Malaysia Trade in October 2011

Malaysia’s Exports Rise More Than Estimated as Commodities Climb
December 09, 2011, 11:50 AM EST
By Chinmei Sung
Dec. 9 (Bloomberg) -- Malaysia’s exports grew faster than economists estimated in October as sales of commodities and energy products surged, a pace that may ease as the threat of a global recession curbs demand in coming months.
Overseas shipments climbed 15.8 percent to a record 63.6 billion ringgit ($20 billion) from a year earlier after gaining 16.6 percent in September, according to a trade ministry statement today. The median estimate of 18 economists in a Bloomberg News survey was for a 7.3 percent gain.
Rising overseas sales and investment helped Malaysia’s growth accelerate in the third quarter as the Southeast Asian nation weathered the deepening European crisis. Australia, Thailand and Indonesia have in recent months lowered borrowing costs to shield their economies as the outlook for Asian exports wanes, with Malaysia reporting yesterday industrial output growth eased to 2.8 percent in October.
“The slowdown in global growth momentum is likely to weigh on Malaysia’s exports growth prospect,” Gundy Cahyadi, an economist at Oversea-Chinese Banking Corp. in Singapore, said before the release. “Recent import data has signaled that domestic momentum may have weakened.”
Liquefied natural gas sales surged 82 percent, shipments of crude petroleum climbed 87 percent and palm oil gained 54.3 percent. Exports of electrical and electronics items fell 9 percent from a year earlier.
Malaysia’s imports rose 4.6 percent in October from a year earlier. The trade surplus widened to 13.22 billion ringgit from 9.63 billion ringgit in September.
--With assistance from Michael Munoz in Hong Kong. Editors: Stephanie Phang, Shamim Adam

Total trade hits RM1tril despite global slowdown
By Rupa Damodaran
bt@nstp.com.my
2011/12/10

Exports grew by 15.8 per cent, beating market expectations, while imports grew slower than expected at 4.6 per cent.
KUALA LUMPUR: Malaysia’s total trade crossed the RM1 trillion mark at RM1.05 trillion for the first 10 months of the year, marking a strong achievement during challenging global trading environment.
The International Trade and Industry Ministry (Miti), in releasing the data yesterday, said exports in October recorded the highest monthly value at RM63.57 billion.
Exports grew by 15.8 per cent, beating market expectations, while imports grew slower than expected at 4.6 per cent. Total trade expanded by 10.6 per cent to RM113.91 billion during the month.
Its minister Datuk Seri Mustapa Mohamed said the positive export performance made the six to seven per cent target for the ear “realisable”.
“Nonetheless, the ripple effect of the financial doldrums of the eurozone and the United States may hit Asia, and it is important for Malaysian manufacturers and exporters to be alert and be prepared for the challenges ahead,” Mustapa said.
Credit Suisse economist Wu Kun Lung said this was the fifth consecutive month that exports ad beaten the consensus forecast.
Strong commodity exports have enabled the trade surplus to widen to RM13.2 billion, up from RM9.6 billion in September.
According to Miti, the major contributors were chemicals and chemical products, the manufacture of metal and rubber products, which increased by 24.3per cent, 38.5 per cent and 23.7 per cent respectively.
The growth had offset the impact of the lower exports of electrical and electronic products, which declined by nine per cent.
Commodities, mainly liquefied natural gas, palm oil and crude and refined petroleum products, contributed 76.2 per cent to export growth in October.
In terms of markets, China topped the list, expanding by 37.1 per cent in October. Exports to Japan rose 29.6 per cent, mainly due to meeting post-tsunami and earthquake reconstruction needs and new demand arising from supply chain disruptions caused by floods in Thailand.

Malaysia's total trade to grow 88pc in 15 years
Business Times

2011/12/08
Malaysia trade outlook over the next 15 years is positive, with total trade expected to grow 88 per cent from US$325.3 billion from 2010 to US$552.8 billion in 2025.

HSBC Bank Malaysia Bhd trade and supply chain director Ng Wei Wei said the the country's merchandise trade volume in 2025 will account for 1.1 per cent of total global trade.

"Much of Malaysia's growth will be in commodities such as rubber, iron and steel and agricultural products," she told a news conference in KL yesterday.

