‘SHIPMENTS OF SOME GOODS MAY CONTINUE TO INCREASE’
But MIDF Research expects exports to average at -3.5pc this year
EXPORTS of selected products, particularly electrical and electronics (E&E), palm oil and rubber goods, are set to continue growing in the remaining months of the year, said analysts.
However, they expect the overall outbound shipments to be lower than last year’s levels due to multiple downside risks, including a new wave of Covid-19 infections and rising protectionism.
Malaysia’s trade fell 4.6 per cent to RM145.06 billion last month compared with the same period a year ago. Lower trade figures were recorded particularly with Thailand, Bangladesh, Indonesia and Japan.
The International Trade and Industry Ministry said yesterday higher trade was registered with the United States, China and Saudi Arabia.
Exports eased 2.9 per cent to RM79.14 billion, while imports slipped 6.5 per cent to RM65.92 billion.
On a month-on-month basis, total trade, exports and imports contracted 9.3, 14.5 and 2.2 per cent, respectively. Trade surplus dipped 47.5 per cent.
On a year-on-year basis, however, trade surplus registered a double-digit growth of 19.7 per cent to RM13.23 billion last month compared with the same period last year.
MIDF Research said multiple downside risks remained prevalent and, hence, it expected exports to average at -3.5 per cent year-on-year compared with -1.7 per cent last year.
“Malaysia’s exports returned to a contraction of -2.9 per cent year-on-year in August after two straight months of positive growth.
“Re-exports managed to still register expansion of 8.5 per cent year-on-year. However, this was unable to offset the fall in domestic exports at 4.9 per cent year-on-year as the latter accounted for 82 per cent of total exports.”
The ministry said for the first eight months of this year, trade surplus rose 2.9 per cent to RM102.98 billion compared with the same period last year.
Total trade was valued at RM1.14 trillion, a decline of 6.5 per cent, mainly due to lower trade with Thailand, Singapore, India and Japan.
Higher trade, however, was registered with South Korea, the US, Bahrain and China.
Exports during the period decreased 5.8 per cent to RM620.64 billion, while imports fell 7.3 per cent to RM517.66 billion.
Last month’s major exports were E&E products valued at RM31.93 billion (40.3 per cent), petroleum products (RM4.57 billion, 5.8 per cent) and palm oil and palm oil-based agriculture products (RM4.1 billion, 5.2 per cent).