US third largest ex­port mar­ket for Malaysia

The Sun (Malaysia) - - SUNBIZ -

to the US amounted to RM59.4 bil­lion or 10.4% of to­tal ex­ports, a 11.5% growth com­pared with a year ear­lier. This makes the US the third big­gest ex­port des­ti­na­tion for Malaysia after Sin­ga­pore and China.

MIDF Re­search pointed out that within the Top 10 ex­port des­ti­na­tions, the US is the only mar­ket that has grown con­sis­tently by dou­ble dig­its in the past three years.

Cur­rently, elec­tri­cal and elec­tron­ics con­sti­tute close to 60% of Malaysia’s to­tal ex­ports to the US. Hence, it ex­pects an in­crease in trade pro­tec­tion­ism, via tar­iff and non-tar­iff mea­sures, to dampen ex­port growth to the US in the mid­dle to long term.

MIDF Re­search ex­pects the US-Malaysia re­la­tion­ship to re­main strong with no dras­tic changes in the short term. How­ever, pos­si­ble changes could take place in US for­eign poli­cies should Trump push for­ward his elec­tion man­i­festos, par­tic­u­larly on the fight against ter­ror­ism, stance on nu­clear power and bal­anc­ing China’s in­flu­ence in the re­gion.

HLIB Re­search noted that stocks in the ex­port sec­tor may be af­fected by ad­verse sen­ti­ment from anti-trade poli­cies, with the tech­nol­ogy sec­tor seen to be more vul­ner­a­ble to any trade pol­icy change to help boost US jobs, com­pared with other re­source­based ex­port sec­tors.

AmRe­search ex­pects Malaysia to achieve gross do­mes­tic prod­uct growth of 4% and 4.5% for 2016 and 2017, re­spec­tively, which will be sup­ported by do­mes­tic ac­tiv­i­ties and prag­matic poli­cies with ex­ports con­tin­u­ing to com­ple­ment eco­nomic growth.

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