1  

!ពះ$%&ច!កកម*+% !តិ !ស# !ពះម%ក'(!ត

KINGDOM OF CAMBODIA NATION – Religion – King

*****

!"#នទូតៃន#ពះ&'(ច#កកម,-'!ប#ំ!បេទស()*េឡសុី !រ#$ល័'ណិជ+កម. Royal Embassy of Cambodia to Malaysia Commercial Office _________

Kuala Lumpur, June 30, 2014

H.E Mr. SUN Chanthol Senior Minister, Minister of Commerce & Vice Chairman of the Council for the Development of Cambodia Report on Political and Economic Situation in Malaysia Your Excellency, I would have the honor to humbly submit a report related to the political and trade performance of Malaysia as indicated below space: I. Political Situation

  2  

Cabinet Reshuffle

Prime Minister, Datuk Seri Najib Tun Razak has added three full ministers to his team, marking the return of MCA ( Malaysian Chinese Association) and Gerakan to the Cabinet. Three deputy ministers, all from the MCA, have also been appointed. MCA president Datuk Seri Liow Tiong Lai, who is also the Bentong MP, has been appointed as Transport Minister while his deputy and Ayer Hitam MP, Datuk Dr Wee Ka Siong and Gerakan president Datuk Mah Siew Keong have been made Ministers in the Prime Minister’s Department. This means there are now 10 Ministers in the Prime Minister’s Department. There was no announcement on what their portfolios are.

  3  

Left, Datin Paduka Chew Mei Fun Women, Family & Community Development & Right, Datuk Chua Tee Yong Finance

Datuk Lee Chee Leong International Trade and Industry

In a long-awaited announcement on the “new” Cabinet line-up,

the Prime Minister said at a press conference at the Perdana Putra here yesterday that three MCA vice-presidents – Datuk Lee Chee Leong, Datuk Chua Tee Yong and Datin Paduka Chew Mei Fun – have been appointed deputy ministers.

Lee is now the Deputy Interna-tional Trade and Industry

Minister, Chua the Deputy Finance Minister and Chew the Deputy Women, Family and Community Development Minister. The Cabinet will now have 35 full ministers including the Prime Minister and his deputy, along with 28 deputy ministers.

Before the 13th general election last year, Liow was the

Health Minister while Wee was the Deputy Education Minister.

  4  

Mah previously served as Deputy International Trade and Industry Minister in 2004 and then Deputy Agriculture and Agro-based Industry Minister between 2006 and 2008.

The Prime Minister said: “Representatives from MCA have returned to the Cabinet to represent the Chinese community. This is also in line with the decision made at its (MCA) extraordinary meeting where they wished to see its representatives in the Cabinet. “The Government took into consideration their wish as it would re-inforce the power-sharing concept in the administration, which involves all races in the country. Najib expressed his confidence that the new line-up would be able to implement Barisan’s election pledges and ensure Malaysia’s future progress and prosperity. “These appointments reflect my desire to ensure that the make-up of the Cabinet, and the Government, broadly reflects that of our nation. “Barisan Nasional was founded on the principles of unity. From its inception and throughout its history, the Chinese, Indian other minority political parties have played a central role in our coalition. It is crucial that they take their rightful place at the heart of Government,” he said

Najib added that being a multi-racial, multi-religious and multi-cultural nation, diversity was Malaysia’s strength. Lee, who is already a Senator, previously served as Deputy Foreign Minister in 2008 until 2010 when he was appointed Deputy Home Minister in a Cabinet reshuffle in 2010.  

MCA will always be there to help the Chinese  

MCA will continue giving constructive criticism on policies to address issues faced by the Chinese community, its president Datuk Seri Liow Tiong Lai said.

The newly-appointed Transport Minister said rejoining the Cabinet would allow the party to represent all Malaysians.

  5  

“The prime minister wishes to see MCA representing the Chinese community to make sure the Government can continue to ensure unity, harmony and continuous development in our country”.

Responding to a question on the party leaders not taking on traditional portfolios such as the Urban Wellbeing, Housing and Local Government Ministry, Liow said this would not stop the party in fighting for the rights of the Chinese community. “Barisan needs consensus from all the parties under them for any decision and all component parties play an important role. MCA represents the Chinese community and we will never neglect their problems. “We are very grateful for this opportunity,” said Liow.

