Aug 4, 2011

Malaysia Exports Up 8.6% in June, Outlook Weak

Malaysia said Thursday that exports, the mainstay of the country's economy, grew 8.6 percent year-on-year in June, but analysts warned of an easing in the next six months due to the global slowdown.

The trade ministry said shipments rose to 57.35 billion ringgit ($19.31 billion) while imports climbed 6.3 percent 49.75 billion ringgit.

Total trade for June increased 7.5 percent to 107.11 billion ringgit year-on-year, while the trade surplus was 7.60 billion ringgit, narrower than May's 8.49 billion.

In the January-June period, exports rose 6.6 percent from a year earlier, while imports gained 9.6 percent.

The growth was led by higher exports of palm oil, refined petroleum products, liquefied natural gas and crude petroleum which collectively contributed 88 percent to June exports.

Malaysia's top five export destinations were Singapore, China, Japan, the United States and Thailand.

Yeah Kim Leng, group chief economist with RAM Holdings told AFP that exports for the second-half of the year was expected to slowdown due to the deceleration in global economic growth in key markets such as the United States, China and India.

"We do see exports to be weaker in the second-half of 2011," he said.

Although hit hard by the global slowdown, this Southeast Asia's third-largest economy rebounded with an impressive 7.2 percent growth in 2010 and is poised to expand by at least six percent this year.

Since taking power in 2009 premier Najib Razak has unveiled a series of economic reforms aimed at creating 3.3 million jobs and pushing the country towards developed nation status by 2020.

Among his promises are major infrastructure projects and financial market liberalisation, which came with a vow to stimulate the private sector to attract much-needed foreign investment.

Source : AFP

 
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