶

                                                           &RLQFLGHQW LQGH[
                                                                                                  sectors, underpinned by strengthening
                *'3                                                           ULJKW VFDOH

       6RXUFH 'HSDUWPHQW RI 6WDWLVWLFV 0DOD\VLD
                                                           /HDGLQJ LQGH[
                                                                                                  domestic demand amid continued policy
                                                                                                  support.
      Key Data
http://www.treasury.gov.my
                                                                                                                                  23

                                                 KEY DATA

AREA (Square kilometres)      330,252

                                                             20091                     20101                     20112

POPULATION (million)                                         27.90                     28.33                     28.55

                                                    RM             %          RM             %          RM                 %
                                                   million       growth      million       growth      million           growth
DOMESTIC PRODUCTION:
 Gross Domestic Product (constant 2000 prices)     522,001            -1.6   559,554             7.2   587,822       5.0 - 6.0
                                   USD million     147,818                   173,715                   192,025
     Agriculture                                    40,083            0.6     40,916            2.1     42,066            3.4
     Mining and quarrying                           39,209            -6.3    39,270            0.2     41,161            2.0
     Manufacturing                                 138,784            -9.3   154,640           11.4    163,493            5.7
     Construction                                   17,329            5.9     18,220            5.1     19,195            5.4
     Services                                      302,045            3.1    322,611            6.8    339,319            5.9
 Gross Domestic Product (current prices)           679,938            -8.4   765,965           12.7    829,793            8.3
                                   USD million     192,912                   237,796                   271,071
NATIONAL INCOME AND EXPENDITURE:
 Gross National Product (current prices)           665,298            -7.5   739,451           11.1    806,140            8.8
                                   USD million     188,758                   229,565                   263,344
     Consumption expenditure:      Public           95,918            4.4     97,513            1.7    105,481            8.6
                                   Private         339,395            1.2    367,991            8.4    405,471           10.1
     Gross fixed capital formation: Public          72,871            8.1     76,864            5.5     80,810            4.5
                                   Private          64,633           -17.1    78,730           21.8     86,889           13.0
     Exports of goods and non-factor services      655,336           -14.5   745,311           13.7    783,751            5.3
     Imports of goods and non-factor services      508,927           -14.3   608,886           19.6    639,201            5.3
 Gross National Product (constant 2000 prices)     497,436            0.6    516,833            4.0    545,973            5.6
                                   USD million     141,133                   160,785                   178,354
 Gross National Savings (current prices)           210,354           -23.5   252,116           19.9    289,1943           8.5


 Per Capita Income2 (current prices) RM             23,850            -8.7    26,175            9.7     28,175            7.5
                                   USD                6,768                    8,126                      9,204
 Purchasing Power Parity3          USD               11,781          -14.3    14,102           19.7     16,028           13.7


FEDERAL GOVERNMENT FINANCE3:
 Revenue                                           158,639            -0.7   159,653            0.6    165,825            3.9
     Direct taxes                                   78,375            -4.6    79,009            0.8     83,983            6.3
     Indirect taxes                                 28,129            -8.6    30,507            8.5     31,518            3.3
     Non-tax revenue                                52,135           11.2     50,138            -3.8    50,324            0.4
 Operating expenditure                             157,067            2.3    151,633            -3.5   162,805            7.4
 Current account surplus/deficit                      1,573                    8,020                      3,020
 Development expenditure (net)                      48,996           17.0     51,296            4.7     48,500           -5.5


 Overall deficit/surplus                            -47,424                  -43,275                    -45,481
     % to GDP                                           -7.0                     -5.6                      -5.4
 Domestic borrowing (net)                           56,879                    36,456                             –
 Foreign borrowing (net)                             -6,286                    3,664                             –
 Change in assets                                    -3,169                    3,155                             –


PUBLIC SECTOR FINANCE2:
 Current balance                                    64,924           -21.5    55,524           -14.5    52,373           -5.7
 Development expenditure                           111,282           -10.5   112,258             0.9   121,142            7.9
 Overall balance                                   -46,358                   -56,734                   -68,770
    % to GDP                                           -6.8                      -7.4                      -8.2
24

                                                        KEY DATA
                                                      20091                           20101                            20112
                                            RM                   %           RM                 %            RM                    %
                                           million             growth       million           growth        million              growth