He added that his main priority upon assuming the role of transport minister was to focus on addressing the Malaysia Airlines flight MH370 incident well. “This is a very unfortunate incident and an important issue to me.”  II. National Automotive Policy (NAP) 2014 1. National Automotive Policy (NAP) 2014 announced in January, will transform Malaysia’s automotive industry to be one of the important components for our economy. The automotive industry contributed RM30 billion to the national GDP in 2013 and employs about 550,000 employees. 2. NAP 2014 outlines key directions and strategies in preparing the local automotive players towards the liberalization of the industry. Extensive studies and consultations were carried out with relevant government agencies, industry players, and consumers in formulating this policy. 3. NAP 2014: a. focuses on structural issues affecting the domestic

automotive industry and outlines measures to meet global quality, cost and delivery requirements.

b. is aligned to United Nation safety regulations of vehicles. c. looks at issues affecting consumers and puts forth mechanisms to

  6  

address these issues. 4. The objectives of the NAP 2014 are to:

a. promote a competitive and sustainable domestic automotive industry including the national automotive companies;

b. make Malaysia the regional automotive hub in energy efficient vehicles (EEV);

c. promote increase in value-added activities in a sustainable manner;

d. promote increase in exports of vehicles and automotive components;

e. promote participation of Bumiputera companies in the total value chain of the domestic automotive industry; and

f. safeguard consumers’ interest by offering safer and better quality products at competitive prices.

5. There are 6 roadmaps and action plans developed to complement the implementation of the NAP 2014. These roadmaps also serve as guidelines for the transformation of the local automotive industry. They are: (i) Malaysia Automotive Technology Roadmap (MATR); (ii) Malaysia Automotive Supply Chain Development Roadmap; (iii) Malaysia Automotive Human Capital Development Roadmap; (iv) Malaysia Automotive Remanufacturing Roadmap; (v) Development of Automotive Authorized Treatment Facilities (ATF) Framework; and (vi) Malaysia Automotive Bumiputera Development Roadmap. 6. One of the key objectives of the NAP 2014 is to increase exports of vehicles and automotive component levels. The NAP targets for at least 200,000 units of cars to be exported while exports of components will reach a minimum value of RM10 billion in 2020. ENERGY- EFFICIENT VEHICLE (EEV) 7. Central to this policy is the vision of Malaysia to become an energy efficient vehicle (EEV) hub. This encompasses strategies and measures to strengthen the entire value chain of the automotive industry and will also lead to environment conservation, high-

  7  

income job creation, transfer of technology and create new economic opportunities for local companies. 8.The global definition of EEV is vehicles that meet a set of specification sinterms of carbon emission level (CO2/km) and fuel consumption (L/km). EEV includes fuel-efficient vehicles, hybrid, Electric Vehicle and alternatively fuelled vehicles e.g. CNG, LPG, Biodiesel, Ethanol, Hydrogen and Fuel Cell. Based on this vision, about 85% of vehicles produced in Malaysia in 2020 will be EEVs. VENDOR DEVELOPMENT 9. Vendor development is very important in creating a competitive automotive industry. The NAP 2014 targets to develop world-class vendors. Domestic vendors will be transformed to become global and regional level component manufacturers. EMPLOYMENT OPPORTUNITY 10. Employment is one of the main contributions of the NAP 2014. About 550,000 people are directly employed in the automotive industry. With this policy, it is expected that 150,000 more employment opportunities will be created by 2020; while local skilled and semi-skilled workers will replace 80% of foreign workers in the automotive manufacturing sector by 2020. CAR PRICE REDUCTION 11. During the GE13, BN promised a gradual reduction of prices ranging 20% to 30% over the next 5 years. A Car Price Reduction framework has been developed to fulfill the promise of gradual price reduction. The framework consists of measures to be taken by the Government and industry. 12. The NAP 2014 will see a bigger base of new models being introduced in the domestic market. These models will not only be greener but also safer. 13. The Government is constantly reviewing its fiscal position and is open to possibility to reduce excise duties when the fiscal situation permits.

