Trade in July 2011

Malaysia exports up 7.1% in July
(AFP) – 1 hour ago
KUALA LUMPUR — Malaysia said its exports, the mainstay of the country's economy, increased 7.1 percent year-on-year in July, easing from the previous month as the global economy slows down.
The trade ministry on Friday said exports grew to 59.24 billion ringgit ($19.80 billion) while imports reached 49.79 billion ringgit, up 2.9 percent year on year.
The export growth was led by higher shipments of palm oil, liquefied natural gas, chemicals and chemical products, which accounted for more than one-fifth of all exports.
The pace of exports was slower than June's 8.6 percent year-on-year increase and down from the 13.5 percent growth seen in July 2010.
Yeah Kim Leng, group chief economist with financial firm RAM Holdings, called July's export performance "moderate, within expectation" as Europe and the United States struggle with debt crises and Japan recovers from its earthquake and tsunami disasters.
"The gradual pace is reflective of the turbulence of the global economy," he told AFP. "Of course there will be a couple of months that will be turbulent, where uncertainty persists."
Total trade in the January-July period stood at 724.09 billion ringgit, up 7.7 percent from the same period last year, while exports increased 6.9 percent over the seven-month period.
The top five export destinations in July were China, Singapore, Japan, the Unite States and Thailand.
Exports to the United States declined by 14.9 percent to 4.77 billion ringgit in July due partly to lower shipments of electrical and electronic products, a key export to that market.
Last month, the central bank announced Malaysia's economy grew 4.0 percent in the second quarter, its slowest pace in nearly two years, on softening global export demand and a moderation in public sector spending.
It has forecast full-year growth of between five and six percent.
Although hit hard by the global slowdown, Southeast Asia's third-largest economy rebounded with an impressive 7.2 percent growth in 2010.
Since taking power in 2009 premier Najib Razak has unveiled a series of measures to stimulate the economy, including promises of major infrastructure projects and financial market liberalisation.


Malaysia July exports to ease on slower electronics demand
By Rupa Damodaran
rupabanerji@nstp.com.my
2011/09/08
KUALA LUMPUR: The growth of Malaysia's exports is due to ease in July, in line with slower global demand for electronics.
Economists polled by Business Times have differing views on the growth pace from June's 8.6 per cent, as some think that strong commodity exports could cushion weaker electronics shipments.
Exports are expected to grow by an average of 6.58 per cent year-on-year, imports by 5.93 per cent year-on-year and the trade balance to average RM7.74 billion.

The International Trade and Industry Ministry (Miti) will announce the details today. Gundy Cahyadi of OCBC Bank thinks it is unlikely that export growth would be better than June.
"With slowing global growth momentum, we now expect to see soft figures for the rest of the year, although the July export data from the region has been somewhat modest."
The August-October export growth figures may be crucial for a better feel of Malaysia's overall expansion in 2011, he added.
Bank of America Merrill Lynch said electronic exports are likely to contract for the 11th straight month.
Kit Wei Zheng of Citi agreed, saying the E&E (electric & electronics) sector will remain soft given the continued cyclical slowdown in electronics, though supply disruption from the Japan earthquake have begun to wane.
"China registered a surge in imports from Malaysia though exports to Singapore could provide a drag as Singapore registered sharply slower imports from Malaysia."
Commodity exports are expected to continue to provide the lift as shown by the combined value of palm oil and palm kernel oil exports which jumped 56.3 per cent year-on-year in July after surging 51.9 per cent in June.
Irvin Seah of DBS Bank expects a fairly healthy expansion.
"Yet, downside risks remain considering the high base last year, the currency appreciation and the weakness in global demand.
"This is particularly true for key electronics exports, which is expected to languish given weak demand."
Seah said much depends on how the economic situation pans out in developed economies in the coming months. Hope is also pinned on Japan's reconstruction effort and resilient demand in Asia.
"Festive season demand towards the end of the year could also provide additional boost."

Business
7-8pc trade growth expected, says Mustapa
By Lee Wei Lian
Sep 09, 2011
KUALA LUMPUR, Sept 9 — Malaysia’s total trade is expected to grow between seven and eight per cent this year said Datuk Seri Mustapa Mohamed today.
The Minister of International Trade and Industry added however that if the global economy improved the country could achieve a higher trade growth rate.
Malaysia’s trade growth in the first seven months of this year was 7.7 per cent with import growth outpacing export growth 8.7 per cent to 6.9 per cent.
“We are confident to achieve 7-8 per cent growth based on the first seven months of this year,” said Mustapa . “Although US and Europe are facing uncertainty, Malaysia is doing reasonably well.”
Trade grew fastest with India at 37.8 per cent, followed by Japan at 18 per cent and Germany at 16.9 per cent.
China was the largest export destination absorbing 12.8 per cent of Malaysia’s exports, followed by Singapore at 12.7 per cent and Japan at 11.1 per cent.
Exports of manufactured goods rose 0.4 per cent while mining exports rose 17.3 per cent and agricultural exports rose 35.2 per cent.