  National debt2                           232,717              -1.5      227,107               -2.4          _                    _
                 USD million                67,324                         72,828                             _
     Medium and long-term debt             155,328              -0.8      147,660               -4.9          _                    _
       Federal Government                   13,787             -32.1       16,745               21.5          _                    _
       NFPEs                                71,600              13.4       66,589               -7.0          _                    _
       Private sector                       69,941              -4.4       64,325               -8.0          _                    _
     Short-term debt                        77,390              -2.9       79,447                2.7          _                    _
  Debt to GDP (%)                             34.2                            29.6                            _
  Debt service ratio (%)                       6.9                             6.9                            _

                                                 RM million                         RM million                        RM million
BALANCE OF PAYMENTS:
 Current Account                                     112,139                           88,079                          100,697
               USD million                            31,815                           27,344                           30,743
    Goods                                            141,745                          134,726                          144,321
    Services                                           4,664                            1,698                              230
    Income                                           -14,639                          -26,514                          -23,653
    Transfers                                        -19,631                          -21,831                          -20,200
 Financial account                                   -80,208                          -19,827                                _
 Overall balance                                      13,831                           -2,628                                _

                                            RM           %      %            RM          %          %       RM             %             %
                                           million     growth share         million    growth     share    million       growth        share
EXTERNAL TRADE:
  Total Exports (f.o.b.)                   552,518     -16.7              639,428      15.7               336,6034         6.6
                 USD million               156,760                        198,512                          111,097
     Manufactured goods                    432,244     -12.6      78.1    487,974      12.9       76.3     246,217         2.5      73.1
     Palm oil (crude and processed)         36,795     -21.8       6.7     45,998      25.0        7.2      28,695        30.1       8.5
     Crude petroleum                        25,360     -41.8       4.6     30,765      21.3        4.8      16,175        -5.7       4.8
     Liquefied natural gas                  31,195     -24.8       5.6     38,099      22.1        6.0      21,840        15.4       6.5

  Total Imports (c.i.f.)                   434,670     -16.4              529,195      21.7               277,7444         9.6
                USD million                123,325                        164,290                           91,671
     Intermediate goods                    297,465     -21.5      68.4    363,153      22.1       68.6     189,878         9.9      68.4
     Capital goods                          65,195      -5.0      15.0     76,435      17.2       14.4      37,399         6.2      13.5
     Consumption goods                      31,492      -2.2       7.2     34,591       9.8        6.5      18,847        11.1       6.8

  Total Trade                              987,188                       1,168,623                         614,347
  Balance of Trade                         117,848                         110,234                          58,859

  Gross international reserves                       331,301                          328,577                         409,5675
                 USD million                          96,695                          106,498                          135,435
  Months of retained imports                             9.8                              8.5                              9.65
  Multiples of short term debt                           4.1                              4.1                              4.45

  Trading Partners: (% to total trade)
     ASEAN                                              25.5                             26.2                            26.44
     European Union                                     11.2                             10.5                            10.54
     USA                                                11.1                             10.0                            10.14
     Japan                                              11.0                             11.4                            11.24
     China                                              24.5                             12.6                            12.84
     Others                                             16.7                             29.3                            29.04
                                            Index         % growth          Index         % growth          Index            % growth

  Consumer Price Index (2010=100)             98.3               0.6         100.0               1.7        102.77                 3.1
  Producer Price Index (2005=100)            111.1              -7.3         117.3               5.6        126.74                 8.8
                                          Thousands       % growth       Thousands        % growth        Thousands          % growth
LABOUR:
 Labour force9                            12,083.4               1.0      12,361.3               2.3      12,645.7                 2.3
 Unemployment rate9 (% of labour force)      451.3               3.7         424.2               3.4         419.0                 3.3
                                                                                                                                               25

                                                                KEY DATA
                                                                      2009                       2010                        2011

                                                                      End-June                  End-June                    End-June
                                                                 RM           %             RM          %               RM          %
                                                                million     growth         million    growth           million    growth
MONEY AND BANKING10:
 Money Supply   (M1)                                          185,600.8          5.5     209,043.7          12.6     239,437.8          14.5
                (M2)                                          922,616.9          6.3   1,007,317.9           9.2   1,132,176.6          12.4
                (M3)                                          950,848.9          5.8   1,031,488.0           8.5   1,159,085.2          12.4

