Trade surplus hits RM7b in September
PETALING JAYA: Malaysia’s total exports increased 6.9% to RM50.47bil in September from a year earlier, while imports grew 14.6% to RM43.47bil during the same period.
Total trade rose 10.4% to RM93.94bil.
A trade surplus of RM7.01bil was recorded in September, making it the 155th consecutive month of trade surplus since November 1997, the International Trade and Industry Ministry (Miti) said in a statement yesterday.
The increase in exports in September was largely due to higher exports of liquefied natural gas, crude petroleum, palm oil, crude rubber, chemicals and chemical products, optical and scientific equipment as well as rubber products.
Higher imports were mainly due to higher imports of intermediate and capital goods. Compared with August, exports in September declined 4.5% and imports contracted by 2.4%, while total trade decreased by 3.5%, it said.
Exports to Asean were valued at RM12.4bil, accounting for 24.6% of Malaysia’s total exports in September.
Higher exports of crude petroleum, refined petroleum products and palm oil resulted in an increase of 5.4% in total exports to this region.
Month-on-month, exports to this region decreased 4.5%. Total imports from Asean amounted to RM12.5bil, or 28.7%, of Malaysia’s total imports in September.
For the nine-month period ended September, total trade increased 23% to RM864.48bil with exports expanding 20.4% to RM474.59bil while imports rose 26.4% to RM389.89bil, resulting in trade surplus of RM84.7bil.
Total exports to Asean increased by 19.1% to RM120.36bil, or 25.4%, of Malaysia’s total exports from January to September.
Singapore was Malaysia’s biggest export destination during the period, totalling RM62.53bil.
Exports to China, Malaysia’s second highest destination, increased 28.5% to RM60.17bil, or 12.7%, of total exports during the nine-month period. The major contributor to the increase was electrical and electronic products, which accounted for 51.4% of total exports to China, Miti said.
Total imports from Asean during the nine-month period increased 38.1% to RM106.84bil, accounting for 27.4% of Malaysia’s total imports.
China was Malaysia’s largest import source during the period, accounting for RM49.60mil, followed by Japan at RM48.47mil.
Malaysia export growth slows sharply in Sept
By Rupa Damodaran
rupabanerji@nstp.com.my
2010/11/04
MALAYSIAN exports slowed sharply in September to single-digit growth after enjoying eight months of double-digit expansion.
The International Trade and Industry Ministry said yesterday that exports grew by 6.9 per cent compared with September last year, while imports grew by 14.6 per cent, recording a trade surplus of RM7.01 billion.
Compared with August, exports slipped by 4.5 per cent while imports slowed by 2.4 per cent.
Miti attributed September’s exports to higher sales of liquefied natural gas (LNG), crude petroleum, palm oil, crude rubber, chemicals and chemical products, optical and scientific equipment as well as rubber products.
Standard Chartered Bank economist Alvin Liew expressed concern with the magnitude of easing in September.
It reinforced the view that the pace of Malaysia’s GDP growth was moderating in the second half of this year.
“More importantly, exports to key export markets like the US and China contracted by 4.4 per cent year-on-year and 3.8 per cent year-on-year respectively, raising concerns that key markets are seeing demand turning more sluggish as global economic activity and consumer sentiment weakens,” he said.
However, with China’s latest PMI (Purchasing Managers’ Index) reading that turned out to be stronger than expected, the appetite for Malaysian exports could improve in the coming months.
According to Miti, lower exports to China was mainly due to lower exports of crude petroleum, palm oil and electrical and electronic products.
Exports to the European Union (EU), however, expanded by 2.5 per cent to RM5.46 billion compared with the corresponding month in 2009, on stronger demand for palm oil, crude rubber as well as chemicals and chemical products.
Exports to Japan rose 30 per cent, due mainly to higher exports of LNG, E&E products and crude petroleum.
Azrul Azwar Ahmad Tajudin, chief economist with Bank Islam, said the worse-than-expected slowdown in export growth in September could be a harbinger of further softening in overseas demand for made-in-Malaysia goods in the next few quarters as the global recovery cools.
“A strengthening ringgit will not work in our favour neither although on a net basis, given the simultaneous appreciation of other Asian currencies, Malaysian exporters should not lose out that much vis-à-vis their regional competitors,” he said.
________________________________________
Malaysia Sept exports pace slows
2010/11/03
Malaysia’s exports rose at the slowest pace in 10 months in September as shipments to the US and China eased, providing evidence of softening demand in the coming months as the global economy weakens.
Overseas shipments climbed 6.9 per cent from a year earlier to RM50.5 billion (US$16.4 billion) after gaining 10.6 per cent in August, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 16 economists was for a 10.1 per cent increase.
Overseas demand, which has lifted export-dependent Asian economies including Malaysia and Singapore, may falter as the world recovery slows. The Southeast Asian economy may experience some deceleration in the final three months of 2010, International Trade & Industry Minister Mustapa Mohamed said last month.
“The weak recovery in the developed economies as well as a gradual moderation in regional growth momentum should continue to underpin Malaysia’s export outlook in coming quarters,” Irvin Seah, an economist at DBS Group Holdings Ltd. in Singapore, said before the report. “Domestic demand will continue to remain the key engine of growth for Malaysia but it will be difficult to completely pick up the slack from the external front.”
The value of goods shipped by electrical and electronics manufacturers such Unisem (M) Bhd. dropped in September, while sales of commodities including liquefied natural gas, refined petroleum products, palm oil and rubber increased, the trade ministry said.
The country’s imports in September rose 14.6 per cent to RM43.5 billion from a year earlier. The trade surplus narrowed to RM7.01 billion from RM8.32 billion in August. -- Bloomberg
Malaysia's slow Sept exports may curb GDP growth
Published: Wednesday, 3 Nov 2010 | 7:40 AM ET
http://classic.cnbc.com/id/39984872
KUALA LUMPUR, Nov 3 (Reuters) - Malaysia's September export growth from a year earlier fell short of expectations, prompting concerns the Southeast Asian economy may lose some traction as electronics demand from the U.S. and China weakened. In September, most Asian export reliant countries posted slower shipments to China and the U.S. with the exception of Taiwan and Thailand where the pace picked up. Data from the trade ministry showed exports in September rose 6.9 percent from a year ago compared to a forecast of 10.4 percent in a Reuters poll. On a seasonally unadjusted basis, exports fell for the second straight month in September. For details on the export data, see For Reuters poll, see ANALYST COMMENT
**************************************************** KIT WEI ZHENG, ECONOMIST, CITIGROUP "The figures are disappointing. Exports from the region have been tapering off but exports from Malaysia have tapered off faster and sooner than in other regional countries. "I suspect this reflects the stronger exchange rate but we also suspect some other structural competitiveness issue that have been there." "For example, Malaysia has been losing competitiveness in electrical and electronics exports since even before the financial crisis. Exports to US and China - mostly electrical and electronics products - have dropped because of weakening end demand in the developed countries."
AZRUL AZWAR AHMAD TAJUDIN, ECONOMIST, BANK ISLAM "The Malaysian export expansion on a year on year basis eased to a single pace for the first time in nine months on slowing recovery in many developed countries, peaking electronic cycle and waning favourable base effect. The worse-than-expected slowdown in export growth in September could be a harbinger of further softening in overseas demand for Malaysian goods in the next few quarters as the global recovery seems poised to taper off although it is not likely to fall off the cliff." Losing recovery momentum in many developed economies and moderation in Asia's growth will underscore Malaysia's export outlook in the coming quarters.
A strengthening ringgit will not work in our favour either, though on a net basis given the simultaneous appreciation of other Asian currencies, Malaysian exporters should not lose out that much vis a vis their regional competitors."
ALVIN LIEW, ECONOMIST, STANDARD CHARTERED BANK "While we had already expected exports growth to ease due to the waning effect from a favourable low base and a more subdued external appetite for Malaysia products, the magnitude of easing in September raises some concern and it certainly reinforces the view that the pace of Malaysia's GDP growth is moderating in H2-2010." "As the outlook for the Malaysian economy going into 2011 remains uncertain given external developments, while inflation remains largely benign, and is unlikely to be a factor in setting the overnight policy rate (OPR), at least for now. We therefore reiterate our view that Bank Negara Malaysia (BNM), after having front-loaded rate hikes in early part of 2010, will stay on hold again at 2.75 percent its upcoming monetary policy decision on 12 November."
Exports growth in September delivered a downside surprise at +6.9% y/y (Markets: +10.1% y/y), easing from the +10.6% y/y in August. On the month, it slipped 4.5% (previous: -4.6% m/m). While the slowdown can be attributed to the Ramadan holiday season in the earlier part of the month, sales to China and US have been slowing. Adding more pressure to exports is the strong ringgit, though stronger regional currencies on the whole are seen mitigating the negative effect on exports. The electronics sector, despite the US Semi Book-to-Bill ratio being buoyant in the current readings, is now seen being lethargic - slipping for the second consecutive month. Electrical and electronic goods shrunk 7.0% on the month (previous: -4.8% m/m).
Imports are seen rising +14.6%, down from +16.5% y/y in August. Lower oil, a stronger MYR are seen capping imports growth in September. Trade surplus narrowed to MYR 7.01 bln from MYR 8.32 bln previously. Going forward, the stronger MYR may begin to exert some pressure on exports growth, on top of global headwinds. Seasonal year-end demand may support somewhat but recovery is seen to be moderate for now and as such, validating BNM's decision to pause policy normalization. JA
Malaysia records RM7.01 bln trade surplus in September
2010/11/03
KUALA LUMPUR: Malaysia recorded a trade surplus of RM7.01 billion in September, making it the 155th consecutive month of trade surplus since November 1997, said Minister of International Trade and Industry Datuk Seri Mustapa Mohamed.
He said total trade for the month grew 10.4 per cent from a year ago to RM93.94 billion, with total exports standing at RM50.47 billion and imports were at RM43.47 billion.
During the period between January and September, total trade increased by 23 per cent to RM864.48 billion, he said in a statement today.
Exports expanded by 20.4 per cent to RM474.59 billion while imports rose by 26.4 per cent to RM389.89 billion, resulting in a trade surplus of RM84.70 billion.
Mustapa said the increase in exports in September of RM3.28 billion from a year ago was largely contributed by higher exports of liquefied natural gas (LNG), crude petroleum, palm oil, crude rubber, chemicals and chemical products, optical and scientific equipment and rubber products.
He said exports to Asean countries were valued at RM12.40 billion, accounting for 24.6 per cent of Malaysia’s total exports in September.
As for imports, he said, total imports in September increased by 14.6 per cent to RM43.47 billion from September last year, due mainly to higher imports of intermediate and capital goods.
The three main categories of imports by end use are intermediate goods worth RM30.55 billion or 70.3 per cent of total imports; capital goods (RM6.36 billion or 14.6 per cent of total imports); and consumption goods (RM2.64 billion or 6.1 per cent of total imports). -- BERNAMA
Read more: Malaysia records RM7.01 bln trade surplus in September http://www.nst.com.my/nst/articles/MalaysiarecordsRM7_01blntradesurplusinSeptember/Article/#ixzz14GZpDcBe
Malaysia's Export Growth Weakens In September
11/3/2010 6:51 AM ET
TOP MARKET NEWS
(RTTNews) - Malaysian export growth continued to ease in September as demand from China and the U.S. declined, official data showed Wednesday. The growth rate was also weaker than economists' forecast.
Exports grew 6.9% annually to MYR 50.47 billion in September, slower than the 10.6% growth in August, the Department of Statistics said. Economists had forecast an increase of 10.1%.
Imports climbed 14.6% year-on-year during the month, while economists had forecast a 16.3% growth. In August, overseas purchases rose 16.5%. On a monthly basis, exports and imports declined 4.5% and 2.4%, respectively.
The trade surplus narrowed to MYR 7.01 billion during the month from MYR 8.32 billion in September. This was the 155th consecutive month of trade surplus since November 1997, the statistical department said.
For the first nine months of the year, exports expanded 20.4% compared to the same period last year, while imports grew 26.4%, resulting in a trade surplus of MYR 84.7 billion.
Most of the increase in exports during the month was due to the increase in shipments of liquefied natural gas, crude petroleum, palm oil, crude rubber, chemicals and chemical products as well as optical and scientific equipment.
Exports to China registered an annual drop of 3.8% to MYR 6.45 billion. It was mainly due to lower exports of electrical and electronic equipments as well as petroleum products. Shipments to EU expanded 2.5% to MYR 5.46 billion.
At the same time, exports to the U.S were valued at MYR 4.56 billion, representing a decrease of 4.4% compared to last year. Demand for Malaysian electrical and electronic equipments among U.S consumers weakened significantly during the month.
Earlier, the central bank had said that the country's export growth has slowed in the recent months and expects to continue thus in the backdrop of a slowing global growth.
Latest figures on the country's national output showed signs of cooling in the economy. Growth eased in the second quarter from a decade-high recorded in the first three months of the year. Gross domestic product rose 8.9% year-on-year during the June quarter following a 10.1% increase in the first quarter.
Bank Negara Malaysia foresees a slowdown in domestic economic activity during the coming months due to weak exports and flagging global recovery. As a result, the central bank decided to retain its benchmark overnight policy rate at 2.75% last month.
The International Monetary Fund projects the economy to expand 6.7% % this year following 1.7% contraction last year. Growth may moderate to 5.3% in 2011, according to the lender.
The World Bank sees 7.4% growth for Malaysia this year. In its East Asia & Pacific Economic Update, the bank observed that the region is set to expand 8.9%, though expansion in the region is likely to slow to around 7.8% in 2011.
by RTT Staff Writer
Tuesday, November 9, 2010
Sunday, October 10, 2010
Malaysia Trade in August 2010
Malaysia exports up 10.6 percent in August
(AFP) – 18 hours ago
KUALA LUMPUR — Malaysia said Friday its exports, the mainstay of the economy, rose 10.6 percent year-on-year in August but at a slower rate than the previous month.
The trade ministry said in a statement that shipments had risen to 52.85 billion ringgit (17 billion dollars), while imports were up 16.5 percent to 44.53 billion ringgit, producing a surplus of 8.32 billion ringgit.
The increase was helped by higher exports of electrical and electronic products, liquefied natural gas, palm oil, chemicals and chemical products.
Electrical and electronic items account for about 40 percent of Malaysia's total exports to key markets such as Singapore, China, United States, Japan and Hong Kong.
However July exports rose 13.5 percent from a year ago.
Export-dependent Malaysia, Southeast Asia's third-largest economy, was hit hard by the global slowdown but its economy has since rebounded with growth expected to exceed six percent this year.
The country last month unveiled a bold initiative to transform the economy over the next decade, creating 3.3 million jobs and propelling it towards developed-nation status by 2020.
Malaysia's Export Growth Slowed in August in Sign Global Demand Weakening
Malaysia’s exports rose at the slowest pace in nine months in August, adding to evidence that weakening growth in the world’s largest economies is hurting demand for Asian goods.
Overseas shipments climbed 10.6 percent from a year earlier to 52.9 billion ringgit ($17.1 billion) after gaining 13.5 percent in July, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 19 economists was for a 14.7 percent increase.
The International Monetary Fund this week lowered its forecast for global expansion in 2011, citing high unemployment, public debt and fragile banking systems as risks to the world economy. Malaysia’s central bank last month paused in its cycle of raising interest rates as policy makers from the U.S. to Japan took steps to shore up easing growth.
“Recent data suggest that the export and industrial-led recovery is running out of steam, indicating that economic activity is clearly cooling,” Lee Heng Guie, chief economist at CIMB Investment Bank in Kuala Lumpur, said before the report. “The key risk to export growth momentum is the strength of external headwinds emanating from the still-uncertain prospects in advanced economies, especially a flagging U.S. recovery.”
Southeast Asia’s third-largest economy did “well” in the third quarter even as there may be some deceleration in the final three months, International Trade & Industry Minister Mustapa Mohamed said yesterday. The country is on track to regain the trade volumes and values reached in 2008, he said.
This month’s export increase was led by higher shipments of electrical and electronics goods by companies such Unisem (M) Bhd., as well as commodities including liquefied natural gas, refined petroleum products, palm oil and rubber, the trade ministry said.
The country’s imports in August rose 16.5 percent to 44.5 billion ringgit from a year earlier. The trade surplus widened to 8.32 billion ringgit from 7.01 billion ringgit in July.
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net
To contact the editor responsible for this story: Chris Anstey at canstey@bloomberg.net
Malaysia Aug export pace slows
By Rupa Damodaran
rupabanerji@nstp.com.my
2010/10/09
EXPORTS grew at a slower pace than market expectations, confirming views that export growth had peaked in the early part of the year.
The Ministry of International Trade and Industry (Miti) yesterday said exports had expanded 10.6 per cent to RM52.85 billion while imports had risen 16.5 per cent to RM44.53 billion.
This resulted in a total trade of RM97.38 billion, 13.2 per cent higher from a year ago.
Compared with July, exports in August declined 4.6 per cent while imports contracted 8.0 per cent and total trade decreased by 6.2 per cent.
Miti said the August growth was largely due to higher exports of liquefied natural gas (LNG), electrical and electronic products, refined petroleum products, chemicals and chemical products.
Alvin Liew of Standard Chartered Bank said the bulk of exports remain to be electronics, accounting for 40 per cent of total exports although its pace eased to 3.7 per cent in August.
"Key commodity exports (such as refined petroleum, crude oil and palm) remain supportive of headline exports in August, although crude oil exports grew by a slower 2.7 per cent year-on-year in August, way off the near 18 per cent year-on-year pace set in both June and July," he said.
The bright spots for Malaysia, he added, turned out to be exports to the European Union (EU) and Japan which have been recording double-digit growth since December 2009 and March 2010 respectively.
Exports to China rose 2.4 per cent compared to a year ago. Exports to the EU grew 12.6 per cent.
Exports to Japan edged up 28.4 per cent on higher exports of LNG, refined petroleum products and E&E products but exports to the US saw a marginal increase of 0.5 per cent compared with a year ago.
Liew added that the decelerating export picture corroborated with StanChart's weaker manufacturing outlook for Malaysia in the second half on the back of sluggish external demand and lingering uncertainties in the external environment.
Miti said import growth was mainly due to intermediate goods which took up 70.2 per cent of the total.
"Resilient domestic demand and higher capital investment by companies likely drove import demand, although concerns about the external economy may have dampened import appetite for the rest of the second half," Liew said.
Malaysia's Export Growth Weaker Than Expected In August
10/8/2010 8:10 AM ET
(RTTNews) - Malaysian exports grew at a slower pace than economists had forecast as a sluggish recovery worldwide dragged down external demand.
Malaysia's exports increased 10.6% on an annual basis to MYR 52.85 billion in August, slower than the 13.5% growth in the previous month, the Department of Statistics said Friday. Economists had forecast an increase of 13.7%.
