RHB Research: Malaysia’s exports to pick up two pct y-o-y in 2017

KUALA LUMPUR: RHB Research expects Malaysia’s exports to pick up modestly to two per cent yearon-year (Y-o-Y) in 2017, from an estimated 0.5 per cent in 2016.

In a statement yesterday, the research arm of RHB Bank said the revised target would be driven by a gradual improvement in world merchandise trade volume, on the back of a sustained global economic growth.

“The resilient global demand for electrical and electronics (E&E) goods and recovery in commodity exports will also support the exports figure,” it said.

InNovemberlastyear, Malaysia’s exports are reported to have rebounded into a growth of 7.8 per cent Y-o-Y to RM72.83 billion.

The achievement was supported by robust demand from major markets, mainly ASEAN, China, the European Union, the United States, Hong Kong and India.

Imports in November grew 11.2 per cent to RM63.80 billion, pushing the total trade volume up 9.3 per cent to RM136.63 billion.

The trade surplus for the month stood at RM9.03 billion, making it the 229th consecutive month of trade surplus since November 1997.

RHB Research said it expects the trade surplus to grow at a sustained pace heading into 2017.

“This would likely contribute to a surplus in the current account in the balance of payments, which is expected to improve slightly to RM20.2 billion or 1.6 per cent of gross domestic product (GDP) in 2017, from an estimate of RM15.9 billion or 1.3 per cent of GDP in 2016,” it added. — Bernama