  8  

14. Models such as Saga SV, Persona SV, Viva, Alza and MyVi S Series, the new Honda Jazz and Nissan Almera were introduced at reduced prices of between 3 and 17%. These models accounted for 30% of market share in 2013. 15. In 2014, more new models and variants will be introduced at competitive prices. VOLUNTARY VEHICLE INSPECTION (VVI) 16. VVI (Pemeriksaan Kenderaan Secara Sukarela) policy is meant to enhance the awareness of Malaysians on the need to ensure roadworthiness of their cars. The voluntary vehicle inspection is not limited to just one agency or company. BUMIPUTERA AGENDA 17. The policy will focus on human capital development, supply chain components, spare parts and technology development. There are two measures - First, funding from year 2014 to 2019 to increase the competitiveness of Bumiputera companies in all sector. 18. Secondly, continuous supervision of car manufacturers and companies operating in after-sales services to ensure effective participation of Bumiputera companies in domestic automotive industry. 19. The Government, under NAP 2014 will continue its support of the national car industry. The support includes market expansion activities, improving quality and productivity, cost- reduction and development of supply chain based on their transformation plan. 20. Overall, the NAP 2014 provides a total financial package of about RM2 billion, as well as measures and implementation plans to realize the Article Extracted from the Ministry of International Trade and Industry

  9  

III. Malaysian Trade Performance in 2013

Trade Performance, 2013!"#"$%&"

!""# !""$ !""% !""& !""' !""( !")" !")) !")! !")*

!"#$%&!'$()*+,-./#0-123

456"'#7*+/,8-9,:

;-023

<=6"'#7*+108-,8:

/->23

Note: * year on year growth ** Compound annual growth rate (CAGR) for a year 2004 to 2013

Trade Performance, January 2012 - December 2013

!"

!#

#"

##

$"

$#

!"

!#

#"

##

$"

$#

%&' ()* +&, -., +&/ %0' %01 -02 3). 456 789 :)5 %&' ()* +&, -., +&/ %0' %01 -02 3). 456 789 :)5

;+<*=11=8';+<*=11=8'

>?.8,6@

AB.8,6@

C,&D)<E&1&'5)

F"GF F"GH

:)5)B*), F"GH>?.8,6@I<;+$#JK<*=11=8'AB.8,6@I<;+#$JH<*=11=8'

C,&D)<E&1&'5)I<;+LJ!<*=11=8'

 Source : Department of Statistics, Malaysia

  10  

Top Five Trading Partners, 2013

!"#$%&

%'()*"(*+

("#,-./01234

%'!5)"67+

*"#8010.

%'!*6"!!+9"#:,;

%'!)<")*+

="#>?0-@0.A

%'75"6!+

103B.43C#D2.B3-+EB4A#

=!"7F#B2#'0@0GC-0HC#

B2B0@#B30A4

!"#

$%$&

'()

*+,-./*0+12/,3(4

56

7#$&

'

 Source : Department of Statistics, Malaysia

!"!#$%&'()*+,

%&)-*.,

Major Export Products, 2013

/01#$%&-2*',

%&.3*3,

Major Import Products, 2013

!"!#$%&432*),

%&34*+,

%&--*2,

&56789:;<=$ $>??@8596:A$"$B5;CA#$%&-.*),

%&.'*.,

 Source : Department of Statistics, Malaysia

     

  11  

Export to ASEAN Countries, 2013

!"#$%

&'()*(+,-"#$%

-.#!%

/)0&1+(2.#.% 3')*)33)+04

!#.%567+0)-#8% 29(+2(6

-#-%

:#!%

:#:%

!"#$%&'()*++*,-

!"#$%$&'#"()$*("+,-)./$012%

$$!"#$%&'()*&%$+,-

!

"

#

&$3$&$$*("+,-).$$!"./%0'()*1%.+,-

$$!"&0%/'()1%$+,-

Note: * % share to total ASEAN export Source : Department of Statistics, Malaysia

Import from ASEAN Countries, 2013

!"#!$

%&'()'*+,,#!$

-"#,$

.(/%0*'1--#2$

3&()(33(*/4,#5$

678*/(2#"$ 19'*1'7

2#!$

2#!$

2#2$

!"#$%&'()*++*,-

!!!"#$%&'()*#%$+,-!

"

#

"!#!"!!$%&'()*+!!!"./%.'()**%$+,-

!!!"$0%1'()/%&+,-

Note: * % share to total ASEAN Import Source : Department of Statistics, Malaysia

  12  

Export of Men’s Apparel, 2008 - 2013

!"#$$!"#$#%$&'()%!"

#!"#$%*&'()%!"#+%*&'()%

!""