At the same time, imports climbed 16.5% year-on-year to MYR 44.53 billion in August, slower than the 22.9% increase expected. On a monthly basis, exports and imports declined 4.6% and 8%, respectively.
The trade balance resulted in a surplus of MYR 8.32 billion during the month, up from the MYR 7.01 billion in July. It was the 154th consecutive month of trade surplus since November 1997, the statistical office said.
Most of the increase in exports during the month was due to growth in shipments of liquefied natural gas as well as electrical and electronic products. Exports to ASEAN nations, accounting for 24.6% of Malaysia's total exports during the month, amounted to MYR 12.98 billion, up 5.7% from last year.
Exports to China registered an increase of 2.4% to MYR 6.71 billion during the month, while shipments to EU expanded 12.6% to MYR 5.63 billion. Exports to the U.S. were valued at MYR 5.12 billion, representing a marginal increase of 0.5% compared to last year.
For the first eight months of the year, exports expanded 22.2% compared to the same period last year, while imports grew 28.1%, resulting in a trade surplus of MYR 77.69 billion.
Last month, the central bank said that the country's export growth has slowed in the recent months and expects to continue thus in the backdrop of a slowing global growth.
Latest data on the country's national output showed signs of cooling in the economy. Growth eased in the second quarter from a decade-high recorded in the first three months of the year. Gross domestic product rose 8.9% year-on-year during the June quarter following a 10.1% increase in the first quarter.
Bank Negara Malaysia foresees a slowdown in domestic economic activity during the coming months due to weak exports and flagging global recovery. As a result, the central bank decided to retain its benchmark overnight policy rate at 2.75% last month.
by RTT Staff Writer
For comments and feedback: contact editorial@rttnews.com
August exports up 10.6%, imports increase 16.5%
PETALING JAYA: Malaysia’s exports in August expanded by 10.6% to RM52.85bil while imports increased by 16.5% to RM44.53bil when compared with the same month last year.
Malaysia’s external trade statistics from the Ministry of International Trade and Industry yesterday said this resulted in a total trade of RM97.37bil, 13.2% higher than August 2009.
A trade surplus of RM8.32bil was recorded, making it the 154th consecutive month of surplus since November 1997. RAM Holdings Bhd chief economist Dr Yeah Kim Leng said Malaysia was still reasonably robust when exports were concerned. “Malaysia is still not facing a collapse in external demand and is in a quite comfortable level based on the data given,” he told StarBizWeek via telephone.
The statistics, however, said compared with July 2010, exports in August declined by 4.6% while imports contracted by 8% and total trade decreased by 6.2%.
The increase in exports in August of RM5.07bil from a year ago was largely contributed by higher exports of liquefied natural gas and electrical and electronic products.
(AFP) – 18 hours ago
KUALA LUMPUR — Malaysia said Friday its exports, the mainstay of the economy, rose 10.6 percent year-on-year in August but at a slower rate than the previous month.
The trade ministry said in a statement that shipments had risen to 52.85 billion ringgit (17 billion dollars), while imports were up 16.5 percent to 44.53 billion ringgit, producing a surplus of 8.32 billion ringgit.
The increase was helped by higher exports of electrical and electronic products, liquefied natural gas, palm oil, chemicals and chemical products.
Electrical and electronic items account for about 40 percent of Malaysia's total exports to key markets such as Singapore, China, United States, Japan and Hong Kong.
However July exports rose 13.5 percent from a year ago.
Export-dependent Malaysia, Southeast Asia's third-largest economy, was hit hard by the global slowdown but its economy has since rebounded with growth expected to exceed six percent this year.
The country last month unveiled a bold initiative to transform the economy over the next decade, creating 3.3 million jobs and propelling it towards developed-nation status by 2020.
Malaysia's Export Growth Slowed in August in Sign Global Demand Weakening
Malaysia’s exports rose at the slowest pace in nine months in August, adding to evidence that weakening growth in the world’s largest economies is hurting demand for Asian goods.
Overseas shipments climbed 10.6 percent from a year earlier to 52.9 billion ringgit ($17.1 billion) after gaining 13.5 percent in July, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 19 economists was for a 14.7 percent increase.
The International Monetary Fund this week lowered its forecast for global expansion in 2011, citing high unemployment, public debt and fragile banking systems as risks to the world economy. Malaysia’s central bank last month paused in its cycle of raising interest rates as policy makers from the U.S. to Japan took steps to shore up easing growth.
“Recent data suggest that the export and industrial-led recovery is running out of steam, indicating that economic activity is clearly cooling,” Lee Heng Guie, chief economist at CIMB Investment Bank in Kuala Lumpur, said before the report. “The key risk to export growth momentum is the strength of external headwinds emanating from the still-uncertain prospects in advanced economies, especially a flagging U.S. recovery.”
Southeast Asia’s third-largest economy did “well” in the third quarter even as there may be some deceleration in the final three months, International Trade & Industry Minister Mustapa Mohamed said yesterday. The country is on track to regain the trade volumes and values reached in 2008, he said.
This month’s export increase was led by higher shipments of electrical and electronics goods by companies such Unisem (M) Bhd., as well as commodities including liquefied natural gas, refined petroleum products, palm oil and rubber, the trade ministry said.
The country’s imports in August rose 16.5 percent to 44.5 billion ringgit from a year earlier. The trade surplus widened to 8.32 billion ringgit from 7.01 billion ringgit in July.
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net
To contact the editor responsible for this story: Chris Anstey at canstey@bloomberg.net
Malaysia Aug export pace slows
By Rupa Damodaran
rupabanerji@nstp.com.my
2010/10/09
EXPORTS grew at a slower pace than market expectations, confirming views that export growth had peaked in the early part of the year.
The Ministry of International Trade and Industry (Miti) yesterday said exports had expanded 10.6 per cent to RM52.85 billion while imports had risen 16.5 per cent to RM44.53 billion.
This resulted in a total trade of RM97.38 billion, 13.2 per cent higher from a year ago.
Compared with July, exports in August declined 4.6 per cent while imports contracted 8.0 per cent and total trade decreased by 6.2 per cent.
Miti said the August growth was largely due to higher exports of liquefied natural gas (LNG), electrical and electronic products, refined petroleum products, chemicals and chemical products.
Alvin Liew of Standard Chartered Bank said the bulk of exports remain to be electronics, accounting for 40 per cent of total exports although its pace eased to 3.7 per cent in August.
"Key commodity exports (such as refined petroleum, crude oil and palm) remain supportive of headline exports in August, although crude oil exports grew by a slower 2.7 per cent year-on-year in August, way off the near 18 per cent year-on-year pace set in both June and July," he said.
The bright spots for Malaysia, he added, turned out to be exports to the European Union (EU) and Japan which have been recording double-digit growth since December 2009 and March 2010 respectively.
Exports to China rose 2.4 per cent compared to a year ago. Exports to the EU grew 12.6 per cent.
Exports to Japan edged up 28.4 per cent on higher exports of LNG, refined petroleum products and E&E products but exports to the US saw a marginal increase of 0.5 per cent compared with a year ago.
Liew added that the decelerating export picture corroborated with StanChart's weaker manufacturing outlook for Malaysia in the second half on the back of sluggish external demand and lingering uncertainties in the external environment.
Miti said import growth was mainly due to intermediate goods which took up 70.2 per cent of the total.
"Resilient domestic demand and higher capital investment by companies likely drove import demand, although concerns about the external economy may have dampened import appetite for the rest of the second half," Liew said.
Malaysia's Export Growth Weaker Than Expected In August
10/8/2010 8:10 AM ET
(RTTNews) - Malaysian exports grew at a slower pace than economists had forecast as a sluggish recovery worldwide dragged down external demand.
Malaysia's exports increased 10.6% on an annual basis to MYR 52.85 billion in August, slower than the 13.5% growth in the previous month, the Department of Statistics said Friday. Economists had forecast an increase of 13.7%.
At the same time, imports climbed 16.5% year-on-year to MYR 44.53 billion in August, slower than the 22.9% increase expected. On a monthly basis, exports and imports declined 4.6% and 8%, respectively.
The trade balance resulted in a surplus of MYR 8.32 billion during the month, up from the MYR 7.01 billion in July. It was the 154th consecutive month of trade surplus since November 1997, the statistical office said.
Most of the increase in exports during the month was due to growth in shipments of liquefied natural gas as well as electrical and electronic products. Exports to ASEAN nations, accounting for 24.6% of Malaysia's total exports during the month, amounted to MYR 12.98 billion, up 5.7% from last year.
Exports to China registered an increase of 2.4% to MYR 6.71 billion during the month, while shipments to EU expanded 12.6% to MYR 5.63 billion. Exports to the U.S. were valued at MYR 5.12 billion, representing a marginal increase of 0.5% compared to last year.
For the first eight months of the year, exports expanded 22.2% compared to the same period last year, while imports grew 28.1%, resulting in a trade surplus of MYR 77.69 billion.
Last month, the central bank said that the country's export growth has slowed in the recent months and expects to continue thus in the backdrop of a slowing global growth.
Latest data on the country's national output showed signs of cooling in the economy. Growth eased in the second quarter from a decade-high recorded in the first three months of the year. Gross domestic product rose 8.9% year-on-year during the June quarter following a 10.1% increase in the first quarter.
Bank Negara Malaysia foresees a slowdown in domestic economic activity during the coming months due to weak exports and flagging global recovery. As a result, the central bank decided to retain its benchmark overnight policy rate at 2.75% last month.
by RTT Staff Writer
For comments and feedback: contact editorial@rttnews.com
August exports up 10.6%, imports increase 16.5%
PETALING JAYA: Malaysia’s exports in August expanded by 10.6% to RM52.85bil while imports increased by 16.5% to RM44.53bil when compared with the same month last year.
Malaysia’s external trade statistics from the Ministry of International Trade and Industry yesterday said this resulted in a total trade of RM97.37bil, 13.2% higher than August 2009.
A trade surplus of RM8.32bil was recorded, making it the 154th consecutive month of surplus since November 1997. RAM Holdings Bhd chief economist Dr Yeah Kim Leng said Malaysia was still reasonably robust when exports were concerned. “Malaysia is still not facing a collapse in external demand and is in a quite comfortable level based on the data given,” he told StarBizWeek via telephone.
The statistics, however, said compared with July 2010, exports in August declined by 4.6% while imports contracted by 8% and total trade decreased by 6.2%.
The increase in exports in August of RM5.07bil from a year ago was largely contributed by higher exports of liquefied natural gas and electrical and electronic products.
Monday, September 6, 2010
Malaysia's Trade in July 2010
Malaysia Refrains From Raising Main Interest Rate as Global Rebound Cools
By Shamim Adam - Sep 3, 2010 12:00 AM GMT+0800
Malaysia’s central bank left interest rates unchanged after three consecutive increases, choosing to support growth as the global recovery slows.
Bank Negara Malaysia kept its benchmark overnight policy rate at 2.75 percent, it said in a statement in Kuala Lumpur yesterday, a decision that was predicted by 15 of the 17 economists surveyed by Bloomberg News. The other two expected a quarter-point increase.
Malaysia started raising interest rates before any other Asian central bank this year to reduce what officials say is the risk of financial imbalances caused by keeping borrowing costs too low for too long. The region’s efforts to withdraw monetary stimulus introduced to counter last year’s global recession may slow as policy makers from the U.S. to Japan take steps to shore up growth amid signs their economies are cooling.
“The second-half outlook is gloomier globally and the strength in the Malaysian economy will be unlike what we saw in the first half,” said Wellian Wiranto, a Singapore-based economist at HSBC Holdings Plc. “It looks like they are done for the year and the question now is whether they are going to keep it unchanged for much of 2011. With Malaysia being one of the first ones to move, 2.75 percent may be what they deem as normal.”
Exports by Malaysian companies such as Sime Darby Bhd. and Unisem (M) Bhd. rose at the slowest pace in eight months in July, a report from the trade ministry showed yesterday.
Exports Cool
Malaysia’s export growth has slowed in recent months along with shipments from other countries in the region, the central bank said. “These conditions are expected to continue with the slowing of global growth,” it said.
Still, Malaysia’s growth will be supported by “robust domestic economic activity” even as the external developments may moderate the pace of expansion, Bank Negara said.
The ringgit is the best performer in Asia excluding Japan in 2010 as the economy strengthened and the central bank raised rates. The currency, which has gained 9.5 percent this year, traded at 3.1275 per dollar at 6:31 p.m. yesterday.
Malaysia’s economy, the largest in Southeast Asia after Indonesia and Thailand, grew near the fastest pace in a decade last quarter, with gross domestic product climbing 8.9 percent from a year earlier. Governor Zeti Akhtar Aziz said last month growth may exceed 6 percent in 2010 even as the expansion in advanced economies may ease in the second half.
Ahead of Curve
“Bank Negara is slightly ahead of the curve compared to its regional peers in normalizing rates,” Lee Heng Guie, chief economist at CIMB Investment Bank in Kuala Lumpur, said before the decision. “More signs of global weakness, in particular growing concerns over a double-dip recession in the U.S., a moderate pace of domestic growth and the fading effects of fiscal stimulus” may prompt Malaysia to pause the rest of the year, he said.
The U.S. economy grew at a 1.6 percent annual pace in the second quarter, less than previously estimated. Japan expanded at the slowest pace in three quarters in the period ended June 30 as global demand cooled and stimulus effects wore off.
The prospect of slowing global growth may encourage Indonesian policy makers, who have refrained from following neighbors in boosting borrowing costs this year, to continue to keep rates unchanged when they meet today, according to 16 out of 17 economists surveyed by Bloomberg News.
Thailand’s Move
Other Asian central banks are still raising rates to curb inflationary pressures as their economies expand. The Bank of Thailand raised its benchmark on Aug. 25 and signaled further increases after the economy overcame political unrest to grow faster than estimated last quarter.
The Reserve Bank of India has boosted its key rate more times than any other Asian counterpart this year to cool consumer prices that are rising at more than 11 percent. The Bank of Korea is alert to inflation and may need to raise interest rates again even with a slower-than-expected global recovery, central bank Governor Kim Choong Soo said last week.
“The Monetary Policy Committee considers the current monetary policy as appropriate and consistent with the latest assessment of the economic growth and inflation prospects,” Malaysia’s central bank said. At the current level of the benchmark rate, “the stance of monetary policy continues to remain accommodative and supportive of economic growth.”
Malaysia’s rate increase in March was the first in almost four years. The overnight policy rate was kept at 3.5 percent from late April 2006 until late November 2008, when the central bank started to cut the benchmark, bringing it to a record-low 2 percent in February 2009.
The central bank’s final policy review of 2010 will be in November.
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net
Malaysia July Exports Growth Slows
9/2/2010 6:10 AM ET
(RTTNews) - Malaysia's exports increased at a slower pace in July, a report by the Department of Statistics showed on Thursday.
Exports increased 13.5% on an annual basis to MYR billion in July, but slower than 17.2% in the previous month. This was the second highest monthly export value recorded in the first seven months of 2010. Economists had expected an increase of 11.5%.
Imports climbed 18.1% year-on-year to MYR billion in July, slower than the 18.6% rise expected by economists'. In June, imports grew 30.1%.
On a monthly basis, exports and imports increased by 4.9% and 3.5%, respectively in July.
Thus, the trade balance showed a surplus of MYR 7.01 billion in July, making it the 153th consecutive month of trade surplus since November 1997. The trade surplus was wider than the MYR 6.1 billion expected by economists.
For the first seven months of the year, exports dropped % compared to the same period of the previous year, while imports fell %. During the period, the trade surplus totaled MYR billion.
Malaysian economy expanded at a slower pace in the second quarter. The gross domestic product, or GDP grew 8.9% year-on-year in the second quarter, but down from 10.1% in the previous quarter.
by RTT Staff Writer
Malaysia July exports higher on better E&E demand
Published: 2010/09/03
THE country's exports rose higher than expected in July, led by an improvement in external demand for electrical and electronic (E&E) products.
The International Trade and Industry Ministry (Miti) said yesterday the exports, amounted at RM55.43 billion, were the second highest monthly value recorded so far this year.
Apart from E&E products, the year-on-year increase was also largely contributed by higher exports of liquefied natural gas (LNG) and refined petroleum products.
Imports expanded by 18.1 per cent to RM48.41 billion, while a trade surplus of RM7.01 billion was recorded during the month.
CIMB Investment Bank chief economist Lee Heng Guie expects the pace to slow in the second half due to a softer global demand and as the low base effects disappear.
Demand from China, one of Malaysia's leading trading partners, has also come off compared to the previous months.
CIMB, however, is sticking to its export growth forecast of 17.5 per cent for 2010, based on 9 per cent average growth over the next five months.
Domestic demand, added Lee, has to hold up as the economy goes through a slower pace.
"Imports have also slowed down significantly from June. These are early signs that the domestic demand will not be as strong (as the first half) and other lead indicators that we track like car sales have come off from highs."
Standard Chartered Bank said the latest data reinforced the view that Malaysia's export growth peaked in the first quarter.
Meanwhile, Miti said on a month-on-month basis, exports in July 2010 rose by 4.9 per cent, imports grew by 3.5 per cent and total trade increased by 4.2 per cent.
All the export markets enjoyed a growth momentum, with Singapore leading with 13.2 per cent, followed by China (12.1 per cent), US (10.1 per cent) and Japan (9.5 per cent).
Exports to the European Union expanded 18.7 per cent in July.
Exports to Asean were RM13.31 billion, an increase of 3.6 per cent from a year ago. This was due to higher exports of E&E products, palm oil, machinery, appliances and parts, optical and scientific equipment as well as chemicals and chemical products. - By Rupa Damodaran
Friday September 3, 2010
Exports data show more sustainable growth rate
By FINTAN NG
fintan@thestar.com.myPETALING JAYA:
Malaysia’s exports declined for a fourth month in July, with the latest data from the Statistics Department released yesterday showing exports grew 13.5% to RM55.43bil from a year ago.
Imports expanded by 18.1% to RM48.41bil from a year ago while on a month-on-month basis, July exports rose 4.9% and imports were up 3.5%.
The year-on-year exports data topped the 11.5% median expectations of economists in a Bloomberg survey with the increase mainly attributed to higher exports of electrical and electronic products, liquefied natural gas, refined petroleum products, crude petroleum and palm oil among others.
CIMB Investment Bank Bhd economic research head Lee Heng Guie told StarBiz the pace of economic growth was now more sustainable when recent regional data was taken into account.
“The first-half was characterised by a spurt of growth due to exports, recovery in domestic demand and the low-base effects.
“Going forward, we can expect this to moderate to a more sustainable pace,” he said.
Lee said this trend was evident not only among economies in the region but also in Malaysia, where exports and factory output as measured by the industrial production index had shown slower growth.
He said the country’s economic outlook was still tied to external factors including the US’ and China’s economic performance.
“China’s growth trend-line shows that its economy will continue to post a slower growth rate while we continue to believe that the US will show sub-par growth in the second-half due to the declines in house sales and jobs,” Lee said.