Meanwhile, HSBC trade and supply chain regional head for Asia Pacific (ex Hong Kong and Macau) Simon Constantinides said world trade volumes are forecast to grow dramatically over the period, expanding 73 per cent by 2025.

He said intra-regional trade will become dominant with rapid expansion in exports and imports along South-South trade routes.


Key partners in Asia will help sustain strong growth in next 15 years
The Star
KUALA LUMPUR: While views have been that import-export markets are vulnerable to economic instability in the West, Malaysia's trade should trend upward, having key partners in Asia that would help sustain strong growth over the next 15 years.
Malaysia's trade is now dominated by five key players in Asia China, Singapore, Japan, Thailand and Indonesia with the first four achieving similar trade magnitude last year.
In HSBC Bank Malaysia Bhd's trade forecast quarterly update, it said trade with China would grow at an annualised rate of 6.35% by 2025, and with India at 6.29%. Trade with Latin America countries like Brazil, Argentina and Mexico would increase by 7.51%, 6.83% and 7.36% respectively.

Trade corridors with Qatar and Egypt looked promising as well, although their volumes are lowest at US$1.4bil and US$2.4bil.
Ng Wei Wei: ‘HSBC will remain bullish about the outlook of the country.’
In the next five years, Malaysia would have a trade growth of 5.1%, accounting for around 1.1% to 1.2% of world trade. By 2025, it would achieve 88% more trade volume from US$325.3bil end of 2010 to US$552.8bil.
In the undercurrent of Malaysia's economic resilience are also the trade trends and emerging corridors with China, Vietnam and India.
HSBC forecasts Malaysian oil exports to China to grow by 7.5% in value, or 176% in volume, annually over the 15-year period.
India is coming up to be a key export corridor for food and agriculture industries, setting the annualised growth rate at 12.7% in value or 430% in volume. In turn, the volumes of India's chemicals and pharmaceuticals imported into Malaysia are projected to grow 135%.
Imports from Vietnam will rise notably in the iron and steel sector at 9.3% annually, while the rubber and plastics sectors will hit 9.9%.
According to HSBC Bank director of trade and supply chain Ng Wei Wei, driving regional trade would be important and commodities would be a key puller for the economy. Another driving force would come from Government projects such as those under the Economic Transformation Programme.
“Barring what is happening in the global environment, HSBC will remain bullish about the outlook of the country because of what the Government is doing domestically as well as the shift in the way trade is conducted now.
“People are now moving and looking into Asia,” she said at a briefing on HSBC's updates on the new patterns in trade flows into Asia.
Ng added that the key anchors for the economy would be commodities, rubber, steel and iron as well as agricultural products.
China's demand will continue to spur trade in Asia while India's consumption and investments in Asean and beyond contributes more resilience.

“China and India are also moving into Africa and Latin America. They are very aggressive in going out to wherever they can to expand their infrastructure opportunities. It's not about consumer products anymore,” said Hongkong and Shanghai Banking Corp Ltd regional head trade and supply chain for Asia (ex-Hong Kong and Macau) Simon Constantinides.

Malaysia October exports up 15.8%, outlook unclear
http://www.mysinchew.com/node/67565r
BusinessNews 2011-12-09 13:56
KUALA LUMPUR, December 9, 2011 (AFP) - Malaysia said Friday its economically vital exports grew 15.8 percent on-year in October to a record high but warned trade could slow next year due to global uncertainty.
The trade ministry said the value of Malaysian exports, the main engine of the Southeast Asian nation's economy, hit a fresh high of 63.57 billion ringgit ($20.33 billion).
Despite weakened US and European markets, export growth has gained pace this year thanks to steady shipments of key commodities such as palm oil, rubber and energy products.
Imports for October, meanwhile, rose to 50.35 billion ringgit, up 4.6 percent year-on-year.
Total trade for the first 10 months climbed to 1.05 trillion ringgit, up 8.8 percent from the previous period, with exports growing to 577.16 billion ringgit over the period, up 9.1 percent.
The trade ministry said exports were boosted by continued growth in demand from Southeast Asia and China.
Exports to the United States slipped 5.5 percent year on year while those to the European Union were up five percent.
"Nonetheless, the ripple effect of the financial doldrums of the eurozone and the USA may hit Asia and it is important for Malaysian manufacturers and exporters to be alert and be prepared for the challenges ahead," it warned.
Yeah Kim Leng, chief economist with financial research firm RAM Holdings, said Malaysia must nurture domestic and regional demand to offset any impact from Europe and the United States.
"Malaysia has to contend with the uncertain demand that is likely to hit next year due to the prospect of a recession," he told AFP.
Malaysian exports in October were led by chemical, metal, and rubber products, as well as liquefied natural gas and palm oil.
Exports to Southeast Asia, which accounted for almost a quarter of the total in October, rose 16.2 percent year on year to 15.8 billion ringgit.
Shipments to China rose 37.1 percent to 8.66 billion ringgit, while exports to Japan also rose.


