By Ranjeetha Pakiam
Dec. 6 (Bloomberg) -- Malaysia's manufacturers may face a ``tough year'' in 2009 as the global recession cuts demand for computer chips, components and electronic goods, a trade group said after a survey of local businesses.
Next year will be ``a very trying time, a tough year,'' Mustafa Mansur, president of the Federation of Malaysian Manufacturers, said in an interview in Kuala Lumpur yesterday. ``We will feel the impact.''
Four-fifths of the respondents in the trade group's survey expect new orders and sales forecasts will be ``strongly'' or ``moderately'' hurt by the global recession. Malaysia's government on Nov. 4 announced a 7 billion-ringgit ($1.9 billion) spending package for public projects to support economic growth that's set to slow to the worst pace in eight years in 2009.
Global economic outlook will worsen in the next six to 12 months, according to 82 percent of the 113 companies surveyed last month by the Federation of Malaysian Manufacturers.
``With half the world in recession, the downside on Malaysia's manufacturing sector will be significant,'' said Irvin Seah, an economist at DBS Group Holdings Ltd. in Singapore. He expects four straight quarters of year-on-year declines in orders, starting from the last three months of 2008.
Global growth is headed for a ``major downturn'' next year, with U.S. gross domestic product growth likely slowing to 0.1 percent, the International Monetary Fund said in October. The U.S., Japan, Germany and the 15 European nations that use the euro are in recession.
Malaysia's government has forecast its economy to expand 3.5 percent next year. The $181 billion economy grew at the slowest pace in three years last quarter, prompting Bank Negara Malaysia, the nation's central bank, to cut interest rates for the first time since 2003 on Nov. 24. Exports slid in October for the first time in 15 months.
About 77 percent of the survey's respondents said their capital investments would be ``negatively affected,'' Mustafa said. Job retrenchments are also expected, he said.
Saturday, December 6, 2008
Friday, December 5, 2008
Oct exports post unexpected 2.6pc drop
By Rupa Damodaran
Malaysia's trade with other countries saw a downturn in October, with exports falling for the first time in 15 months.
Exports dropped 2.6 per cent to RM53.46 billion from a year earlier owing to lower demand for commodities and electrical and electronic (E&E) products.Imports, meanwhile, fell 5.3 per cent to RM43.84 billion.Total merchandise trade (exports plus imports) was RM97.3 billion.
The numbers came in far below market expectations and a Business Times poll, which had projected exports to moderate to 7.39 per cent and imports to grow at a slower pace of four per cent.
The Ministry of International Trade and Industry (Miti) said that compared with September, exports in October were down 14.2 per cent while imports fell 7.8 per cent."The decline in exports was mainly attributed to lower exports of E&E products and commodities, namely refined and crude petroleum as well as palm oil," Miti said.Major markets that registered declines were the US, Singapore, mainland China, Hong Kong and Australia.
The Asean region accounted for RM13.6 billion, or 25.4 per cent, of Malaysia's total exports in October, down 6.1 per cent from the same month last year because of lower exports of refined petroleum products as well as iron and steel products.
Exports to the US and the European Union declined mainly because of lower exports of E&E products.Exports to China dipped owing to lower exports of palm oil, crude rubber, metal and refined petroleum products.However, exports to India and the United Arab Emirates (UAE) increased in October.
Exports to India rose 10.7 per cent to RM2.45 billion, contributed mainly by higher exports of crude petroleum and palm oil.Exports to the UAE surged 52.6 per cent to RM1.13 billion, largely due to higher exports of jewellery and iron and steel products.
In the first 10 months of the year, Malaysia's trade surpassed the RM1 trillion mark to reach RM1.012 trillion, up 11 per cent.Exports expanded 13.9 per cent to RM565.66 billion, while imports increased 7.4 per cent to RM446.81 billion.
HSBC Bank economist Prakriti Sofat described the export data as the worst in more than 20 months, while import growth showed a five-year low.Electronics, which had a good run in the April-June period, showed a renewed weakness, contracting by nearly 13 per cent year-on-year
Malaysia's trade with other countries saw a downturn in October, with exports falling for the first time in 15 months.
Exports dropped 2.6 per cent to RM53.46 billion from a year earlier owing to lower demand for commodities and electrical and electronic (E&E) products.Imports, meanwhile, fell 5.3 per cent to RM43.84 billion.Total merchandise trade (exports plus imports) was RM97.3 billion.
The numbers came in far below market expectations and a Business Times poll, which had projected exports to moderate to 7.39 per cent and imports to grow at a slower pace of four per cent.
The Ministry of International Trade and Industry (Miti) said that compared with September, exports in October were down 14.2 per cent while imports fell 7.8 per cent."The decline in exports was mainly attributed to lower exports of E&E products and commodities, namely refined and crude petroleum as well as palm oil," Miti said.Major markets that registered declines were the US, Singapore, mainland China, Hong Kong and Australia.
The Asean region accounted for RM13.6 billion, or 25.4 per cent, of Malaysia's total exports in October, down 6.1 per cent from the same month last year because of lower exports of refined petroleum products as well as iron and steel products.
Exports to the US and the European Union declined mainly because of lower exports of E&E products.Exports to China dipped owing to lower exports of palm oil, crude rubber, metal and refined petroleum products.However, exports to India and the United Arab Emirates (UAE) increased in October.
Exports to India rose 10.7 per cent to RM2.45 billion, contributed mainly by higher exports of crude petroleum and palm oil.Exports to the UAE surged 52.6 per cent to RM1.13 billion, largely due to higher exports of jewellery and iron and steel products.
In the first 10 months of the year, Malaysia's trade surpassed the RM1 trillion mark to reach RM1.012 trillion, up 11 per cent.Exports expanded 13.9 per cent to RM565.66 billion, while imports increased 7.4 per cent to RM446.81 billion.
HSBC Bank economist Prakriti Sofat described the export data as the worst in more than 20 months, while import growth showed a five-year low.Electronics, which had a good run in the April-June period, showed a renewed weakness, contracting by nearly 13 per cent year-on-year
Malaysia Exports Post First Drop in 15 Months on Global Slump
By Stephanie Phang and Michael Munoz
Dec. 4 (Bloomberg) -- Malaysia's exports unexpectedly posted the first decline in 15 months in October as electronics and palm oil sales fell amid a global recession.
Overseas sales dropped 2.6 percent from a year earlier to 53.5 billion ringgit ($14.7 billion) after gaining a revised 15 percent in September, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 13 economists had been for a 6.6 percent gain.
Malaysia will feel the impact of a ``deterioration in the external environment'' this quarter and needs to shore up domestic demand to ensure growth next year, the central bank said last week. The $181 billion economy expanded at the slowest pace in three years last quarter, prompting Bank Negara Malaysia to cut interest rates for the first time since 2003 on Nov. 24.
``The global downturn in demand pulled down Malaysian exports in October, as they have for economies across the region, along with the drag from lower commodity prices,'' said David Cohen, director of Asian economic forecasting at Action Economics in Singapore.
Malaysia's government announced a 7 billion-ringgit spending plan to bolster its economy on Nov. 4, joining countries from Germany to South Korea in trying to limit the impact of a deepening global economic slump that's already pushed neighboring Singapore into recession.
Sales by American-owned electronics makers in Malaysia will fall this year and next as recessions in the U.S., Japan and Europe sap demand for Dell Inc. computers and other devices, an industry group said last week. Dell, Intel Corp., Motorola Inc. and other U.S. electronics makers account for about 12 percent of Malaysia's total exports.
U.S. Exports
Malaysia's exports to the U.S. dropped 19 percent to 6.44 billion ringgit in October from a year earlier because of a decline in electrical and electronics shipments, the ministry said today. The U.S. has fallen behind Singapore in the first 10 months of the year as Malaysia's largest overseas market.
Exports of electrical and electronics goods, which made up 37 percent of total exports in October, plunged 13 percent from a year earlier. Unisem Bhd., the country's second-largest publicly traded semiconductor assembler, posted a second quarter of profit decline in the three months to September.
Palm oil sales fell 4.6 percent in October as prices eased after reaching records earlier this year. Malaysia is Southeast Asia's second-largest oil and gas producer and the world's No. 2 palm oil seller.