He added that while there would be no double-dip recession, the risk was still there.
“There is a 30% chance of it happening,” he said.
Meanwhile, Standard Chartered Bank South East Asia economist Alvin Liew said in an email reply that the slowdown reinforced the house’s view that the country’s export growth peaked in the first quarter.
Although import growth slowed markedly, he said it still outpaced exports.
Liew said this could mean that “resilient domestic demand and higher capital investment by companies likely drove import demand, although concerns about the external economy may have dampened import appetite”.
AmResearch Sdn Bhd senior economist Manokaran Mottain pointed out that of the country’s major trading partners, at least four of them still registered respectable growth rates.
“About half of our exports can still be sustained and we can be assured that the slowdown will not be severe and our overall growth rate will not feel the impact too much,” he said.
Manokaran said gross domestic product for the third quarter would expand between 7% and 8%, which would still be comparable to the second quarter’s 8.9% growth rate.
Slower Malaysia's July exports expected
By Rupa Damodaran
MALAYSIAN exports are expected to grow at a slower double-digit pace in July, indicating the economy probably peaked in the first half of 2010.
A Business Times poll expects exports to grow by an average of 11.73 per cent, down from June's 17.2 per cent year-on-year.
Imports would also slow to a growth of 17.08 per cent from 30.1 per cent while the trade balance is set to average RM6.44 billion.
The International Trade and Industry Ministry will release the data today.
Standard Chartered Bank economist Alvin Liew expects a "quite marked" moderation in growth in July.
"It will reinforce our view that Malaysia's export growth peaked in the first quarter and we are heading for a less rosy second half."
He also expects imports growth to ease in July although the pace is likely to be faster than exports.
"Resilient domestic demand and higher capital investment by companies are the likely the drivers for import demand although concern for the external economy may have dampened import appetite."
Citi economist Kit Wei Zheng said the slowdown was possible as the growth in China's imports from Malaysia had halved in July to 36.1 per cent from 76.3 per cent year-on-year in June.
"With exports to China consisting of around 12 per cent of total exports, this could imply a drag on overall export growth."
Kit expects exports to show a small decline given the fall in nominal CPO prices and the strengthening of the ringgit against the US dollar in July.
M'sia July exports up 13.5%
KUALA LUMPUR - MALAYSIA said on Thursday its exports, the mainstay of the economy, rose 13.5 per cent year-on-year in July due to higher demand for electronic goods, the country's main exports.
The trade ministry said in a statement that shipments had risen to 55.43 billion ringgit (S$23.8 billion), while imports were up 18.1 per cent to 48.41 billion ringgit, producing a surplus of 7.01 billion ringgit.
The increase was contributed by higher exports of electrical and electronic products, liquefied natural gas, palm oil, chemicals and chemical products.
Electrical and electronic items account for about 40 per cent of Malaysia's total exports to key markets like Singapore, China, United States, Japan and Hong Kong.
Export-dependent Malaysia, Southeast Asia's third-largest economy, was hit hard by the global slowdown and its economy shrank 1.7 per cent last year.
The economy has since rebound and grew 8.9 per cent year-on-year in the second quarter, the central bank said last month, with growth expected to exceed six per cent in the full year. -- AFP
By Shamim Adam - Sep 3, 2010 12:00 AM GMT+0800
Malaysia’s central bank left interest rates unchanged after three consecutive increases, choosing to support growth as the global recovery slows.
Bank Negara Malaysia kept its benchmark overnight policy rate at 2.75 percent, it said in a statement in Kuala Lumpur yesterday, a decision that was predicted by 15 of the 17 economists surveyed by Bloomberg News. The other two expected a quarter-point increase.
Malaysia started raising interest rates before any other Asian central bank this year to reduce what officials say is the risk of financial imbalances caused by keeping borrowing costs too low for too long. The region’s efforts to withdraw monetary stimulus introduced to counter last year’s global recession may slow as policy makers from the U.S. to Japan take steps to shore up growth amid signs their economies are cooling.
“The second-half outlook is gloomier globally and the strength in the Malaysian economy will be unlike what we saw in the first half,” said Wellian Wiranto, a Singapore-based economist at HSBC Holdings Plc. “It looks like they are done for the year and the question now is whether they are going to keep it unchanged for much of 2011. With Malaysia being one of the first ones to move, 2.75 percent may be what they deem as normal.”
Exports by Malaysian companies such as Sime Darby Bhd. and Unisem (M) Bhd. rose at the slowest pace in eight months in July, a report from the trade ministry showed yesterday.
Exports Cool
Malaysia’s export growth has slowed in recent months along with shipments from other countries in the region, the central bank said. “These conditions are expected to continue with the slowing of global growth,” it said.
Still, Malaysia’s growth will be supported by “robust domestic economic activity” even as the external developments may moderate the pace of expansion, Bank Negara said.
The ringgit is the best performer in Asia excluding Japan in 2010 as the economy strengthened and the central bank raised rates. The currency, which has gained 9.5 percent this year, traded at 3.1275 per dollar at 6:31 p.m. yesterday.
Malaysia’s economy, the largest in Southeast Asia after Indonesia and Thailand, grew near the fastest pace in a decade last quarter, with gross domestic product climbing 8.9 percent from a year earlier. Governor Zeti Akhtar Aziz said last month growth may exceed 6 percent in 2010 even as the expansion in advanced economies may ease in the second half.
Ahead of Curve
“Bank Negara is slightly ahead of the curve compared to its regional peers in normalizing rates,” Lee Heng Guie, chief economist at CIMB Investment Bank in Kuala Lumpur, said before the decision. “More signs of global weakness, in particular growing concerns over a double-dip recession in the U.S., a moderate pace of domestic growth and the fading effects of fiscal stimulus” may prompt Malaysia to pause the rest of the year, he said.
The U.S. economy grew at a 1.6 percent annual pace in the second quarter, less than previously estimated. Japan expanded at the slowest pace in three quarters in the period ended June 30 as global demand cooled and stimulus effects wore off.
The prospect of slowing global growth may encourage Indonesian policy makers, who have refrained from following neighbors in boosting borrowing costs this year, to continue to keep rates unchanged when they meet today, according to 16 out of 17 economists surveyed by Bloomberg News.
Thailand’s Move
Other Asian central banks are still raising rates to curb inflationary pressures as their economies expand. The Bank of Thailand raised its benchmark on Aug. 25 and signaled further increases after the economy overcame political unrest to grow faster than estimated last quarter.
The Reserve Bank of India has boosted its key rate more times than any other Asian counterpart this year to cool consumer prices that are rising at more than 11 percent. The Bank of Korea is alert to inflation and may need to raise interest rates again even with a slower-than-expected global recovery, central bank Governor Kim Choong Soo said last week.
“The Monetary Policy Committee considers the current monetary policy as appropriate and consistent with the latest assessment of the economic growth and inflation prospects,” Malaysia’s central bank said. At the current level of the benchmark rate, “the stance of monetary policy continues to remain accommodative and supportive of economic growth.”
Malaysia’s rate increase in March was the first in almost four years. The overnight policy rate was kept at 3.5 percent from late April 2006 until late November 2008, when the central bank started to cut the benchmark, bringing it to a record-low 2 percent in February 2009.
The central bank’s final policy review of 2010 will be in November.
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net
Malaysia July Exports Growth Slows
9/2/2010 6:10 AM ET
(RTTNews) - Malaysia's exports increased at a slower pace in July, a report by the Department of Statistics showed on Thursday.
Exports increased 13.5% on an annual basis to MYR billion in July, but slower than 17.2% in the previous month. This was the second highest monthly export value recorded in the first seven months of 2010. Economists had expected an increase of 11.5%.
Imports climbed 18.1% year-on-year to MYR billion in July, slower than the 18.6% rise expected by economists'. In June, imports grew 30.1%.
On a monthly basis, exports and imports increased by 4.9% and 3.5%, respectively in July.
Thus, the trade balance showed a surplus of MYR 7.01 billion in July, making it the 153th consecutive month of trade surplus since November 1997. The trade surplus was wider than the MYR 6.1 billion expected by economists.
For the first seven months of the year, exports dropped % compared to the same period of the previous year, while imports fell %. During the period, the trade surplus totaled MYR billion.
Malaysian economy expanded at a slower pace in the second quarter. The gross domestic product, or GDP grew 8.9% year-on-year in the second quarter, but down from 10.1% in the previous quarter.
by RTT Staff Writer
Malaysia July exports higher on better E&E demand
Published: 2010/09/03
THE country's exports rose higher than expected in July, led by an improvement in external demand for electrical and electronic (E&E) products.
The International Trade and Industry Ministry (Miti) said yesterday the exports, amounted at RM55.43 billion, were the second highest monthly value recorded so far this year.
Apart from E&E products, the year-on-year increase was also largely contributed by higher exports of liquefied natural gas (LNG) and refined petroleum products.
Imports expanded by 18.1 per cent to RM48.41 billion, while a trade surplus of RM7.01 billion was recorded during the month.
CIMB Investment Bank chief economist Lee Heng Guie expects the pace to slow in the second half due to a softer global demand and as the low base effects disappear.
Demand from China, one of Malaysia's leading trading partners, has also come off compared to the previous months.
CIMB, however, is sticking to its export growth forecast of 17.5 per cent for 2010, based on 9 per cent average growth over the next five months.
Domestic demand, added Lee, has to hold up as the economy goes through a slower pace.
"Imports have also slowed down significantly from June. These are early signs that the domestic demand will not be as strong (as the first half) and other lead indicators that we track like car sales have come off from highs."
Standard Chartered Bank said the latest data reinforced the view that Malaysia's export growth peaked in the first quarter.
Meanwhile, Miti said on a month-on-month basis, exports in July 2010 rose by 4.9 per cent, imports grew by 3.5 per cent and total trade increased by 4.2 per cent.
All the export markets enjoyed a growth momentum, with Singapore leading with 13.2 per cent, followed by China (12.1 per cent), US (10.1 per cent) and Japan (9.5 per cent).
Exports to the European Union expanded 18.7 per cent in July.
Exports to Asean were RM13.31 billion, an increase of 3.6 per cent from a year ago. This was due to higher exports of E&E products, palm oil, machinery, appliances and parts, optical and scientific equipment as well as chemicals and chemical products. - By Rupa Damodaran
Friday September 3, 2010
Exports data show more sustainable growth rate
By FINTAN NG
fintan@thestar.com.myPETALING JAYA:
Malaysia’s exports declined for a fourth month in July, with the latest data from the Statistics Department released yesterday showing exports grew 13.5% to RM55.43bil from a year ago.
Imports expanded by 18.1% to RM48.41bil from a year ago while on a month-on-month basis, July exports rose 4.9% and imports were up 3.5%.
The year-on-year exports data topped the 11.5% median expectations of economists in a Bloomberg survey with the increase mainly attributed to higher exports of electrical and electronic products, liquefied natural gas, refined petroleum products, crude petroleum and palm oil among others.
CIMB Investment Bank Bhd economic research head Lee Heng Guie told StarBiz the pace of economic growth was now more sustainable when recent regional data was taken into account.
“The first-half was characterised by a spurt of growth due to exports, recovery in domestic demand and the low-base effects.
“Going forward, we can expect this to moderate to a more sustainable pace,” he said.
Lee said this trend was evident not only among economies in the region but also in Malaysia, where exports and factory output as measured by the industrial production index had shown slower growth.
He said the country’s economic outlook was still tied to external factors including the US’ and China’s economic performance.
“China’s growth trend-line shows that its economy will continue to post a slower growth rate while we continue to believe that the US will show sub-par growth in the second-half due to the declines in house sales and jobs,” Lee said.
He added that while there would be no double-dip recession, the risk was still there.
“There is a 30% chance of it happening,” he said.
Meanwhile, Standard Chartered Bank South East Asia economist Alvin Liew said in an email reply that the slowdown reinforced the house’s view that the country’s export growth peaked in the first quarter.
Although import growth slowed markedly, he said it still outpaced exports.
Liew said this could mean that “resilient domestic demand and higher capital investment by companies likely drove import demand, although concerns about the external economy may have dampened import appetite”.
AmResearch Sdn Bhd senior economist Manokaran Mottain pointed out that of the country’s major trading partners, at least four of them still registered respectable growth rates.
“About half of our exports can still be sustained and we can be assured that the slowdown will not be severe and our overall growth rate will not feel the impact too much,” he said.
Manokaran said gross domestic product for the third quarter would expand between 7% and 8%, which would still be comparable to the second quarter’s 8.9% growth rate.
Slower Malaysia's July exports expected
By Rupa Damodaran
MALAYSIAN exports are expected to grow at a slower double-digit pace in July, indicating the economy probably peaked in the first half of 2010.
A Business Times poll expects exports to grow by an average of 11.73 per cent, down from June's 17.2 per cent year-on-year.
Imports would also slow to a growth of 17.08 per cent from 30.1 per cent while the trade balance is set to average RM6.44 billion.
The International Trade and Industry Ministry will release the data today.
Standard Chartered Bank economist Alvin Liew expects a "quite marked" moderation in growth in July.
"It will reinforce our view that Malaysia's export growth peaked in the first quarter and we are heading for a less rosy second half."
He also expects imports growth to ease in July although the pace is likely to be faster than exports.
"Resilient domestic demand and higher capital investment by companies are the likely the drivers for import demand although concern for the external economy may have dampened import appetite."
Citi economist Kit Wei Zheng said the slowdown was possible as the growth in China's imports from Malaysia had halved in July to 36.1 per cent from 76.3 per cent year-on-year in June.
"With exports to China consisting of around 12 per cent of total exports, this could imply a drag on overall export growth."
Kit expects exports to show a small decline given the fall in nominal CPO prices and the strengthening of the ringgit against the US dollar in July.
M'sia July exports up 13.5%
KUALA LUMPUR - MALAYSIA said on Thursday its exports, the mainstay of the economy, rose 13.5 per cent year-on-year in July due to higher demand for electronic goods, the country's main exports.
The trade ministry said in a statement that shipments had risen to 55.43 billion ringgit (S$23.8 billion), while imports were up 18.1 per cent to 48.41 billion ringgit, producing a surplus of 7.01 billion ringgit.
The increase was contributed by higher exports of electrical and electronic products, liquefied natural gas, palm oil, chemicals and chemical products.
Electrical and electronic items account for about 40 per cent of Malaysia's total exports to key markets like Singapore, China, United States, Japan and Hong Kong.
Export-dependent Malaysia, Southeast Asia's third-largest economy, was hit hard by the global slowdown and its economy shrank 1.7 per cent last year.
The economy has since rebound and grew 8.9 per cent year-on-year in the second quarter, the central bank said last month, with growth expected to exceed six per cent in the full year. -- AFP
Thursday, August 5, 2010
Malaysia's Trade in June 2010
Slower Malaysia export growth in June
By Rupa Damodaran
rupabanerji@nstp.com.my
2010/08/04
MALAYSIAN exports in June 2010 grew slower than market expectations, in tandem with the performance of regional peers.
The Ministry of International Trade and Industry (Miti) said exports rose by 17.2 per cent year-on-year in June, while imports grew by 30.1 per cent year-on-year. Trade surplus stood at RM6.04 billion.
Miti said the rise in exports was broad-based, namely electrical and electronic products, liquefied natural gas, chemicals and chemical products, optical & scientific equipment, palm oil, manufactures of metal, crude petroleum, crude rubber and rubber products.
Commenting on the latest trade data, HSBC Bank Asian economist Wellian Wiranto said it points towards slower exports momentum going forward alongside its regional peers.
The latest reading is the slowest since November last year due largely to the petering out of base effects.
"All in all, the picture for Malaysia's exports is roughly the same as the picture we see for the region in general going forward: a less enthusiastic pace of expansion, but no double-dip," he said.
Wiranto said given the relative slowdown in trading activities around the region, it may get comparatively harder for the exports of electronics, although he expects receipts from the segment to be within the RM19 billion to RM21 billion range.
Malaysia's June Exports Rise 17.2%
(RTTNews) - Malaysia's exports continue to rise in June mainly due to higher demand for the country's electrical and electronic products as well as liquefied natural gas data released by the Department of Statistics showed Tuesday.
Exports climbed 17.2% year-on-year to MYR 52.83 billion in June, Minister of International Trade and Industry YB Dato' Sri Mustapa Mohamed said. Growth in exports was in line with economists' forecast. Imports grew 30.1% annually to MYR 46.79 billion, mainly due to higher imports of intermediate and capital goods. Growth in imports exceeded economists' expectations for an increase of 24.8%.
The trade balance posted a surplus of MYR 6.04 billion, making it the 152nd consecutive month of trade surplus since November 1997, the statistical office said. Meanwhile, economists were looking for a MYR 8 billion surplus. Malaysia had surplus of MYR 8.13 billion for May.
Month-on-month, exports rose 1.1% and imports were up 6% in June. Even so, exports fell 1% quarter-on-quarter to MYR157.13 billion during the April to June period, while imports expanded 11.6% to MYR 133.70 billion.
Total trade amounted to MYR 99.62 billion in June, posting an increase of 22.9% year-on-year and 3.3% compared to May. During the second quarter, total trade was MYR 290.82 billion, representing an increase of 4.4% on a quarterly basis.
In June, the increase in exports was driven by stronger demand for electrical and electronic products, liquefied natural gas, chemicals and chemical products, optical and scientific equipment, palm oil, manufactures of metal, crude petroleum as well as crude rubber and rubber products.
Exports to China, Hong Kong, EU states as well as Japan rose briskly during the month, while shipments to ASEAN nations and the U.S also increased at a remarkable pace. In June, China, Japan and Singapore remained Malaysia's major import partners.
During the first half of the year, total trade increased 28.9% to MYR 569.31 billion. Exports expanded 26.1% to MYR 315.83 billion, while imports rose 32.5% to MYR 253.48 billion. The trade during the six-month period resulted in a surplus of MYR 62.36 billion.
Malaysia's economic growth in the first quarter was the fastest in a decade. The gross domestic product rose 10.1% year-on-year in the first three months, the largest expansion since the first quarter of 2000, when the economy expanded 11.7%.
The Malaysian Institute of Economic Research expects the economy to expand 6.5% and 5.2% in 2011. On July 8, the Malaysian central bank increased its key policy rate for the third time this year as the domestic economy is expected to remain strong, along with moderate inflation levels for the rest of this year.
Malaysia's Export Growth Slows as Risks to Global Economic Rebound Emerge
Bloomberg
By Ranjeetha Pakiam - Aug 3, 2010 Malaysia’s exports rose at the slowest pace in seven months as risks to the global economic recovery emerge with Europe’s sovereign-debt crisis and slowing growth in the U.S.
Overseas shipments climbed 17.2 percent in June from a year earlier to 52.8 billion ringgit ($16.7 billion) after gaining a revised 21.8 percent in May, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 13 economists was for a 17.3 percent increase.