      Banking system:
         Deposits                                             997,656.0          7.2   1,083,884.5           8.6   1,208,013.7          11.5
         Loans                                                742,770.9          8.3     834,935.5          12.4     947,665.5          13.5

                                                                  End-June (%)               End-June (%)                End-June (%)
         Loan-deposit ratio11 (end of period)                         78.3                       81.4                        81.8

                                                                  End-June (%)               End-June (%)                End-June (%)
      Interest rates (average rates at end of period):
          3-month interbank                                               2.14                       2.75                        3.43
          Commercial banks:
             Fixed deposits:      3-month                                 2.05                       2.51                        2.99
                                12-month                                  2.52                       2.82                        3.23
             Savings deposit                                              0.91                       0.95                        1.14
             Base lending rate (BLR)                                      5.53                       6.02                        6.54
          Treasury bill (3-month)                                         1.95                       2.66                        2.92
          Malaysian Government securities (1-year)                        2.14                       2.79                        2.96
          Malaysian Government securities (5-year)                        3.80                       3.53                        3.50

                                                                     End-July                  End-July                    End-July
      Movement     of Ringgit (end-period)12:
        RM per     SDR; % change                                  5.4595 -3.2                4.8501         12.6         4.7329          2.5
        RM per     USD; % change                                  3.5200 -7.3                3.1875         10.4         2.9555          7.8
        RM per     Euro; % change                                 4.9729   2.3               4.1621         19.5         4.2382         -1.8
        RM per     100 Yen; % change                              3.6919 -18.1               3.6903          0.0         3.8131         -3.2
                                                                     End-July                  End-July                    End-July
      Bursa Malaysia (end-period):
         KLCI / FBM KLCI                                            1,174.90                   1,360.92                    1,548.81
         Market capitalisation (RM billion)                           885.83                   1,092.29                    1,339.33

SOCIAL INDICATORS:
    Life expectancy at birth1 : Male (years)                           71.7                       71.7                        n.a.
                                 Female (years)                        76.5                       76.6                        n.a.
    Infant mortality1 (per ‘000 live births)                            6.5                        6.3                        n.a.
    Literacy rate1                                                     92.7                      93.19                        n.a.
    Water coverage:total population served9 (% of population)          91.6                       92.4                        n.a.
    Electricity coverage:rural housing units9 (% of population)        92.3                       93.7                        n.a.
    Fixed line telephone subscribers13 (per 100 households)            44.0                       42.5                       39.76
    Cellular phone subscribers13 (per 100 population)                 105.4                      119.2                      123.56
    Broadband subscribers13 (per 100 households)                       31.7                       55.6                       60.16
    Tourist arrivals (million)                                         23.6                       24.6                        5.58
  1
       Department of Statistics, Malaysia.
  2
       BNM Annual Report 2010.
  3
       Economic Report 2010/2011.
  4
       For the period of January-June 2011.
  5
       As at 29 July 2011.
  6
       As at End-June 2011.
  7
       For the period of January-July 2011.
  8
       For the period of January-March 2011.
  9
       Economic Planning Unit.
 10
       Bank Negara Malaysia.
 11
       Excludes transactions by financial institutions.
 12
       Annual rate of appreciation (+) or depreciation (-).
 13
       Malaysian Communications and Multimedia Commission.
Key Economic Indicators
I. CONSUMPTION INDICATORS

                                                                                               2010                                                                                                      2011
       Indicator / Month
                                      Jan        Feb        Mar        Apr        May       June          Jul       Aug       Sept        Oct        Nov        Dec        Jan        Feb        Mar        Apr        May       June         Jul



 Sales of new passenger cars
                                   45,973     36,551     50,533     43,661     46,259     48,926       48,144    49,642     38,761     46,439     39,375     49,330     49,589     36,457     56,483     45,335     40,936     36,838           -
 (units)



 Production of vehicles (units)    39,996     38,242     54,949     55,383     47,199     49,341       55,875    48,214     38,086     38,766     41,065     40,149     47,547     42,629     43,300     36,799     38,463     41,022           -



 Sales of motorcycles (units)      38,860     31,619     41,165     41,250     35,527     35,324       42,753    44,544     34,569     45,068     32,077     45,419     39,249     35,329     48,228     43,737     40,172     47,603           -