Imports dropped 5.3 percent in October to 43.8 billion ringgit, leaving a trade surplus of 9.62 billion ringgit, the smallest since March. Exports grew 14 percent in the first 10 months, while imports expanded 7.4 percent, leaving a trade surplus of 118.8 billion ringgit.
To contact the reporter on this story: Stephanie Phang Singapore at sphang@bloomberg.net; Manirajan Ramasamy in Kuala Lumpur at rmanirajan@bloomberg.net
Last Updated: December 3, 2008 23:03 EST
Dec. 4 (Bloomberg) -- Malaysia's exports unexpectedly posted the first decline in 15 months in October as electronics and palm oil sales fell amid a global recession.
Overseas sales dropped 2.6 percent from a year earlier to 53.5 billion ringgit ($14.7 billion) after gaining a revised 15 percent in September, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 13 economists had been for a 6.6 percent gain.
Malaysia will feel the impact of a ``deterioration in the external environment'' this quarter and needs to shore up domestic demand to ensure growth next year, the central bank said last week. The $181 billion economy expanded at the slowest pace in three years last quarter, prompting Bank Negara Malaysia to cut interest rates for the first time since 2003 on Nov. 24.
``The global downturn in demand pulled down Malaysian exports in October, as they have for economies across the region, along with the drag from lower commodity prices,'' said David Cohen, director of Asian economic forecasting at Action Economics in Singapore.
Malaysia's government announced a 7 billion-ringgit spending plan to bolster its economy on Nov. 4, joining countries from Germany to South Korea in trying to limit the impact of a deepening global economic slump that's already pushed neighboring Singapore into recession.
Sales by American-owned electronics makers in Malaysia will fall this year and next as recessions in the U.S., Japan and Europe sap demand for Dell Inc. computers and other devices, an industry group said last week. Dell, Intel Corp., Motorola Inc. and other U.S. electronics makers account for about 12 percent of Malaysia's total exports.
U.S. Exports
Malaysia's exports to the U.S. dropped 19 percent to 6.44 billion ringgit in October from a year earlier because of a decline in electrical and electronics shipments, the ministry said today. The U.S. has fallen behind Singapore in the first 10 months of the year as Malaysia's largest overseas market.
Exports of electrical and electronics goods, which made up 37 percent of total exports in October, plunged 13 percent from a year earlier. Unisem Bhd., the country's second-largest publicly traded semiconductor assembler, posted a second quarter of profit decline in the three months to September.
Palm oil sales fell 4.6 percent in October as prices eased after reaching records earlier this year. Malaysia is Southeast Asia's second-largest oil and gas producer and the world's No. 2 palm oil seller.
Imports dropped 5.3 percent in October to 43.8 billion ringgit, leaving a trade surplus of 9.62 billion ringgit, the smallest since March. Exports grew 14 percent in the first 10 months, while imports expanded 7.4 percent, leaving a trade surplus of 118.8 billion ringgit.
To contact the reporter on this story: Stephanie Phang Singapore at sphang@bloomberg.net; Manirajan Ramasamy in Kuala Lumpur at rmanirajan@bloomberg.net
Last Updated: December 3, 2008 23:03 EST
October annual exports suffer surprise drop
theedgedaily..5 dec 2008
KUALA LUMPUR: The country's exports unexpectedly fell in October from a year ago, the latest evidence that it is being hit by falling demand from abroad because of the global economic slowdown.
The 2.6% decline from a year ago compared with economists' expectations for a 6.3% rise in a country where trade is more than 100% of gross domestic product, or the value of all goods and services produced.
"We are likely to see much weaker numbers for Malaysia going forward with external demand very weak, and with the unlikelihood that demand for electronics will recover anytime soon," said Alvin Liew, an economist at Standard Chartered.
Exports dipped slightly in July 2007 but the last big fall was in March 2007 when they fell 4.5%.
Imports for October fell by 5.3% year-on-year compared with analyst expectations for a 1.8% rise.
The data comes after South Korea saw exports slide by 18.3% in November, the biggest drop in seven years, and amid tumbling oil and commodity prices, key exports for Malaysia.
Exports totalled RM53.46 billion, down from RM62.31 billion in September, while imports fell to RM43.84 billion.
That ate into the trade surplus, which fell to RM9.62 billion in October compared with RM14.5 billion in September.
Malaysia has pinned its hopes of avoiding a recession on boosting exports to Asia, although the October data showed exports to the 10 countries that make up Asean fell by 6.1% from a year ago and exports to China fell to RM4.89 billion from RM5.26 billion on weaker commodity and oil prices.
Malaysia hopes to record economic growth of 3.5% in 2009, but many economists say it will not manage that. Investment bank UBS sees no growth at all.
The poor trade data may spur Malaysia's central bank into action after its first rate cut in five years earlier this month when it shaved 25 basis points off its key rate to 3.25%.
"The central bank will look into at least another 25 basis points. I'm looking at 50 basis points in January and February," said Gundy Cayhadi, economist at IDEAglobal.com. -- Reuters
KUALA LUMPUR, Dec 4 (Reuters) - Malaysia's exports unexpectedly fell 2.6 percent in October from a year earlier due to weakening global demand for electronics and commodities, the government said on Thursday.
Imports dropped 5.3 percent from a year ago, according to government data.
*************************************************************
KEY POINTS:
- A Reuters survey of economists had predicted annual export growth of 6.3 percent for October and import growth of 1.8 percent.
- For the full story on the October trade data, please double-click on
ANALYST COMMENTS:
GUNDY CAHYADI, ECONOMIST, IDEAglobal.com
"The export growth numbers will be very low. It will remain in the low single digit and possibly (be) negative figures. It will stay like that at least until the second half of next year. Commodities prices have been slowing. That held Malaysian exports strong in Q2 and somewhat in Q3. The central bank will look into at least another (interest rate cut of) 25 basis points. I'm looking at 50 basis points (cut) in January and February."
ALVIN LIEW, STANDARD CHARTERED BANK
"We were definitely expecting some easing off of growth in exports in October but the magnitude of the fall was certainly a surprise to us and to the market as well.
"We do know two things probably affected the numbers: one was the strong base effect in October 2007 and two, the sustained decline in global commodity prices.
"For a large part of the year, Malaysian exports have shown healthy growth largely due to strong commodity exports compared to say, Singapore. But we are now starting to see the impact of declining commodity prices.
"We are likely to see much weaker (exports) numbers for Malaysia going forward with external demand very weak, and with the unlikelihood that demand for electronics will recover anytime soon."
BACKGROUND
- Malaysian export growth could slow further due to a deepening global economic downturn and weakening commodities prices, economists have said.
- The Southeast Asian economy is a net exporter of crude oil and a large producer of crude palm oil.
KUALA LUMPUR: The country's exports unexpectedly fell in October from a year ago, the latest evidence that it is being hit by falling demand from abroad because of the global economic slowdown.
The 2.6% decline from a year ago compared with economists' expectations for a 6.3% rise in a country where trade is more than 100% of gross domestic product, or the value of all goods and services produced.
"We are likely to see much weaker numbers for Malaysia going forward with external demand very weak, and with the unlikelihood that demand for electronics will recover anytime soon," said Alvin Liew, an economist at Standard Chartered.
Exports dipped slightly in July 2007 but the last big fall was in March 2007 when they fell 4.5%.
Imports for October fell by 5.3% year-on-year compared with analyst expectations for a 1.8% rise.
The data comes after South Korea saw exports slide by 18.3% in November, the biggest drop in seven years, and amid tumbling oil and commodity prices, key exports for Malaysia.
Exports totalled RM53.46 billion, down from RM62.31 billion in September, while imports fell to RM43.84 billion.
That ate into the trade surplus, which fell to RM9.62 billion in October compared with RM14.5 billion in September.
Malaysia has pinned its hopes of avoiding a recession on boosting exports to Asia, although the October data showed exports to the 10 countries that make up Asean fell by 6.1% from a year ago and exports to China fell to RM4.89 billion from RM5.26 billion on weaker commodity and oil prices.