Growth has slowed in the U.S. and China, among Malaysia’s biggest markets, and governments in Europe are implementing austerity measures to reduce budget deficits, threatening demand for Asian goods including Unisem (M) Bhd. computer chips. Southeast Asia’s third-largest economy may expand at a slower pace in the second half as exports cool, giving the central bank scope to stop raising interest rates.
“With this growing issue of concern about the external condition I think Bank Negara Malaysia is likely to pause on its interest rate hikes,” Suhaimi Ilias, an economist at Maybank Investment Bank Bhd., said before the report “The recent indicators coming up from America and China, especially with regards to the manufacturing industries, seems to suggest that this key driver of manufacturing exports elsewhere is kind of moderating.”
China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories, according to a Purchasing Managers’ Index released Aug. 1. The U.S. Institute for Supply Management’s manufacturing gauge fell to 55.5 in July from 56.2 a month earlier.
Malaysia’s central bank Governor Zeti Akhtar Aziz has raised the benchmark interest rate to 2.75 percent this year from a record low as economic growth surged to the fastest pace in at least a decade in the first quarter.
The Malaysian ringgit is Asia’s biggest gainer against the U.S. dollar this year, climbing 8.4 percent.
The country’s imports rose 30.1 percent in June from a year earlier. The trade surplus narrowed to 6.04 billion ringgit from 8.1 billion ringgit in May.
Malaysia’s exports advance 17.2% in June
Pace moderates, indicating that export growth may have peaked, say analysts
PETALING JAYA: Malaysia’s June 2010 external trade continued to see strong growth, albeit at a moderating pace, with exports expanding 17.2% year-on-year (y-o-y) to RM52.83bil, while imports soared 30.1% y-o-y to RM46.79bil.
Overall, total trade grew 22.9% y-o-y to RM99.62bil, the International Trade and Industry Ministry said yesterday.
Malaysia continued to enjoy healthy trade surplus, which totalled RM6.04bil in June. That was the 152th consecutive month of trade surpluses for the country since November 1997.
“While exports continued to expand at double-digit pace in June as it did in preceding months in the first half of the year, the expected continued moderation in growth rate suggests to us that Malaysia’s export growth could have already peaked in the first quarter,” Singapore-based Standard Chartered Bank economist Alvin Liew said in his note.
June’s exports growth was somewhat in line with economists’ expectations.
According to TA Research economist Patricia Oh, given that exports growth has come off the low-base effect, a slowing growth is only natural.
“We believe that problems in Europe and easing Chinese appetite, amid the backdrop of high employment and weaker consumer sentiment in G3 markets (US, Japan and Euro region) could be reasons for the growth moderation,” Liew said.
On the imports growth in June, which exceeded economists’ expectations, economists attributed that to improvement in both domestic demand and higher capital investment by companies, reflecting stronger confidence. Oh said: “The recent strengthening of the ringgit against major currencies has also boosted Malaysia’s purchasing power to import more.”
Economists said June external trade data provided indications of a moderating industrial output growth for June as well as the declining pace of the country’s gross domestic product (GDP) growth for the second quarter.
Yesterday, Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said Malaysia was expected to register a high single-digit growth for the second quarter of this year. This compared with the 10.1% y-o-y GDP growth that the country registered for the first quarter. During the April-June period this year, the country’s total trade rose 4.4% y-o-y to RM290.82bil, compared with 32.6% y-o-y growth to RM278.51bil for the January-March quarter.
Products that contributed to exports growth in June were electrical and electronic (E&E) products valued at RM21.3bil (40.2% of total exports), palm oil at RM4.1bil (7.7%), chemicals and chemical products at RM3.4bil (6.3%), liquefied natural gas at RM3bil (5.7%) and crude petroleum at RM2.4bil (4.5%).
Singapore, China, the US, Japan and Hong Kong were the top five export destinations, accounting for 50.8% of Malaysia’s total exports in June. Asean accounted for RM12.97bil, or 24.6%, of Malaysia’s total exports, up by 7% from June 2009.
Malaysia’s major import products in June were E&E products valued at RM17bil (36.2% of total imports), chemicals and chemical products at RM4.4bil (9.3%), and machinery, appliances and parts at RM4bil (8.5%). The main import sources were China, Japan, Singapore, the US and Thailand, which collectively represented 54.3% share of the total.
August 03, 2010 18:34 PM
Malaysia's June Trade Surplus At RM6.04 Billion
KUALA LUMPUR, Aug 3 (Bernama) -- Malaysia registered a trade surplus of RM6.04 billion in June 2010, making it the 152nd consecutive month of trade surplus since November 1997.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said total exports in June 2010 was RM52.83 billion, an increase of 17.2 per cent compared with June 2009 while import grew by 30.1 per cent to RM46.79 billion.
Total trade expanded by 22.9 per cent to RM99.62 billion from a year ago.
For the six-month period from January to June 2010, total trade increased by 28.9 per cent to RM569.31 billion, in which exports climbed to RM315.83 billion while imports rose by 32.5 to RM253.48 billion, resulting in a trade surplus of RM62.36 billion.
Compared with May 2010, exports in June 2010 meanwhile was up 1.1 per cent while imports rose six per cent and total trade increased 3.3 per cent.
Mustapa said total trade during the second quarter of 2010 was RM290.82 billion, an increase of 4.4 per cent compared with the first quarter of 2010.
Exports during the second quarter of 2010 decreased by 1.0 per cent to RM157.13 billion from the first quarter of 2010 while imports expanded by 11.6 per cent to RM133.70 billion.
He said the increase in exports was broad-based, namely electrical and electronic (E&E) products, liquefied natural gas (LNG), chemicals and chemical products, optical & scientific equipment, palm oil, manufactures of metal, crude petroleum, crude rubber and rubber products.
Exports to Asean for the month reviewed amounted to RM12.97 billion, an increase of seven per cent from a year ago and accounted for 24.6 per cent of Malaysia's total exports in June.
The exports were mainly E&E products, manufactures of metal, optical and scientific equipment as well as machinery, appliances and parts.
Total imports rose by 30.1 per cent to RM46.79 billion year-on-year due mainly to higher imports of intermediate and capital goods, the minister said.
The three main categories of imports by end users were intermediate goods valued at RM32.63 billion or 69.7 per cent of total imports, capital goods at RM6.42 billion or 13.7 per cent of total imports and consumption goods at RM3.04 billion or 6.5 per cent of total imports.
Asean imports accounted for RM13.05 billion or 27.9 per cent of Malaysia's total imports in June 2010.
-- BERNAMA
By Rupa Damodaran
rupabanerji@nstp.com.my
2010/08/04
MALAYSIAN exports in June 2010 grew slower than market expectations, in tandem with the performance of regional peers.
The Ministry of International Trade and Industry (Miti) said exports rose by 17.2 per cent year-on-year in June, while imports grew by 30.1 per cent year-on-year. Trade surplus stood at RM6.04 billion.
Miti said the rise in exports was broad-based, namely electrical and electronic products, liquefied natural gas, chemicals and chemical products, optical & scientific equipment, palm oil, manufactures of metal, crude petroleum, crude rubber and rubber products.
Commenting on the latest trade data, HSBC Bank Asian economist Wellian Wiranto said it points towards slower exports momentum going forward alongside its regional peers.
The latest reading is the slowest since November last year due largely to the petering out of base effects.
"All in all, the picture for Malaysia's exports is roughly the same as the picture we see for the region in general going forward: a less enthusiastic pace of expansion, but no double-dip," he said.
Wiranto said given the relative slowdown in trading activities around the region, it may get comparatively harder for the exports of electronics, although he expects receipts from the segment to be within the RM19 billion to RM21 billion range.
Malaysia's June Exports Rise 17.2%
(RTTNews) - Malaysia's exports continue to rise in June mainly due to higher demand for the country's electrical and electronic products as well as liquefied natural gas data released by the Department of Statistics showed Tuesday.
Exports climbed 17.2% year-on-year to MYR 52.83 billion in June, Minister of International Trade and Industry YB Dato' Sri Mustapa Mohamed said. Growth in exports was in line with economists' forecast. Imports grew 30.1% annually to MYR 46.79 billion, mainly due to higher imports of intermediate and capital goods. Growth in imports exceeded economists' expectations for an increase of 24.8%.
The trade balance posted a surplus of MYR 6.04 billion, making it the 152nd consecutive month of trade surplus since November 1997, the statistical office said. Meanwhile, economists were looking for a MYR 8 billion surplus. Malaysia had surplus of MYR 8.13 billion for May.
Month-on-month, exports rose 1.1% and imports were up 6% in June. Even so, exports fell 1% quarter-on-quarter to MYR157.13 billion during the April to June period, while imports expanded 11.6% to MYR 133.70 billion.
Total trade amounted to MYR 99.62 billion in June, posting an increase of 22.9% year-on-year and 3.3% compared to May. During the second quarter, total trade was MYR 290.82 billion, representing an increase of 4.4% on a quarterly basis.
In June, the increase in exports was driven by stronger demand for electrical and electronic products, liquefied natural gas, chemicals and chemical products, optical and scientific equipment, palm oil, manufactures of metal, crude petroleum as well as crude rubber and rubber products.
Exports to China, Hong Kong, EU states as well as Japan rose briskly during the month, while shipments to ASEAN nations and the U.S also increased at a remarkable pace. In June, China, Japan and Singapore remained Malaysia's major import partners.
During the first half of the year, total trade increased 28.9% to MYR 569.31 billion. Exports expanded 26.1% to MYR 315.83 billion, while imports rose 32.5% to MYR 253.48 billion. The trade during the six-month period resulted in a surplus of MYR 62.36 billion.
Malaysia's economic growth in the first quarter was the fastest in a decade. The gross domestic product rose 10.1% year-on-year in the first three months, the largest expansion since the first quarter of 2000, when the economy expanded 11.7%.
The Malaysian Institute of Economic Research expects the economy to expand 6.5% and 5.2% in 2011. On July 8, the Malaysian central bank increased its key policy rate for the third time this year as the domestic economy is expected to remain strong, along with moderate inflation levels for the rest of this year.
Malaysia's Export Growth Slows as Risks to Global Economic Rebound Emerge
Bloomberg
By Ranjeetha Pakiam - Aug 3, 2010 Malaysia’s exports rose at the slowest pace in seven months as risks to the global economic recovery emerge with Europe’s sovereign-debt crisis and slowing growth in the U.S.
Overseas shipments climbed 17.2 percent in June from a year earlier to 52.8 billion ringgit ($16.7 billion) after gaining a revised 21.8 percent in May, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 13 economists was for a 17.3 percent increase.
Growth has slowed in the U.S. and China, among Malaysia’s biggest markets, and governments in Europe are implementing austerity measures to reduce budget deficits, threatening demand for Asian goods including Unisem (M) Bhd. computer chips. Southeast Asia’s third-largest economy may expand at a slower pace in the second half as exports cool, giving the central bank scope to stop raising interest rates.
“With this growing issue of concern about the external condition I think Bank Negara Malaysia is likely to pause on its interest rate hikes,” Suhaimi Ilias, an economist at Maybank Investment Bank Bhd., said before the report “The recent indicators coming up from America and China, especially with regards to the manufacturing industries, seems to suggest that this key driver of manufacturing exports elsewhere is kind of moderating.”
China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories, according to a Purchasing Managers’ Index released Aug. 1. The U.S. Institute for Supply Management’s manufacturing gauge fell to 55.5 in July from 56.2 a month earlier.
Malaysia’s central bank Governor Zeti Akhtar Aziz has raised the benchmark interest rate to 2.75 percent this year from a record low as economic growth surged to the fastest pace in at least a decade in the first quarter.
The Malaysian ringgit is Asia’s biggest gainer against the U.S. dollar this year, climbing 8.4 percent.
The country’s imports rose 30.1 percent in June from a year earlier. The trade surplus narrowed to 6.04 billion ringgit from 8.1 billion ringgit in May.
Malaysia’s exports advance 17.2% in June
Pace moderates, indicating that export growth may have peaked, say analysts
PETALING JAYA: Malaysia’s June 2010 external trade continued to see strong growth, albeit at a moderating pace, with exports expanding 17.2% year-on-year (y-o-y) to RM52.83bil, while imports soared 30.1% y-o-y to RM46.79bil.
Overall, total trade grew 22.9% y-o-y to RM99.62bil, the International Trade and Industry Ministry said yesterday.
Malaysia continued to enjoy healthy trade surplus, which totalled RM6.04bil in June. That was the 152th consecutive month of trade surpluses for the country since November 1997.
“While exports continued to expand at double-digit pace in June as it did in preceding months in the first half of the year, the expected continued moderation in growth rate suggests to us that Malaysia’s export growth could have already peaked in the first quarter,” Singapore-based Standard Chartered Bank economist Alvin Liew said in his note.
June’s exports growth was somewhat in line with economists’ expectations.
According to TA Research economist Patricia Oh, given that exports growth has come off the low-base effect, a slowing growth is only natural.
“We believe that problems in Europe and easing Chinese appetite, amid the backdrop of high employment and weaker consumer sentiment in G3 markets (US, Japan and Euro region) could be reasons for the growth moderation,” Liew said.
On the imports growth in June, which exceeded economists’ expectations, economists attributed that to improvement in both domestic demand and higher capital investment by companies, reflecting stronger confidence. Oh said: “The recent strengthening of the ringgit against major currencies has also boosted Malaysia’s purchasing power to import more.”
Economists said June external trade data provided indications of a moderating industrial output growth for June as well as the declining pace of the country’s gross domestic product (GDP) growth for the second quarter.
Yesterday, Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said Malaysia was expected to register a high single-digit growth for the second quarter of this year. This compared with the 10.1% y-o-y GDP growth that the country registered for the first quarter. During the April-June period this year, the country’s total trade rose 4.4% y-o-y to RM290.82bil, compared with 32.6% y-o-y growth to RM278.51bil for the January-March quarter.
Products that contributed to exports growth in June were electrical and electronic (E&E) products valued at RM21.3bil (40.2% of total exports), palm oil at RM4.1bil (7.7%), chemicals and chemical products at RM3.4bil (6.3%), liquefied natural gas at RM3bil (5.7%) and crude petroleum at RM2.4bil (4.5%).
Singapore, China, the US, Japan and Hong Kong were the top five export destinations, accounting for 50.8% of Malaysia’s total exports in June. Asean accounted for RM12.97bil, or 24.6%, of Malaysia’s total exports, up by 7% from June 2009.
Malaysia’s major import products in June were E&E products valued at RM17bil (36.2% of total imports), chemicals and chemical products at RM4.4bil (9.3%), and machinery, appliances and parts at RM4bil (8.5%). The main import sources were China, Japan, Singapore, the US and Thailand, which collectively represented 54.3% share of the total.
August 03, 2010 18:34 PM
Malaysia's June Trade Surplus At RM6.04 Billion
KUALA LUMPUR, Aug 3 (Bernama) -- Malaysia registered a trade surplus of RM6.04 billion in June 2010, making it the 152nd consecutive month of trade surplus since November 1997.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said total exports in June 2010 was RM52.83 billion, an increase of 17.2 per cent compared with June 2009 while import grew by 30.1 per cent to RM46.79 billion.
Total trade expanded by 22.9 per cent to RM99.62 billion from a year ago.
For the six-month period from January to June 2010, total trade increased by 28.9 per cent to RM569.31 billion, in which exports climbed to RM315.83 billion while imports rose by 32.5 to RM253.48 billion, resulting in a trade surplus of RM62.36 billion.
Compared with May 2010, exports in June 2010 meanwhile was up 1.1 per cent while imports rose six per cent and total trade increased 3.3 per cent.
Mustapa said total trade during the second quarter of 2010 was RM290.82 billion, an increase of 4.4 per cent compared with the first quarter of 2010.
Exports during the second quarter of 2010 decreased by 1.0 per cent to RM157.13 billion from the first quarter of 2010 while imports expanded by 11.6 per cent to RM133.70 billion.
He said the increase in exports was broad-based, namely electrical and electronic (E&E) products, liquefied natural gas (LNG), chemicals and chemical products, optical & scientific equipment, palm oil, manufactures of metal, crude petroleum, crude rubber and rubber products.
Exports to Asean for the month reviewed amounted to RM12.97 billion, an increase of seven per cent from a year ago and accounted for 24.6 per cent of Malaysia's total exports in June.
The exports were mainly E&E products, manufactures of metal, optical and scientific equipment as well as machinery, appliances and parts.
Total imports rose by 30.1 per cent to RM46.79 billion year-on-year due mainly to higher imports of intermediate and capital goods, the minister said.
The three main categories of imports by end users were intermediate goods valued at RM32.63 billion or 69.7 per cent of total imports, capital goods at RM6.42 billion or 13.7 per cent of total imports and consumption goods at RM3.04 billion or 6.5 per cent of total imports.
Asean imports accounted for RM13.05 billion or 27.9 per cent of Malaysia's total imports in June 2010.
-- BERNAMA
Sunday, July 4, 2010
Malaysia's Trade in May 2010
Malaysia Exports Rise at Slowest Pace Since February as Asia Rebound Cools
By Shamim Adam - Jul 2, 2010
Malaysia’s exports rose at the slowest pace in three months as sales to Europe and China eased, adding to evidence the region’s rebound may have peaked.
Overseas shipments rose 21.9 percent in May from a year earlier to 52.3 billion ringgit ($16.2 billion) after gaining 26.6 percent in April, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 14 economists was for a 26.6 percent increase.
Households are holding back spending in some of the world’s largest economies and their governments are cutting outlays to trim budget deficits, suggesting global growth may slow after rebounding from last year’s recession. Malaysia’s strengthening currency probably also hurt demand, according to Citigroup Inc., threatening orders for goods by exporters including Malaysian Pacific Industries Bhd. and Sime Darby Bhd.
“While exports continue to expand at a double-digit pace in May, the moderation in growth rate suggests to us that Malaysian export growth could have already peaked in the first quarter of 2010,” Alvin Liew, an economist at Standard Chartered Plc in Singapore, said before the report. “Problems brewing in Europe and easing Chinese appetite could be reasons.”
In China, manufacturing growth slowed more than economists forecast in June, and a gauge of factory output in the 16-member euro region weakened for a second month, two surveys showed yesterday. The U.S. Institute for Supply Management’s manufacturing index fell more than economists forecast to 56.2 from 59.7 in May.
Ringgit Climbs
The Malaysian ringgit is Asia’s biggest gainer against the U.S. dollar and the euro this year. It has climbed 6.2 percent against the dollar and gained 22 percent against the common European currency.
“The appreciating Malaysian ringgit, which peaked in April-May, had likely affected exports competitiveness momentarily,” Kit Wei Zheng, an economist at Citigroup in Singapore, said before the report.
The currency’s appreciation is orderly and reflects the nation’s “improving economic conditions,” central bank Governor Zeti Akhtar Aziz told Market News International last month.
