Page  1 IMPLEMENTATION PLAN OF IMTS 2010, MSITS 2010 & BPM6 Mr. Zainuddin Ahmad Mr. Zanol Jamil MALAYSIA

Page  2 Outline 1.Overview of DOSM 2.Implementation Plan: 2.1 IMTS MSITS & BPM6 3.Conclusion

Page  3 DOSM Organisation Chart

Page  4 Malaysia Trade Performance Cumulative (USD Billion) Year-on-Year (%) Jan-Nov Exports Imports Total Trade

Page  5 Malaysia World Ranking Ranking (from 198 countries) Total Trade2724 Export21 Import2827

Page  6 Malaysia Exports by Major Products (Jan-Nov 2010) Product Value (USD) Contribution (%) E&E Products70.8 billion39.3 Palm Oil & Palm-Based Products 17.5 billion9.7 LNG10.8 billion6.0 Crude Petroleum8.8 billion4.9 Petroleum Products7.0 billion3.9

Page  7 Malaysia Exports by Top 5 Countries (Jan-Nov 2010) Country Value (USD) Conribution (%) Republic of Singapore24.0 billion13.3 People’s Republic of China22.8 billion12.7 European Union (EU)19.4 billion10.8 Japan18.6 billion10.3 United States of America17.3 billion9.6

Page  8 Percentage share of GDP 2008 (%) 2009 (%) Export Import Total Trade

Page  9 Implementation of IMTS 2010

Page  10 Awareness Session 1.IMTS 2010 Awareness Session (Internal) - was held 6 August IMTS 2010 Awareness Session (External) - was held 1 December attended by Economic Planning Unit, Ministry of International Trade and Industry, Royal Malaysian Custom Department, Ministry of Finance etc.

Page  11 Awareness Session 3. Training on IMTS plan to be held on June will involve officers from External Trade Statistics Division and stakeholders

Page  12 Implementation of New Recommendations of IMTS 2010

Page  13 IMTS 2010Implementation Plan Chapter I: Coverage and Time of Recording New encouragement 1. Goods for processing as well as goods resulting from such processing where no change of ownership takes place: Include and explicitly identify (preferably by special coding) in your trade statistics (para. 1.21) Chapter II: Trade System New recommendation 2. Reimports and re-exports: Include and identify (code) separately for analytical purposes (paras and 2.18) DOSM has formed a committee to study on how to capture this information. Malaysia has implemented this recommendation.

Page  14 IMTS 2010Implementation Plan Chapter III: Commodity Classifications New recommendation 3. Standard International Trade Classification (SITC): Use SITC for the dissemination and the analysis of trade statistics according to user requirements (para. 3.19) Malaysia has implemented this recommendation.

Page  15 IMTS 2010Implementation Plan Chapter VI: Partner Country New recommendation 4. Calculation of trade balances: Use imports by country of origin and exports by country of last known destination (para. 6.27) Chapter VII: Mode Of Transport New recommendation 5. Compilation of mode of transport: Compile and disseminate international merchandise trade statistics by mode of transport at the most detailed commodity level (as a new data dimension) (para. 7.1) Malaysia has implemented this recommendation. Currently, Malaysia’s mode of transport data are derived from entry/exit point. In future, Malaysia will extract this information directly from the source documents. Plan to be implemented in 2014.

Page  16 IMTS 2010Implementation Plan Chapter VII: Mode Of Transport New recommendation 6. Recording of mode of transport: Record as mode of transport the means of transport used when goods enter or leave the economic territory (para. 7.1) New recommendation 7. Classification: Clearly indicate the contents of the categories used; countries are encouraged to follow the suggested classification for the compilation and reporting of trade statistics by mode of transport (paras ) Malaysia has implemented this recommendation. Mode of transport that are relevant to Malaysia: - sea, railway, road, air, pipeline, cable (detailed product are available). And for postal, homogenous code assigned.

