MALAYSIA’S exports are expected to grow by 1.0-2.0% this year as external demand will be supported by resource-based products, a recovery in the global semiconductor sector and receding uncertainties from trade-related policies.
However, AmBank Research said the risk to its projection remained at this juncture as much depends on the severity and duration of the novel coronavirus outbreak.
Export growth accelerated to 2.7% year-on-year (yoy) in December 2019 from -5.5% yoy in November, supported by resource-based products, while imports rebounded by 0.9% from -3.6% yoy in November.
“As a result, the trade surplus widened to RM12.6 bil from RM6.5 bil in November. However, our overall trade performance in 2019 was tepid,” the research house said in a note today (Feb 5).
The stronger exports were broadly supported by resource-based exports such as petroleum products, up 36.5% yoy in December from -17.2% yoy in November, and palm oil and palm-based products which surged 34.2% yoy from -3.5% yoy in November.
Exports to China climbed 17.8% yoy in December last year from 4.1% in November,contributed by frontloading activities ahead of the festive season and growing optimism on the trade front.
Likewise, outbound shipments to the US accelerated to 15.1% yoy in December from 6.5% yoy in November, supported by non-resource products, which rose 17.5% yoy from 7.0% yoy in November. – Feb 5, 2020, Bernama