Malaysia hopes to record economic growth of 3.5% in 2009, but many economists say it will not manage that. Investment bank UBS sees no growth at all.
The poor trade data may spur Malaysia's central bank into action after its first rate cut in five years earlier this month when it shaved 25 basis points off its key rate to 3.25%.
"The central bank will look into at least another 25 basis points. I'm looking at 50 basis points in January and February," said Gundy Cayhadi, economist at IDEAglobal.com. -- Reuters
KUALA LUMPUR, Dec 4 (Reuters) - Malaysia's exports unexpectedly fell 2.6 percent in October from a year earlier due to weakening global demand for electronics and commodities, the government said on Thursday.
Imports dropped 5.3 percent from a year ago, according to government data.
*************************************************************
KEY POINTS:
- A Reuters survey of economists had predicted annual export growth of 6.3 percent for October and import growth of 1.8 percent.
- For the full story on the October trade data, please double-click on
ANALYST COMMENTS:
GUNDY CAHYADI, ECONOMIST, IDEAglobal.com
"The export growth numbers will be very low. It will remain in the low single digit and possibly (be) negative figures. It will stay like that at least until the second half of next year. Commodities prices have been slowing. That held Malaysian exports strong in Q2 and somewhat in Q3. The central bank will look into at least another (interest rate cut of) 25 basis points. I'm looking at 50 basis points (cut) in January and February."
ALVIN LIEW, STANDARD CHARTERED BANK
"We were definitely expecting some easing off of growth in exports in October but the magnitude of the fall was certainly a surprise to us and to the market as well.
"We do know two things probably affected the numbers: one was the strong base effect in October 2007 and two, the sustained decline in global commodity prices.
"For a large part of the year, Malaysian exports have shown healthy growth largely due to strong commodity exports compared to say, Singapore. But we are now starting to see the impact of declining commodity prices.
"We are likely to see much weaker (exports) numbers for Malaysia going forward with external demand very weak, and with the unlikelihood that demand for electronics will recover anytime soon."
BACKGROUND
- Malaysian export growth could slow further due to a deepening global economic downturn and weakening commodities prices, economists have said.
- The Southeast Asian economy is a net exporter of crude oil and a large producer of crude palm oil.
Friday, November 7, 2008
Malaysia's 2009 exports to shrink amid slowdown
Malaysia's exports in 2009 are expected to decline for the first time in eight years as the global economic downturn hits the trade-dependent nation, officials said Wednesday.
Trade Minister Muhyiddin Yassin said exports are projected to grow 4.6 percent this year but likely to contract by 1.5 percent in 2009 given expectations for weaker demand from the U.S., Japan and Europe - Malaysia's key trading partners.
The government earlier targeted exports to grow 4.6 percent in 2009, but slashed its forecast after warning that the country's economy would likely grow 3.5 percent next year instead of 5.4 percent.
Muyhiddin said demand for electrical and electronics sector, which accounts for about 40 percent of Malaysia's exports, has softened in the U.S. and Europe but still see robust orders from Asia.
"While there is a softening in the market, demand has not been too adversely affected," he said.
"The (overall export) projection is not encouraging...but we hope that this will be a cushion in a dampening market," he added.
Over the January-September period, Malaysia's exports rose 16 percent to 512 billion ringgit ($146 billion). Last year, exports reached 605 billion ringgit ($172.8 billion).
The last time exports growth contracted was in 2001 when they shrank 6.8 percent.
Muhyiddin congratulated Democrat Barack Obama for his victory in the U.S. presidential elections but urged the new administration not to fall back on protectionist policies that would hurt free trade.
"There is an Obama-mania, there is high expectations of the new leadership in the U.S.," he said.
"The only concern at the moment...is whether America under Obama will adopt a pro-protectionist policy to try to safeguard its own domestic interest because they are facing the worst financial situation in 80 years," he said. "We would like to see a totally new America that takes interest not only in America but the whole world."
http://www.kansascity.com/438/story/876211.html
Trade Minister Muhyiddin Yassin said exports are projected to grow 4.6 percent this year but likely to contract by 1.5 percent in 2009 given expectations for weaker demand from the U.S., Japan and Europe - Malaysia's key trading partners.
The government earlier targeted exports to grow 4.6 percent in 2009, but slashed its forecast after warning that the country's economy would likely grow 3.5 percent next year instead of 5.4 percent.
Muyhiddin said demand for electrical and electronics sector, which accounts for about 40 percent of Malaysia's exports, has softened in the U.S. and Europe but still see robust orders from Asia.
"While there is a softening in the market, demand has not been too adversely affected," he said.
"The (overall export) projection is not encouraging...but we hope that this will be a cushion in a dampening market," he added.
Over the January-September period, Malaysia's exports rose 16 percent to 512 billion ringgit ($146 billion). Last year, exports reached 605 billion ringgit ($172.8 billion).
The last time exports growth contracted was in 2001 when they shrank 6.8 percent.
Muhyiddin congratulated Democrat Barack Obama for his victory in the U.S. presidential elections but urged the new administration not to fall back on protectionist policies that would hurt free trade.
"There is an Obama-mania, there is high expectations of the new leadership in the U.S.," he said.
"The only concern at the moment...is whether America under Obama will adopt a pro-protectionist policy to try to safeguard its own domestic interest because they are facing the worst financial situation in 80 years," he said. "We would like to see a totally new America that takes interest not only in America but the whole world."
http://www.kansascity.com/438/story/876211.html
Malaysia sep exports beat expectations
By Rupa Damodaranrupabanerji@nstp.com.my
MALAYSIAN exports in September 2008 beat market expectations and expanded by 15.1 per cent to RM62.31 billion from a year ago.
The Ministry of International Trade and Industry said imports increased by 11.9 per cent to RM47.78 billion, while a trade surplus of RM14.53 billion was recorded in the month.It exceeded market expectations and a Business Times poll, which had expected exports to grow year-on-year by 8.40 per cent and imports by 7.27 per cent.
Minister Tan Sri Muhyiddin Mohd Yassin said the third quarter saw a strong export performance, with trade rising 13.9 per cent to RM328.93 billion against the same period last year.Exports rose 16.9 per cent to RM185.25 billion, while imports grew by 10.3 per cent to RM143.69 billion.Major sectors that contributed to the increase in exports in September were refined petroleum products, crude petroleum, liquefied natural gas, palm oil, chemicals and chemical products and electrical and electronic products.
Muhyiddin said exports to the US were at RM7.37 billion in September 2008, down from RM8.7 billion a year ago, due mainly to a decline in E&E products exports.However, exports to the European Union saw a slight increase of 3.7 per cent due to higher exports of chemicals and chemical products, palm oil and crude rubber.
Malaysia's total exports to Asean in September also increased by 26.2 per cent, with China and Japan seeing an increase of 18.4 per cent and 21.3 per cent respectively from Malaysia.
Exports to India surged by 61.9 per cent, thanks to higher exports of crude petroleum and palm oil.For the nine months of the year, exports grew by 16 per cent to RM512.21 billion while imports increased by 9.1 per cent to RM403.19 billion, resulting in a trade surplus of RM109.03 billion.
Countries like Russia saw exports expanding by 90.1 per cent, Brazil by 40 per cent , China by 34.7 per cent and India by 27.2 per cent.
The Middle East also saw a 37.7 per cent surge to RM22.4 billion."The 14.6 per cent decrease in exports of E&E products was the main factor to the decline of Malaysia's total exports to the US. Increases in exports were, however, registered for palm oil, optical and scientific equipment and rubber products," Muhyiddin said, adding that the increase in palm oil demand was related to trans-fats in vegetable oils.
US investment bank Citi said it does not expect the acceleration in September export growth to be sustained.Exports in the rest of Asia already slowed sharply in September."Leading indicators, including the US ISM PMI (Purchasing Managers Index), and the OECD leading indicator, suggest that industrial country demand will likely soften significantly into the first half of 2009," said Citi vice-president for Asia economics and market analysis, Kit Wei Zheng."The pick up in import growth likely reflects rising imports of intermediate and capital goods used to produce exports, while consumer goods imports are slowing," he added.