Page  17 IMTS 2010Implementation Plan Chapter VIII: Data Compilation Strategies New recommendation 8. Use of customs records: Use customs records as the main and normally preferred data source (para. 8.2) New recommendation 9. Institutional arrangements: Consider the establishment of the institutional arrangements necessary to ensure the compilation of high quality trade statistics as a matter of high priority and periodically review their effectiveness (para. 8.17) 99% transactions from customs declarations.The balance (1%) are from Free Zone Area, Duty Free Shop and Power Producer Company. Malaysia has established good networking/ relationship with Royal Malaysian Customs. Meeting has regular technical meeting top management meeting

Page  18 IMTS 2010Implementation Plan Chapter IX: Data Quality And Metadata New recommendation 10. Metadata categories: Cover at least the categories of metadata provided in para (para. 9.23) New recommendation 11. Metadata as high priority: View the development of metadata as a high priority and consider their dissemination an integral part of the dissemination of international merchandise trade statistics (para. 9.25) Presently, Malaysia follows IMF recommendation. DOSM follows OECD and IMF guidelines (since 2005).

Page  19 IMTS 2010Implementation Plan Chapter X: Dissemination New recommendation 12. Data dissemination: Treat all users equally and disseminate data without preference to any national or international user group. Choose the dissemination format that best suits the users’ needs (para ) DOSM releases data through: 1) website i)Malaysia External Trade Statistics System (3 & 4 digits SITC/HS), ii)softcopy publication (pdf format), iii)highlights and key statistics; 2) hardcopy publication.

Page  20 Implementation Plan of MSITS 2010 and BPM6

Page  21 Malaysia in Brief CONTRIBUTION OF SERVICES SECTOR: i.GDP 2009 = 57.4% ii.Tenth Malaysia Plan ( ) = Projected 61.1% CONTRIBUTION OF SERVICES SECTOR: i.GDP 2009 = 57.4% ii.Tenth Malaysia Plan ( ) = Projected 61.1% ITS 2009 ITS 2009 Exports = RM101.3 billion Exports = RM101.3 billion Imports = RM 96.6 billion Imports = RM 96.6 billion ITS 2009 ITS 2009 Exports = RM101.3 billion Exports = RM101.3 billion Imports = RM 96.6 billion Imports = RM 96.6 billion

Page  22 Data sources International Transaction Reporting System (ITRS)-Central Bank Enterprise surveys - Transport Surveys of travellers and household expenditure surveys Official sources and government transactions Data sources International Transaction Reporting System (ITRS)-Central Bank Enterprise surveys - Transport Surveys of travellers and household expenditure surveys Official sources and government transactions

Page  23 Developmental works: 1. Construct Frame on ITS 2.Construct Frame on Specific Services: Manufacturing Services and Maintenance & Repair 3. Inward FATS 4. Outward FATS

Page  24 Collaborate with other relevant agencies Malaysia Investment Development Authority (MIDA) Central Bank (BNM) Companies Commission of Malaysia Developmental work 1: Construct Frame on ITS

Page  25 Developmental work 2: Construct frame on Manufacturing Services and Maintenance & Repair

Page  26 Data Sources  Tap variables for construct Inward FATS from Economic Census 2011  In the Census, incorporate question on: Percentage of foreign equity ownership (establishments report more than 50% are classified as Inward FATS) Country of Ultimate Controlling Institutional Unit (UCI) Developmental work 3: Inward FATS

Page  27 Developmental work 3: Inward FATS (con’t)

Page  28 Developmental work 3: Inward FATS (con’t)

Page  29  Annual survey  Commenced in August collect data for reference year 2008 & 2009  Collect statistics on economic activities of the affiliates abroad  The information is collected via their parent companies in Malaysia  Canvassing about 488 companies  The frame is sourced from Joint Survey of International Investment Position (IIP) Developmental work 4: Outward FATS

Page  30 Outward FATS Variables Collected 1Sales/Turnover/Output 2Employment 3Depreciation of fixed assets 4Export of Goods and Services 5Import of Goods and services 6Number of Enterprises 7Total Assets/Total Liabilities 8Compensation of employee (COE) 9Taxes on income 10Research and Development expenditures 11Purchases of goods and services Developmental work 4: Outward FATS (con’t)

Page  31 Conclusion  IMTS 2010: some new recommendations have been implemented.  Malaysia will prioritize other recommendations.  DOSM plans to apply BPM6 at the end of year  Implementation of BPM6 need further detail study.

Page  32 Thank you