KUCHING: Signs are optimistic for Malaysia’s trade as October’s exports surged, growing by 17.7 per cent year-on-year (y-o-y) from 6.5 per cent y-o-y in September.
It is the third time during the year for exports to grow at a double-digit pace, bringing the year-to-date (YTD) average growth at 7.6 per cent.
Researchers with Kenanga Investment Bank Bhd (Kenanga Research) saw that on a monthly basis, trade exports rose sharply by 16.2 per cent.
“The steep rebound was mainly underpinned by an increase in exports to regional peers, particularly for electrical and electronic (E&E) goods,” it said in a report yesterday.
“Meanwhile, trade surplus widened to a record-breaking high of RM16.3 billion as the growth in exports outpaced that of imports.”
By product, Malaysia’s greater shipments of E&E and refined petroleum outweighed moderation in shipments of palm oil and palm-oil based products.
E&E export growth spiked to 23.3 per cent y-o-y, accounting for 8.9 percentage points (ppt) of overall export growth, on the back of large shipments of electronic integrated circuits.
Exports of petroleum products jumped 37.7 per cent y-o-y, extending gains from the previous month, against the backdrop of higher crude oil price.
On the other hand, exports of palm oil (including crude and processed) declined at a faster pace of 11.9 per cent. The trend is expected to remain unfavourable going forward, amid soft demand and high inventory levels of palm oil.
“Malaysia’s exports to Asean surged to double-digit growth of 16 per cent y-o-y in October from 5.8 per cent in September — its fastest pace since December 2017 — led by an increase in demand for E&E products, petroleum products, chemicals and chemical products, manufactures of metal as well as machinery, equipment and parts.
“By Asean country, Malaysia’s exports to Vietnam rose sharply by 36.6 per cent y-o-y in October, followed by Thailand (20.8 per cent y-o-y), Singapore (18.3 per cent), the Philippines (9.8 per cent) and Indonesia (3.6 per cent).”
Internationally, export growth to the US continued to improve from 0.1 per cent y-o-y in September to 7.6 per cent in October, supported by exports of E&E products, rubber products, optical and scientific equipment and machinery, equipment and parts.
Export growth to China also rebounded from a decline of 0.6 per cent y-o-y in September to a threemonth high of 33 per cent in October, supported by demand for E&E products,petroleum products, chemicals and chemical products and liquefied natural gas (LNG).
Similarly, exports to Japan turned around to register an increase of 10.2 per cent y-o-y in October after four consecutive months of decline.
Source: Borneo Post Online