Malaysia's exports up 9.4pc on year in July

Malaysia's exports grew 9.4 per cent in July from a year earlier on higher higher exports of electrical and electronic products, chemicals and chemical products as well as manufactures of metal.

Exports in July totaled at 86.12 billion ringgit (20.67 billion US dollars), according to government data showed on Wednesday. On a month-on-month basis, exports grew 9.6 per cent in July.

Shipments of electrical and electronics goods, which accounts for 84.6 per cent of the total exports, jumped 12 per cent in July from a year earlier, while crude petroleum surged 90.1 per cent.

China remained Malaysia's largest trading partner, accounted for 17.3 per cent of total trade. In July, trade with the country expanded by 19.4 per cent on year to 28.31 billion ringgit.

Exports to China remained strong and recorded the highest monthly export value of 12.92 billion ringgit, a 37.5 per cent growth compared to the year before, Statistic Department said.

This was driven by higher exports of E&E products, chemicals and chemical products, LNG, petroleum products and crude petroleum, reports Xinhua.

Imports from China were up 7.5 per cent to 15.39 billion ringgit, the department said.

On month-on-month basis, trade and exports were higher by 5.5 per cent and 13 per cent respectively, while imports contracted marginally by 0.01 per cent.

In the seven months period, trade with China went up 8.9 per cent to 177.49 billion ringgit against a year ago.

Exports to China were stronger by 12.1 per cent to 77.48 billion ringgit attributed to higher exports of E&E products, chemicals and chemical products, manufactures of metal as well as optical and scientific equipment.

Imports from China rose by 6.6 per cent to 100.01 billion ringgit, the department said.

Total imports increased by 10.3 per cent on year to 77.83 billion ringgit in July, boosted by intermediate, capital and consumption goods, said the department.

Trade surplus rebounded by 1.7 per cent to 8.3 billion ringgit in July after a year-on-year decline of 41.1 per cent in the preceding month, the statement read.

Despite exports hitting a record high in July, Nomura Research said that the modest rise in export growth to 9.4 per cent year-on-year in July from 8.3 per cent in second quarter was in line with its view that gross domestic product growth will remain under pressure in the second half.

The firm also expects private consumption is unlikely to be sustained as the sales and services tax was reinstated starting September.

"We expect significant government spending cuts to offset the loss in Goods and Services revenue."

"Our full-year 2018 GDP growth forecast of 4.7 per cent implies a slowdown in the second half of the year to 4.5 per cent y-o-y from 4.9 per cent in the first half," the research house said in a note on Wednesday.

(1 US dollar equals to 4.15 Malaysian ringgit)