Mail webheads for site related feedback and questions. Write to the editor or contact sales for other kind of help. Copyright © The New Straits Times Press (Malaysia) Berhad, Balai Berita 31, Jalan Riong, 59100 Kuala Lumpur, Malaysia.
MALAYSIAN exports in September 2008 beat market expectations and expanded by 15.1 per cent to RM62.31 billion from a year ago.
The Ministry of International Trade and Industry said imports increased by 11.9 per cent to RM47.78 billion, while a trade surplus of RM14.53 billion was recorded in the month.It exceeded market expectations and a Business Times poll, which had expected exports to grow year-on-year by 8.40 per cent and imports by 7.27 per cent.
Minister Tan Sri Muhyiddin Mohd Yassin said the third quarter saw a strong export performance, with trade rising 13.9 per cent to RM328.93 billion against the same period last year.Exports rose 16.9 per cent to RM185.25 billion, while imports grew by 10.3 per cent to RM143.69 billion.Major sectors that contributed to the increase in exports in September were refined petroleum products, crude petroleum, liquefied natural gas, palm oil, chemicals and chemical products and electrical and electronic products.
Muhyiddin said exports to the US were at RM7.37 billion in September 2008, down from RM8.7 billion a year ago, due mainly to a decline in E&E products exports.However, exports to the European Union saw a slight increase of 3.7 per cent due to higher exports of chemicals and chemical products, palm oil and crude rubber.
Malaysia's total exports to Asean in September also increased by 26.2 per cent, with China and Japan seeing an increase of 18.4 per cent and 21.3 per cent respectively from Malaysia.
Exports to India surged by 61.9 per cent, thanks to higher exports of crude petroleum and palm oil.For the nine months of the year, exports grew by 16 per cent to RM512.21 billion while imports increased by 9.1 per cent to RM403.19 billion, resulting in a trade surplus of RM109.03 billion.
Countries like Russia saw exports expanding by 90.1 per cent, Brazil by 40 per cent , China by 34.7 per cent and India by 27.2 per cent.
The Middle East also saw a 37.7 per cent surge to RM22.4 billion."The 14.6 per cent decrease in exports of E&E products was the main factor to the decline of Malaysia's total exports to the US. Increases in exports were, however, registered for palm oil, optical and scientific equipment and rubber products," Muhyiddin said, adding that the increase in palm oil demand was related to trans-fats in vegetable oils.
US investment bank Citi said it does not expect the acceleration in September export growth to be sustained.Exports in the rest of Asia already slowed sharply in September."Leading indicators, including the US ISM PMI (Purchasing Managers Index), and the OECD leading indicator, suggest that industrial country demand will likely soften significantly into the first half of 2009," said Citi vice-president for Asia economics and market analysis, Kit Wei Zheng."The pick up in import growth likely reflects rising imports of intermediate and capital goods used to produce exports, while consumer goods imports are slowing," he added.
Mail webheads for site related feedback and questions. Write to the editor or contact sales for other kind of help. Copyright © The New Straits Times Press (Malaysia) Berhad, Balai Berita 31, Jalan Riong, 59100 Kuala Lumpur, Malaysia.
Malaysia: Export growth still possible next year
Business Times
MALAYSIA'S trade performance for the last quarter of 2008 and next year will depend on major factors including the global economy, commodity prices and exchange rates, said the Minister of International Trade and Industry Tan Sri Muhyiddin Mohd Yassin.
"These are challenging times that require pragmatic and innovative measures. The government will support and facilitate the efforts of the private sector to aggressively seek and pursue opportunities overseas," he said after a briefing on Malaysia's trade performance for September 2008 in Kuala Lumpur yesterday.
Markets in the US, Japan and the EU are expected to remain soft in the near term due to their sluggish economic performance."There are still countries that are expected to register growth and these include the BRIC countries of Brazil, Russia, India and China as well as countries with large reserves such as the oil exporting countries," he added.As a grouping, the BRIC countries account for almost half the world's population and offer vast opportunities for Malaysian exporters.
Muhyiddin said feedback from selected companies and industry associations revealed some differences in expectations on export earnings for the October-December 2008 period and 2009."Given that some industries are still positive about their outlook in the last quarter of 2008 and next year, export growth is still possible in 2009 despite concerns over the global economic scenario," he added.
The electrical and electronics (E&E) sector, which contributes about 40 per cent of the country's total exports, expects to see marginal year-on-year growth in exports in the last quarter of 2008 due to forward orders to meet demand for the year-end holidays.
Companies exporting to the Asian markets expect demand to remain buoyant as the region continues to invest in the industrial sector and stimulate consumer spending."Companies exporting E&E products to the Middle East and Latin America anticipate steady export growth in the fourth quarter of 2008 and full year 2009, to meet demands from the construction and telecommunication sectors and consumers," Muhyiddin said.
Demand for rubber gloves should remain strong as global consumption of gloves is projected to grow further next year to meet health and safety requirements. The industry expects 10-12 per cent demand growth.
Wood products, especially plywood for construction, could see lower demand in developed markets as construction and housing projects are deferred due to the declining housing demand in the US, Japan and Singapore."Furniture and wooden panel sectors are expected to see challenging times ahead as Malaysia's exports face stiff competition from low-cost producing countries in addition to the projected lower retail sales in the US," he said.
- By Rupa Damodaran
Mail webheads for site related feedback and questions. Write to the editor or contact sales for other kind of help. Copyright © The New Straits Times Press (Malaysia) Berhad, Balai Berita 31, Jalan Riong, 59100 Kuala Lumpur, Malaysia.
MALAYSIA'S trade performance for the last quarter of 2008 and next year will depend on major factors including the global economy, commodity prices and exchange rates, said the Minister of International Trade and Industry Tan Sri Muhyiddin Mohd Yassin.
"These are challenging times that require pragmatic and innovative measures. The government will support and facilitate the efforts of the private sector to aggressively seek and pursue opportunities overseas," he said after a briefing on Malaysia's trade performance for September 2008 in Kuala Lumpur yesterday.
Markets in the US, Japan and the EU are expected to remain soft in the near term due to their sluggish economic performance."There are still countries that are expected to register growth and these include the BRIC countries of Brazil, Russia, India and China as well as countries with large reserves such as the oil exporting countries," he added.As a grouping, the BRIC countries account for almost half the world's population and offer vast opportunities for Malaysian exporters.
Muhyiddin said feedback from selected companies and industry associations revealed some differences in expectations on export earnings for the October-December 2008 period and 2009."Given that some industries are still positive about their outlook in the last quarter of 2008 and next year, export growth is still possible in 2009 despite concerns over the global economic scenario," he added.
The electrical and electronics (E&E) sector, which contributes about 40 per cent of the country's total exports, expects to see marginal year-on-year growth in exports in the last quarter of 2008 due to forward orders to meet demand for the year-end holidays.
Companies exporting to the Asian markets expect demand to remain buoyant as the region continues to invest in the industrial sector and stimulate consumer spending."Companies exporting E&E products to the Middle East and Latin America anticipate steady export growth in the fourth quarter of 2008 and full year 2009, to meet demands from the construction and telecommunication sectors and consumers," Muhyiddin said.
Demand for rubber gloves should remain strong as global consumption of gloves is projected to grow further next year to meet health and safety requirements. The industry expects 10-12 per cent demand growth.
Wood products, especially plywood for construction, could see lower demand in developed markets as construction and housing projects are deferred due to the declining housing demand in the US, Japan and Singapore."Furniture and wooden panel sectors are expected to see challenging times ahead as Malaysia's exports face stiff competition from low-cost producing countries in addition to the projected lower retail sales in the US," he said.
- By Rupa Damodaran
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Malaysia's Export Growth Unexpectedly Accelerates (Update1)
By Stephanie Phang and Manirajan Ramasamy
Nov. 5 (Bloomberg) -- Malaysia's export growth unexpectedly accelerated in September, as rising commodities shipments to Asian markets countered declining electronics sales to the U.S.
Overseas sales increased 15.1 percent from a year earlier to 62.3 billion ringgit ($17.7 billion) after gaining a revised 10.7 percent in August, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 12 economists had been for a 6.6 percent gain.
