October trade surplus may have widened to RM8.9bil
Moody’s Analytics says Malaysia’s exports performing well
PETALING JAYA: Malaysia’s monthly trade surplus is likely to widen to RM8.9bil in October from an RM8.6bil surplus in September, according to Moody’s Analytics.
In its “Asia-Pacific Economic Preview: 4-9 December 2017”, it noted that the country’s exports continue to perform well, with tech products the main bright spot on account of the economy’s large integrated circuit sector.
“Palm oil shipments have likely started to come under pressure from La Niña, which formed in October and usually lasts until March. It typically brings heavier than usual rainfall which could hurt cultivation and shipments.
“After slumping in the first half of 2017, palm oil futures have rebounded on disappointing production growth and could be under further pressure as La Niña kicks in,’’ it added.
The Department of Statistics would be releasing the trade figures some time next week.
Based on Malaysia External Trade Development Corp’s (Matrade) website, the country total exports for September stood at RM78.26bil and imports were at RM69.65bil, representing a balance of trade or surplus amounting to RM8.60bil.
In the first nine months of 2017, exports surged by 21.3% to RM690.25bil and imports rose by 22% to RM620.66bil. Total trade expanded by 15% to RM147.91bil in September. Malaysia’s trade in the first nine months increased by 21.7% to RM1.311 trillion compared with the same period of 2016.
Meanwhile, the value of electronic and electrical (E&E) exports from Malaysia is projected to exceed RM300bil this year. International Trade and Industry Minister Datuk Seri Mustapa Mohamed recently said that so far for the nine months of this year, the total value of E&E exports was already about RM251bil.
“As the end of the year is approaching soon, we should see the figure going above the RM300bil mark,” he added.
Last year, the total E&E export from Malaysia was RM287.7bil, making the country the seventh largest exporter of E&E products in the world.
“The E&E sector has shown an upward trend for the past three years, making it the only industry that recorded a trade surplus for three consecutive years,” he added.