KUALA LUMPUR (March 18, 2009): Malaysia's trade sector has not been affected by the global financial turmoil because although total exports dipped by 7.4%, imports fell by 12.3% in the fourth quarter of 2008s, compared with the corresponding period in 2007, Deputy International Trade and Industry Minister Datuk Liew Vui Keong (BN-Sandakan) told the Dewan Rakyat today.
He was replying to Ahmad Maslan (BN-Pontian) who had asked the impact on imports and exports of products and services in the country in the current global economic situation, new measures taken to increase exports as well as the latest markets explored.Liew said total trade for 2008 rose 6.8% to RM1.185 trillion while exports were up 9.6% to RM663.5 billion and imports expanded 3.3% to RM521.5 billion.
Some of the main markets that recorded positive growths last year were Japan (30%), India (22.4%), Australia (19.7%), China (19.2%) and South Korea (12.4%).In traditional export markets such as the United States of America and Europe, there was a decrease due to decline in demand, especially in electrical and electronic goods.
Exports to new markets include Ukraine (126.7%), Russia (47%), Egypt (45.8%), Saudi Arabia (42.6%), Mexico (33.7%), United Emirates of Arab (24%), Brazil (23.8%) and Iran (15.3%).Other main sectors also recorded positive growth in exports such as natural gas (55.7%), palm oil (46.3%), crude oil (31.5%), and chemical products (10.4%).
Liew said steps taken by the ministry to ensure increase in exports include special programmes to promote the service sector in the Middle-East through the Malaysia Services Exhibition in UAE, diversification of promotional activities planned this year to markets in Asia and the Middle-East so that the country did not end up dependent on the American and European markets.
"We also plan to provide Market Development Grant and export service funds to promote and expand exports of products and services to new markets. Apart from that, the ministry is also giving a 30% to 100% tax exemption on exports, increase value of local companies in manufacturing sectors.
"We will also provide incentives on the implementation of RosettaNet, an electronic system that connect exporters with supply chains.
"Liew said the ministry would also give double tax exemption for premium insurance and export credits, conduct more outreach programmes with local export companies on tariff benefits in the Free Trade Agreement (FTA) signed by the government.
Thursday, March 19, 2009
Dubai and Malaysia to expand trade
Dubai: Dubai and Malaysia on Tuesday signed an agreement to boost their trade and encourage more interaction between UAE business people and their Malaysian counterparts.
UAE-Malaysia trade was about $4.5 billion last year, growing 45 per cent year-on-year on the back of a sharp increase in Malaysian imports of UAE oil and refined products.
The UAE last year became the top Arab exporter to Malaysia.
Malaysia on Tuesday launched a three-day exhibition at Dubai Airport Expo.
Holding such exhibitions has become more important in the current economic slowdown, Malaysian International Trade and Industry Minister Muhyiddin Yassin told reporters.
"This situation will improve. So we cannot stop aggressive marketing for our products and services," he said.
UAE Minister of Foreign Trade Shaikha Lubna Al Qasimi said: "During these difficult times, it is imperative for the business community to strengthen their strategic alliances and work together."
Indonesia, Malaysia vow to boost trade
JAKARTA, March 17 (Xinhua) -- Indonesia and Malaysia agreed on Tuesday to step up trade and investment between the two countries, despite the weakening of global economic activities, leaders of the two countries said here.
The statement was made in a joint press conference by Indonesian President Susilo Bambang Yudhoyono and Malaysian Prime Minister Ahmad Badawi after their meeting as the third annual consultation of the two countries.
The plan comes amid the effort of the Indonesian government to shift the weakening sales of its products in international markets due to the global recession.
During the meeting it was also discussed various of issues at the level of bilateral and regional.
"We discussed important bilateral issues in dealing with economy, especially the efforts to boost trade and investment", President Susilo said.
The president also said that it was discussed the effort to step up cooperation in agriculture to achieve food security and energy security.
"Trade and investment cooperation has given huge benefit for Malaysia and Indonesia," said Badawi on his turn.