TheEdge_Malaysian trade still resilient, says Mustapa
Written by Tashny Sukumaran of theedgemalaysia.com
Friday, 09 September 2011 12:41
KUALA LUMPUR: Malaysia's trade performance from January to July continued to maintain a good trajectory, with trade expanding by 7.7% to RM724.09 billion compared with a year ago, said Minister of International Trade and Industry Datuk Seri Mustapa Mohamed.
Trade data for January to July showed a 6.9% growth in exports and 8.7% growth in imports on-year. Total exports increased to RM396.35 billion while imports expanded to RM327.75 billion, he said.
"We have done reasonably well, but not as well as 2010," said Mustapa, adding that the country's resilient trade performance was due to Malaysia's diversified markets and broad product base.
Speaking to reporters on Friday, Sept 9, Mustapa said that there was good export growth in all major markets except for Hong Kong and the US, attributing it to a lower rate of electrical and electronic equipment exports.
Looking forward, the government expects Malaysia's trade to grow but at a slower rate than the one recorded in 2010, he said.
"We are confident of achieving a 7% to 8% growth rate, but are unlikely to achieve figures like 10%. It is doable, but requires that the world economy improves,” he said.
Mustapa said the numbers reached were consistent with import figures, and due to consistent trade with Asia and Asean nations and a diverse product base, Malaysia would continue to perform resiliently.
Large regional economies such as China, India and Indonesia were expected to not only provide markets for the nation's exports, but also serve as a major source of investment, TECHNOLOGY [] and business partnership.
The nation recorded its 165th consecutive month of trade surplus in July, with exports and imports expanding at 7.1% and 2.9% compared with July last year. The main contributors to export growth are palm oil, liquid natural gas, chemicals and chemical products.
Other products supporting growth were crude petroleum, machinery, appliances and parts, and manufacturers of metal, rubber products, processed food and textiles and clothing.
Mustapa also said that the implementation of Economic Transformation Programme (ETP) projects would generate high value exports in the areas of E&E, oil and gas, medical products, engineering design, business services and creative content.
Prime Minister Datuk Seri Najib Razak had on Thursday said the combined value of the ETP initiatives was now RM171.21 billion in investment, with RM228.55 billion in contribution to the gross national income.
The second half of 2011 is expected to see better trade performance with the year-end festive seasons as retailers begin to restock and manufacturers start inventory preparation, said Mustapa.

The Star_Malaysia’s trade flourishes and hits RM724bil
Friday September 9, 2011
PETALING JAYA: Malaysia's trade continued to flourish, rising 7.7% year-on-year in the first seven months this year to a total RM724.09bil.
Exports climbed 6.9% to RM396.35bil from RM370.9bil a year earlier, while imports rose 8.7% to RM327.75bil from RM301.54bil.
In a statement issued by the International Trade and Industry Ministry (Miti), Minister Datuk Seri Mustapa Mohamed noted that trade surplus stood at RM68.6bil.
Trade in July was up 5.1% year-on-year to RM109.04bil, and registered a surplus of RM9.45bil. Malaysia's trade has been in surplus since November 1997.
Exports in July increased 7.1% year-on-year to RM59.24bil while imports were 2.9% higher at RM49.79bil. Exports and imports in July 2010 were RM55.33bil and RM48.39bil, respectively.
Miti said the July exports mainly comprised electrical and electronics products, valued at RM20.62bil, while palm oil shipments were at RM6.02bil.
Other major exports included liquefied natural gas, chemical products, crude petroleum, refined petroleum products, machinery and appliances, metal products as well as optical and scientific equipment.
The biggest export markets for July were China and Singapore, which took in RM8.08bil and RM7.25bil worth of goods.
The other major export markets were Japan, the United States, Thailand, India, Hong Kong, Republic of Korea, Taiwan and the Netherlands.

Malaysia records RM9.45b trade surplus in July 2011
http://www.freemalaysiatoday.com/2011/09/09/malaysia-records-rm9-45b-trade-surplus-in-july-2011/
September 9, 2011
KUALA LUMPUR: Malaysia recorded its 165th consecutive month of trade surplus in July 2011 of RM9.45 billion with export and import expanding at 7.1% and 2.9% respectively compared with July 2010.
In a statement today, International Trade and Industry Minister Mustapa Mohamed, said for July 2011, total trade grew by 5.1% to RM109.04 billion compared with a year ago.
Export for the month has registered RM59.24 billion while import grew to RM49.79 billion, he said.
On a month-to-month basis, export in July 2011 increased by 2.4% and import fell by 0.4%.
Palm oil, liquefied natural gas, chemical and chemical products were the main contributors to the export growth in July.
Mustapa said other products supporting the growth were crude petroluem, machinery, appliances and parts, manufactures of metal, rubber products, processed food, textiles and clothing.
He said Malaysia’s trade performance for the first seven months of the year continued to maintain a growth projectory with trade expanding by 7.7% to RM724.09 billion compared with the corresponding period in 2010.
“This was supported by a strong growth of 6.9% in export and 8.7% in imports,” he said.
Mustapa said total exports increased to RM396.35 billion while imports expanded to RM327bil