 Production of motorcycles
                                   36,096     28,841     42,490     40,498     39,547     36,850       44,341    42,973     34,931     45,541     37,005     38,828     40,494     33,774     48,563     44,416     42,867     46,635           -
 (units)



 Imports of consumption goods
                                    2,834      2,409      3,094      2,831      2,749      3,042        3,103     2,807      2,636      2,813      2,951      3,322      3,061      2,379      3,339      3,292      3,310      3,466           -
 (RM million)



 Bursa Malaysia (end-period)

   FBM KLCI                       1,259.16   1,270.78   1,320.57   1,346.38   1,285.01   1,314.02   1,360.92    1,422.49   1,463.50   1,505.66   1,485.23   1,518.91   1,519.94   1,491.25   1,545.13   1,534.95   1,558.29   1,579.07   1,548.81

   Market capitalisation
                                  1,001.73   1,015.71   1,061.06   1,079.66   1,027.92   1,044.35   1,092.29    1,122.11   1,150.12   1,204.34   1,237.37   1,275.28   1,283.98   1,256.71   1,310.99   1,310.79   1,320.03   1,342.22   1,339.33
   (RM billion)



 Prices - Annual change (%)

  Consumer Price Index                 1.4        1.2        1.4        1.6        1.6        1.6         1.8        2.0        1.8        1.9        1.9        2.1        2.4        2.9        3.0        3.2        3.3        3.5        3.4

   Producer Price Index
                                       4.2        5.9        9.0        7.4        5.9        5.2         5.6        4.8        4.9        4.4        4.6        5.5        6.9        7.2        7.9        9.2       10.6       10.7          -
   - Domestic



 Labour Market

  Retrenchment (no.)                  952        204        558      1,120        292        447         460        298        993        775        432        554      1,090        227      1,304        369        245        491        480

  Vacancies (no.)                 139,196    115,372    195,474    180,351    183,467    178,175      171,312   158,796     71,670    146,093    112,251    135,064    163,530    134,280    270,907    189,372    192,201    132,616    141,764
                                                                                                                                                                                                                                                    29
II. INVESTMENT INDICATORS
                                                                                                                                                                                                                                                                      30
                                                                                                                            2010                                                                                                    2011
                Indicator / Month
                                                          Jan        Feb         Mar          Apr          May         June           Jul         Aug         Sept          Oct          Nov         Dec       Jan      Feb      Mar         Apr      May     June

  Sales of new commercial vehicles (units)              4,649       4,103      5,606        5,151        4,624        5,079         5,339       5,566        4,682        5,858        5,470        5,435     5,107    3,930    6,782       5,601    5,109    4,952

  Imports (RM million)
     Capital goods                                     5,319       5,049       5,919        6,138        6,374        6,417         7,128       6,083        6,362        7,048        7,235        7,364     5,602    5,159    7,044       6,317    6,254    7,023
     Intermediate goods                               27,260      23,521      30,744       29,277       30,734       32,628        32,977      31,261       30,555       33,494       28,934       31,769    30,897   27,158   34,762      32,059   31,714   33,288

  Manufacturing projects
    0,7, $SSURYDOV 50 PLOOLRQ                         2,160       1,906      1,554        1,184        4,134        4,175         4,270       2,640        1,876        5,048        3,896       14,335     4,792    2,040    6,708       5,080    5,229        -
        1HZ LQYHVWPHQW                                    367       1,299        552          531        3,575        3,136         2,044         867          496        4,157        1,975        4,896     1,374    1,596    3,497       1,553    2,520        -
        5HLQYHVWPHQW                                   1,793         607      1,003          653          558        1,039         2,226       1,773        1,381          891        1,921        9,439     3,419      444    3,212       3,523    2,709        -

  Base lending rate (%)1                                 5.51        5.51        5.76         5.76         6.02         6.02         6.27         6.27         6.27         6.27         6.27        6.27      6.27     6.27     6.27        6.27     6.54     6.54

  Money supply (Annual % change)
    M1                                                   10.7        15.3        12.0          8.9         11.2         12.6         10.7         13.9         11.5         11.6          9.9        11.7      17.9     13.2     14.0        16.2     13.1     14.5
    M3                                                    7.9         8.2         8.7          8.1          9.0          8.5          7.8          7.8          8.2          8.1          7.9         6.8       8.6      7.7      8.0        10.1     11.5     12.4