Bilateral trade rose to 14.6 billion U.S dollars in 2008 from that of 11.5 billion U.S. dollars in 2007. Malaysia's investment in Indonesia also increased to 353 million U.S. dollars in 2008 from that of 217 million U.S. dollars in 2007.
Tuesday, March 10, 2009
Malaysia's exports down 27.8%
Malaysia's exports down 27.8% in January
Posted: 06 March 2009 1435 hrs KUALA LUMPUR:
Malaysia's January exports plunged 27.8 per cent year-on-year, hitting their lowest level since 2001 amid falling demand from key trading partners, according to official data released Friday. The trade ministry said in a statement that exports fell to 38.3 billion ringgit (US$10.28 billion) from a year ago while imports slumped 32 per cent year-on-year in January.
The total trade was worth 67.77 billion ringgit, a decrease of 29.7 per cent from a year ago, but Malaysia did manage to record a trade surplus of 8.83 billion ringgit for the month. Ratings agency RAM Holdings chief economist Yeah Kim Leng said the decline in exports was the sharpest drop in eight years. “This is the worst since the 25 per cent decline in the exports for electrical and electronic products in 2001 during the global IT slump," he told AFP.
“The sharp contraction is the result from both a sharp drop in demand and lower prices. Malaysia is now feeling the brunt of the global slump in exports," he said. The trade ministry said the sharp fall in exports was mostly due to lower demand for electrical and electronic products, which account for one-third of Malaysia's total exports to key markets in China, Japan, Europe and the United States.
In December, Malaysian exports slumped 14.9 per cent, compared with just 4.9 per cent in November. On Wednesday, an influential think tank said Malaysia was on the brink of a recession as falling demand hits exports and manufacturing with growth expected to reach just 0.5 per cent for the year.
The Malaysian Institute of Economic Research (MIER) had in January already slashed its growth forecast to 1.3 per cent from an earlier 3.4 per cent, while the government is sticking to its figure of 3.5 per cent growth for 2009. Official data released last week showed Malaysia's economic growth slowed to just 0.1 per cent in the fourth quarter of 2008, hit by falling exports and manufacturing as demand continues to evaporate.
Posted: 06 March 2009 1435 hrs KUALA LUMPUR:
Malaysia's January exports plunged 27.8 per cent year-on-year, hitting their lowest level since 2001 amid falling demand from key trading partners, according to official data released Friday. The trade ministry said in a statement that exports fell to 38.3 billion ringgit (US$10.28 billion) from a year ago while imports slumped 32 per cent year-on-year in January.
The total trade was worth 67.77 billion ringgit, a decrease of 29.7 per cent from a year ago, but Malaysia did manage to record a trade surplus of 8.83 billion ringgit for the month. Ratings agency RAM Holdings chief economist Yeah Kim Leng said the decline in exports was the sharpest drop in eight years. “This is the worst since the 25 per cent decline in the exports for electrical and electronic products in 2001 during the global IT slump," he told AFP.
“The sharp contraction is the result from both a sharp drop in demand and lower prices. Malaysia is now feeling the brunt of the global slump in exports," he said. The trade ministry said the sharp fall in exports was mostly due to lower demand for electrical and electronic products, which account for one-third of Malaysia's total exports to key markets in China, Japan, Europe and the United States.
In December, Malaysian exports slumped 14.9 per cent, compared with just 4.9 per cent in November. On Wednesday, an influential think tank said Malaysia was on the brink of a recession as falling demand hits exports and manufacturing with growth expected to reach just 0.5 per cent for the year.
The Malaysian Institute of Economic Research (MIER) had in January already slashed its growth forecast to 1.3 per cent from an earlier 3.4 per cent, while the government is sticking to its figure of 3.5 per cent growth for 2009. Official data released last week showed Malaysia's economic growth slowed to just 0.1 per cent in the fourth quarter of 2008, hit by falling exports and manufacturing as demand continues to evaporate.