Trade exceeds RM1 trillion, spurred by Asian market
Saturday December 10, 2011
KUALA LUMPUR: Asian market spurred Malaysia's total trade between January and October to breach RM1 trillion mark with exports clinching 15.8% growth, the highest monthly figure ever recorded.
Exports surged by 9.1% to RM557.16bil while imports rose 8.5% to RM474.72bil, bringing total trade to RM1.052 trillion, up by 8.8%. This resulted in a trade surplus of RM102.44bil.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed, in announcing the trade figures yesterday, said exports maintained a steady growth momentum, recording RM63.57bil in October, the highest monthly exports ever registered. This was up by 15.8% compared with a year ago.
“The positive export performance for the past 10 months makes Malaysia's export target for the year set at between 6% and 7% realisable,” he said in a statement.
However, ripple effects from the eurozone and the US financial doldrums may hit Asia. Hence, it was important for Malaysian manufacturers and exporters to be on alert and be prepared for the challenges ahead, he said.
Mustapa said imports rose 4.6% to RM50.35bil while total trade expanded by 10.6% to RM113.91bil.
Compared with September, total trade, exports and imports in October were higher by 5.7%, 8.3% and 2.6% respectively, Mustapa said.
He said manufactured exports, which accounted for 64.8% of total exports in October, increased by 2.2% from a year ago. Overall, manufactured goods contributed 10.5% to October exports growth.
The major thrust was provided by chemicals and chemical products, metal manufactures and rubber products, which surged by 24.3%, 38.5% and 23.7% respectively, and helped offset the impact of the lower exports of electrical and electronics (E&E) products, which slid by 9%.
Commodities, mainly liquefied natural gas (LNG), palm oil, crude and refined petroleum products, contributed 76.2% to export growth in October.
Mustapa said exports to Asean countries stood at RM15.8bil, up by 16.2% from last year. This accounted for 24.8% of Malaysia's total exports in October.
He said higher exports were registered for refined petroleum products, crude petroleum, chemicals and chemical products, palm oil, metal manufactures, tin, iron and steel products, optical and scientific equipment and non-metallic mineral products.
He said exports to all Asean countries, except for Laos, registered growth, with the strongest seen to Indonesia, Thailand, the Philippines and Vietnam.

In October, exports to China continued to thrive, expanding 37.1% year-on-year to RM8.66bil, with a large product range that included commodities and manufactured goods such as E&E products, metal manufactures, chemicals and chemical products and processed food, he said.
Mustapa said Japan remained Malaysia's third-largest export destination. From meeting post-tsunami and earthquake requirements to new demands arising from supply chain disruptions caused by the massive floods in Thailand, exports to Japan rose 29.6% to RM7.52bil.
Increased exports were seen for LNG, machinery, appliances and parts, palm oil, wood products, chemicals and chemical products as well as optical and scientific equipment.
The minister said exports to the European Union increased 5% to RM6.49bil due mainly to higher exports of metal manufactures and palm oil. He said Germany, the Netherlands and France remained the top three export markets.
The United States retained its position as the fourth-largest export market, with 7.9% share of Malaysia's total exports in October, he said.
The year-end festive season seemed to have little impact on increasing demand, he said, adding that encouraging export growth was seen in October to green field markets such as India, Bangladesh and Nigeria.
He said total imports in October increased 4.6% to RM50.35bil from October last year. Intermediate goods worth RM31.99bil accounted for 63.5% of total imports, capital goods 15.5% and consumption goods 7.2%, he said. – Bernama