Malaysia's Trade in December 2009

Bloomberg

Malaysia’s Exports Increase as Government Predicts 2010 Rebound
e-mail this story print this story digg this save to del.icio.us
By Shamim Adam and Ranjeetha Pakiam

Feb. 5 (Bloomberg) -- Malaysia’s exports rebounded in December, climbing the most in 17 months amid a global economic recovery that led the government to predict higher overseas sales this year.

Malaysia is dependent on a global recovery and a revival in exports to spur growth after contracting in the nine months through September. The government has said the economy may expand more than the current 2 percent-to-3 percent forecast this year and the central bank is forecast by economists to raise interest rates from a record low as early as March.

“Exports will improve and are expected to post strong annual gains in the coming months,” Matthew Circosta, an economist at Moody’s Economy.com in Sydney, said before the report. “External demand is firming, particularly from China, as the economy strengthens.”

Exports may gain 3.5 percent this year, in part because of growth in demand for electrical and electronics goods and a “firming up of prices,” International Trade and Industry Minister Mustapa Mohamed said today.

The economy probably shrank 3 percent last year, Mustapa said yesterday. The government is confident of 5 percent growth in gross domestic product this year, Second Finance Minister Ahmad Husni Hanadzlah said last week.

China Demand

Shipments to China, Malaysia’s second-biggest market during the month, doubled in December from a year earlier, rising 99.3 percent, according to the trade report. Exports to Hong Kong surged 49.9 percent, while those to Singapore and Thailand also gained. Sales to the U.S. and Japan dropped.

“The acceleration in Chinese growth signals continued policy tightening,” Circosta said. “Any slowdown in Chinese demand would seriously harm the expansion of Malaysia’s exports.”

Sales of electrical and electronics products by companies including Malaysian Pacific Industries Bhd. and Unisem (M) Bhd. climbed 33.3 percent in December, compared with a 5.8 percent gain the previous month. Such goods made up 42 percent of total exports.


Oil, Gas Sales
Oil exports surged 77.2 percent, while liquefied natural gas sales slid 36.2 percent.

Malaysia’s imports rose 23.3 percent in December from a year earlier to 42.58 billion ringgit. The trade surplus was 12.1 billion ringgit.

Exports fell to 553.3 billion ringgit in 2009 from the year before, while imports contracted 16.6 percent to 434.9 billion ringgit, resulting in an annual trade surplus of 118.35 billion ringgit, the report showed.

Malaysia aims to negotiate or conclude free trade agreements with India, Chile and Australia this year to spur export growth, Mustapa said today. The country is also targeting Turkey and Gulf nations for such pacts, he said.

Malaysia had 32.6 billion ringgit of approved factory investments last year, about half the amount it attracted in 2008, Mustapa said yesterday.

--With assistance from Michael Munoz in Hong Kong. Editors: Stephanie Phang, Lily Nonomiya

To contact the reporter on this story: Shamim Adam in Singapore at +65-6212-1102 or sadam2@bloomberg.net

To contact the editor responsible for this story: Chris Anstey at +81-3-3201-7553 or canstey@bloomberg.net

-0- Feb/05/2010 10:01 GMT





Malaysia exports climb 18.7pc in Dec
By Rupa Damodaran
Published: 2010/02/06


MALAYSIAN exports climbed in December, lifted by a recovery in external demand for electrical and electronics (E&E) products, which has helped improve trade performance for full year 2009.

The 18.7 per cent growth in December, drawing receipts of RM553.3 billion for the whole year, has now placed exports on an upward trend, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

"We managed to contain the decline at the end of 2009 and now expect exports to grow by 3.5 per cent this year as it (remains) on the recovery path," he told a media briefing to announce the country's 2009 trade performance in Kuala Lumpur yesterday.

Total trade last year contracted by 16.6 per cent to RM988.24 billion, from the trillion ringgit total in the previous years. It was, however, better than the 20 per cent contraction which the Malaysia External Trade Development Corp had projected earlier.