Malaysia Jan exports likely to continue easing
MALAYSIAN exports are likely to show a further plunge in January amid the weakening global demand and the bearish outlook will continue in the first half of the year, economists say. A Business Times poll of 16 economists shows that an average decline of 23.61 per cent in January exports is expected. Imports are projected to decline an average of 28.86 per cent, with the trade balance averaging RM9.63 million.They said the outlook for the year was grim, with exports likely to contract 15.84 per cent and imports 14.97 per cent.The Ministry of International Trade and Industry is releasing the trade data today.
Irvin Seah, from DBS Bank, said the January figures will provide a glimpse of what lies ahead, adding that it "will not be a pretty picture".He foresees the headline export figure to register the sharpest decline since the dotcom bubble burst in 2001."While the Lunar New Year effect probably aggravated the decline, global demand weakness is still the underlying reason behind the horrendous export performance. Indeed, global demand is unlikely to pick up anytime soon and, with that, exports and overall growth will continue to languish," Seah said.US investment bank Citi believes that exports in January will show double the decline in December."
The deepening export contraction is expected to take its cue from persistently deteriorating export figures around the region as the destocking process continues," its vice-president for Asia-Pacific economics and market analysis Kit Wei Zheng said.Exports from China, South Korea, Singapore and Taiwan all plunged in January compared to December.
Malaysian exports are likely to follow suit, especially with commodity prices having eased from their robust levels last year, Kit said."Of particular importance is the 37.5 per cent plunge in Singapore's re-exports in January (December: -13.7 per cent) as almost a quarter of Malaysia's total trade is handled through Singapore.
"Other leading indicators, such as the US-based Institute for Supply Management's Purchasing Managers Index and those from the Organisation for Economic Cooperation and Development, continue to suggest that external demand will soften significantly in the first half, Kit added."Tech export orders likely continued to record double-digit contractions with global demand continuing to fall at an accelerating pace," he said.Softening employment conditions, which dampen private consumption spending, will further weigh on import growth, Kit said.TA Research economist Patricia Oh held the view that exports would be channelled mainly to Japan.Trade deficits widened in Japan in January as imports fell at a slower pace than the contractions in exports, she said.Japan is among Malaysia's major trading partners. Exports to Japan accounted for 10.8 per cent of the total, while imports from Japan comprised 12.5 per cent of overall imports last year.
Irvin Seah, from DBS Bank, said the January figures will provide a glimpse of what lies ahead, adding that it "will not be a pretty picture".He foresees the headline export figure to register the sharpest decline since the dotcom bubble burst in 2001."While the Lunar New Year effect probably aggravated the decline, global demand weakness is still the underlying reason behind the horrendous export performance. Indeed, global demand is unlikely to pick up anytime soon and, with that, exports and overall growth will continue to languish," Seah said.US investment bank Citi believes that exports in January will show double the decline in December."
The deepening export contraction is expected to take its cue from persistently deteriorating export figures around the region as the destocking process continues," its vice-president for Asia-Pacific economics and market analysis Kit Wei Zheng said.Exports from China, South Korea, Singapore and Taiwan all plunged in January compared to December.
Malaysian exports are likely to follow suit, especially with commodity prices having eased from their robust levels last year, Kit said."Of particular importance is the 37.5 per cent plunge in Singapore's re-exports in January (December: -13.7 per cent) as almost a quarter of Malaysia's total trade is handled through Singapore.
"Other leading indicators, such as the US-based Institute for Supply Management's Purchasing Managers Index and those from the Organisation for Economic Cooperation and Development, continue to suggest that external demand will soften significantly in the first half, Kit added."Tech export orders likely continued to record double-digit contractions with global demand continuing to fall at an accelerating pace," he said.Softening employment conditions, which dampen private consumption spending, will further weigh on import growth, Kit said.TA Research economist Patricia Oh held the view that exports would be channelled mainly to Japan.Trade deficits widened in Japan in January as imports fell at a slower pace than the contractions in exports, she said.Japan is among Malaysia's major trading partners. Exports to Japan accounted for 10.8 per cent of the total, while imports from Japan comprised 12.5 per cent of overall imports last year.