``Companies exporting to the regional markets of Asia expect demand to remain buoyant as countries in the region continue to invest in the industrial sector,'' Trade Minister Muhyiddin Yassin told reporters in Kuala Lumpur today. Electronics sales to the U.S. and Europe are expected to soften in early 2009 after ``marginal'' export growth in the fourth quarter to meet year-end holiday demand, he said.
Malaysia's government announced measures yesterday to bolster domestic demand as it predicted faltering exports would drag growth to an eight-year low in 2009. The Southeast Asian nation joins countries from Germany to South Korea in trying to limit the impact of a deepening global economic slowdown that's already pushed neighboring Singapore into recession.
The pick up in exports was probably ``a temporary interruption to what should be a slowing trend during the next few quarters,'' said David Cohen, director of Asian economic forecasting at Action Economics in Singapore.
Demand Wanes
Manufacturing in the U.S., Malaysia's largest overseas market last year, contracted at the fastest pace in 26 years last month, according to the Institute for Supply Management's factory index. The European Commission said this week the region's economy probably entered a recession in the third quarter and will barely grow next year.
``Slowing growth in major trading partners has meant demand has waned,'' said Nikhilesh Bhattacharyya, an economist in Sydney at Moody's Economy.com. ``Sagging demand for manufactured goods and sharp declines in commodity prices'' hurt overseas sales in September.
Exports to the U.S. dropped 15.3 percent to 7.37 billion ringgit in September from a year earlier because of a decline in electrical and electronics shipments, the ministry said today. The U.S. has fallen behind Singapore in the first nine months of the year as Malaysia's largest overseas market.
Sales to Southeast Asia rose 15 percent to 15.8 billion ringgit, helped by higher exports of crude oil, refined petroleum products and electronics. Shipments to China, Japan and India were also lifted by commodities.
Profit Declines
Shipments of electrical and electronics goods, which made up 40 percent of total exports in September, gained 3 percent after declining the month before. Malaysian Pacific Industries Bhd. and Unisem Bhd., the country's two largest publicly traded semiconductor assemblers, both posted profit declines in the three months to June.
Crude oil exports jumped 57 percent and palm oil sales increased 32 percent in September even as prices eased after reaching records earlier this year. Malaysia is Southeast Asia's second-largest oil and gas producer and the world's No. 2 palm oil seller.
Malaysia's government yesterday cut the country's 2009 economic growth forecast to 3.5 percent from 5.4 percent, announced public projects worth about $2 billion and said it will allow workers to pay less of their monthly incomes into a national pension fund to spur spending. It predicted exports would drop 1.5 percent next year.
Imports climbed 11.9 percent in September to 47.8 billion ringgit, leaving a trade surplus of 14.5 billion ringgit. Exports grew 16.9 percent in the third quarter, while imports expanded 10.3 percent.
To contact the reporter on this story: Stephanie Phang Singapore at sphang@bloomberg.net; Manirajan Ramasamy in Kuala Lumpur at rmanirajan@bloomberg.net
Last Updated: November 5, 2008 00:29 EST
Nov. 5 (Bloomberg) -- Malaysia's export growth unexpectedly accelerated in September, as rising commodities shipments to Asian markets countered declining electronics sales to the U.S.
Overseas sales increased 15.1 percent from a year earlier to 62.3 billion ringgit ($17.7 billion) after gaining a revised 10.7 percent in August, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 12 economists had been for a 6.6 percent gain.
``Companies exporting to the regional markets of Asia expect demand to remain buoyant as countries in the region continue to invest in the industrial sector,'' Trade Minister Muhyiddin Yassin told reporters in Kuala Lumpur today. Electronics sales to the U.S. and Europe are expected to soften in early 2009 after ``marginal'' export growth in the fourth quarter to meet year-end holiday demand, he said.
Malaysia's government announced measures yesterday to bolster domestic demand as it predicted faltering exports would drag growth to an eight-year low in 2009. The Southeast Asian nation joins countries from Germany to South Korea in trying to limit the impact of a deepening global economic slowdown that's already pushed neighboring Singapore into recession.
The pick up in exports was probably ``a temporary interruption to what should be a slowing trend during the next few quarters,'' said David Cohen, director of Asian economic forecasting at Action Economics in Singapore.
Demand Wanes
Manufacturing in the U.S., Malaysia's largest overseas market last year, contracted at the fastest pace in 26 years last month, according to the Institute for Supply Management's factory index. The European Commission said this week the region's economy probably entered a recession in the third quarter and will barely grow next year.
``Slowing growth in major trading partners has meant demand has waned,'' said Nikhilesh Bhattacharyya, an economist in Sydney at Moody's Economy.com. ``Sagging demand for manufactured goods and sharp declines in commodity prices'' hurt overseas sales in September.
Exports to the U.S. dropped 15.3 percent to 7.37 billion ringgit in September from a year earlier because of a decline in electrical and electronics shipments, the ministry said today. The U.S. has fallen behind Singapore in the first nine months of the year as Malaysia's largest overseas market.
Sales to Southeast Asia rose 15 percent to 15.8 billion ringgit, helped by higher exports of crude oil, refined petroleum products and electronics. Shipments to China, Japan and India were also lifted by commodities.
Profit Declines
Shipments of electrical and electronics goods, which made up 40 percent of total exports in September, gained 3 percent after declining the month before. Malaysian Pacific Industries Bhd. and Unisem Bhd., the country's two largest publicly traded semiconductor assemblers, both posted profit declines in the three months to June.
Crude oil exports jumped 57 percent and palm oil sales increased 32 percent in September even as prices eased after reaching records earlier this year. Malaysia is Southeast Asia's second-largest oil and gas producer and the world's No. 2 palm oil seller.
Malaysia's government yesterday cut the country's 2009 economic growth forecast to 3.5 percent from 5.4 percent, announced public projects worth about $2 billion and said it will allow workers to pay less of their monthly incomes into a national pension fund to spur spending. It predicted exports would drop 1.5 percent next year.
Imports climbed 11.9 percent in September to 47.8 billion ringgit, leaving a trade surplus of 14.5 billion ringgit. Exports grew 16.9 percent in the third quarter, while imports expanded 10.3 percent.
To contact the reporter on this story: Stephanie Phang Singapore at sphang@bloomberg.net; Manirajan Ramasamy in Kuala Lumpur at rmanirajan@bloomberg.net
Last Updated: November 5, 2008 00:29 EST
Eksport Negara Masih Mampu Meningkat
Utusan
KUALA LUMPUR 5 Nov. - Jumlah dagangan negara meningkat kepada RM915.4 bilion dalam sembilan bulan pertama tahun ini, naik 12.8 peratus daripada RM811.38 bilion bagi tempoh yang sama tahun lalu.
Menteri Perdagangan Antarabangsa dan Industri, Tan Sri Muhyiddin Yassin berkata, bagi September sahaja, jumlah dagangan naik 13.7 peratus kepada RM110.9 bilion berbanding bulan yang sama tahun lalu.
''Lebihan dagangan bagi September sahaja bernilai RM14.53 bilion . Nilai eksport bagi September pula merupakan yang kedua tertinggi dicatatkan setakat ini iaitu meningkat kepada RM62.31 bilion atau 15.1 peratus. Import pula meningkat 11.9 peratus kepada RM47.78 bilion.
''Eksport bagi sembilan bulan pertama pula mencatat kenaikan sebanyak 16 peratus berjumlah RM512.21 bilion manakala import meningkat 9.1 peratus kepada RM403.19 menghasilkan lebihan dagangan sebanyak RM109.03 bilion,'' katanya sewaktu mengumumkan Prestasi Perdagangan Luar bagi bulan September dan bagi tempoh Januari hingga September 2008 di kementeriannya di sini hari ini.
Nilai eksport bagi bulan September meningkat sebanyak 4.5 peratus berbanding Ogos terutamanya disumbangkan oleh eksport yang tinggi produk elektrik dan elektronik, produk berasaskan petrolium, peralatan optikal dan saintifik, besi dan keluli serta minyak sawit, kata beliau.