Malaysia’s imports rose 34.2 percent in May from a year earlier. The trade surplus narrowed to 8.1 billion ringgit from 9.3 billion ringgit in April.
The country’s exports to the U.S., China and Europe fell in May from April, today’s report showed.
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net
Malaysia exports jump 21.9pc in May
BTimes
2010/07/02
Malaysia said today its exports, the mainstay of the economy, had jumped 21.9 per cent year-on-year in May due to stronger demand for electronic goods.
The trade ministry said in a statement that shipments had risen to RM52.3 billion, while imports were up 34.2 per cent at
RM44.15 billion, producing a surplus of RM8.14 billion.
The increase was due to higher exports of electrical and electronic products, liquefied natural gas, crude petroleum, chemical products and palm oil, among others.
Electrical and electronic items account for more than a third of Malaysia’s total exports to markets such as Singapore, China, Japan, the United States and Thailand.
Export-dependent Malaysia, Southeast Asia’s third-largest economy, was hit hard by the global slowdown and its economy shrank 1.7 per cent last year.
The economy is forecast to grow 5.5 per cent this year, but Prime Minister Datuk Seri Najib Razak said last month he was aiming for 6 per cent this year, as he unveiled a US$69-billion development plan aimed at spurring growth.
Malaysia also expects exports to grow between six and seven per cent this year as demand improves. Exports dipped 16.6 per cent in 2009. - AFP
Malaysia’s May Exports Rise at Slowest Pace in Three Months
July 02, 2010, 6:16 AM EDT
More From Businessweek
By Shamim Adam
July 2 (Bloomberg) -- Malaysia’s exports rose at the slowest pace in three months as sales to Europe and China eased, adding to evidence the region’s rebound may have peaked.
Households are holding back spending in some of the world’s largest economies and their governments are cutting outlays to trim budget deficits, suggesting global growth may slow after rebounding from last year’s recession. Malaysia’s strengthening currency probably also hurt demand, according to Citigroup Inc., threatening orders for goods by exporters including Malaysian Pacific Industries Bhd. and Sime Darby Bhd.
“While exports continue to expand at a double-digit pace in May, the moderation in growth rate suggests to us that Malaysian export growth could have already peaked in the first quarter of 2010,” Alvin Liew, an economist at Standard Chartered Plc in Singapore, said before the report. “Problems brewing in Europe and easing Chinese appetite could be reasons.”
In China, manufacturing growth slowed more than economists forecast in June, and a gauge of factory output in the 16-member euro region weakened for a second month, two surveys showed yesterday. The U.S. Institute for Supply Management’s manufacturing index fell more than economists forecast to 56.2 from 59.7 in May.
Ringgit Climbs
The Malaysian ringgit is Asia’s biggest gainer against the U.S. dollar and the euro this year. It has climbed 6.2 percent against the dollar and gained 22 percent against the common European currency.
“The appreciating Malaysian ringgit, which peaked in April-May, had likely affected exports competitiveness momentarily,” Kit Wei Zheng, an economist at Citigroup in Singapore, said before the report.
The currency’s appreciation is orderly and reflects the nation’s “improving economic conditions,” central bank Governor Zeti Akhtar Aziz told Market News International last month.
Malaysia’s imports rose 34.2 percent in May from a year earlier. The trade surplus narrowed to 8.1 billion ringgit from 9.3 billion ringgit in April.
The country’s exports to the U.S., China and Europe fell in May from April, today’s report showed.
--With assistance from Michael Munoz in Hong Kong. Editors: Stephanie Phang, Cherian Thomas
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net
To contact the editor responsible for this story: Chris Anstey at canstey@bloomberg.net
Malaysia’s exports increase in May
Last Update: July 02, 2010 14:47 ET
http://www.livetradingnews.com/malaysias-exports-increase-in-may-16057.htm
Malaysia’s total exports in May 2010 registered an increase of 21.9% compared with May 2009 to 52.3 billion Ringgit (US$16.19B), according to a statement Friday.
The increase in exports of 9.38 billion Ringgit (US$2.90B) was largely due to higher exports of electrical and electronic products, liquefied Nat Gas and Crude Petroleum, the Malaysian Statistics Department said in the statement.
According to the department, export values of the said items increased by 2.28 billion ringgit (US$705.88M), 1. 56 billion Ringgit (US$482.97B) and 1.35 billion Ringgit (US$417.96M).
The top 5 export destinations for Malaysia were Singapore, China, Japan, the United States and Thailand, accounting for 51.3% of Malaysia’s total exports.
Meanwhile, Malaysia’s total imports surged by 34.2% to 44.15 billion Ringgit (US$13.67B) due mainly to higher imports of intermediate and capital goods.—Paul A. Ebeling, Jnr. www.livetradingnews.com
Malaysia exports jump 22pc in May
Saturday, 03 Jul, 2010
http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/business/malaysia-exports-jump-22pc-in-may-370
KUALA LUMPUR, July 2: Malaysia said on Friday its exports, the mainstay of the economy, had jumped 21.9 per cent year-on-year in May due to stronger demand for electronic goods.
The trade ministry said in a statement that shipments had risen to 52.3 billion ringgit ($16.2 billion), while imports were up 34.2 per cent at 44.15 billion ringgit, producing a surplus of 8.14 billion ringgit.
The increase was due to higher exports of electrical and electronic products, liquefied natural gas, crude petroleum, chemical products and palm oil, among others.
Electrical and electronic items account for more than a third of Malaysia’s total exports to markets such as Singapore, China, Japan, the United States and Thailand.
Export-dependent Malaysia, Southeast Asia’s third-largest economy, was hit hard by the global slowdown and its economy shrank 1.7 per cent last year.
The economy is forecast to grow 5.5 per cent this year, but Prime Minister Najib Razak said last month he was aiming for 6 per cent this year, as he unveiled a $69 billion development plan aimed at spurring growth. Malaysia also expects exports to grow between six and seven per cent this year as demand improves. Exports dipped 16.6 per cent in 2009.—AFP
Malaysian Exports Rise At Slower Pace In May
7/2/2010 11:03 AM ET
http://www.rttnews.com/Content/AsianEconomicNews.aspx?Node=B2&Id=1350404
RTTNews) - Malaysian exports increased 21.9% year-on-year in May, driven by strong demand for the country's electronic goods, the Department of Statistics said Friday. However, the rate of growth slowed compared to April.
In May, total shipments amounted to MYR 52.3 billion. Economists expected export growth to remain unchanged from April's 26.6%.
The country recorded a trade surplus of MYR 8.14 billion, down from MYR 9.27 billion in April. Malaysia recorded a trade surplus for the 151st month in a row, the statistical agency said. Meanwhile, total trade expanded 27.2% annually.
Shipments of electrical and electronic products increased 12.8% year-on-year and had the biggest impact on overall export growth. Exports of liquefied natural gas increased 92% and exports of crude petroleum rose 71.9%. Shipments of refined petroleum products were up 45.2%.
Singapore, China, Japan, the U.S and Thailand were the top five export destinations for the country, accounting for 51.3% of the total exports during May. Exports to ASEAN nations, with a 25.9% share, increased 16.7% from a year ago. Shipments to the EU rose 14.2% year-on-year.
Malaysia's imports surged 34.2% to reach MYR 44.15 billion during the month, mainly due to higher imports of intermediate and capital goods. The expected increase was only 33%.
Imports of intermediate goods amounted to MYR 30.72 billion or 69.6% of total imports. China accounted for the major share of Malaysia's imports, with imports from the country totaling MYR 5.35 billion.
Compared with April 2010, exports and imports increased by 0.5% and 3.3%, respectively. This contributed to the increase of total trade by 1.8%.
During the period of January to May, total trade increased 30.2% to MYR 69.72 billion. Exports expanded 28% to MYR 263.03 billion, while imports rose 33.1% to MYR 206.69 billion, resulting in a trade surplus of MYR 56.34 billion.
Malaysia's economy grew at the fastest pace in a decade in the first quarter, prompting the central bank to hike its key interest rate for the second time this year. Gross domestic product rose 10.1% year-on-year in the first three months. That was the largest expansion since the first quarter of 2000, when the economy expanded 11.7%.
Simultaneously, Bank Negara Malaysia raised its key interest rate by 25 basis points to 2.5%, stating that the first quarter growth affirms that the economic recovery is firmly established.
by RTT Staff Writer
Malaysia exports jump 21.9 percent in May
By Agence France-Presse, Updated: 7/2/2010
Malaysia said Friday its exports, the mainstay of the economy, had jumped 21.9 percent year-on-year in May due to stronger demand for electronic goods.
The trade ministry said in a statement that shipments had risen to 52.3 billion ringgit (16.2 billion dollars), while imports were up 34.2 percent at 44.15 billion ringgit, producing a surplus of 8.14 billion ringgit.
The increase was due to higher exports of electrical and electronic products, liquefied natural gas, crude petroleum, chemical products and palm oil, among others.
Electrical and electronic items account for more than a third of Malaysia's total exports to markets such as Singapore, China, Japan, the United States and Thailand.
Export-dependent Malaysia, Southeast Asia's third-largest economy, was hit hard by the global slowdown and its economy shrank 1.7 percent last year.
The economy is forecast to grow 5.5 percent this year, but Prime Minister Najib Razak said last month he was aiming for 6.0 percent this year, as he unveiled a 69-billion-dollar development plan aimed at spurring growth.
Malaysia also expects exports to grow between six and seven percent this year as demand improves. Exports dipped 16.6 percent in 2009.
151 months of trade surplus, exports up 21.9pc in May
2010/07/03
MALAYSIA registered a trade surplus of RM8.14 billion in May, making it the 151st consecutive month of surplus since November 1997.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said that exports rose 21.9 per cent, or RM52.3 billion, year on year, while imports increased 34.2 per cent to RM44.15 billion.
Trade in May was up 27.2 per cent to RM96.45 billion, he said in a preliminary release from the ministry in Kuala Lumpur yesterday.
Month on month, exports and imports were up 0.5 per cent and 3.3 per cent respectively, increasing the total trade by 1.8 per cent, he added.
Mustapa said the increase in exports of RM9.38 billion from a year ago was driven by higher exports of electrical and electronic (E&E) products, up 12.8 per cent, or RM2.28 billion.
Other contributors were liquefied natural gas, crude petroleum, refined petroleum products, chemicals and chemical products, and palm oil.
Singapore, China, Japan, the US and Thailand were the top five export destinations, accounting for 51.3 per cent of Malaysia's exports.
Exports to Asean, valued at RM13.52 billion, were 16.7 per cent higher from a year ago, accounting for 25.9 per cent of total exports in May.
However, month-on-month exports to Asean were down 0.4 per cent.
Total imports rose 34.2 per cent to RM44.15 billion year on year, attributed mainly to higher imports of intermediate and capital goods.
Major imports were E&E products valued at RM15.91 billion, or 36 per cent of total imports; chemicals and chemical products, machinery, appliances and parts, transport equipment, manufactures of metal and refined petroleum products.
Imports from Asean were worth RM11.59 billion, or 26.3 per cent of total imports, Mustapa said.
During the January-May period, total trade increased 30.2 per cent to RM469.72 billion. Exports climbed to RM263.03 billion, while imports rose 33.1 per cent to RM206.69 billion, resulting in a trade surplus of RM56.34 billion. - Bernama
(RTTNews) - Malaysia's exports grew at a slower pace in May, data from Department of Statistics showed Friday. Exports rose 21.9% from the previous year to MYR 52.3 billion. Economists had expected the growth to stay unchanged at 26.6% in May. The increase in exports was largely contributed by higher exports of electrical and electronic products.
Growth in imports, at the same time, accelerated to 34.2% annually from around 27%. The expected increase was only 33%. On a monthly comparison, exports and imports increased 0.5% and 3.3%, respectively. This has contributed to the increase of total trade by 1.8%.
Exports totaled MYR 52.3 billion and imports stood at MYR 44.15 billion, resulting in a surplus of MYR 8.14 billion. The trade balance registered its 151st consecutive month of surplus since November 1997. The trade surplus for May stood below April's MYR 9.22 billion.
Data showed that total trade increased by 30.2% to MYR 469.72 billion during the period of January to May. Exports expanded by 28%, while imports rose 33.1%, resulting in a trade surplus of MYR 56.34 billion
Malaysia's exports increase in May
http://news.xinhuanet.com/english2010/business/2010-07/02/c_13381273_2.htm
English.news.cn 2010-07-02 19:31:06
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KUALA LUMPUR, July 2 (Xinhua) -- Malaysia's total exports in May 2010 registered an increase of 21.9 percent compared with May 2009 to 52.3 billion ringgit (16.19 billion U.S. dollars), according to a statement Friday.
The increase in exports of 9.38 billion ringgit (2.90 billion U. S. dollars) was largely due to higher exports of electrical and electronic products, liquefied natural gas and crude petroleum, the Malaysian Statistics Department said in the statement.
According to the department, export values of the said items increased by 2.28 billion ringgit (705.88 million U.S. dollars), 1. 56 billion ringgit (482.97 million U.S. dollars) and 1.35 billion ringgit (417.96 million U.S. dollars).
The top five export destinations for Malaysia were Singapore, China, Japan, the United States and Thailand, accounting for 51.3 percent of Malaysia's total exports.
Meanwhile, Malaysia's total imports surged by 34.2 percent to 44.15 billion ringgit (13.67 billion U.S. dollars) due mainly to higher imports of intermediate and capital goods.
The department said that intermediate goods accounted for 69.6 percent of the country's total imports, followed by capital goods (14.4 percent) and consumption goods (6.2 percent). The top five import sources for Malaysia were China, Japan, Singapore, the United States and Thailand, accounting for 50.5 percent of the country's total imports.
Malaysia's total trade in May 2010 expanded by 27.2 percent to 96.45 billion ringgit (29.86 billion U.S. dollars) with a trade surplus valued at 8.14 billion ringgit (2.52 billion U.S. dollars).
This was also the 151st consecutive month of trade surplus for the country since November 1997, said the department.
By Shamim Adam - Jul 2, 2010
Malaysia’s exports rose at the slowest pace in three months as sales to Europe and China eased, adding to evidence the region’s rebound may have peaked.
Overseas shipments rose 21.9 percent in May from a year earlier to 52.3 billion ringgit ($16.2 billion) after gaining 26.6 percent in April, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 14 economists was for a 26.6 percent increase.
Households are holding back spending in some of the world’s largest economies and their governments are cutting outlays to trim budget deficits, suggesting global growth may slow after rebounding from last year’s recession. Malaysia’s strengthening currency probably also hurt demand, according to Citigroup Inc., threatening orders for goods by exporters including Malaysian Pacific Industries Bhd. and Sime Darby Bhd.
“While exports continue to expand at a double-digit pace in May, the moderation in growth rate suggests to us that Malaysian export growth could have already peaked in the first quarter of 2010,” Alvin Liew, an economist at Standard Chartered Plc in Singapore, said before the report. “Problems brewing in Europe and easing Chinese appetite could be reasons.”
In China, manufacturing growth slowed more than economists forecast in June, and a gauge of factory output in the 16-member euro region weakened for a second month, two surveys showed yesterday. The U.S. Institute for Supply Management’s manufacturing index fell more than economists forecast to 56.2 from 59.7 in May.
Ringgit Climbs
The Malaysian ringgit is Asia’s biggest gainer against the U.S. dollar and the euro this year. It has climbed 6.2 percent against the dollar and gained 22 percent against the common European currency.
“The appreciating Malaysian ringgit, which peaked in April-May, had likely affected exports competitiveness momentarily,” Kit Wei Zheng, an economist at Citigroup in Singapore, said before the report.
The currency’s appreciation is orderly and reflects the nation’s “improving economic conditions,” central bank Governor Zeti Akhtar Aziz told Market News International last month.
Malaysia’s imports rose 34.2 percent in May from a year earlier. The trade surplus narrowed to 8.1 billion ringgit from 9.3 billion ringgit in April.
The country’s exports to the U.S., China and Europe fell in May from April, today’s report showed.
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net
Malaysia exports jump 21.9pc in May
BTimes
2010/07/02
Malaysia said today its exports, the mainstay of the economy, had jumped 21.9 per cent year-on-year in May due to stronger demand for electronic goods.
The trade ministry said in a statement that shipments had risen to RM52.3 billion, while imports were up 34.2 per cent at
RM44.15 billion, producing a surplus of RM8.14 billion.
The increase was due to higher exports of electrical and electronic products, liquefied natural gas, crude petroleum, chemical products and palm oil, among others.
Electrical and electronic items account for more than a third of Malaysia’s total exports to markets such as Singapore, China, Japan, the United States and Thailand.
Export-dependent Malaysia, Southeast Asia’s third-largest economy, was hit hard by the global slowdown and its economy shrank 1.7 per cent last year.
The economy is forecast to grow 5.5 per cent this year, but Prime Minister Datuk Seri Najib Razak said last month he was aiming for 6 per cent this year, as he unveiled a US$69-billion development plan aimed at spurring growth.
Malaysia also expects exports to grow between six and seven per cent this year as demand improves. Exports dipped 16.6 per cent in 2009. - AFP
Malaysia’s May Exports Rise at Slowest Pace in Three Months
July 02, 2010, 6:16 AM EDT
More From Businessweek
By Shamim Adam
July 2 (Bloomberg) -- Malaysia’s exports rose at the slowest pace in three months as sales to Europe and China eased, adding to evidence the region’s rebound may have peaked.
Households are holding back spending in some of the world’s largest economies and their governments are cutting outlays to trim budget deficits, suggesting global growth may slow after rebounding from last year’s recession. Malaysia’s strengthening currency probably also hurt demand, according to Citigroup Inc., threatening orders for goods by exporters including Malaysian Pacific Industries Bhd. and Sime Darby Bhd.
“While exports continue to expand at a double-digit pace in May, the moderation in growth rate suggests to us that Malaysian export growth could have already peaked in the first quarter of 2010,” Alvin Liew, an economist at Standard Chartered Plc in Singapore, said before the report. “Problems brewing in Europe and easing Chinese appetite could be reasons.”
In China, manufacturing growth slowed more than economists forecast in June, and a gauge of factory output in the 16-member euro region weakened for a second month, two surveys showed yesterday. The U.S. Institute for Supply Management’s manufacturing index fell more than economists forecast to 56.2 from 59.7 in May.
Ringgit Climbs
The Malaysian ringgit is Asia’s biggest gainer against the U.S. dollar and the euro this year. It has climbed 6.2 percent against the dollar and gained 22 percent against the common European currency.
“The appreciating Malaysian ringgit, which peaked in April-May, had likely affected exports competitiveness momentarily,” Kit Wei Zheng, an economist at Citigroup in Singapore, said before the report.
The currency’s appreciation is orderly and reflects the nation’s “improving economic conditions,” central bank Governor Zeti Akhtar Aziz told Market News International last month.