January exports fall 27.8% steepest in 28 years
Jan exports fall 27.8pc, steepest in 28 years
2009/03/06MALAYSIA'S exports plunged 27.8 per cent in January from a year ago, the steepest decline in 28 years and worse than expected, data released by the trade ministry showed today.Exports dropped to RM38.3 billion (US$10.28 billion), while imports fell 32 per cent from a year ago to RM29.47 billion, according to the data.Analysts expected January exports to drop 24.8 per cent and imports to fall 28.5 per cent, according to the median of a Reuters poll of 10 economists. In December, exports fell 14.9 per cent to RM46.09 billion.Trade surplus in January stood at RM8.83 billion, compared with RM11.7 billion in December. - Reuters
Malaysian Exports Post Biggest Drop in 15 Years as Demand
March 6 (Bloomberg) -- Malaysia’s exports fell the most in 15 years in January as the Asian economic slowdown worsened amid slumping global demand for electronics and commodities.
Overseas shipments dropped 27.8 percent from a year earlier to 38.3 billion ringgit ($10.3 billion) after slipping 14.9 percent in December, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 16 economists had been for a 22.4 percent decline.
“It seems that there is no end to the onslaught of the global headwinds,” said Joanna Tan, a regional economist at Forecast Pte in Singapore. “Exports are likely to be pressured further in the coming months as the global economy gives little to hope for with regards to growth prospects.”
Malaysia’s economy expanded at the slowest pace in seven years last quarter as a deepening recession in the country’s biggest markets hurt exporters including Malaysian Pacific Industries Bhd. and cost thousands of manufacturing jobs. The central bank has said the collapse in global demand could tilt the nation into an economic contraction this year.
Bank Negara Malaysia last week cut its benchmark interest rate for a third straight meeting to 2 percent, and the government is due to announce a second stimulus plan next week that’s worth at least 10 billion ringgit.
Asia’s export-dependent nations are reeling from the global slowdown, which has slashed demand for the region’s computer chips, cars and commodities. The region is almost twice as reliant on exports as the rest of the world.
Japan, Singapore
Japan’s overseas sales plunged 45.7 percent in January from a year earlier, adding to evidence that Asia’s biggest economy is in its deepest slump in 60 years. Singapore’s shipments fell the most in at least 22 years in January, while Hong Kong’s exports plunged by the most in half a century the same month.
Malaysia’s exports to the U.S. dropped 31.8 percent to 4.8 billion ringgit in January from a year earlier amid a decline in electrical and electronics shipments, the ministry said today.
Shipments of electrical and electronics goods, which made up about 36 percent of total exports in January, slid 33 percent from a year earlier.
Palm oil sales abroad fell 22 percent in January as prices eased from record highs reached earlier last year. Malaysia is Southeast Asia’s second-largest oil and gas producer and the world’s No. 2 palm oil seller.
Imports dropped 32 percent in January to 29.5 billion ringgit, leaving a trade surplus of 8.8 billion ringgit.
By Varsha Tickoo
KUALA LUMPUR, March 6 (Reuters) - Malaysian exports fell more than at any time in the past 28 years in January and came in worse than expected, highlighting the rising economic pain for export-dependent Asian countries from the global downturn.
Exports fell by 27.8 percent from a year ago to 38.3 billion ringgit ($10.28 billion), worse than a 24.8 percent decline forecast in a Reuters poll of 10 economists, data released on Friday by the Trade Ministry showed.
It was the fourth straight month of falling exports and analysts said it showed the need for more economic stimulus, such as more rates cuts and a drastic hike in government spending in a mini-budget due to be presented on Tuesday.
"The budget will need to focus more on government spending together with Bank Negara (central bank) cutting rates to support the domestic engine of growth," said Lee Heng Gui, economist at CIMB in Kuala Lumpur.
Exports fell to all of Malaysia's top four markets -- Southeast Asia, the United States, Japan and the European Union -- reflecting the global breadth of the economic downturn.