Malaysia's trade growth to moderate
2011/09/10
KUALA LUMPUR: External shocks from Europe's financial crisis and faltering US economy are expected to dampen Malaysia's trade momentum with growth anticipated to moderate between 7 and 8 per cent this year compared with 18.3 per cent recorded in 2010.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said if there were some improvement in the global economy, then a 10 to 11 per cent growth was doable.
"But, for that we got to work extra hard on trade promotions," he told reporters after announcing the country's trade perfor-mance for July.
Malaysia's trade performance for the first seven months of 2011 continued to maintain a growth projectory with total trade expanding 7.7 per cent to RM724.09 billion compared with the corresponding period in 2010.
Total trade last year was valued at RM1.169 trillion, an increase of 18.3 per cent, from RM988.24 billion registered in 2009 and 1.2 per cent lower compared with RM1.183 trillion recorded in 2008, the highest total trade ever transacted by the country.
"US remains the biggest economy in the world accounting for 20 per cent of global output, so what happens there has an impact on Malaysia and many other countries as we are trade-dependent countries," he said.
Malaysia's trade to gross domestic product (GDP) ratio is more than 200 per cent.
"However, we have been fortunate as despite the fairly uncertain global environment, we have done reasonably well.
"Malaysia was able to cushion the impact due to its timely diversification.
"Asia is doing well. Asean, China and India would be key export destinations for the rest of this year," said the minister.
He said large regional economies such as China, India and Indonesia would not only provide markets for Malaysia's exports but also major source of investment, technology, and business partnership.
"With growing greenfield investments, it is expected that Malaysia's profile of exports, will undergo transformation towards high-tech and high value exports," he said.
Implementation of entry point projects under the government's transformation programme is expected to generate high value exports in the areas of electrical and electronics (E&E), oil and gas, medical products, engineering design, business services and creative content.

In the next few years, the profile of Malaysia's exports will be enriched to include more semiconductors, solar products, E&E machinery, energy saving devices, as well as medical equipment and devices. - Bernama


Saturday September 10, 2011
Higher manufacturing sales value
By JOHN LOH
johnloh@thestar.com.my
KUALA LUMPUR: The latest manufacturing sector figures released by the Statistics Department show the sales value expanding 10.8% in July to RM50.4bil from last year.
The five industries that supported this growth were refined petroleum products, semi-conductor devices, basic industrial chemicals, basic iron and steel, and rubber remilling and latex processing.
Both the number of employees and salaries paid in the manufacturing sector were down slightly month-on-month (m-o-m) by 0.3% and 2.1% respectively but rose year-on-year (y-o-y) by 3.4% and 9.6% respectively.
For the January-July period, the department said manufacturing sales value totalled RM341bil, higher by 10.8% from last year. The number of employees also rose 3.4% y-o-y to 1.02 million while productivity, as measured by average sales value per employee, climbed 7.2% y-o-y to RM334,414.
Meanwhile, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said during a briefing on the country's trade performance that Malaysia had weathered the current rough patch in the global economy relatively well.
“Despite the uncertainties in the United States and Europe, Malaysia has been quite resilient,” he said.
He forecast the trade growth to moderate to between 7% and 8% in 2011 from 10.8% in 2010. “We are confident about achieving a 7% to 8% trade growth this year. A 10% growth might be possible, but the world economy would have to bounce back first.”
Total trade for January to July stood at RM724.1bil, up 7.7% y-o-y while exports and imports grew 6.9% and 8.7% respectively to RM396.4bil and RM327.8bil.
Although exports to the United States dipped 4.7% m-o-m in July, indicative of the fragile economic situation there, Mustapa said Asia was expected to bolster demand for Malaysia's exports.
Mustapa said manufactured goods, which made up the bulk of Malaysia's exports at 68.3% for the period under review, grew the least compared with other sectors due to the slowdown in electric and electronic exports, which in turn contributed 50.5% to manufactured goods exports.
The slowdown was due to the relocation of manufacturing bases and shift in global supply chain for automatic data processing machines to lower cost producing countries.
Also, Malaysia has limited capacity to meet the current lucrative demand for feel-good gadgets such as mobile devices and communication equipment.
A more buoyant export sector was chemicals and chemical products, which grew 14.8% y-o-y to RM27bil. This was driven by accelerated demand in China, Vietnam, South Korea, and the Netherlands, owing to the rapid industrial and manufacturing development in those countries