US third largest export market for Malaysia
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.