  Risk-Weighted Capital Ratio (RWCR), %                  15.1        15.1        15.0         15.1         15.1         15.4         15.3         15.1         14.8         14.5         14.4        14.8      14.3     14.5     14.4        14.6     14.3     13.9

  Ratio of net impaired loans to net total
                                                          2.0         2.0         1.9          2.2          2.2          2.1          2.4          2.3          2.4          2.3          2.3         2.3       2.3      2.3      2.2         2.1      2.1      2.0
  loans (%)2

  Banking System :
  Loans Approved by Purpose and Sectors
                                                      23,364      19,815      26,927       29,031       27,998       33,339        30,701      31,448       29,021       30,377       30,183       31,196    27,472   21,214   38,962      35,998   35,610   37,991
  (RM million)
     3ULPDU\ DJULFXOWXUH                                 236         479         800          446          493          640           920         904          456          553          694          583       600      693      771         519    1,391    1,249
     0LQLQJ DQG TXDUU\LQJ                                 71         791         174           71          162          501           258         109          563           98           17          672        57      155      503          68       53       72
     0DQXIDFWXULQJ LQFOXGLQJ DJUREDVHG              1,167         836       1,549        1,678        1,627        2,959         2,091       2,841        1,869        1,494        1,918        2,005     1,888    1,836    3,184       2,895    2,486    2,300
     6HUYLFHV                                          4,061       4,454       5,101        7,137        6,514        8,312         6,528       7,749        5,910        7,186        5,626        8,545     4,638    3,283    8,843       9,186    9,197    9,212
     Construction                                      1,602       1,120       1,794        1,643        1,492        2,288         2,391       2,165        3,094        2,287        3,356        2,293     1,867    1,421    2,552       2,738    1,915    2,496
     Real Estate                                       1,196         622       1,426        1,709        1,587        1,906         1,800       1,498        1,645        1,620        1,866        1,633     1,472      794    3,271       2,608    2,631    3,379
     Household sector3                                14,406      11,165      15,265       16,054       15,388       16,033        16,230      16,013       15,223       16,540       16,513       15,260    16,600   12,654   19,523      17,743   17,522   19,016
     Other sector n.e.c.                                 624         347         820          293          736          699           483         168          261          599          193          205       352      379      315         243      415      267

  Loans Disbursed by Purpose and Sectors
                                                      56,681      55,873      61,785       60,964       59,149       65,140        59,553      56,654       59,897       61,100       64,385       63,405    65,973   50,154   72,502      60,319   66,195   74,559
  (RM million)
     3ULPDU\ DJULFXOWXUH                               2,809       3,241       3,143        1,565        1,929        1,889         1,438       1,594        1,749        1,740        1,722        1,809     1,570    1,535    2,484       1,931    1,735    2,228
     0LQLQJ DQG TXDUU\LQJ                                191         223         344          246          152          225           165         257          437          528          387          329       319      382      396         230      366      552
     0DQXIDFWXULQJ LQFOXGLQJ DJUREDVHG             11,103      10,140      12,148       12,838       11,229       13,552        12,464      11,578       12,103       11,969       12,205       12,661    14,418   10,820   16,012      13,188   13,935   14,889
     6HUYLFHV                                         16,988      18,154      16,549       21,436       19,131       21,844        18,453      16,121       18,047       20,206       20,960       17,339    18,048   14,140   21,481      16,876   20,496   26,246
     Construction                                      3,019       2,923       3,220        3,379        3,316        3,760         3,355       3,840        4,119        3,515        4,002        4,368     4,187    2,445    3,635       3,096    3,510    3,474
     Real Estate                                       1,623       1,809       1,754        1,110        1,415        1,596         2,149       2,342        2,362        1,691        2,294        3,540     2,367    1,354    2,649       2,119    3,258    3,118
     Household sector3                                19,456      17,304      20,424       19,378       19,945       20,980        20,385      20,036       19,144       20,572       21,713       22,041    23,839   18,456   24,275      21,711   21,731   22,876
     Other sector n.e.c.                               1,493       2,079       4,203        1,013        2,033        1,294         1,145         884        1,936          878        1,103        1,319     1,224    1,024    1,570       1,168    1,165    1,176

  Registration of new local companies (no.)             3,834       2,647       5,611       3,689        3,333        3,555         3,520       3,428        3,072        3,782        3,505        4,172     3,452    2,628    4,481       4,140    4,124    4,038