Malaysia’s imports rose 34.2 percent in May from a year earlier. The trade surplus narrowed to 8.1 billion ringgit from 9.3 billion ringgit in April.
The country’s exports to the U.S., China and Europe fell in May from April, today’s report showed.
--With assistance from Michael Munoz in Hong Kong. Editors: Stephanie Phang, Cherian Thomas
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.net
To contact the editor responsible for this story: Chris Anstey at canstey@bloomberg.net
Malaysia’s exports increase in May
Last Update: July 02, 2010 14:47 ET
http://www.livetradingnews.com/malaysias-exports-increase-in-may-16057.htm
Malaysia’s total exports in May 2010 registered an increase of 21.9% compared with May 2009 to 52.3 billion Ringgit (US$16.19B), according to a statement Friday.
The increase in exports of 9.38 billion Ringgit (US$2.90B) was largely due to higher exports of electrical and electronic products, liquefied Nat Gas and Crude Petroleum, the Malaysian Statistics Department said in the statement.
According to the department, export values of the said items increased by 2.28 billion ringgit (US$705.88M), 1. 56 billion Ringgit (US$482.97B) and 1.35 billion Ringgit (US$417.96M).
The top 5 export destinations for Malaysia were Singapore, China, Japan, the United States and Thailand, accounting for 51.3% of Malaysia’s total exports.
Meanwhile, Malaysia’s total imports surged by 34.2% to 44.15 billion Ringgit (US$13.67B) due mainly to higher imports of intermediate and capital goods.—Paul A. Ebeling, Jnr. www.livetradingnews.com
Malaysia exports jump 22pc in May
Saturday, 03 Jul, 2010
http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/business/malaysia-exports-jump-22pc-in-may-370
KUALA LUMPUR, July 2: Malaysia said on Friday its exports, the mainstay of the economy, had jumped 21.9 per cent year-on-year in May due to stronger demand for electronic goods.
The trade ministry said in a statement that shipments had risen to 52.3 billion ringgit ($16.2 billion), while imports were up 34.2 per cent at 44.15 billion ringgit, producing a surplus of 8.14 billion ringgit.
The increase was due to higher exports of electrical and electronic products, liquefied natural gas, crude petroleum, chemical products and palm oil, among others.
Electrical and electronic items account for more than a third of Malaysia’s total exports to markets such as Singapore, China, Japan, the United States and Thailand.
Export-dependent Malaysia, Southeast Asia’s third-largest economy, was hit hard by the global slowdown and its economy shrank 1.7 per cent last year.
The economy is forecast to grow 5.5 per cent this year, but Prime Minister Najib Razak said last month he was aiming for 6 per cent this year, as he unveiled a $69 billion development plan aimed at spurring growth. Malaysia also expects exports to grow between six and seven per cent this year as demand improves. Exports dipped 16.6 per cent in 2009.—AFP
Malaysian Exports Rise At Slower Pace In May
7/2/2010 11:03 AM ET
http://www.rttnews.com/Content/AsianEconomicNews.aspx?Node=B2&Id=1350404
RTTNews) - Malaysian exports increased 21.9% year-on-year in May, driven by strong demand for the country's electronic goods, the Department of Statistics said Friday. However, the rate of growth slowed compared to April.
In May, total shipments amounted to MYR 52.3 billion. Economists expected export growth to remain unchanged from April's 26.6%.
The country recorded a trade surplus of MYR 8.14 billion, down from MYR 9.27 billion in April. Malaysia recorded a trade surplus for the 151st month in a row, the statistical agency said. Meanwhile, total trade expanded 27.2% annually.
Shipments of electrical and electronic products increased 12.8% year-on-year and had the biggest impact on overall export growth. Exports of liquefied natural gas increased 92% and exports of crude petroleum rose 71.9%. Shipments of refined petroleum products were up 45.2%.
Singapore, China, Japan, the U.S and Thailand were the top five export destinations for the country, accounting for 51.3% of the total exports during May. Exports to ASEAN nations, with a 25.9% share, increased 16.7% from a year ago. Shipments to the EU rose 14.2% year-on-year.
Malaysia's imports surged 34.2% to reach MYR 44.15 billion during the month, mainly due to higher imports of intermediate and capital goods. The expected increase was only 33%.
Imports of intermediate goods amounted to MYR 30.72 billion or 69.6% of total imports. China accounted for the major share of Malaysia's imports, with imports from the country totaling MYR 5.35 billion.
Compared with April 2010, exports and imports increased by 0.5% and 3.3%, respectively. This contributed to the increase of total trade by 1.8%.
During the period of January to May, total trade increased 30.2% to MYR 69.72 billion. Exports expanded 28% to MYR 263.03 billion, while imports rose 33.1% to MYR 206.69 billion, resulting in a trade surplus of MYR 56.34 billion.
Malaysia's economy grew at the fastest pace in a decade in the first quarter, prompting the central bank to hike its key interest rate for the second time this year. Gross domestic product rose 10.1% year-on-year in the first three months. That was the largest expansion since the first quarter of 2000, when the economy expanded 11.7%.
Simultaneously, Bank Negara Malaysia raised its key interest rate by 25 basis points to 2.5%, stating that the first quarter growth affirms that the economic recovery is firmly established.
by RTT Staff Writer
Malaysia exports jump 21.9 percent in May
By Agence France-Presse, Updated: 7/2/2010
Malaysia said Friday its exports, the mainstay of the economy, had jumped 21.9 percent year-on-year in May due to stronger demand for electronic goods.
The trade ministry said in a statement that shipments had risen to 52.3 billion ringgit (16.2 billion dollars), while imports were up 34.2 percent at 44.15 billion ringgit, producing a surplus of 8.14 billion ringgit.
The increase was due to higher exports of electrical and electronic products, liquefied natural gas, crude petroleum, chemical products and palm oil, among others.
Electrical and electronic items account for more than a third of Malaysia's total exports to markets such as Singapore, China, Japan, the United States and Thailand.
Export-dependent Malaysia, Southeast Asia's third-largest economy, was hit hard by the global slowdown and its economy shrank 1.7 percent last year.
The economy is forecast to grow 5.5 percent this year, but Prime Minister Najib Razak said last month he was aiming for 6.0 percent this year, as he unveiled a 69-billion-dollar development plan aimed at spurring growth.
Malaysia also expects exports to grow between six and seven percent this year as demand improves. Exports dipped 16.6 percent in 2009.
151 months of trade surplus, exports up 21.9pc in May
2010/07/03
MALAYSIA registered a trade surplus of RM8.14 billion in May, making it the 151st consecutive month of surplus since November 1997.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said that exports rose 21.9 per cent, or RM52.3 billion, year on year, while imports increased 34.2 per cent to RM44.15 billion.
Trade in May was up 27.2 per cent to RM96.45 billion, he said in a preliminary release from the ministry in Kuala Lumpur yesterday.
Month on month, exports and imports were up 0.5 per cent and 3.3 per cent respectively, increasing the total trade by 1.8 per cent, he added.
Mustapa said the increase in exports of RM9.38 billion from a year ago was driven by higher exports of electrical and electronic (E&E) products, up 12.8 per cent, or RM2.28 billion.
Other contributors were liquefied natural gas, crude petroleum, refined petroleum products, chemicals and chemical products, and palm oil.
Singapore, China, Japan, the US and Thailand were the top five export destinations, accounting for 51.3 per cent of Malaysia's exports.
Exports to Asean, valued at RM13.52 billion, were 16.7 per cent higher from a year ago, accounting for 25.9 per cent of total exports in May.
However, month-on-month exports to Asean were down 0.4 per cent.
Total imports rose 34.2 per cent to RM44.15 billion year on year, attributed mainly to higher imports of intermediate and capital goods.
Major imports were E&E products valued at RM15.91 billion, or 36 per cent of total imports; chemicals and chemical products, machinery, appliances and parts, transport equipment, manufactures of metal and refined petroleum products.
Imports from Asean were worth RM11.59 billion, or 26.3 per cent of total imports, Mustapa said.
During the January-May period, total trade increased 30.2 per cent to RM469.72 billion. Exports climbed to RM263.03 billion, while imports rose 33.1 per cent to RM206.69 billion, resulting in a trade surplus of RM56.34 billion. - Bernama
(RTTNews) - Malaysia's exports grew at a slower pace in May, data from Department of Statistics showed Friday. Exports rose 21.9% from the previous year to MYR 52.3 billion. Economists had expected the growth to stay unchanged at 26.6% in May. The increase in exports was largely contributed by higher exports of electrical and electronic products.
Growth in imports, at the same time, accelerated to 34.2% annually from around 27%. The expected increase was only 33%. On a monthly comparison, exports and imports increased 0.5% and 3.3%, respectively. This has contributed to the increase of total trade by 1.8%.
Exports totaled MYR 52.3 billion and imports stood at MYR 44.15 billion, resulting in a surplus of MYR 8.14 billion. The trade balance registered its 151st consecutive month of surplus since November 1997. The trade surplus for May stood below April's MYR 9.22 billion.
Data showed that total trade increased by 30.2% to MYR 469.72 billion during the period of January to May. Exports expanded by 28%, while imports rose 33.1%, resulting in a trade surplus of MYR 56.34 billion
Malaysia's exports increase in May
http://news.xinhuanet.com/english2010/business/2010-07/02/c_13381273_2.htm
English.news.cn 2010-07-02 19:31:06
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KUALA LUMPUR, July 2 (Xinhua) -- Malaysia's total exports in May 2010 registered an increase of 21.9 percent compared with May 2009 to 52.3 billion ringgit (16.19 billion U.S. dollars), according to a statement Friday.
The increase in exports of 9.38 billion ringgit (2.90 billion U. S. dollars) was largely due to higher exports of electrical and electronic products, liquefied natural gas and crude petroleum, the Malaysian Statistics Department said in the statement.
According to the department, export values of the said items increased by 2.28 billion ringgit (705.88 million U.S. dollars), 1. 56 billion ringgit (482.97 million U.S. dollars) and 1.35 billion ringgit (417.96 million U.S. dollars).
The top five export destinations for Malaysia were Singapore, China, Japan, the United States and Thailand, accounting for 51.3 percent of Malaysia's total exports.
Meanwhile, Malaysia's total imports surged by 34.2 percent to 44.15 billion ringgit (13.67 billion U.S. dollars) due mainly to higher imports of intermediate and capital goods.
The department said that intermediate goods accounted for 69.6 percent of the country's total imports, followed by capital goods (14.4 percent) and consumption goods (6.2 percent). The top five import sources for Malaysia were China, Japan, Singapore, the United States and Thailand, accounting for 50.5 percent of the country's total imports.
Malaysia's total trade in May 2010 expanded by 27.2 percent to 96.45 billion ringgit (29.86 billion U.S. dollars) with a trade surplus valued at 8.14 billion ringgit (2.52 billion U.S. dollars).
This was also the 151st consecutive month of trade surplus for the country since November 1997, said the department.
Tuesday, June 22, 2010
Malaysia trade set to rebound to RM1tril mark
Malaysia trade set to rebound to RM1tril mark this year
By Rupa Damodaran
rupabanerji@nstp.com.my
2010/06/22
MALAYSIA'S trade will bounce back to its RM1 trillion mark volume this year on the back of an improved global economy, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
Total trade slipped off the RM1 trillion mark last year, with a decrease of 16.6 per cent from RM1.2 trillion recorded in 2008.
"It is doable, based on the performance for the past four months (January to April) . From our ballpark figures, the indication shows the trend will be sustainable, Mustapa said when presenting the ministry's annual report yesterday.
Miti has targeted exports to grow between 6 and 7 per cent this year as demand improves in tandem with the global economic recovery.
High economic growth rates in China and India are expected to contribute towards continued recovery of Malaysia's exports, with the support of emerging markets such as Iran, Mexico, Pakistan, Russia and the United Arab Emirates.
Mustapa said Africa is also expected to increase its demand for Malaysia's electrical and electronic (E&E) and chemicals products, jewelleries and processed foods in 2010.
"With challenges still facing the recovery of the economies in the US and EU (European Union), we hope growth in these markets will compensate, with better numbers," he said.
Total exports declined by 16.6 per cent to RM553.3 billion in 2009, due to decreased demand from Malaysia's key trading partners. The manufacturing sector remained the largest contributor, with a 74.4 per cent share of total exports. E&E continued to the largest export item with a 41.2 per cent share of total exports.
Malaysia's trade in services, which totalled RM195 billion 2009, decreased by 3.4 per cent.
Singapore, China, the US, Japan and Thailand were Malaysia's top five trading partners last year
On investments, Mustapa said several "sizeable investment projects" are in the pipeline, and the ministry is pushing for their implementation in the shortest time.
For the first four months, Malaysia attracted RM7.1 billion investments in the manufacturing sector.
Investments in the manufacturing sector totalled RM32.6 billion last year, exceeding the RM27.5 billion target set under the Third Industrial Master Plan.
Jun 21, 2010
M'sia targets 7% export growth
KUALA LUMPUR - MALAYSIA on Monday said its exports are expected to grow between six to seven per cent in 2010 as demand improves due to global economic recovery.
'Growth rates in major economies such as the USA, Europe and Japan are expected to recover at moderate levels,' the Ministry of International Trade and Industry said in its 2009 annual report.
Malaysia, Southeast Asia's third-largest economy, said its exports dipped 16.6 per cent in 2009, attributed to the downturn in the global economy.
It said Malaysia hopes to woo 27.5 billion ringgit (S$11.5 billion) of approved investments in the manufacturing sector and 45.8 billion in the services sector in 2010.
'The government will ensure that the investment environment remains conducive and competitive,' it said, adding that it hopes to attract investors in the areas of aerospace, biotechnology and pharmaceuticals.
Early June it unveiled a 69-billion-dollar plan intended to spur growth and attract much-needed foreign investment as it faces increasing competition from regional neighbours. The country is aiming to become a high-income economy by 2020 rather than continuing to rely on its low-cost structure to make it attractive. -- AFP
Malaysia Targets Rebound in 2010 Exports, Investment
(Updates with new target for manufacturing approvals in second paragraph.)
By Barry Porter and Manirajan Ramasamy
June 21 (Bloomberg) -- Malaysia plans to boost exports and investment in 2010 as Southeast Asia’s third-largest economy recovers from last year’s global slump and Prime Minister Najib Razak pledges measures to help the nation compete with rivals.
The government is raising its target for manufacturing investment approvals to 40 billion ringgit ($13 billion) this year from 27.5 billion ringgit, Trade Minister Mustapa Mohamed told reporters in Kuala Lumpur today. That would boost total approvals for manufacturing and services by 20 percent to 85.8 billion ringgit in 2010. Exports may grow 6 percent to 7 percent this year, after plunging 16.6 percent in 2009, he said.
The nation needs to boost private investments by an average annual 12.8 percent, or 115 billion ringgit, between 2011 and 2015 to achieve developed nation status by 2020, Najib said June 10. Malaysia’s growth momentum has slowed over the past decade amid mounting competition from China, India and Indonesia, the government said in its 10th Malaysia Plan released this month.
“We were able to position Malaysia for renewed growth at the end of 2009 and going into 2010 through an aggressive agenda of liberalizations in the service sector, which was the largest contributor to 2009 gross domestic product,” Mustapa said. “A renewed effort in pursuing additional free-trade agreements and expanding our competitive trade outreach” will also support the economy, he said.
Malaysia will engage new free-trade agreement partners, particularly in emerging markets and West Asia, according to the trade ministry’s annual report released by Mustapa today.
Affirmative Action
Najib has pledged to revamp the country’s 39-year-old race- based affirmative action policies that benefited the ethnic- Malay majority, and trim state subsidies for fuel and food items. The aim is to make the measures “market-friendly, merit- based, transparent and needs-based,” he said in the five-year Malaysia Plan. He has also allowed more foreign banks to operate in the country.
The government plans to cut red tape for approvals, improve infrastructure including broadband services, and empower the Malaysian Industrial Development Authority to negotiate directly with investors, the trade ministry said in today’s report.
“The government will do its part to further improve the country’s physical and soft infrastructure,” Mustapa said in the report. “In turn, businesses must invest in research and development, undertake effective marketing and branding strategies and adopt industry best practices.”
Coca-Cola
The government approved 7.1 billion ringgit in factory investments in the first four months of 2010, Mustapa said. Coca-Cola Co., the world’s largest soft-drinks maker, said in March it plans to spend 1 billion ringgit on a bottling plant in Malaysia, creating as many as 800 jobs.
Approvals for investment in the services industry are targeted to jump 18 percent to 45.8 billion ringgit this year, the trade ministry’s report showed. Total approvals for manufacturing and services projects fell 36.8 percent in 2009.
Private investment has dropped from an average of about 25 percent of GDP in the 1990s to 10 percent in the past decade, according to the 10th Malaysia Plan report. With less than a third of manufacturing investments last year coming from domestic businesses, the government is prodding state-linked companies and local business people to invest more at home.
Petroliam Nasional Bhd., Malaysia’s state oil company, will reduce overseas drilling ventures and focus on boosting recovery from existing local wells, the Star newspaper reported on June 5, citing Chief Executive Officer Shamsul Azhar Abbas.
The country’s trade and investment targets won’t be affected by the appreciation of its currency, Mustapa said. The ringgit has climbed 11 percent against the dollar in the past year, the biggest gainer in Asia after Indonesia.
The ringgit is “going up according to market development,” he said. “There is nothing unusual.”
While there will be “some challenges” emerging from Europe and the U.S., “all this will be compensated more by Asian countries like China and India,” he added.
--Editors: Stephanie Phang, Paul Panckhurst
Malaysia's RM1.2 trillion trade target
Miti says figure based on 30% growth in first 4 months
KUALA LUMPUR: The Ministry of International Trade and Industry (Miti) aims to bring the country’s total trade number to at least RM1.2 trillion for this year, according to minister Datuk Seri Mustapa Mohamad.
He said the target was based on a 30% growth in trade during the first four months of this year.
“Trade has been improving and we believe it can be sustained going forward,” he told reporters after the launch of the Miti Report 2009.
He said total trade in 2009 slipped off the RM1 trillion mark with a decrease of 16.6% to RM988.2bil, from the RM1.2 trillion recorded in 2008.
Miti and its agency, the Malaysia Investment Development Authority (Mida), also plan to secure at least RM40bil worth of investment in the manufacturing sector this year.
Mustapa said the value of total investment approved in the manufacturing sector in 2009 was RM32.6bill, exceeding the RM27.5bil target set under the Third Industrial Master Plan.
The minister said the whole Miti machinery would be re-aligned to focus on achieving the overall private investment target of RM115bil annually set by the Government under the 10th Malaysia Plan (10MP).
He said investments in the new projects were concentrated on chemicals and chemical products, non-metallic mineral as well as electric and electronic sub-sectors.
The projects were expected to create 64,330 employment opportunities, of which 21.2% would be in the managerial, technical and supervisory categories and 43.7% for skilled workers, Mustapa said.