!#"

!!"

!$"

!%"

&""

&#"

&!"

&$"

#""% #""' #"(" #"(( #"(# #"()

*+,-

.//.01

 Note: HS code 6205 - Men’s or boys’ shirt Source : Department of Statistics, Malaysia

Import of Men’s Apparel, 2008 - 2013

!"

#"

$"

%"

&""

&!"

&#"

!""% !""' !"&" !"&& !"&! !"&(

)*+,

-..-/0

!"#$$!"#$%#&'()%!"

#!"**%+&'()%!"**%*&'()%

 Note: HS code 6205 - Men’s or boys’ shirt Source : Department of Statistics, Malaysia      

  13  

!"#$%

%&$&'($)

(%$#*!$% &'$+

+

#+

&+

(+

'+

!++

!#+

!&+

#++' #++% #+!+ #+!! #+!# #+!"

,-./011023

Export of Women’s Apparel, 2008 - 2013

!"#$%$&'#"()$*+,)-./)-".,0$123%456$$!"#$%&'()*%!

"

#!7/-8/.9$!"$%+'()*%5-.:/#"(+$!"+%,'()*%

 Note: HS code 6206 - Women’s or girls’ blouse and shirt Source : Department of Statistics, Malaysia        

!"#$

%!#!

&%#%'(#)

"*#&

+$#%

)()%)!)&)')")+)$)*)

%))$ %))* %)() %)(( %)(% %)(!

,-./011023

Import of Women’s Apparel, 2008 - 2013

!"#$$!"#$%&'()*%!"

#%&'(&)*+,$!"+,%#'()*%-.,+/,&'$!"-%-'()*%

-(0$1$%20(34$5(637)*8$9:;1

 Note: HS code 6206 - Women’s or girls’ blouse and shirt Source : Department of Statistics, Malaysia

  14  

!"#$%&'$(')*+,-.&$.'/*0123&45'6778'9'67:;

!"#$%

&'"$(

)&"$%)#*$(

(!'$&

&#%$+

!""

#""

$""

%""

&""

'""

(""

)""

*""

!+"""

#"") #""* #"!" #"!! #"!# #"!$

,-./0123456

,-./$/01.-23/4-52678+/#"!$

9:;:<$("+''"

=5832>?@>/:<!"$+#&)

42@/A>BC>/:<&#+*"*

!"#$%&'$(')*+",-&$-'.*/012&34'5667'8'569:

!"#$%&!

'"()%&*

*"*'$&%

!"')+&#

,"$#!&#

!",#)&%

!"###

$"###

%"###

&"###

'"###

$##( $##) $#!# $#!! $#!$ $#!%

-./01234567

*+,-./+,-.01223!"4$)"$#!

567,89.23$''"(4(

2:/23!4#"($;

<+=.%.>?=+6@.0+A689B".$#!%

Note: HS code 950659000 - Badminton or similar raquets wheter or not strung Source : Department of Statistics, Malaysia

  15  

Note: HS code 2402 - Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. Source : Department of Statistics, Malaysia

Note: HS code 2402 - Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. Source : Department of Statistics, Malaysia

  16  

Note: HS code 1701- Cane or beet sugar and chemically pure sucrose, in solid form. Source : Department of Statistics, Malaysia

Note: HS code 1701- Cane or beet sugar and chemically pure sucrose, in solid form. Source : Department of Statistics, Malaysia

  17  

Note: HS code 0901- Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion. Source : Department of Statistics, Malaysia

Note: HS code 0901- Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion. Source : Department of Statistics, Malaysia

  18  

!"#$

!$#% !$#&

$"#&

$"#%

'(

$"

$(

!"

!(

$""% $"'" $"'' $"'$ $"'!

RM million

Japan = RM 6.7 mil.

USA = RM 5.8 mil.

Top 3 Export Destinations 2013

Singapore = RM 2.7 mil.

Note: HS code 2008.20- Pineapples in airtight containers and other. Source : Department of Statistics, Malaysia

!"#!"$

%"&

'"!

'"(

&"&

&")

!"&

!")

%"&

%")

'"&

'")

#"&

%&&* %&!& %&!! %&!% %&!'

RM million

Thailand = RM 2.7 mil.

Philippines = RM 0.9 mil.

Indonesia = RM 0.1 mil.

