Exports likely have remained resilient

KUALA LUMPUR: Malaysia’s exports likely remained resilient in June although base effects may lower the growth pace in the second half of the year, say economists.

A NST Business poll has projected June exports to have grown 18.7 per cent compared with the same month a year ago, imports at 20.34 per cent and the trade balance at average RM5.52 billion.

The International Trade and Industry Ministry will release the data today.

Exports surged 32.5 per cent in May supported by imports, with growth of 30.4 per cent.

Nomura Research said Asia exJapan’s exports — a bellwether of global demand — pointed to continued resilience.

“For eight of the 10 Asian countries, aggregate export value grew 8.7 per cent year-on-year in June and 8.2 per cent in the second quarter, similar to the 8.5 per cent pace in the first quarter.”

Asia’s export expansion remains broadly-based.

“Exports to China have cooled from very high growth earlier this year but are still growing solidly, while shipments to the rest of Asia, the United States, European Union and elsewhere are all growing in a tight range of 9.0 to 13.7 per cent year-on-year.”

Standard Chartered Bank Asean economist Edward Lee expected trade to have eased in June on an unfavourable base effect.

“Exports of crude petroleum, rubber, palm oil and electronics (integrated circuits) have been increasing in double digits since the start of the year,” he said. Rupa Damodaran