  Liquidation of companies (no.)                        1,489        850       1,847        3,076        2,082        2,272         3,763       2,619        1,171        1,298        1,419        1,811     1,037    1,603    1,434       1,838    1,506     553

  Property Overhang (end period)4
     Total (units)                                                            28,687                                 28,043                                 29,575                                 30,859                      31,266                             -
                   % Change (preceeding)                                         -0.2                                    3.4                                  12.2                                     8.3                         9.0                            -
     Total (RM million)                                                        5,649                                  5,504                                  6,071                                  6,794                       7,145                             -
                   % Change (preceeding)                                          2.4                                    4.4                                  14.1                                   16.5                        26.5                             -

Note:
 1
   Commercial bank rate.
 2
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   7KH UHSRUWLQJ RI QRQSHUIRUPLQJ ORDQV KDV VLQFH EHHQ GLVFRQWLQXHG
 3
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III. PRODUCTION INDICATORS
                                                                                                                               2010                                                                                                    2011
                 Indicator / Month
                                                          Jan          Feb          Mar           Apr         May           June         Jul      Aug        Sept        Oct        Nov        Dec        Jan        Feb        Mar       Apr         May       June       Jul

 Agriculture Sector
     Palm Oil ('000 tonnes)                             1,321         1,157        1,387        1,306        1,385          1,420      1,519     1,607       1,563      1,637      1,459      1,233      1,058      1,094      1,416      1,530      1,742      1,753    1,751
     3ULFH 50  WRQQH                                 2,515         2,549        2,624        2,538        2,529          2,453      2,542     2,718       2,719      2,853      3,251      3,620      3,766      3,772      3,463      3,378      3,402      3,288    3,088
     Rubber ('000 tonnes)                                 109            81           70           55           65             71         81        81          75         94         73         85        109         92         66         66         72         84        -
     3ULFH VHQ  NJ                                  994.38      1,010.13     1,038.00     1,045.55       919.60         932.45     915.00    955.40    1,033.84   1,155.45   1,283.55   1,415.69   1,580.33   1,672.50   1,429.22   1,490.38   1,334.33   1,353.57        -
     &RFRD H[SRUW XQLW YDOXH 50  WRQQH             12,832        12,495       11,979       10,981       11,243         10,489     11,324    12,480      11,435      9,252     10,154     11,977     10,926     10,232     11,002     11,041     10,922     10,497        -
     Fish landing ('000 tonnes)                           104           101          120          128          124            126        129       128         129        135        110        105        103        107        121        123        127          -        -
     /LYHVWRFN1 :
                Chickens ('000)                        10,317         9,542       10,766       10,194        9,876          9,968     10,806     9,800     10,053     10,344     10,453     13,915      9,996      8,598     10,091     10,185           -          -        -
                Cattle                                  1,488         1,730        2,085        2,058        2,158          2,412      2,376     3,164      3,322      1,841      2,007      2,090      1,655      1,670      1,718      1,777           -          -        -
                *RDWV                                     438           620          611          770          905            836        942       919      1,282        708      1,661      1,461        555        492        571        581           -          -        -

 Construction Sector
     1R RI KRXVHV DSSURYHG                              6,924        5,757       12,349        9,183       11,766          9,005      8,258    10,912     10,037      9,865     13,679     12,935     12,455      8,766     11,781      9,354     11,639     13,180         -
     1HZ DGYHUWLVLQJ VDOHV SHUPLWV QR                    76           61           94           99           89             89         97        83         85         96        104         95        107         75        107        106         98        105         -

