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.