Selain itu, dagangan Malaysia dengan negara-negara ASEAN meningkat 15.9 peratus kepada RM233.91 bilion manakala eksport bagi rantau yang sama bertambah 19.7 peratus kepada RM134.17 bilion.
Mengulas jangkaan prestasi perdagangan bagi bulan-bulan berikutnya pada tahun ini dan tahun depan, Muhyiddin berkata, segalanya akan bergantung kepada pelbagai faktor termasuk persekitaran ekonomi sejagat dan ketidaktentuan harga komoditi dan juga kadar tukaran wang.
Beliau berkata, pasaran di AS, Jepun dan Kesatuan Eropah dijangka merosot dalam jangka masa terdekat disebabkan oleh kelembapan ekonomi masing-masing dan kebanyakan negara berkenaan telah menurunkan kadar pertumbuhan mereka.
''Masih terdapat negara seperti Brazil, China, India dan Rusia yang akan mencatat pertumbuhan tetapi pada kadar yang lebih rendah daripada unjuran yang dibuat bagi tahun 2008,'' kata Muhyiddin.
Beliau berkata, kewujudan Kawasan Perdagangan Bebas ASEAN akan terus menggalakkan syarikat-syarikat Malaysia menerokai peluang-peluang eksport di rantau ini.
Menteri itu menambah, pertumbuhan eksport masih boleh berlaku tahun depan di sebalik kebimbangan terhadap senario ekonomi sejagat berdasarkan tinjauan positif sesetengah industri suku akhir 2008 dan 2009.
KUALA LUMPUR 5 Nov. - Jumlah dagangan negara meningkat kepada RM915.4 bilion dalam sembilan bulan pertama tahun ini, naik 12.8 peratus daripada RM811.38 bilion bagi tempoh yang sama tahun lalu.
Menteri Perdagangan Antarabangsa dan Industri, Tan Sri Muhyiddin Yassin berkata, bagi September sahaja, jumlah dagangan naik 13.7 peratus kepada RM110.9 bilion berbanding bulan yang sama tahun lalu.
''Lebihan dagangan bagi September sahaja bernilai RM14.53 bilion . Nilai eksport bagi September pula merupakan yang kedua tertinggi dicatatkan setakat ini iaitu meningkat kepada RM62.31 bilion atau 15.1 peratus. Import pula meningkat 11.9 peratus kepada RM47.78 bilion.
''Eksport bagi sembilan bulan pertama pula mencatat kenaikan sebanyak 16 peratus berjumlah RM512.21 bilion manakala import meningkat 9.1 peratus kepada RM403.19 menghasilkan lebihan dagangan sebanyak RM109.03 bilion,'' katanya sewaktu mengumumkan Prestasi Perdagangan Luar bagi bulan September dan bagi tempoh Januari hingga September 2008 di kementeriannya di sini hari ini.
Nilai eksport bagi bulan September meningkat sebanyak 4.5 peratus berbanding Ogos terutamanya disumbangkan oleh eksport yang tinggi produk elektrik dan elektronik, produk berasaskan petrolium, peralatan optikal dan saintifik, besi dan keluli serta minyak sawit, kata beliau.
Selain itu, dagangan Malaysia dengan negara-negara ASEAN meningkat 15.9 peratus kepada RM233.91 bilion manakala eksport bagi rantau yang sama bertambah 19.7 peratus kepada RM134.17 bilion.
Mengulas jangkaan prestasi perdagangan bagi bulan-bulan berikutnya pada tahun ini dan tahun depan, Muhyiddin berkata, segalanya akan bergantung kepada pelbagai faktor termasuk persekitaran ekonomi sejagat dan ketidaktentuan harga komoditi dan juga kadar tukaran wang.
Beliau berkata, pasaran di AS, Jepun dan Kesatuan Eropah dijangka merosot dalam jangka masa terdekat disebabkan oleh kelembapan ekonomi masing-masing dan kebanyakan negara berkenaan telah menurunkan kadar pertumbuhan mereka.
''Masih terdapat negara seperti Brazil, China, India dan Rusia yang akan mencatat pertumbuhan tetapi pada kadar yang lebih rendah daripada unjuran yang dibuat bagi tahun 2008,'' kata Muhyiddin.
Beliau berkata, kewujudan Kawasan Perdagangan Bebas ASEAN akan terus menggalakkan syarikat-syarikat Malaysia menerokai peluang-peluang eksport di rantau ini.
Menteri itu menambah, pertumbuhan eksport masih boleh berlaku tahun depan di sebalik kebimbangan terhadap senario ekonomi sejagat berdasarkan tinjauan positif sesetengah industri suku akhir 2008 dan 2009.
Thursday, October 30, 2008
Malaysia may achieve projected export growth
Malaysia may achieve projected export growth
BT 30.10.08
MALAYSIA may be able to maintain its projected export growth next year despite the current market conditions as there are still opportunities in other markets in India and China, said Minister of International Trade and Industry Malaysia Tan Sri Muhyiddin Mohd Yassin.
He said there is also growth within intra-Asean regional trade.“The prospects for exports will also depend on developments in the global economy especially in view of current financial crisis in the US and the slowdown in global growth,” he told a news conference after officiating at "International Symposium on EAFTA, CEPEA, FTAAP and Beyond" organised by the Japan Economic Forum and Institute of Strategic and International Studies Malaysia.
Muhyiddin said the failed Doha Round of trade negotiations was still relevant for Asean and Malaysia.“At the officials’ level there are discussions to make sure it is still alive,” he said. — Bernama
BT 30.10.08
MALAYSIA may be able to maintain its projected export growth next year despite the current market conditions as there are still opportunities in other markets in India and China, said Minister of International Trade and Industry Malaysia Tan Sri Muhyiddin Mohd Yassin.
He said there is also growth within intra-Asean regional trade.“The prospects for exports will also depend on developments in the global economy especially in view of current financial crisis in the US and the slowdown in global growth,” he told a news conference after officiating at "International Symposium on EAFTA, CEPEA, FTAAP and Beyond" organised by the Japan Economic Forum and Institute of Strategic and International Studies Malaysia.
Muhyiddin said the failed Doha Round of trade negotiations was still relevant for Asean and Malaysia.“At the officials’ level there are discussions to make sure it is still alive,” he said. — Bernama
Wednesday, October 29, 2008
Malaysia' Export Growth Expected Exceed 10 pct this year
August 05, 2008 19:33 PM
Malaysia's Export Growth Expected To Exceed 10 Pct This Year
KUALA LUMPUR, Aug 5 (Bernama) -- Malaysia export growth is expected to exceed 10 percent this year from 2.7 percent in 2007, according to Kenanga Research.
The projection was based on the strong first half of 2008 performance, Kenanga said in its "Malaysia External Trade" report.
However, the overall gross domestic product (GDP) growth for 2008 is projected to slow to 5.3 percent from 6.3 percent in 2007, underpinned by slower domestic spending and private consumption, it said."On the other hand, the large trade balance would help to increase the strength of Malaysia's resource balance and provide support for the ringgit," the research firm said.
Going forward, Kenanga said the weakening US and global economy may weigh on Malaysia's exports revenue.
Apart from the slowing external demand, the growth trajectory would be further underpinned by slower consumption and investment spending, it said."While GDP growth may reach or possibly breach six percent in second quarter of 2008, it may also signal the beginning of a cyclical downtrend going into the second half of 2008," Kenanga said.
"The continued slowdown in electronics and electrical (E&E) exports in June reaffirms our view that growth trajectory could have peaked," it said.
Similarly, the growth trend of non-E&E exports may have also follow suit as global prices of crude oil and palm oil begins to soften, it added.The second quarter 2008 export growth performance was the highest since third quarter 2004 at 20.8 percent.
"While GDP growth may reach or possibly exceed six percent in the second quarter of 2008, it signals the beginning of a downtrend going into the second half," Kenanga said.
"Thanks to the base effect as well as strong commodity-driven external demand, the second quarter 2008 trade performance was the highest since third quarter 2004 at 20.8 percent," it said.