But the 3.8 percent fall in exports to Japan was the first since the global crisis blew up, reinforcing other data from Tokyo suggesting that Japan's recession is deepening.
Exports to Japan had risen 41 percent in November and 54 percent in December from a year earlier.
Analysts said exports are ultimately being hit by the lack of demand from the United States, the top market for Malaysia until the financial crisis blew up and the ultimate destination of a large portion of regional exports.
"I think we haven't seen the worst yet with respect to the outcome on external shocks because ... (there is) still bad news churning out from the numero uno (the United States)," said Kenanga economist Wan Suhaimi.
"So long as Uncle Sam is sick, we're export dependent, I think we should brace ourselves for further downside for exports and manufacturing which going forward will affect our growth."
Exports to the United States continued their downward trend in January, falling 31.4 percent on low demand for electronics.
TIGERS NO MORE
The fall in exports from Malaysia mirrors sharp declines across Asia as the region's Tiger economies fall victim to the U.S.-induced financial crisis.
A Chinese newspaper reported on Friday that February exports from China fell by more than 20 percent. South Korea, Japan, Singapore are among those experiencing rapid falls in exports and contracting economies.
Malaysia's economy expanded by just 0.1 percent in the fourth quarter of 2008 from a year earlier and the country may be set for its first full year of contraction in 2009 since the Asian financial crisis of 1998.
Most economists expect more cuts in interest rates from the central bank after three consecutive reductions totalling 150 basis points has brought the benchmark rate to 2.00 percent.
Standard Chartered economist Alvin Liew said there was now the possibility of an emergency rate cut before the next policy meeting on April 29.
Electronics exports, comprising nearly 36 percent of the total, fell by a third in January from a year ago due to weakening global demand.
Malaysian imports fell 32 percent to 29.47 billion, a hint at what lies ahead for exports, as the country often imports components which it reassembles into its export products.
The trade surplus came in at 8.83 billion ringgit, compared with 11.7 billion ringgit in December.Analysts had expected imports to fall 28.5 percent and a trade surplus of 9.3 billion ringgit. ($1=3.725 Malaysian Ringgit)
2009/03/06MALAYSIA'S exports plunged 27.8 per cent in January from a year ago, the steepest decline in 28 years and worse than expected, data released by the trade ministry showed today.Exports dropped to RM38.3 billion (US$10.28 billion), while imports fell 32 per cent from a year ago to RM29.47 billion, according to the data.Analysts expected January exports to drop 24.8 per cent and imports to fall 28.5 per cent, according to the median of a Reuters poll of 10 economists. In December, exports fell 14.9 per cent to RM46.09 billion.Trade surplus in January stood at RM8.83 billion, compared with RM11.7 billion in December. - Reuters
Malaysian Exports Post Biggest Drop in 15 Years as Demand
March 6 (Bloomberg) -- Malaysia’s exports fell the most in 15 years in January as the Asian economic slowdown worsened amid slumping global demand for electronics and commodities.
Overseas shipments dropped 27.8 percent from a year earlier to 38.3 billion ringgit ($10.3 billion) after slipping 14.9 percent in December, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 16 economists had been for a 22.4 percent decline.
“It seems that there is no end to the onslaught of the global headwinds,” said Joanna Tan, a regional economist at Forecast Pte in Singapore. “Exports are likely to be pressured further in the coming months as the global economy gives little to hope for with regards to growth prospects.”
Malaysia’s economy expanded at the slowest pace in seven years last quarter as a deepening recession in the country’s biggest markets hurt exporters including Malaysian Pacific Industries Bhd. and cost thousands of manufacturing jobs. The central bank has said the collapse in global demand could tilt the nation into an economic contraction this year.
Bank Negara Malaysia last week cut its benchmark interest rate for a third straight meeting to 2 percent, and the government is due to announce a second stimulus plan next week that’s worth at least 10 billion ringgit.
Asia’s export-dependent nations are reeling from the global slowdown, which has slashed demand for the region’s computer chips, cars and commodities. The region is almost twice as reliant on exports as the rest of the world.
