Trade in January 2011

Malaysia Jan exports lower than expected
By Rupa Damodaran
rupabanerji@nstp.com.my
2011/03/05
EXPORTS slowed in January, dragged by the dull demand for Malaysia's electrical and electronics (E&E) products from its major markets like the US.

The lower-than-expected exports, imports and trade balance were also due to the Chinese New Year.

The International Trade and Industry Ministry (Miti) yesterday said total exports had risen by 3 per cent to RM54.04 billion compared with a year ago, while imports had grown 13.5 per cent to RM44.85 billion, resulting in a total trade of RM98.89 billion.

Compared with December 2010, overall exports, imports and total trade in January 2011 had decreased by 5.5 per cent.

Miti attributed the increase in exports in January to refined petroleum products, palm oil, crude petroleum, transport equipment, crude rubber, chemicals and chemical products, machinery, appliances and parts, rubber products and liquefied natural gas.

While exports to Asean, which accounted for 25.6 per cent of total exports, increased by 4.3 per cent, exports to China decreased by by 13.5 per cent.

Exports to Japan increased by 4.9 per cent mainly due to higher exports of crude petroleum, non-metallic mineral products, chemicals and chemical products, palm oil and LNG.

Exports to the European Union (EU) rose 4.3 per cent on higher orders for palm oil, crude rubber, manufactures of metal as well as optical and scientific equipment.

Exports to the US dipped 7.5 per cent, mainly due to slower sales of E&E products.

Imports in January grew by 13.5 per cent, mainly due to higher imports of intermediate goods (which form 69.4 per cent of total imports).

Bank of America Merrill Lynch economist Dr Chua Hak Bin described Malaysia's export growth as lacklustre. Malaysia's was behind regional countries, including Indonesia (24.7 per cent), Thailand (22.3 per cent), Singapore (20.9 per cent), Korea (17.9 per cent for February) and Taiwan (16.6 per cent).

"Electronic exports, in particular, are underperforming, contracting 19 per cent from a year ago," Chua noted.

HSBC Bank economists Wellian Wiranto and Namrata Mittal pointed out that exports of the mainstay electrical and electronic products had shown a discernible slowdown, pulling in just over RM17 billion in January, compared to a minimum of RM19.2 billion in the last six months of 2010.

They said that although Malaysia, as an exporter of crude oil, had shown receipts of about RM3 billion - higher than the previous months, it is unlikely to challenge the primacy of electronic goods in the country's export sector any time soon.


Exports are expected to increase in 2H2011
Written by admin on March 8th, 2011. Posted in Company Financial

Bursa Malaysia: Despite a slow start in January 2011, Malaysian exports is expected to rebound in coming months before picking up in the second half of the year.According to economists, the expected rebound in exports is due to improved consumer demand in the U.S. and arrival at the end of the credit to China tightening.According RESEARCH AND RHB chief chief economist Lim Chee Sing, numbers of exports from Malaysia to see an upward trend in coming months. January exports were relatively weak, registering a 3% year on year (yoy) growth years, compared with 4.6% in December 2010.
The contraction was mainly due to falling demand in the electrical and electronic (E & E), which constituted almost 40% of total exports. The fall in demand for E & E products is expected, since (the application) was a downward trend after the peak in 2H2010 due to the global situation (which vi) The tightening of credit policies in China and the debt crisis in Europe. However, I think it has reached the output queue before the consolidation in 2H2011, told The Edge Financial Daily.
He said Malaysia’s exports are expected to register nearly 6% growth in 1H2011, before sustaining a higher growth of 14% in 2H2011.This could be slightly on the optimistic side.
However, the recovery in the U.S. has accumulated with the best consumer spending in 4Q2010 due in part to quantitative easing. Jobs have also been increasing an average of 110,000 jobs created each month since January 2010. This has led to greater spending, leading to greater demand for products, said Lim. Lim added that the recovery was also building in Europe with the economically strong countries like Germany, France, Poland and provide a good mattress & # XF3 n debt plunged Greece, Espanaye Portugal.
As to China, demand for exports increased slightly in 4Q2010 despite the political credit crunch policies, and should gain momentum in 2H2011, he said.
Last Friday, the Ministry of International Trade and Industry announced that exports in January was down 3% yoy, from 4.6% a month earlier. The slowdown was mainly due to sluggish demand for E & E products, which contracted by 19% in January. E & E accounted for 32% of total exports in January.
E CIMB Research said Malaysia’s exports and E had fallen to a faster pace, compared with other countries that were still in positive growth territory. This raises the question of whether Malaysia is losing market share in this product group. There are indications that China is buying less of Malaysia, since it produces more for their own consumption, he said.
Exports of E & E products fell 19% yoy in January, compared with China’s growth of 32.3% and 18.3% in Korea. CIMB Research also said exports of electronics would face a tough road ahead, given the slow RECOVERY No demand, citing forecasts of Gartner Inc., 4.6% increase in semiconductor sales worldwide in 2011 from 31.5% in 2010.
However, kept its growth estimate of 8.5% for the year as the industrial and export activities are expected to be volatile due to seasonal demand and work shorter days 1T.

Meanwhile, K & N Kenanga Research said exports are expected to remain between 3% and 7% in 1H2011, compared with 26.1% a year earlier.
It the non-E & E, such as crude oil and palm oil grew by 18.2% in January, compared with 12.6% the previous month, due to the products b & # XE1, musicians and favorable oil prices amid lower export volume.

He added that exports of crude oil rose 21.8% in January compared with a contraction of 28.8% in the chaos that December.The Tunisia started in late December led to some supply concerns, which (in turn), led in part to increased demand for crude oil in the month January. The same rationale could be used to increase exports of refined petroleum products, K & N Kenanga Research said. With some of our major trading partners in Asia, including China, struggling to control inflaci