As for Malaysia's trade performance in the month of June, receipts from mineral and agricultural commodity remained relatively high, Kenanga said."Malaysia's trade performance took a breather in June though surprisingly higher than what we had expected as receipts from mineral and agricultural commodity remains relatively high," it said."While the year-on-year growth in exports (18.4 percent) was above our estimate (14 percent), it was within consensus expectation," it added.-- BERNAMA
Malaysia's Export Growth Expected To Exceed 10 Pct This Year
KUALA LUMPUR, Aug 5 (Bernama) -- Malaysia export growth is expected to exceed 10 percent this year from 2.7 percent in 2007, according to Kenanga Research.
The projection was based on the strong first half of 2008 performance, Kenanga said in its "Malaysia External Trade" report.
However, the overall gross domestic product (GDP) growth for 2008 is projected to slow to 5.3 percent from 6.3 percent in 2007, underpinned by slower domestic spending and private consumption, it said."On the other hand, the large trade balance would help to increase the strength of Malaysia's resource balance and provide support for the ringgit," the research firm said.
Going forward, Kenanga said the weakening US and global economy may weigh on Malaysia's exports revenue.
Apart from the slowing external demand, the growth trajectory would be further underpinned by slower consumption and investment spending, it said."While GDP growth may reach or possibly breach six percent in second quarter of 2008, it may also signal the beginning of a cyclical downtrend going into the second half of 2008," Kenanga said.
"The continued slowdown in electronics and electrical (E&E) exports in June reaffirms our view that growth trajectory could have peaked," it said.
Similarly, the growth trend of non-E&E exports may have also follow suit as global prices of crude oil and palm oil begins to soften, it added.The second quarter 2008 export growth performance was the highest since third quarter 2004 at 20.8 percent.
"While GDP growth may reach or possibly exceed six percent in the second quarter of 2008, it signals the beginning of a downtrend going into the second half," Kenanga said.
"Thanks to the base effect as well as strong commodity-driven external demand, the second quarter 2008 trade performance was the highest since third quarter 2004 at 20.8 percent," it said.
As for Malaysia's trade performance in the month of June, receipts from mineral and agricultural commodity remained relatively high, Kenanga said."Malaysia's trade performance took a breather in June though surprisingly higher than what we had expected as receipts from mineral and agricultural commodity remains relatively high," it said."While the year-on-year growth in exports (18.4 percent) was above our estimate (14 percent), it was within consensus expectation," it added.-- BERNAMA
Tuesday, October 28, 2008
Matrade bags Islamic Solidarity Prize
Businsess Times
MALAYSIA External Trade Development Corp (Matrade) has been awarded the Islamic Development Bank's "Islamic Solidarity Prize" for its efforts in promoting trade among the Organisation of the Islamic Conference (OIC) member nations.
Matrade chief executive officer Datuk Noharuddin Nordin accepted the award in Istanbul on Thursday. It was presented by Turkish President Dr Abdullah Gul."As a result of the Malaysian Government's vision to boost trade between OIC member states as well as to promote Islamic trade and commerce, Matrade has established a secured foundation of strategic programmes that will realise both the goals," Noharuddin said in a statement.
For the period January to August 2008, Malaysia's total trade with the OIC member nations rose 36.1 per cent to RM81.19 billion, compared with RM59.67 billion for the same period in 2007.
Friday, October 17, 2008
Matrade to focus on Asian markets in 2009
Matrade to focus on Asian markets in 2009
By Rupa Damodaranrupabanerji@nstp.com.my
ASIA, which accounts for 60 per cent of Malaysia's total exports, will be the major focus for trade promotion in 2009, said Malaysia External Trade Development Corporation (Matrade) chief executive officer Datuk Noharuddin Nordin.
Between January and August this year, Asian markets including the Middle East contributed to more than 66 per cent of Malaysia's total exports.He said about 40 per cent of Matrade's trade promotion programmes in 2009 will be aimed at markets within Asia, with particular focus on the Northeast Asia and Asean markets.
Export growth contracted during the slowdown of 2001, but this time around the diversified markets will be a saving factor, he added.
China and India are projected to grow at nine per cent and seven per cent respectively, which will enable these economies to absorb exports not only from Malaysia but other nations as well."We will not neglect the traditional markets in North America, Europe and Japan as they still account for a large percentage of the exports. As such, any movement in these markets will still have a significant impact on the total export performance.
"Our objective is to at least sustain Malaysia's share and to continue to identify niches for growth," he said at a media briefing highlighting Matrade's promotional programmes for 2009.
Noharuddin was confident that Malaysian trade numbers would still be strong in 2008, possibly with double-digit growth since exports for the first eight months of the year have already seen a 16.1 per cent growth.
He said 2009 will be more challenging, with the global outlook pointing towards recession in some of the major economies."Despite that outlook, there are economies that will do relatively well, and we need to comb the global environment to increase exports. We need to look for small opportunities and aggregate them, to offset any negative impact to our main markets.
"The top five product sectors to be promoted are building materials, food, agricultural , automotive parts and components, medical and pharmaceutical and electrical and electronic (E&E) products.
Matrade will continue to organise its own trade fairs, the Malaysia Services Exhibition, Malaysia International Halal Showcase and International Trade Malaysia in addition to participating in international trade fairs to promote Malaysian products and services.
The services sector, which is seen as increasing in its importance to the Malaysian economy, will be one of the important focus areas for Matrade through comprehensive promotions, particularly for furniture, fashion and design products.
Oil and gas as well as health and medical care sectors will be promoted extensively while critically impacted sectors such as textiles and apparels will be stimulated through specialised marketing missions to Brazil and Mexico.
It will be holding the second Malaysian Services Exhibition in Dubai in March next year.
In terms of Malaysian exporters' capacity building, Matrade will also enhance the ability of the exporters to leverage on bilateral and regional free trade agreements.
By Rupa Damodaranrupabanerji@nstp.com.my
ASIA, which accounts for 60 per cent of Malaysia's total exports, will be the major focus for trade promotion in 2009, said Malaysia External Trade Development Corporation (Matrade) chief executive officer Datuk Noharuddin Nordin.
Between January and August this year, Asian markets including the Middle East contributed to more than 66 per cent of Malaysia's total exports.He said about 40 per cent of Matrade's trade promotion programmes in 2009 will be aimed at markets within Asia, with particular focus on the Northeast Asia and Asean markets.
Export growth contracted during the slowdown of 2001, but this time around the diversified markets will be a saving factor, he added.
China and India are projected to grow at nine per cent and seven per cent respectively, which will enable these economies to absorb exports not only from Malaysia but other nations as well."We will not neglect the traditional markets in North America, Europe and Japan as they still account for a large percentage of the exports. As such, any movement in these markets will still have a significant impact on the total export performance.
"Our objective is to at least sustain Malaysia's share and to continue to identify niches for growth," he said at a media briefing highlighting Matrade's promotional programmes for 2009.
Noharuddin was confident that Malaysian trade numbers would still be strong in 2008, possibly with double-digit growth since exports for the first eight months of the year have already seen a 16.1 per cent growth.
He said 2009 will be more challenging, with the global outlook pointing towards recession in some of the major economies."Despite that outlook, there are economies that will do relatively well, and we need to comb the global environment to increase exports. We need to look for small opportunities and aggregate them, to offset any negative impact to our main markets.
"The top five product sectors to be promoted are building materials, food, agricultural , automotive parts and components, medical and pharmaceutical and electrical and electronic (E&E) products.
Matrade will continue to organise its own trade fairs, the Malaysia Services Exhibition, Malaysia International Halal Showcase and International Trade Malaysia in addition to participating in international trade fairs to promote Malaysian products and services.
The services sector, which is seen as increasing in its importance to the Malaysian economy, will be one of the important focus areas for Matrade through comprehensive promotions, particularly for furniture, fashion and design products.
Oil and gas as well as health and medical care sectors will be promoted extensively while critically impacted sectors such as textiles and apparels will be stimulated through specialised marketing missions to Brazil and Mexico.
It will be holding the second Malaysian Services Exhibition in Dubai in March next year.
In terms of Malaysian exporters' capacity building, Matrade will also enhance the ability of the exporters to leverage on bilateral and regional free trade agreements.