Exports declined by 16.61 per cent and imports fell 16.62 per cent to RM434.9 billion, while the trade surplus dipped by 16.58 per cent to RM118.4 billion.

Apart from a slide in demand for E&E, which account for 41.2 per cent of total exports, the lower prices of commodities such as crude palm oil and crude petroleum, which fell by more than US$100 per tonne (RM344) and US$62 (RM213) per barrel respectively, also affected last year's trade performance.

Mustapa said growth in exports to Asian markets exceeded that to traditional markets of the Euro-pean Union and North America.

China's share of Malaysia's total exports, for instance, almost doubled that of last year to 12.2 per cent compared with 6.6 per cent in 2005.

If exports to Hong Kong were combined with that of China, then China became Malaysia's largest export destination, accounting for 17.4 per cent of the total exports.

For 2009, Malaysia's top export markets were Singapore, China, the US, Japan and Thailand.

On the 2010 outlook, Mustapa said growth is imminent due to the low base effects of 2009, supported by an improving E&E sector and the firming up of commodity prices.

The Malaysian American Electronics Industry expects a turnaround in the global E&E industry by 2010, with demand picking up in personal computers, disc storage systems and mobile phones.
Some of the downside risks to the outlook may be due to uncertainties following the withdrawal of stimulus packages or China tightening its monetary policy which would curtail its imports.

The strengthening of the ringgit may also impact the competitiveness of Malaysia's exports, Mus-tapa warned.



THE EDGE _Malaysia’s December exports highest since Sept 2008
KUALA LUMPUR: Malaysia’s December exports rose to RM54.67 billion, the highest since September 2008, as exports of electrical and electronic products and crude petroleum picked up.

The Ministry of International Trade and Industry said today the exports were higher than the RM50.06 billion in November 2009 and RM46.07 billion in December 2008.
Imports in December 2009 were RM42.57 billion compared with RM41.18 billion in the preceding month of November and also above the RM34.53 billion in December 2008.
The trade surplus for December was RM12.09 billion.

For January to December 2009, exports totalled RM553.29 billion, a decline from the RM663.49 billion in 2008 while imports for 2009 were RM434.94 billion compared with RM521.61 billion in 2008.

Miti, elaborating on the external trade data, said Malaysia’s exports in December 2009 expanded by 9.2% to RM54.67 billion in the preceding month while imports rose 3.4% to RM42.58 billion on-month.

“On a year-on-year basis, exports expanded by 18.7% while imports rose by 23.3%. Consequently, total trade registered an increase of 20.7% from a year ago,” it said.
In the fourth quarter, exports expanded by 10.6% to RM159 billion while imports rose 8% to RM126.55 billion.

Asean bought RM14.22 billion or 26% of Malaysia's total exports in December. Among Asean countries, RM7.53 billion worth of goods were shipped to Singapore. This also pushed Singapore up the top of list of export countries.

MITI said China bought RM7.33 billion worth of products, mostly E&E products, crude petroleum, chemicals and chemical products, rubber products and liquefied natural gas.
Exports to the European Union were RM6.11 billion while exports to Japan were RM5.57 billion, to the US RM5.46 billion, and Hong Kong RM2.84 billion.


Forex: Malaysia Dec. Trade Surplus Widens
02/05/10 05:27 am (EST)

(RTTNews) - Friday, the Department of Statistics Malaysia announced that the trade surplus stood at MYR 12.1 billion in December, up from MYR 8.88 billion in November. This was the 146th consecutive month of trade surplus since November 1997. Economists expected a trade surplus of MYR 9.35 billion for December.

Exports increased 9.2% month-on-month to MYR 54.67 billion in December from MYR 50.07 billion in November. This was the highest monthly exports for 2009. At the same time, imports climbed 3.4% to MYR 42.58 billion.

On an annual basis, exports increased 18.7% in December, compared to the 3.3% fall in the previous month. Economists were looking for an increase of 12.5%. Meanwhile, imports grew 23.3% in December, faster than the 2.3% increase in November. Economists expected an increase of 21.5%.

