Malaysian export surges within expectation at 20.6 pct in April

KUALA LUMPUR, June 5 (Xinhua) — Malaysia’s export for April grew within economists forecasts, expanding by 20.6 percent compared with the same period last year, underpinned by higher shipments of manufactured, mining and agricultural goods.

Data from Malaysian International Trade and Industry Ministry showed on Monday that exports reached 73.97 billion ringgit (17.33 billion U.S. dollars), which was the fifth consecutive month where exports posted double digit growth since December 2016.

The total trade surged by 22.5 percent to 139.18 billion ringgit compared with the year before, supported by expansion in trade with ASEAN, China, Japan, India, the European Union and the United States.

Meanwhile, imports expanded by 24.7 percent to 65.21 billion ringgit, resulting in a trade surplus of 8.75 billion ringgit.

However, on a month-on-month basis, total trade, exports and imports dropped by 12.9 percent, 10.5 percent and 15.6 percent respectively due to the high base effect in March.

Trade with China for April expanded by 28.9 percent to 22.62 billion ringgit compared with last year. Exports to China continued to record the positive year-on-year growth since October 2016. It registered a sturdy growth of 50.6 percent, buoyed by higher exports of petroleum products, electronics and electric (E&E) products, liquefied natural gas as well as rubber products. Imports from China also increased 15.3 percent to 12.46 billion ringgit.

According to United Overseas Bank economist Julia Goh and TA Securities’ chief economist Shazma Juliana Abu Bakar, April’s export figure turned to be within their expectations.

“The export growth has been slowed down from its peak in February (26.5 percent), I am expecting it to moderate in the second half,” Goh told Xinhua over the phone.

She expected the export to moderate in the second half due to a combination of factors, including the moderation in regional demand, the strengthening of ringgit and the higher base effect for exports in the second half last year.

Shazma, however, opined that the slowdown would not be a concern and emphasized that the export growth in April still suggesting for a resilient gross domestic production growth in the second quarter. Enditem (1 U.S. dollar equals to 4.25 Malaysian Ringgit)