 Transport Sector
     +LJKZD\ PLOOLRQ RI YHKLFOHV                       112.9        102.7        117.2        115.0        117.4          117.8      123.1     119.0       117.5     125.1       119.9     127.0      126.1       111.5     132.5      127.8      128.6      123.2         -
     Rail (RM million)
           .70% &RPPXWHU UHYHQXH                           7.0          6.0          6.8          6.7           6.7           6.6        6.8       6.9         6.9       7.2         6.8       8.3         7.4        6.2        6.8        6.8       7.3        6.5         -
           .70% &DUJR UHYHQXH                              9.8          9.0         10.1          9.2           9.3           9.8       10.2       9.7         9.0      10.1         9.4      10.4         9.9        9.2       11.0        9.7      10.7       10.0         -
           ./,$ ([SUHVV DQG 7UDQVLW UHYHQXH                5.9          5.6          6.6          6.5           6.2           6.3        6.6       6.5         6.0       6.9         6.2       6.3         6.2        5.8        7.0        7.3       7.0        7.0         -
     Air (MAS):
           1RRI SDVVHQJHUV 
                       1,006        1,007        1,102        1,055        1,051          1,133      1,169     1,048      1,097      1,088      1,103      1,252      1,067        991      1,128      1,160      1,158      1,186         -
                Domestic                                   344          388          426          393          382            436        424       343        391        364        392        460        333        318        385        406        400        427         -
                International                              662          619          676          662          669            697        745       705        706        724        712        792        734        673        743        754        759        759         -
           Cargo (million kg)                             35.0         33.8         43.0         39.5         42.5           39.6       40.6      40.0       35.6       43.1       39.5       39.8       34.6        28.7      38.8       34.5       33.5       32.0         -
     Air (Air Asia):
           1R RI SDVVHQJHUV 
                      1,248        1,155        1,282        1,217        1,310          1,366      1,375     1,254      1,407      1,423      1,396      1,622      1,440      1,360      1,519      1,451      1,503      1,518         -
           Cargo (million kg)                               3.7          3.7          5.0          4.7          4.8            4.7        5.6       5.6        5.1        6.3        3.9        6.1        6.7        5.1        7.3        3.9        3.8        3.5        -
     Port - Container TEUs (‘000)2                       1,422        1,274        1,455        1,504        1,547          1,515      1,608     1,567      1,453      1,555      1,518      1,537      1,596      1,401      1,682      1,658      1,652      1,638         -

 Tourism Sector
     7RXULVW DUULYDOV 
                                                       5,752                                    6,116                           6,367                            6,342                            5,540                                 -

 Communication Sector (subscibers ‘000)3
     Fixed Line                                                                    4,328                                    4,395                           4,391                            4,406                            4,309                            4,285
     Cellular                                                                     30,794                                   31,456                          32,413                           33,106                           34,456                           35,273
     *                                                                            7,459                                    7,860                           8,381                            8,602                            9,668                            9,756
     %URDGEDQG LQFOXGHV ZLUHOHVV /$1                                             2,922                                    3,232                           4,285                            4,722                            4,913                            5,397

 Industrial Production Index
                                                          13.1          4.8         14.1          9.6         12.9            9.2        2.9       4.1         5.8        2.6        4.2        4.4        0.5        4.5        2.4       -0.2       -5.6        1.0        -
 - Annual change (%)

 Mining Sector
     Production Index - Annual change (%)                  2.2          -1.4         -0.8         -6.0          1.8            1.1       -7.6      -2.1        2.2       -2.9       -2.4       -3.6       -6.8       -3.3       -5.6       -1.5     -23.9        -8.6        -
     &UXGH 2LO &RQGHQVDWHV 
 EDUUHOV              20,978        18,332       20,091       19,062       20,162         18,729     18,541    18,901     19,563     19,493     18,855     19,394     19,251     17,444     18,910     17,400     14,694     15,930         -
     &UXGH 2LO &RQGHQVDWHV 
 ESG4                    677           655          648          636          651            624        598       610        653        629        628        627        621        623        610        580        474        531         -
           7DSLV %OHQG 86'EDUUHO                      80.7          77.6         82.8         86.9         79.1           78.1       79.9      81.3       82.3       89.9       91.6       95.2      101.2      107.7      118.7      129.2      121.9      122.3     124.2
           'DWHG %UHQW 86'EDUUHO                      76.4          74.3         79.3         85.0         76.3           74.8       74.7      76.7       77.8       82.9       85.7       91.8       96.3      104.0      114.4      123.1      114.5      113.8     116.5
     1DWXUDO *DV PPVFIG5                              6,637         5,962        6,312        6,297        5,801          5,831      6,147     5,390      6,271      6,020      6,094      6,014      6,314      6,240      6,202      6,053      5,109      6,218         -
     Tin (tonnes)                                         193           188          193          209          223            208        233       241        240        223        242        249        237        228        263           -         -           -        -