In the fourth quarter, exports grew 10.6% sequentially to MYR 159 billion, while imports rose 8% to MYR126.55 billion. Year-on-year, exports and imports increased by 5.1% and 6.7%, respectively.



Business Time: Malaysia's exports rose 9.2pc in December

MALAYSIA'S exports for December 2009 expanded by 9.2 per cent to RM54.67 billion from the preceding month.

"This makes them the highest monthly exports for the year. Overall exports in 2009, however, dropped 16.6 per cent to RM553.3 billion," the Ministry of International Trade and Industry (MITI) said in a statement today.

It said total trade for 2009 was RM988.24 billion, a decrease of 16.6 per cent from 2008. Imports in 2009 fell by 16.6 per cent to RM434.94 billion.

Imports for December, however, saw an increase of 3.4 per cent to RM42.58 billion and as a result, a trade surplus of RM12.1 billion was recorded in December 2009, making it the 146th consecutive trade surplus since November 1997.

It said compared to December 2008, exports in December 2009 widened by 3.3 per cent while imports increased by 23.3 per cent.

MITI said compared with November 2009, the increase in exports in December 2009 was largely contributed by higher exports of manufactured goods (+6.4 per cent), particularly electrical and electronic machinery, appliance and parts as well as chemicals and chemical products.

"There were also higher exports of mining goods (+26.5 per cent), namely, liquefied natural gas, crude petroleum and refined petroleum products," it said.

Singapore, China, US, Japan and Thailand were the top five export destinations, accounting for 52.7 per cent of Malaysia's total exports.

Exports to Asean increased by 9.1 per cent to RM14.22 billion in December and accounted for 26 per cent of Malaysia's total exports.

"The increase was mainly due to higher exports of crude petroleum, electrical and electronic products and refined petroluem products.

"Year-on-year, exports to Asean increased by 33.5 per cent," it said.

Total imports in December 2009 increased by 23.3 per cent to RM42.58 billion from December 2008 mainly due to higher imports of intermediate and capital goods.
Saturday February 6, 2010
Exports up 9.25% to RM55bil in December, highest in 2009
By EDY SARIF


edy@thestar.com.my
KUALA LUMPUR: Malaysia’s export in December 2009 expanded by 9.25% to RM54.67bil from the preceding month, making it the highest monthly exports for last year, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
“For December too, imports increased by 3.4% to RM42.58bil,” he said at a briefing on Malaysia’s Trade Performance 2009 yesterday.

“As a result, a trade surplus of RM12.1bil was recorded in December 2009, making it the 146th consecutive month of trade surplus since November 1997.”

Mustapa said the increase in exports was largely contributed by higher exports of manufactured goods (6.4% growth), particularly electrical and electronic (E&E) products, machinery, appliances and parts as well as chemical products.

It was also attributable to higher exports of mining goods (26.5% growth) namely liquefied natural gas, crude petroleum and refined petroleum products, he said.
“Singapore, China, Japan, the United States and Thailand were the top five destinations, accounting for 52.7% of Malaysia’s total exports,” he added.
On the import statistics for December 2009, Mustapa said the figure had increased due mainly to higher imports of intermediate and capital goods.

“The total trade in 2009 was valued at RM988.24bil, a drop of 16.6% from 2008. During the same period, exports declined by 16.6% to RM553.3bil while imports were lower by 16.6% to RM434.94bil, resulting in a trade surplus of RM118.35bil,” he said.
On the outlook for 2010, Mustapa said the global economy was expected to expand by 3.9% year-on-year, with Asean five countries (Malaysia, Indonesia, the Philippines, Thailand and Vietnam) projected to grow by 4.7%.

“We believe Malaysia’s exports will continue the path of recovery in 2010 and increase by 3.5%, boosted by higher E&E demand and the better economy,” he said.
Mustapa said the ministry’s strategy to sustain export growth was to target fast-growing markets such as China, West Asia and India.