“Many of these approved projects are being put on track now. We will push harder for the implementation.
“Prospective investors can expect reduced lead-time for approval of projects as Mida is now invested with more decision-making authority,” he added.
He also said Mida had been empowered to assume a more effective role to attract both foreign and local investments. — Bernama
Related Stories:
Tuesday June 22, 2010
Manufacturing growth expected to continue
By EDY SARIF
edy@thestar.com.my
KUALA LUMPUR: The manufacturing sector recorded growth in the third quarter of 2009, after a year of contraction in production, sales and employment, as well as a decline in its export and import performance, and growth is expected to go through 2010.
According to the Miti Report 2009, the growth was contributed by the Government’s stimulus package and improvements in the economic recovery worldwide, especially in the main export markets of the EU and the US.
Consumer and business confidence had started to improve in the fourth quarter of 2009 and, with the stabilisation of external and domestic economic conditions, the manufacturing sector is expected to continue its growth momentum.
The electrical and electronic sector is forecast to sustain growth in 2010 as the demand for semiconductors in Asia and the US, the EU and Japan is expected to increase, according to the report.
The petroleum products, petrochemicals and the plastics industry is expected to register growth in tandem with the economic recovery in the Asian region in 2010.
The plastic products segment, in particular, is expected to register higher growth in 2010 due to increased demand, especially from the food-packaging segment in the domestic market.
Prospects for the pharmaceutical industry remain positive due to growing healthcare needs, an ageing population and the continuing influenza A (H1N1) epidemic.
The healthcare industry is anticipated to continue to grow in 2010 due to the Government’s efforts to promote Malaysia as an attractive healthcare destination.
The medical devices industry is expected to attract investments due to improvements in the healthcare industry and expansion in health-related infrastructure.
Demand for machinery and equipment is expected to increase as postponed projects put on hold due to the economic downturn will be revived.
According to the report, demand for cement and concrete products is also expected to rebound in 2010 due to the increase in demand from the construction industry, partly due to postponed projects being revived.
The automotive industry is expected to perform well in 2010 as consumer demand is expected to increase due to improvement in incomes and purchasing power arising from the spill-over effects of the Government’s stimulus package.
The iron and steel sector is expected to return to full capacity in 2010 as a result of the price increase of iron and steel.
Demand for iron and steel products, however, will depend on the construction industry which uses more than 70% of the sub-sector’s products.
By Rupa Damodaran
rupabanerji@nstp.com.my
2010/06/22
MALAYSIA'S trade will bounce back to its RM1 trillion mark volume this year on the back of an improved global economy, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
Total trade slipped off the RM1 trillion mark last year, with a decrease of 16.6 per cent from RM1.2 trillion recorded in 2008.
"It is doable, based on the performance for the past four months (January to April) . From our ballpark figures, the indication shows the trend will be sustainable, Mustapa said when presenting the ministry's annual report yesterday.
Miti has targeted exports to grow between 6 and 7 per cent this year as demand improves in tandem with the global economic recovery.
High economic growth rates in China and India are expected to contribute towards continued recovery of Malaysia's exports, with the support of emerging markets such as Iran, Mexico, Pakistan, Russia and the United Arab Emirates.
Mustapa said Africa is also expected to increase its demand for Malaysia's electrical and electronic (E&E) and chemicals products, jewelleries and processed foods in 2010.
"With challenges still facing the recovery of the economies in the US and EU (European Union), we hope growth in these markets will compensate, with better numbers," he said.
Total exports declined by 16.6 per cent to RM553.3 billion in 2009, due to decreased demand from Malaysia's key trading partners. The manufacturing sector remained the largest contributor, with a 74.4 per cent share of total exports. E&E continued to the largest export item with a 41.2 per cent share of total exports.
Malaysia's trade in services, which totalled RM195 billion 2009, decreased by 3.4 per cent.
Singapore, China, the US, Japan and Thailand were Malaysia's top five trading partners last year
On investments, Mustapa said several "sizeable investment projects" are in the pipeline, and the ministry is pushing for their implementation in the shortest time.
For the first four months, Malaysia attracted RM7.1 billion investments in the manufacturing sector.
Investments in the manufacturing sector totalled RM32.6 billion last year, exceeding the RM27.5 billion target set under the Third Industrial Master Plan.
Jun 21, 2010
M'sia targets 7% export growth
KUALA LUMPUR - MALAYSIA on Monday said its exports are expected to grow between six to seven per cent in 2010 as demand improves due to global economic recovery.
'Growth rates in major economies such as the USA, Europe and Japan are expected to recover at moderate levels,' the Ministry of International Trade and Industry said in its 2009 annual report.
Malaysia, Southeast Asia's third-largest economy, said its exports dipped 16.6 per cent in 2009, attributed to the downturn in the global economy.
It said Malaysia hopes to woo 27.5 billion ringgit (S$11.5 billion) of approved investments in the manufacturing sector and 45.8 billion in the services sector in 2010.
'The government will ensure that the investment environment remains conducive and competitive,' it said, adding that it hopes to attract investors in the areas of aerospace, biotechnology and pharmaceuticals.
Early June it unveiled a 69-billion-dollar plan intended to spur growth and attract much-needed foreign investment as it faces increasing competition from regional neighbours. The country is aiming to become a high-income economy by 2020 rather than continuing to rely on its low-cost structure to make it attractive. -- AFP
Malaysia Targets Rebound in 2010 Exports, Investment
(Updates with new target for manufacturing approvals in second paragraph.)
By Barry Porter and Manirajan Ramasamy
June 21 (Bloomberg) -- Malaysia plans to boost exports and investment in 2010 as Southeast Asia’s third-largest economy recovers from last year’s global slump and Prime Minister Najib Razak pledges measures to help the nation compete with rivals.
The government is raising its target for manufacturing investment approvals to 40 billion ringgit ($13 billion) this year from 27.5 billion ringgit, Trade Minister Mustapa Mohamed told reporters in Kuala Lumpur today. That would boost total approvals for manufacturing and services by 20 percent to 85.8 billion ringgit in 2010. Exports may grow 6 percent to 7 percent this year, after plunging 16.6 percent in 2009, he said.
The nation needs to boost private investments by an average annual 12.8 percent, or 115 billion ringgit, between 2011 and 2015 to achieve developed nation status by 2020, Najib said June 10. Malaysia’s growth momentum has slowed over the past decade amid mounting competition from China, India and Indonesia, the government said in its 10th Malaysia Plan released this month.
“We were able to position Malaysia for renewed growth at the end of 2009 and going into 2010 through an aggressive agenda of liberalizations in the service sector, which was the largest contributor to 2009 gross domestic product,” Mustapa said. “A renewed effort in pursuing additional free-trade agreements and expanding our competitive trade outreach” will also support the economy, he said.
Malaysia will engage new free-trade agreement partners, particularly in emerging markets and West Asia, according to the trade ministry’s annual report released by Mustapa today.
Affirmative Action
Najib has pledged to revamp the country’s 39-year-old race- based affirmative action policies that benefited the ethnic- Malay majority, and trim state subsidies for fuel and food items. The aim is to make the measures “market-friendly, merit- based, transparent and needs-based,” he said in the five-year Malaysia Plan. He has also allowed more foreign banks to operate in the country.
The government plans to cut red tape for approvals, improve infrastructure including broadband services, and empower the Malaysian Industrial Development Authority to negotiate directly with investors, the trade ministry said in today’s report.
“The government will do its part to further improve the country’s physical and soft infrastructure,” Mustapa said in the report. “In turn, businesses must invest in research and development, undertake effective marketing and branding strategies and adopt industry best practices.”
Coca-Cola
The government approved 7.1 billion ringgit in factory investments in the first four months of 2010, Mustapa said. Coca-Cola Co., the world’s largest soft-drinks maker, said in March it plans to spend 1 billion ringgit on a bottling plant in Malaysia, creating as many as 800 jobs.
Approvals for investment in the services industry are targeted to jump 18 percent to 45.8 billion ringgit this year, the trade ministry’s report showed. Total approvals for manufacturing and services projects fell 36.8 percent in 2009.
Private investment has dropped from an average of about 25 percent of GDP in the 1990s to 10 percent in the past decade, according to the 10th Malaysia Plan report. With less than a third of manufacturing investments last year coming from domestic businesses, the government is prodding state-linked companies and local business people to invest more at home.
Petroliam Nasional Bhd., Malaysia’s state oil company, will reduce overseas drilling ventures and focus on boosting recovery from existing local wells, the Star newspaper reported on June 5, citing Chief Executive Officer Shamsul Azhar Abbas.
The country’s trade and investment targets won’t be affected by the appreciation of its currency, Mustapa said. The ringgit has climbed 11 percent against the dollar in the past year, the biggest gainer in Asia after Indonesia.
The ringgit is “going up according to market development,” he said. “There is nothing unusual.”
While there will be “some challenges” emerging from Europe and the U.S., “all this will be compensated more by Asian countries like China and India,” he added.
--Editors: Stephanie Phang, Paul Panckhurst
Malaysia's RM1.2 trillion trade target
Miti says figure based on 30% growth in first 4 months
KUALA LUMPUR: The Ministry of International Trade and Industry (Miti) aims to bring the country’s total trade number to at least RM1.2 trillion for this year, according to minister Datuk Seri Mustapa Mohamad.
He said the target was based on a 30% growth in trade during the first four months of this year.
“Trade has been improving and we believe it can be sustained going forward,” he told reporters after the launch of the Miti Report 2009.
He said total trade in 2009 slipped off the RM1 trillion mark with a decrease of 16.6% to RM988.2bil, from the RM1.2 trillion recorded in 2008.
Miti and its agency, the Malaysia Investment Development Authority (Mida), also plan to secure at least RM40bil worth of investment in the manufacturing sector this year.
Mustapa said the value of total investment approved in the manufacturing sector in 2009 was RM32.6bill, exceeding the RM27.5bil target set under the Third Industrial Master Plan.
The minister said the whole Miti machinery would be re-aligned to focus on achieving the overall private investment target of RM115bil annually set by the Government under the 10th Malaysia Plan (10MP).
He said investments in the new projects were concentrated on chemicals and chemical products, non-metallic mineral as well as electric and electronic sub-sectors.
The projects were expected to create 64,330 employment opportunities, of which 21.2% would be in the managerial, technical and supervisory categories and 43.7% for skilled workers, Mustapa said.
“Many of these approved projects are being put on track now. We will push harder for the implementation.
“Prospective investors can expect reduced lead-time for approval of projects as Mida is now invested with more decision-making authority,” he added.
He also said Mida had been empowered to assume a more effective role to attract both foreign and local investments. — Bernama
Related Stories:
Tuesday June 22, 2010
Manufacturing growth expected to continue
By EDY SARIF
edy@thestar.com.my
KUALA LUMPUR: The manufacturing sector recorded growth in the third quarter of 2009, after a year of contraction in production, sales and employment, as well as a decline in its export and import performance, and growth is expected to go through 2010.
According to the Miti Report 2009, the growth was contributed by the Government’s stimulus package and improvements in the economic recovery worldwide, especially in the main export markets of the EU and the US.
Consumer and business confidence had started to improve in the fourth quarter of 2009 and, with the stabilisation of external and domestic economic conditions, the manufacturing sector is expected to continue its growth momentum.
The electrical and electronic sector is forecast to sustain growth in 2010 as the demand for semiconductors in Asia and the US, the EU and Japan is expected to increase, according to the report.
The petroleum products, petrochemicals and the plastics industry is expected to register growth in tandem with the economic recovery in the Asian region in 2010.
The plastic products segment, in particular, is expected to register higher growth in 2010 due to increased demand, especially from the food-packaging segment in the domestic market.
Prospects for the pharmaceutical industry remain positive due to growing healthcare needs, an ageing population and the continuing influenza A (H1N1) epidemic.
The healthcare industry is anticipated to continue to grow in 2010 due to the Government’s efforts to promote Malaysia as an attractive healthcare destination.
The medical devices industry is expected to attract investments due to improvements in the healthcare industry and expansion in health-related infrastructure.
Demand for machinery and equipment is expected to increase as postponed projects put on hold due to the economic downturn will be revived.
According to the report, demand for cement and concrete products is also expected to rebound in 2010 due to the increase in demand from the construction industry, partly due to postponed projects being revived.
The automotive industry is expected to perform well in 2010 as consumer demand is expected to increase due to improvement in incomes and purchasing power arising from the spill-over effects of the Government’s stimulus package.
The iron and steel sector is expected to return to full capacity in 2010 as a result of the price increase of iron and steel.
Demand for iron and steel products, however, will depend on the construction industry which uses more than 70% of the sub-sector’s products.
Wednesday, June 9, 2010
Malaysia's Trade in April 2010
KUALA LUMPUR, June 4 (Bernama) -- Malaysia recorded a trade surplus of RM9.22 billion in April, making it the 150th consecutive month of trade surplus since Nov 1997, the International Trade and Industry Ministry said Friday.
The surplus is lower than the RM14.35 billion recorded in March, 2010.
However, total exports in April 2010 rose 26.6 per cent, year-on-year, to RM52.03 billion while imports surged 27 per cent to RM42.8 billion.
Total trade expanded 26.7 per cent to RM94.83 billion compared with April 2009, said the ministry in a preliminary release.
On a month-on-month basis, exports and imports shed 12.4 per cent and 5.1 per cent, respectively, which resulted in total trade decreasing 9.3 per cent.
Total trade between January and April 2010 increased 31 per cent to RM373.32 billion.
During the same period, exports rose 29.7 per cent to RM210.74 billion while imports rose 32.8 per cent to RM162.58 billion, resulting in a trade surplus of RM48.15 billion.
MITI said April's higher exports of RM10.92 billion, from a year ago, was largely contributed by higher exports of electrical and electronic (E&) products which rose 21.6 per cent or RM3.67 billion.
It was followed by crude petroleum (93 per cent or RM1.35 billion), chemicals and chemical products (26.6 per cent or RM698.1 million), refined petroleum products (50.4 per cent or RM644.9 million) and liquefied natural gas (33.2 per cent or RM643.5 million).
Singapore, China, United States, Japan and Hong Kong were the top five export destinations, accounting for 51.4 per cent of Malaysia's total exports.
Exports to Asean expanded 29.6 per cent to RM13.58 billion, from a year ago, accounting for 26.1 per cent of Malaysia's total exports in April 2010.
Meanwhile, April's higher imports were mainly due to increased imports of intermediate goods, said the ministry.
Major import products which contributed to the significant increase in imports were E&E products valued at RM15.89 billion (37.1 per cent of total imports), chemicals and chemical products at RM4.05 billion (9.5 per cent), machinery, appliances and parts at RM3.54 billion (8.3 per cent) and manufactures of metal at RM2.41 billion (5.6 per cent).
The ministry also said 54.6 per cent of Malaysia's imports originated from China, Japan, Singapore, the United States and Thailand.
Saturday June 5, 2010
April exports up 26% on higher demand for E&E products
By DANNY YAP
danny@thestar.com.my
PETALING JAYA: Trade figures, released yesterday by the International Trade and Industry Ministry showed total exports in April rose 26.6% year-on-year to RM52.03bil, while imports surged by 27% to RM42.8bil.
Moreover, trade in April this year expanded by 26.7% to RM94.83bil, compared with April last year.
Trade surplus was valued at RM9.22bil, making it the 150th consecutive month of trade surplus since November 1997.
On a month-on-month basis, exports and imports decreased by 12.4% and 5.1% respectively. Total trade was 9.3% lower.
The increase in exports in April of RM10.92bil from a year ago was largely attributed to higher exports of electrical and electronic products (E&E), which increased by 21.6% or RM3.67bil, crude petroleum (93% or RM1.35bil) , chemicals and chemical products (26.2% or RM698.1mil), refined petroleum products (50.4% or RM644.9mil) and liquefied natural gas (33.2% or RM643,5mil).
Singapore, China, the United States, Japan and Hong Kong were the top five export destinations, accounting for 51.4% of Malaysia’s total exports.
Total imports in April increased by 27% to RM42.8bil from April 2009 due mainly to higher imports of intermediate goods.
Total trade during the period January to April increased by 31% to RM373.32bil.
During the same period, exports increased by 29.7% to RM210.74bil, while imports rose 32.8% to RM162.58bil, resulting in a trade surplus of RM48.15bil.
RAM Holdings Bhd group chief economist Dr Yeah Kim Leng said the export and import figures fell slightly below RAM’s expectation.
Yeah said for April the increase in exports of 26.6% year-on-year was on the lower end of RAM’s expectation, which was range bound between 25% to 30%, while the increase in imports for April of 27% year-on-year was also within the lower range of RAM’s expectation bewteen 25% to 35%.
Yeah said it was difficult to gauge Malaysia’s trade performance over one month.
“Going forward, RAM expects Malaysia’s trade performance to improve further over the next four to six months,” he said.
RHB economist Peck Boon Soon also said Malaysia’s trade figures for April fell below RHB’s expectations.
“For exports, we expected an increase of 30% and imports an increase of 32%,” he said.
Going forward, Peck said there were worrying global economic trends could dampen demand.
“The Euro debt crisis is still on-going and demand from China, especially retailing end is slowing down and may potentially have an adverse effect on exports level worldwide, including Malaysia,” he said.
By K.P. Lee
UPDATE: Malaysia April Exports +26.6% On-Year, Miss Target
Of DOW JONES NEWSWIRES
KUALA LUMPUR (Dow Jones)--Malaysia's exports fell in April from a month earlier due to seasonal factors--and expanded more slowly than expected in annual terms--but economists say they still expect export and economic growth to be on target for the full year.
Data from the Ministry of International Trade and Industry showed Friday that the trade-driven economy's exports grew 26.6% from a year earlier to MYR52.03 billion ($15.92 billion). That was less than the median forecast of 36.0% growth in a Dow Jones Newswires poll of 15 economists.
CIMB Chief Economist Lee Heng Guie said the data were not cause for concern, as the timing of shipments could have played a part after March exports grew well ahead of expectations.
"We are keeping our forecast of 17.5% export growth for this year," Lee said. "The pace of growth appears to be slowing but all export sectors are still showing growth. At this pace, we think second-quarter export growth of 20%-22% on year is attainable, and pretty much within expectations."
Exports fell by 12.4% in April from a month earlier, the ministry said. Exports in March had surged 36.4% on-year, beating economists' expectations.
David Cohen, director of Asian economic forecasting for Action Economics, said export growth will likely be sustained through May.
"I wouldn't get too upset with the April numbers; it's the usual month-to-month volatility. If there's any spillover from the European financial turmoil, it will be seen in June's numbers first," he said.
Economists generally expect Malaysia's exports to grow in the mid-teens this year, supported by last year's low base as well as stronger demand for commodities and electrical products as the global economy recovers.
International Trade and Industry Minister Mustapa Mohamed told Dow Jones Newswires last month that export growth for the full year would likely be in double digits--faster than the government's forecast of 7%--driven by stronger demand from Asia's emerging economies.