 Electricity Sector
      Production Index - Annual change (%)               19.8          11.4         24.9         12.2         11.5             5.2        4.4       4.9        3.1        5.2        4.9        2.4        0.3        0.7       -0.7        0.5       -0.2        3.6        -
      Maximum demand (MW)                              14,165        14,446       14,890       14,983       15,072         14,597     14,361    14,758     14,339     14,916     14,380     14,251     14,342     14,640     14,989     15,146     15,476     15,176    15,249
      6DOHV *: KRXU                                   7,431         7,331        6,966        7,929        7,796          7,902      7,558     7,764      7,779      7,136      7,911      7,267      7,571      7,473      6,950      8,107      7,976      8,078     7,965

 Manufacturing Sector
    Production Index - Annual change (%)                  18.2          7.1         20.5         16.8         18.4           13.1        7.4       6.6         7.6        4.7        7.0        8.2        3.8        8.2        6.1        0.3        1.4       4.5         -
    Sales - Annual change (%)                             29.3         17.0         26.6         20.1         20.3           14.3        8.8       8.9         6.9        3.2        8.7       11.9        7.6       10.0       14.4       15.2        7.5      12.9         -


Note:
 1
   Total slaughtered.
 2
   &RYHUV RQO\ .ODQJ 3HQDQJ -RKRU .XDQWDQ 7DQMXQJ 3HOHSDV %LQWXOX DQG .XFKLQJ 7(8V 7ZHQW\IRRW HTXLYDOHQW XQLWV
 3
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 4
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 5
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                                                                                                                                                                                                                                                                                 31
                                                                                                                                                                                                   32
IV. EXTERNAL SECTOR

                                                                         2010                                                                                   2011
  Indicator / Month
                          Jan      Feb      Mar      Apr      May     June        Jul     Aug     Sept      Oct      Nov      Dec      Jan      Feb      Mar      Apr      May     June      Jul



 RM (million)

   *URVV H[SRUWV        52,447   46,840   59,420   52,016   52,280   52,829   55,426    52,852   50,474   54,978   52,699   57,165   54,837   49,651   61,871   57,796   55,094   57,354       -

   *URVV LPSRUWV        39,516   35,169   45,093   42,761   44,153   46,786   48,414    44,532   43,467   48,126   43,701   47,478   44,847   39,212   50,535   46,789   46,607   49,755       -

   Trade balance        12,931   11,670   14,326    9,256    8,128    6,043     7,012    8,320    7,007    6,852    8,998    9,687    9,991   10,439   11,336   11,008    8,487    7,599       -

   Total trade          91,963   82,009 104,512    94,776   96,433   99,616 103,840     97,384   93,942 103,104    96,400 104,643    99,684   88,863 112,405 104,585 101,701 107,109           -



 USD (million)

   *URVV H[SRUWV        15,539   13,713   17,868   16,223   16,069   16,183   17,275    16,758   16,250   17,732   16,918   18,273   17,914   16,310   20,374   19,184   18,284   18,930       -

   *URVV LPSRUWV        11,708   10,296   13,560   13,337   13,571   14,332   15,089    14,120   13,994   15,522   14,029   15,176   14,650   12,881   16,641   15,530   15,468   16,422       -

   Trade balance         3,831    3,417    4,308    2,887    2,498    1,851     2,186    2,638    2,256    2,210    2,889    3,096    3,264    3,429    3,733    3,654    2,817    2,508       -

   Total trade          27,247   24,010   31,428   29,560   29,640   30,515   32,364    30,878   30,243   33,254   30,947   33,449   32,565   29,191   37,014   34,715   33,752   35,532       -



 International
 Reserves
 (end of period)

   RM billion            332.2    331.8    311.7    313.9    312.2    309.8     310.6    311.3    310.8    324.9    326.4    328.6    333.5    338.6    344.5    393.2    401.4    406.3   409.6

   USD billion            96.9     96.8     95.3     96.0     95.5     94.8      95.0     95.2    100.7    105.3    105.8    106.5    108.1    109.8    113.8    130.0    132.7    134.3   135.4

   0RQWKV RI UHWDLQHG
                           9.2     10.0      8.8      8.5      8.3      8.1       7.9      7.8      8.5      8.8      8.6      8.5      8.7      8.1      8.4      9.3      9.3      9.6     9.6
   imports

   0XOWLSOHV RI VKRUW
                           4.1      4.3      4.0      4.0      4.4      4.4       4.4      4.3      4.3      4.5      4.0      4.1      4.1      4.3      4.3      5.0      4.4      4.5     4.4
   term debt

				
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