Malaysia’s exports outlook remains bright
KUALA LUMPUR: Malaysia’s exports will continue to be supported by sales of selected products particularly electrical and electornics (E&E), palm oil and rubber products, analysts opined.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) recalled that Malaysia’s exports continued to be in positive territory in October 2020 albeit at significantly softer rate of 0.2 per cent year on year (y-o-y) mainly due to high-base effect. Total exports for October 2020 amounted to RM91.1 billion.
“Exports recorded at RM90.9 billion in October 2019, the highest value for that year,” MIDF Research said.
“For comparison, total exports averaged at RM82.9 billion in 2019.”
According to MIDF Research, exports of E&E products slowed to three per cent y-o-y from a robust 33 per cent y-o-y in the previous month while sales of rubber products remained solid at 127.3 per cent y-o-y.
“In fact, outbound shipment of rubber products contributed
Exports recorded at RM90.9 billion in October 2019, the highest value for that year.
MIDF Research
the most to Malaysia’s exports growth in October 2020 at 3.1 per cent.
“Besides that, palm oil and palm oil based agriculture products contributed the most to the growth of overall agriculture sector and second to total exports growth with an increase of 46.5 per cent y-o-y.”
Overall, MIDF Research gathered that exports have been improving steadily since the initial shocks from the pandemic in April and May 2020, in line with resumption in activities globally.
“Exports outlook moving forward will continue to be supported by sales of selected products particularly E&E, palm oil and rubber products.
“Despite the overall recovery, outbound shipments will remain lower than last year’s levels as multiple downside risks remain prevalent including new wave of Covid-19 and rising protectionism as it will hinder most of the countries’ economic recovery process.
“Resurgence in Covid-19 cases lately in some key countries which pushed them into lockdowns could weigh on Malaysia’s exports performance.”