“We are also targeting new export markets such as Mexico, Brazil, Iran, Ghana, Uganda and Egypt.

“Apart from that, we will diversify into new niches in traditional markets such as manufacturing-related services, material for electronics, engineering supporting industry and also metal casting and stamping,” he said.

Mustapa said Malaysia aimed to negotiate and conclude free trade agreements with India, Chile and Australia this year to boost export.
It is also targeting Turkey and Gulf Cooperation Council countries for such pacts.

Kemerosotan eksport mungkin sudah berakhir
KUALA LUMPUR 8 Feb. - Kemerosotan dalam eksport mungkin sudah berakhir jika lonjakan 18.7 peratus tahun ke tahun pada Disember lepas, pertumbuhan dua angka sejak September 2008, merupakan petunjuk.

Lantunan yang lebih kukuh daripada yang diunjurkan sebanyak 12.5 peratus, mungkin tanda bahawa kesan pemulihan ekonomi boleh diatasi lebih awal daripada jangkaan, kata OSK Research dalam Kajian Pelaburan Ekuiti Malaysia.

Selain kesan asas yang rendah, ia berkata, lantunan ketara itu sebahagian besarnya disumbangkan oleh lonjakan dalam eksport barangan elektrik dan elektronik (+33.3 peratus), petroleum mentah (+77.2 peratus), petroleum bertapis (+37.5 peratus) dan kimia dan barangan kimia (+31.6 peratus).

Kecuali bagi gas asli cecair (-36.2 peratus) dan bulu (-0.2 peratus), semua kategori lain mencatatkan pertumbuhan besar, katanya.

Selari dengan peningkatan eksport, import melonjak 23.3 peratus tahun ke tahun, berbanding anggaran peningkatan 21.5 peratus. Barangan pengantara menyumbang 66.4 peratus daripada jumlah import, beralih kepada positif dengan pertumbuhan 18.8 peratus berbanding -4.4 peratus pada November 2009.

Eksport dan import masing-masing berkembang 9.2 peratus dan 3.4 peratus bulan ke bulan. Bagaimanapun bagi keseluruhan tahun, eksport dan import masing-masing susut 16.6 peratus, menyebabkan lebihan jumlah dagangan sebanyak RM118.4 bilion.
Sebahagian besar lantunan tahun ke tahun dalam eksport sebahagian dipacu oleh China (+99.3 peratus), Hong Kong (+49.9 peratus), Thailand (+64.0 peratus) dan Singapura (20.2 peratus).

Eksport ke Amerika Syarikat dan Jepun terus menguncup, masing-masing pada 0.5 peratus dan 33.3 peratus.

"Jika aliran semasa berterusan, kami yakin ASEAN akan menjadi pemacu utama pertumbuhan perdagangan luar. Walaupun Jepun dan Amerika Syarikat terus menjadi lima destinasi utama eksport Malaysia, ia mungkin diatasi oleh ASEAN suatu hari kelak," kata OSK Research.

Pemulihan dalam eksport itu juga mungkin menyokong jangkaan umum mengenai pertumbuhan keluaran dalam negara kasar (KDNK) pada suku keempat 2009, kata Kenanga Research dalam laporan berasingan.

Menerusi sokongan permintaan domestik yang semakin meningkat, dianggarkan KDNK meningkat kepada 2.8 peratus pada suku keempat 2009.

Ia berkata, momentum pertumbuhan eksport akan berterusan sekurang-kurangnya sehingga separuh pertama 2010 hasil sokongan permintaan yang kukuh dalam barangan elektrik dan elektronik serta pemulihan ekonomi dunia.

"Berdasarkan asas yang lebih tinggi pada separuh kedua tahun ini serta pemulihan global yang perlahan, kami menjangkakan pertumbuhan eksport akan meningkat bagi keseluruhan 2010 yang diunjurkan melantun ke 3.0," katanya.