Top 3 Import Sources 2013

Note: HS code 2008.20- Pineapples in airtight containers and other. Source : Department of Statistics, Malaysia

  19  

!"#$%&$'(#")*+),$"-$./0/1,2/3,$4/*5)/0$6577+)8$9&%:

!"#$%"%

&%!$'("

()$*##!($*&# #+$+(' #($)() &'$*+" &)$&"' &!$"(" &#$!+'

%

(%$%%%

&%%$%%%

&(%$%%%

#%%$%%%

#(%$%%%

!%%$%%%

!(%$%%%

)%%$%%%

)(%$%%%

,-. /012345 6134 789 :13;<= -0>?@=<ABCDBEC103

F<4=34G ,C1H?I3= J?1K05 8C?HLB9D1<A3

!"##$%

!"#$%&'(')&*+$,-&.,'"/'!,+,01,0%12'3+4+510+

!"#"$%&"'(')*"+,'&-'./"#0'1223'4'1253!"#$%$&#'"()*+

,#&-

!""# !""$ !""% !""& !""' !""( !"") !"*" !"** !"*! !"*#+,-./01 "2! %2' *%2& *'2" !!2) $"2* !)2! %(2" *&*2! &*2! *""2'34-./01 &%%2$ *5#!'2# *5'%&2) *5(&!2% *5($%2" %5#%!2) #5(""2* %5!*"2( '5#)%2" &5&&$2) %5($#2%

"

*5"""

!5"""

#5"""

$5"""

%5"""

&5"""

'5"""

(5"""

!"#$

%&&%'(

+,-./01 34-./01

!"#$%&'(')&*+$,-&.,'"/'!,+,01,0%12'3+4+510+

  20  

!"#$%&'$()%'*$+%&,-&.$/-01$2%3%45-%$67)$89:8;$<7=&0)-*5>$?@AB

!"#$!#%&'()*+,-./01*2340

%567368)*19*:%!;0<*2340=

>#?*('%&'()*+,-9@0@*2340

%567368)*9A<*:%!@09*2340=

BCDE*$#!&'()*+,-9F@0/*2340

%567368)*9A*:%!A;0A*2340=

(GC>C((C$D,&'()*+,-;F;0@*2340

%567368)*9H*:%!9109*2340=

I%+$DC****'#%+,,#>#!&'()*+,-9/0;*2340

%567368)*A.*:%!A0/*2340=

C$'?$D,C#&'()*+,-HF@0A*2340

%567368)*/*:%!/909*2340=

,C$&#(?%D&'()*+,-;<.0F*2340

%567368)*;*:%!9H@0F*2340=

J#!I?'C#&'()*+,-9.0F*2340

%567368)*/9*:%!901*2340=

EG#C>#$'&'()*+,-AHF0;*2340

%567368)*.*:%!FH0/*2340=

Inflation Rate for Selected ASEAN Countries 2000- 2013

!""" !""# !""! !""$ !""% !""& !""' !""( !"") !""* !"#" !"## !"#! !"#$

+,-./0 #1! "1' 2!1$ "1$ "1* #1# "1! #1" !1# #1" "1% !1" "1& #1&

3.45./607 $1) ##1& ##1) '1) '1# #"1& #$1# '1( *1) %1) &1# &1% %1$ (1$

8797:607 #1' #1% #1) #1# #1% $1" $1' !1" &1% "1' #1( $1! #1( !1"

;0.<7=5,/ #1$ #1" 2"1% "1& #1( "1& #1" !1# '1' "1' !1) &1! %1' !1$

>?7097.4 #1' #1' "1( #1) !1) %1& %1' !1! &1& 2"1* $1$ $1) $1" !1!

@0/A.7B 2#1) 2"1$ %1# $1$ (1* )1% (1& )1$ !$1# '1( *1! #)1( *1# )1)

2&1"

"1"

&1"

#"1"

#&1"

!"1"

!&1"

3.C97

A05.DE7

A/DFG

H

!"#$%&'(')**+(,,---./01."$2,&3*&$456,+#78,1*,-&",9:;<,:9,-&"=5*5,-&"8&62$.58+3  

Source : http://www.imf.org/external/pubs/ft/weo/2013/02/weodata/weoselgr.aspx

  21  

Please accept, Your Excellency, the assurances of my highest consideration. Respectfully Yours, PUTH Hemonna Commercial Counselor Royal Embassy of Cambodia