Thursday, October 16, 2008
Malaysia can maintain exports growth next year
Published: Thursday October 16, 2008 MYT 8:17:00 PM
Malaysia can mantain exports growth next year
By LEE KIAN SEONG
KUALA LUMPUR: Malaysia is able to maintain its double digit growth in exports in 2008 and possibly 2009 as well despite the slowdown in global markets, said the Malaysia External Trade Development Corporation (MATRADE).
Its chief executive officer Datuk Noharuddin Nordin said on Thursday the target was achievable as Malaysian exports have diversified, with major export markets that included fast growing economies like China, India, Russia, Latin America and Brazil.
A pick-up up in E&E exports (electrical and electronic products) to China, India and other countries had offset the slowdown in US exports, he said, adding that the total value for US exports had declined 8.4% for the first eight months.
The total export value for Malaysia had increased 16.1% to a total value of RM449.9bil for the first eight months this year, Noharuddin said, adding that double digit growth was expected to be maintained for the whole year.
“We hope the export market will achieve double digits growth next year but there might be a slowdown in terms of growth figures due to the global financial crisis,” he said after the a briefing on MATRADE’s external trade promotion work programme for 2009.
“We need to go to the countries which were less affected by financial crisis but without neglecting our traditional markets like North America, European Union and Japan,”
Noharuddin acknowledged that the growth in Asian markets was slowing down but pointed out that China and India were still expected to achieve 9% and 7% growth respectively this year.
Asian markets accounted for 66.4% of Malaysia’s total export for the first eight months this year compared with 63% in the previous corresponding period, he said.
He said the electrical and electronic (E&E) sector would remain the largest contributor to Malaysian exports this year. The sector contributed 38.2% to total exports in the first eight months.
“Although the growth for E&E products had dropped from the 43.9% that achieved last year ... the value was marginally up 0.9%,” Noharuddin pointed out.
On the 2009 trade promotion programme, Noharuddin said the programme would be aimed at markets in Asia, particularly in North East Asia and ASEAN markets.
Malaysia can mantain exports growth next year
By LEE KIAN SEONG
KUALA LUMPUR: Malaysia is able to maintain its double digit growth in exports in 2008 and possibly 2009 as well despite the slowdown in global markets, said the Malaysia External Trade Development Corporation (MATRADE).
Its chief executive officer Datuk Noharuddin Nordin said on Thursday the target was achievable as Malaysian exports have diversified, with major export markets that included fast growing economies like China, India, Russia, Latin America and Brazil.
A pick-up up in E&E exports (electrical and electronic products) to China, India and other countries had offset the slowdown in US exports, he said, adding that the total value for US exports had declined 8.4% for the first eight months.
The total export value for Malaysia had increased 16.1% to a total value of RM449.9bil for the first eight months this year, Noharuddin said, adding that double digit growth was expected to be maintained for the whole year.
“We hope the export market will achieve double digits growth next year but there might be a slowdown in terms of growth figures due to the global financial crisis,” he said after the a briefing on MATRADE’s external trade promotion work programme for 2009.
“We need to go to the countries which were less affected by financial crisis but without neglecting our traditional markets like North America, European Union and Japan,”
Noharuddin acknowledged that the growth in Asian markets was slowing down but pointed out that China and India were still expected to achieve 9% and 7% growth respectively this year.
Asian markets accounted for 66.4% of Malaysia’s total export for the first eight months this year compared with 63% in the previous corresponding period, he said.
He said the electrical and electronic (E&E) sector would remain the largest contributor to Malaysian exports this year. The sector contributed 38.2% to total exports in the first eight months.
“Although the growth for E&E products had dropped from the 43.9% that achieved last year ... the value was marginally up 0.9%,” Noharuddin pointed out.
On the 2009 trade promotion programme, Noharuddin said the programme would be aimed at markets in Asia, particularly in North East Asia and ASEAN markets.
Malaysia economy may grow 3.4% 2009
BT: Malaysia economy may grow 3.4pc in 2009
MALAYSIA'S economy may grow at the slowest pace in eight years in 2009 as the global financial turmoil triggers a worldwide economic slowdown, the Malaysian Institute of Economic
Research said.Southeast Asia’s third-largest economy may expand 3.4 per cent in 2009 after growing 5.3 per cent this year, the institute said in a report in Kuala Lumpur today.
The economic think-tank also said Malaysia’s budget deficit may exceed 5 per cent of GDP in 2008.“It is likely that growth would deteriorate in late 2008, as the Malaysian economy takes the hit from the knock-on effects of a flagging global economy,” the partially government-funded research institute said in a statement.
The outlook for the global economy is “turning increasingly dismal,” MIER said. Demand for made-in-Asia exports is weakening as growth in the region’s biggest markets in the US, Europe and Japan slows amid a global financial crisis.
The International Monetary Fund last week forecast the world’s advanced economies will expand next year at the weakest pace since 1982.Malaysia’s central bank said this week it’s ready to shift focus to boosting economic growth as inflation worries ease, forecasting the nation’s economy may expand as little as 4 per cent in 2009.
Economic growth will probably be between 5 per cent and 5.5 per cent this year, below the official 2008 forecast of 5.7 per cent, Governor Tan Sri Dr Zeti Akhtar Aziz said in an interview. - Bloomberg, Reuters
MALAYSIA'S economy may grow at the slowest pace in eight years in 2009 as the global financial turmoil triggers a worldwide economic slowdown, the Malaysian Institute of Economic
Research said.Southeast Asia’s third-largest economy may expand 3.4 per cent in 2009 after growing 5.3 per cent this year, the institute said in a report in Kuala Lumpur today.
The economic think-tank also said Malaysia’s budget deficit may exceed 5 per cent of GDP in 2008.“It is likely that growth would deteriorate in late 2008, as the Malaysian economy takes the hit from the knock-on effects of a flagging global economy,” the partially government-funded research institute said in a statement.
The outlook for the global economy is “turning increasingly dismal,” MIER said. Demand for made-in-Asia exports is weakening as growth in the region’s biggest markets in the US, Europe and Japan slows amid a global financial crisis.
The International Monetary Fund last week forecast the world’s advanced economies will expand next year at the weakest pace since 1982.Malaysia’s central bank said this week it’s ready to shift focus to boosting economic growth as inflation worries ease, forecasting the nation’s economy may expand as little as 4 per cent in 2009.
Economic growth will probably be between 5 per cent and 5.5 per cent this year, below the official 2008 forecast of 5.7 per cent, Governor Tan Sri Dr Zeti Akhtar Aziz said in an interview. - Bloomberg, Reuters
Malaysia export growth on track
By Rupa Damodaranrupabanerji@nstp.com.my
MALAYSIA and Indonesia are both sticking to the export growth targets this year, saying their diversified export markets within the region will mitigate any slowdown in external demand from the US.
International Trade and Industry Minister Tan Sri Muhyiddin Mohd Yassin said Malaysia has not changed its six per cent growth target for 2008, as it had diversified its portfolio of export destinations in recent years while exports to the US dwindled to about 16 per cent.
"The growth figure will still be positive but we are not going to revise it downwards because of the global slowdown," he said in Kuala Lumpur yesterday.
Muhyiddin was speaking at a media briefing after co-chairing the first Malaysia-Indonesia joint trade and investment committee meeting, a bilateral platform to address impediments as well as increase bilateral trade and investment flows.
Indonesian Trade Minister Dr Mari Elka Pangestu, meanwhile, said her country's 12.5 per cent export target was consistent with the 6.3 per cent GDP outlook for the republic this year.Between January and August, Indonesia's exports expanded by 30 per cent, with its non-oil and gas exports about 22.4 per cent."Like Malaysia, our markets are diversified to concentrate on growing markets like China and India and a number of other Asean countries.
"Mari Elka said Indonesia was keen to increase investments in Malaysia's services sector.
Trade between Malaysia and Indonesia exceeded RM39.1 billion in 2007.
For the first seven months of 2008, bilateral trade expanded by 23.6 per cent to RM25.7 billion compared with RM20.8 billion for the same period in 2007.
Yesterday's committee meeting, meanwhile, discussed among others a review of the 1970 Border Trade Agreement, which will be streamlined and aligned with other bilateral agreements.
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