EXPORTS ROBUST IN SEPTEMBER, WITH ANNUALISED GROWTH OF 14.8pc

Total value hits RM239.19b, expected to augur well for Malaysia’s Q3 GDP result

MALAYSIA’S exports grew at its fastest quarterly pace in the third quarter of this year since April-June 2010. Exports soared by 22.1 per cent to RM239.19 billion in the July-September period, with economists saying this augurs well for the country’s gross domestic product (GDP) growth.

For September, exports remained robust with an annualised double-digit growth of 14.8 per cent, placing the economy on track to meet the growth projections for this year.

The third-quarter GDP result will be announced by Bank Negara Malaysia on November 17.

Imports expanded by 15.2 per cent in September while total trade rose by 15 per cent for a trade surplus of RM8.6 billion.

According to the International Trade and Industry Ministry, exports of manufactured goods grew by 17.1 per cent, supported mainly by higher exports of electrical and electronic (E&E) products.

This was the ninth consecutive month where exports of E&E products recorded a double-digit growth.

Imports rose 19.8 per cent in the third quarter and a RM26.65 billion surplus was recorded, an increase of 44.6 per cent.

The ministry said for the first nine months of the year, imports rose by 22 per cent while exports increased by 21.3 per cent, with total trade recording a 21.7 per cent increase.

“Based on the performance so far, the full-year estimate of 16.6 per cent export growth, as stated in 2017/2018 the Economic Report, is well within reach.

“This would support the projected economic growth of between 5.2 and 5.7 per cent for this year,” said the ministry.

On a month-on-month basis, total trade, exports and imports contracted 4.3, 4.9 and 3.7 per cent, respectively.

Julia Goh of UOB Bank said the slowdown versus August came on the back of slower commodity and manufactured exports while agriculture shipments were pulled down by declines in crude palm oil and related products.

“Despite the slowdown, export volumes continue to outpace unit values, signalling positive export demand and orders.”

She also said despite the slower outturn, Malaysia’s export growth outperformed Japan’s (14.1 per cent), China (7.4 per cent), Singapore (3.8 per cent) and Thailand (12.2 per cent).

Exports in September were supported by robust demand from major markets, mainly from Asean, China, Hong Kong, the European Union, the United States, South Korea, Japan, Australia, Mexico and Turkey.

Apart from E&E products, the double-digit expansion in exports were also recorded for petroleum products, manufactures of metal, transport equipment, optical and scientific equipment, rubber products, iron and steel products as well as textiles, apparels and footwear.

Increases in exports were registered for all manufactured subsectors, except for processed food, beverages and tobacco.

Exports of mining goods in September grew by 6.1 per cent although exports of agriculture goods amounted to RM6.3 billion, 1.8 per cent lower from September last year. This was mainly caused by lower exports of palm oil and palm oil-based agriculture products.