RAM estimates trade to remain robust in April, exports expand 25.5 pct

KUALA LUMPUR: RAM Rat ings has est imated that the country’s exports will maintain its upward trajectory, with a 25.5 per cent expansion in April, a slight increase than the 24.1 per cent recorded in the previous month.

The cur rent cyc l ical recovery provided support for both export and import act ivit ies in 2017, after several years of lacklustre t rade per formance as a whole, said the rating agency in a statement yesterday.

On the other hand, import growth was envisaged to moderate to 27.2 per cent from the high of the previous month, supported by the expansion of domest ic businesses and ongoing infrastructure projects, it added.

Notably, the main export component that has benefited the most from the resurgence of global investment was machinery and transport equipment, especially from stronger demand from the United States and European Union.

“T h at s a id , pol i c y uncertainties stemming from the BREXIT negotiations and the possibi l ity of a sudden change in US trade policy are still considered significant risks that would inf luence the resilience of external demand,” said RAM Ratings.

To recap, Malaysia’s total trade in March 2017 expanded 31.1 per cent , reaching RM159.86 billion, compared with the same month last year, with exports increasing 24.1 per cent to RM82.63 billion.