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.
Tuesday, June 22, 2010
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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