Malaysia export performance in line with regional countries’


Malaysia’s export performance in June was still broadly in line with the regional countries’, which showed mixed performances, said Hong Leong Investment Bank (HLIB) in its Economic Update note today.

HLIB said the regional countries, including China, posted a lower export performance of 3.1 per cent in June, followed by Indonesia (-4.5 per cent) and Singapore (-8.8 per cent).

“South Korea, the only country that released July export figures, recorded a modest rebound of 2.6 per cent year-on-year,” it said.

It said Malaysia’s gross exports contracted further by 6.9 per cent year-on-year in June, the fifth consecutive month of decline.

Gross import growth rebounded to 1.3 per cent year-on-year in June after contracting by 2.3 per cent year-on-year in May, mainly driven by turnaround in intermediate imports, it said.

HLIB said Singapore, China and Japan remained as the three main export markets while exports to the European Union continued to decline by 1.8 per cent year-on-year driven by lower exports of crude palm oil.

In June, export performance was generally subdued across all product segments, mainly due to further decline in electrical and electronics products amid continued sharp contraction in crude palm oil shipment, it said.

“With the base effect diminishing into the second half, we can expect overall export growth to return to the positive territory towards later of part of 2013,” it said.

It said Malaysia also recorded a mild rebound in trade surplus to RM4.3 billion but still remained subdued compared to a year ago.

HLIB said the Malaysian economy was likely to grow at more moderate pace of 4.5 per cent in 2013 compared with 5.6 per cent in 2012, given the softer commodity outlook and more moderate growth in consumer spending.