Japan, Singapore
Japan’s overseas sales plunged 45.7 percent in January from a year earlier, adding to evidence that Asia’s biggest economy is in its deepest slump in 60 years. Singapore’s shipments fell the most in at least 22 years in January, while Hong Kong’s exports plunged by the most in half a century the same month.
Malaysia’s exports to the U.S. dropped 31.8 percent to 4.8 billion ringgit in January from a year earlier amid a decline in electrical and electronics shipments, the ministry said today.
Shipments of electrical and electronics goods, which made up about 36 percent of total exports in January, slid 33 percent from a year earlier.
Palm oil sales abroad fell 22 percent in January as prices eased from record highs reached earlier last year. Malaysia is Southeast Asia’s second-largest oil and gas producer and the world’s No. 2 palm oil seller.
Imports dropped 32 percent in January to 29.5 billion ringgit, leaving a trade surplus of 8.8 billion ringgit.
By Varsha Tickoo
KUALA LUMPUR, March 6 (Reuters) - Malaysian exports fell more than at any time in the past 28 years in January and came in worse than expected, highlighting the rising economic pain for export-dependent Asian countries from the global downturn.
Exports fell by 27.8 percent from a year ago to 38.3 billion ringgit ($10.28 billion), worse than a 24.8 percent decline forecast in a Reuters poll of 10 economists, data released on Friday by the Trade Ministry showed.
It was the fourth straight month of falling exports and analysts said it showed the need for more economic stimulus, such as more rates cuts and a drastic hike in government spending in a mini-budget due to be presented on Tuesday.
"The budget will need to focus more on government spending together with Bank Negara (central bank) cutting rates to support the domestic engine of growth," said Lee Heng Gui, economist at CIMB in Kuala Lumpur.
Exports fell to all of Malaysia's top four markets -- Southeast Asia, the United States, Japan and the European Union -- reflecting the global breadth of the economic downturn.
But the 3.8 percent fall in exports to Japan was the first since the global crisis blew up, reinforcing other data from Tokyo suggesting that Japan's recession is deepening.
Exports to Japan had risen 41 percent in November and 54 percent in December from a year earlier.
Analysts said exports are ultimately being hit by the lack of demand from the United States, the top market for Malaysia until the financial crisis blew up and the ultimate destination of a large portion of regional exports.
"I think we haven't seen the worst yet with respect to the outcome on external shocks because ... (there is) still bad news churning out from the numero uno (the United States)," said Kenanga economist Wan Suhaimi.
"So long as Uncle Sam is sick, we're export dependent, I think we should brace ourselves for further downside for exports and manufacturing which going forward will affect our growth."
Exports to the United States continued their downward trend in January, falling 31.4 percent on low demand for electronics.
TIGERS NO MORE
The fall in exports from Malaysia mirrors sharp declines across Asia as the region's Tiger economies fall victim to the U.S.-induced financial crisis.
A Chinese newspaper reported on Friday that February exports from China fell by more than 20 percent. South Korea, Japan, Singapore are among those experiencing rapid falls in exports and contracting economies.
Malaysia's economy expanded by just 0.1 percent in the fourth quarter of 2008 from a year earlier and the country may be set for its first full year of contraction in 2009 since the Asian financial crisis of 1998.
Most economists expect more cuts in interest rates from the central bank after three consecutive reductions totalling 150 basis points has brought the benchmark rate to 2.00 percent.
Standard Chartered economist Alvin Liew said there was now the possibility of an emergency rate cut before the next policy meeting on April 29.
Electronics exports, comprising nearly 36 percent of the total, fell by a third in January from a year ago due to weakening global demand.
Malaysian imports fell 32 percent to 29.47 billion, a hint at what lies ahead for exports, as the country often imports components which it reassembles into its export products.
The trade surplus came in at 8.83 billion ringgit, compared with 11.7 billion ringgit in December.Analysts had expected imports to fall 28.5 percent and a trade surplus of 9.3 billion ringgit. ($1=3.725 Malaysian Ringgit)
Subscribe to:
Comments (Atom)