The ministry attributed the rise in April exports to a 21.6% increase in shipments of electrical and electronic products, which account for almost 40% of Malaysian exports. The export value of crude petroleum nearly doubled from a year earlier, while sales of chemicals and chemical products rose 26.2% on-year.
Imports rose 27.0% on-year to MYR42.80 billion due to higher shipments of intermediate goods, the ministry said, below the poll's median forecast of 30.5% expansion. From a month earlier, imports fell 5.1%.
Malaysia chalked up a trade surplus of MYR9.22 billion for April, lower than March's MYR14.35 billion.
A "month-on-month pullback has historically been observed in April after a seasonal surge in March, which translates to a slightly slower expansion year-on-year," Citigroup economist Kit Wei-Zheng had said ahead of the trade data announcement.
Slower export growth for Malaysia in April(BT)
MALAYSIA’S exports grew at a slower-than-expected 26.6 per cent in April, an indication that the economy in the second quarter may not better the achievements in the first quarter.
The Ministry of International Trade and Industry (Miti) said exports totalled RM52.03 billion while imports were up 27.0 per cent to RM42.80 billion.
Total trade in April expanded 26.7 per cent to RM94.83 billion compared with April 2009.
Compared to March, exports and imports fell 12.4 per cent and 5.1 per cent respectively.
Miti said the increase in exports was largely due to higher exports of electrical and electronic (E&E) products which increased by 21.6 per cent, crude petroleum (93 per cent), chemicals and chemical products (26.2 per cent), refined petroleum products (50.4 per cent), and liquefied natural gas (LNG) (33.2 per cent).
Standard Chartered Bank economist Alvin Liew said although most sectors enjoyed double-digit growth, many contracted quite significantly on a non-seasonally adjusted basis.
He said the slower export growth (compared to imports) made the difference for the Malaysia trade surplus in April, recording just RM9.2 billion, the first time the trade surplus fell below 10 billion since November 2009.
“The April export data still points to a decent start to second quarter economic performance … and the second quarter economic expansion is unlikely to outperform the first quarter.”
According to Miti, Singapore, China, the US, Japan and Hong Kong were the top five export destinations, accounting for half of Malaysia’s total exports.
Exports to the European Union (EU) rose 28.3 per cent while exports to the US saw a 6.0 per cent increase year-on-year, apart from exports to Japan which jumped 38.4 per cent.
Malaysian Exports Growth Slows In April
RTTNews) - Malaysia's exports increased at a slower pace in April, a report by the Department of Statistics Malaysia showed on Friday.
Exports increased 26.6% year-on-year to MYR 52.03 billion in April, slower than 36.4% in the previous month. Economists had expected an increase of 38%. This increase was mainly driven by higher exports of electrical and electronic products, crude petroleum, chemicals and chemical products, refined petroleum products and liquefied natural gas.
Similarly, imports surged 27% annually in April to MYR 42.80 billion, following a 45.3% gain in the previous month. This was mainly due to higher imports of intermediate goods. Economists were looking for an increase of 29.9%. Month-on-month, exports and imports decreased by 12.4% and 5.1%, respectively in April.
Thus, the trade balance showed a surplus of MYR 9.22 billion in April, registering its 150th consecutive month of trade surplus since November 1997. However, the trade surplus was smaller than the MYR 14.32 billion recorded in the previous month.
For the January to April period, exports increased by 29.7% over a year earlier to MYR 210.74 billion while imports climbed 32.8% to MYR 162.58 billion. During the period, the trade surplus stood at MYR 48.15 billion.
The strong recovery in Asian demand, along with last year's low base, has helped Malaysia in delivering such amazing export performance in recent months, DBS Bank said in a note today ahead of the release of the data.
Going forward, such strong export growth would start to moderate in the second half of the year, the bank said, as policy tightening is expected to take its toll on domestic demand in the region. Further, the weakness stemming from the European debt crisis may start to impact export performance from the third quarter onwards.
Malaysia's economy grew at the fastest pace in a decade in the first quarter, prompting the central bank to hike its key interest rate for the second time this year. Gross domestic product grew 10.1% annually in the first three months of the year, faster than the 4.5% growth in the previous quarter.
Malaysia’s April Exports Rise for Fifth Month on Electronics
By Shamim Adam and Michael Munoz
June 4 (Bloomberg) -- Malaysia’s exports rose for a fifth month in April as producers shipped more electronics and commodities to customers in China, the U.S. and Europe.
Asia’s rebound is outpacing the rest of the world as companies from Nissan Motor Co. to Malaysian Pacific Industries Bhd. increase overseas shipments. Still, the recovery may slow as Europe’s debt crisis hurts consumer and business confidence in advanced economies, and a weaker euro makes Asian exports more expensive.
“The anticipated slowdown in the Eurozone would have a direct impact on Malaysia, but given the resilience seen in commodity exports for the past few months, we would maintain our optimistic view on Malaysia’s exports growth potential,” Selena Ling, head of treasury research at Oversea-Chinese Banking Corp. in Singapore, said in a report before the trade data.
The Malaysian ringgit is Asia’s biggest gainer against the U.S. dollar and the euro this year. It has climbed 4.5 percent against the dollar and gained 23.5 percent against the common European currency.
Growth Accelerates
The appreciation of the ringgit isn’t likely to affect exporters, International Trade and Industry Minister Mustapa Mohamed said May 14.
“So long as the currency reflects the underlying fundamentals, it’s not of concern to us,” central bank Governor Zeti Akhtar Aziz said this week. “As our macroeconomic fundamentals remain strong and resilient, the strength of the currency reflects those conditions.”
Rising exports and manufacturing helped Southeast Asia’s third-largest economy expand at the fastest pace in a decade last quarter, allowing the central bank to raise interest rates ahead of most of its Asian neighbors this year. Zeti raised the benchmark overnight policy rate to 2.5 percent from 2.25 percent on May 13, after a report showed gross domestic product expanded 10.1 percent in the three months ended March 31.
“Strong export growth would start to moderate in the second half of the year as policy tightening is expected to take its toll on domestic demand in the region,” Irvin Seah, an economist at DBS Group Holdings Ltd. in Singapore, said before today’s report. “Moreover, weakness arising from the sovereign debt crisis in European could also start to weigh in on export performance from the third quarter onwards.”
Malaysia’s imports rose 27 percent in April from a year earlier. The trade surplus narrowed to 9.22 billion ringgit from 14.33 billion ringgit in March.
--Editors: Stephanie Phang, Alan Soughley
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.ne
The surplus is lower than the RM14.35 billion recorded in March, 2010.
However, total exports in April 2010 rose 26.6 per cent, year-on-year, to RM52.03 billion while imports surged 27 per cent to RM42.8 billion.
Total trade expanded 26.7 per cent to RM94.83 billion compared with April 2009, said the ministry in a preliminary release.
On a month-on-month basis, exports and imports shed 12.4 per cent and 5.1 per cent, respectively, which resulted in total trade decreasing 9.3 per cent.
Total trade between January and April 2010 increased 31 per cent to RM373.32 billion.
During the same period, exports rose 29.7 per cent to RM210.74 billion while imports rose 32.8 per cent to RM162.58 billion, resulting in a trade surplus of RM48.15 billion.
MITI said April's higher exports of RM10.92 billion, from a year ago, was largely contributed by higher exports of electrical and electronic (E&) products which rose 21.6 per cent or RM3.67 billion.
It was followed by crude petroleum (93 per cent or RM1.35 billion), chemicals and chemical products (26.6 per cent or RM698.1 million), refined petroleum products (50.4 per cent or RM644.9 million) and liquefied natural gas (33.2 per cent or RM643.5 million).
Singapore, China, United States, Japan and Hong Kong were the top five export destinations, accounting for 51.4 per cent of Malaysia's total exports.
Exports to Asean expanded 29.6 per cent to RM13.58 billion, from a year ago, accounting for 26.1 per cent of Malaysia's total exports in April 2010.
Meanwhile, April's higher imports were mainly due to increased imports of intermediate goods, said the ministry.
Major import products which contributed to the significant increase in imports were E&E products valued at RM15.89 billion (37.1 per cent of total imports), chemicals and chemical products at RM4.05 billion (9.5 per cent), machinery, appliances and parts at RM3.54 billion (8.3 per cent) and manufactures of metal at RM2.41 billion (5.6 per cent).
The ministry also said 54.6 per cent of Malaysia's imports originated from China, Japan, Singapore, the United States and Thailand.
Saturday June 5, 2010
April exports up 26% on higher demand for E&E products
By DANNY YAP
danny@thestar.com.my
PETALING JAYA: Trade figures, released yesterday by the International Trade and Industry Ministry showed total exports in April rose 26.6% year-on-year to RM52.03bil, while imports surged by 27% to RM42.8bil.
Moreover, trade in April this year expanded by 26.7% to RM94.83bil, compared with April last year.
Trade surplus was valued at RM9.22bil, making it the 150th consecutive month of trade surplus since November 1997.
On a month-on-month basis, exports and imports decreased by 12.4% and 5.1% respectively. Total trade was 9.3% lower.
The increase in exports in April of RM10.92bil from a year ago was largely attributed to higher exports of electrical and electronic products (E&E), which increased by 21.6% or RM3.67bil, crude petroleum (93% or RM1.35bil) , chemicals and chemical products (26.2% or RM698.1mil), refined petroleum products (50.4% or RM644.9mil) and liquefied natural gas (33.2% or RM643,5mil).
Singapore, China, the United States, Japan and Hong Kong were the top five export destinations, accounting for 51.4% of Malaysia’s total exports.
Total imports in April increased by 27% to RM42.8bil from April 2009 due mainly to higher imports of intermediate goods.
Total trade during the period January to April increased by 31% to RM373.32bil.
During the same period, exports increased by 29.7% to RM210.74bil, while imports rose 32.8% to RM162.58bil, resulting in a trade surplus of RM48.15bil.
RAM Holdings Bhd group chief economist Dr Yeah Kim Leng said the export and import figures fell slightly below RAM’s expectation.
Yeah said for April the increase in exports of 26.6% year-on-year was on the lower end of RAM’s expectation, which was range bound between 25% to 30%, while the increase in imports for April of 27% year-on-year was also within the lower range of RAM’s expectation bewteen 25% to 35%.
Yeah said it was difficult to gauge Malaysia’s trade performance over one month.
“Going forward, RAM expects Malaysia’s trade performance to improve further over the next four to six months,” he said.
RHB economist Peck Boon Soon also said Malaysia’s trade figures for April fell below RHB’s expectations.
“For exports, we expected an increase of 30% and imports an increase of 32%,” he said.
Going forward, Peck said there were worrying global economic trends could dampen demand.
“The Euro debt crisis is still on-going and demand from China, especially retailing end is slowing down and may potentially have an adverse effect on exports level worldwide, including Malaysia,” he said.
By K.P. Lee
UPDATE: Malaysia April Exports +26.6% On-Year, Miss Target
Of DOW JONES NEWSWIRES
KUALA LUMPUR (Dow Jones)--Malaysia's exports fell in April from a month earlier due to seasonal factors--and expanded more slowly than expected in annual terms--but economists say they still expect export and economic growth to be on target for the full year.
Data from the Ministry of International Trade and Industry showed Friday that the trade-driven economy's exports grew 26.6% from a year earlier to MYR52.03 billion ($15.92 billion). That was less than the median forecast of 36.0% growth in a Dow Jones Newswires poll of 15 economists.
CIMB Chief Economist Lee Heng Guie said the data were not cause for concern, as the timing of shipments could have played a part after March exports grew well ahead of expectations.
"We are keeping our forecast of 17.5% export growth for this year," Lee said. "The pace of growth appears to be slowing but all export sectors are still showing growth. At this pace, we think second-quarter export growth of 20%-22% on year is attainable, and pretty much within expectations."
Exports fell by 12.4% in April from a month earlier, the ministry said. Exports in March had surged 36.4% on-year, beating economists' expectations.
David Cohen, director of Asian economic forecasting for Action Economics, said export growth will likely be sustained through May.
"I wouldn't get too upset with the April numbers; it's the usual month-to-month volatility. If there's any spillover from the European financial turmoil, it will be seen in June's numbers first," he said.
Economists generally expect Malaysia's exports to grow in the mid-teens this year, supported by last year's low base as well as stronger demand for commodities and electrical products as the global economy recovers.
International Trade and Industry Minister Mustapa Mohamed told Dow Jones Newswires last month that export growth for the full year would likely be in double digits--faster than the government's forecast of 7%--driven by stronger demand from Asia's emerging economies.
The ministry attributed the rise in April exports to a 21.6% increase in shipments of electrical and electronic products, which account for almost 40% of Malaysian exports. The export value of crude petroleum nearly doubled from a year earlier, while sales of chemicals and chemical products rose 26.2% on-year.
Imports rose 27.0% on-year to MYR42.80 billion due to higher shipments of intermediate goods, the ministry said, below the poll's median forecast of 30.5% expansion. From a month earlier, imports fell 5.1%.
Malaysia chalked up a trade surplus of MYR9.22 billion for April, lower than March's MYR14.35 billion.
A "month-on-month pullback has historically been observed in April after a seasonal surge in March, which translates to a slightly slower expansion year-on-year," Citigroup economist Kit Wei-Zheng had said ahead of the trade data announcement.
Slower export growth for Malaysia in April(BT)
MALAYSIA’S exports grew at a slower-than-expected 26.6 per cent in April, an indication that the economy in the second quarter may not better the achievements in the first quarter.
The Ministry of International Trade and Industry (Miti) said exports totalled RM52.03 billion while imports were up 27.0 per cent to RM42.80 billion.
Total trade in April expanded 26.7 per cent to RM94.83 billion compared with April 2009.
Compared to March, exports and imports fell 12.4 per cent and 5.1 per cent respectively.
Miti said the increase in exports was largely due to higher exports of electrical and electronic (E&E) products which increased by 21.6 per cent, crude petroleum (93 per cent), chemicals and chemical products (26.2 per cent), refined petroleum products (50.4 per cent), and liquefied natural gas (LNG) (33.2 per cent).
Standard Chartered Bank economist Alvin Liew said although most sectors enjoyed double-digit growth, many contracted quite significantly on a non-seasonally adjusted basis.
He said the slower export growth (compared to imports) made the difference for the Malaysia trade surplus in April, recording just RM9.2 billion, the first time the trade surplus fell below 10 billion since November 2009.
“The April export data still points to a decent start to second quarter economic performance … and the second quarter economic expansion is unlikely to outperform the first quarter.”
According to Miti, Singapore, China, the US, Japan and Hong Kong were the top five export destinations, accounting for half of Malaysia’s total exports.
Exports to the European Union (EU) rose 28.3 per cent while exports to the US saw a 6.0 per cent increase year-on-year, apart from exports to Japan which jumped 38.4 per cent.
Malaysian Exports Growth Slows In April
RTTNews) - Malaysia's exports increased at a slower pace in April, a report by the Department of Statistics Malaysia showed on Friday.
Exports increased 26.6% year-on-year to MYR 52.03 billion in April, slower than 36.4% in the previous month. Economists had expected an increase of 38%. This increase was mainly driven by higher exports of electrical and electronic products, crude petroleum, chemicals and chemical products, refined petroleum products and liquefied natural gas.
Similarly, imports surged 27% annually in April to MYR 42.80 billion, following a 45.3% gain in the previous month. This was mainly due to higher imports of intermediate goods. Economists were looking for an increase of 29.9%. Month-on-month, exports and imports decreased by 12.4% and 5.1%, respectively in April.
Thus, the trade balance showed a surplus of MYR 9.22 billion in April, registering its 150th consecutive month of trade surplus since November 1997. However, the trade surplus was smaller than the MYR 14.32 billion recorded in the previous month.
For the January to April period, exports increased by 29.7% over a year earlier to MYR 210.74 billion while imports climbed 32.8% to MYR 162.58 billion. During the period, the trade surplus stood at MYR 48.15 billion.
The strong recovery in Asian demand, along with last year's low base, has helped Malaysia in delivering such amazing export performance in recent months, DBS Bank said in a note today ahead of the release of the data.
Going forward, such strong export growth would start to moderate in the second half of the year, the bank said, as policy tightening is expected to take its toll on domestic demand in the region. Further, the weakness stemming from the European debt crisis may start to impact export performance from the third quarter onwards.
Malaysia's economy grew at the fastest pace in a decade in the first quarter, prompting the central bank to hike its key interest rate for the second time this year. Gross domestic product grew 10.1% annually in the first three months of the year, faster than the 4.5% growth in the previous quarter.
Malaysia’s April Exports Rise for Fifth Month on Electronics
By Shamim Adam and Michael Munoz
June 4 (Bloomberg) -- Malaysia’s exports rose for a fifth month in April as producers shipped more electronics and commodities to customers in China, the U.S. and Europe.
Asia’s rebound is outpacing the rest of the world as companies from Nissan Motor Co. to Malaysian Pacific Industries Bhd. increase overseas shipments. Still, the recovery may slow as Europe’s debt crisis hurts consumer and business confidence in advanced economies, and a weaker euro makes Asian exports more expensive.
“The anticipated slowdown in the Eurozone would have a direct impact on Malaysia, but given the resilience seen in commodity exports for the past few months, we would maintain our optimistic view on Malaysia’s exports growth potential,” Selena Ling, head of treasury research at Oversea-Chinese Banking Corp. in Singapore, said in a report before the trade data.
The Malaysian ringgit is Asia’s biggest gainer against the U.S. dollar and the euro this year. It has climbed 4.5 percent against the dollar and gained 23.5 percent against the common European currency.
Growth Accelerates
The appreciation of the ringgit isn’t likely to affect exporters, International Trade and Industry Minister Mustapa Mohamed said May 14.
“So long as the currency reflects the underlying fundamentals, it’s not of concern to us,” central bank Governor Zeti Akhtar Aziz said this week. “As our macroeconomic fundamentals remain strong and resilient, the strength of the currency reflects those conditions.”
Rising exports and manufacturing helped Southeast Asia’s third-largest economy expand at the fastest pace in a decade last quarter, allowing the central bank to raise interest rates ahead of most of its Asian neighbors this year. Zeti raised the benchmark overnight policy rate to 2.5 percent from 2.25 percent on May 13, after a report showed gross domestic product expanded 10.1 percent in the three months ended March 31.
“Strong export growth would start to moderate in the second half of the year as policy tightening is expected to take its toll on domestic demand in the region,” Irvin Seah, an economist at DBS Group Holdings Ltd. in Singapore, said before today’s report. “Moreover, weakness arising from the sovereign debt crisis in European could also start to weigh in on export performance from the third quarter onwards.”
Malaysia’s imports rose 27 percent in April from a year earlier. The trade surplus narrowed to 9.22 billion ringgit from 14.33 billion ringgit in March.
--Editors: Stephanie Phang, Alan Soughley
To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.ne
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