Malaysia: Exports expanded to multi-month highs – UOB
UOB Group’s Senior Economist Julia Goh and Economist Loke Siew Ting comment on the recently published results from the Exports sector in Malaysia.
Key Takeaways
“Exports expanded at a stronger pace of 32.4% y/y in Nov (Oct: 25.5%) which was in line with our forecasts but higher than Bloomberg consensus (30%). Imports gained 38% y/y (Oct: 27.9%) Higher imports over exports led to narrower trade surplus of MYR18.9bn (Oct: MYR26.3bn).”
“Overall exports in Nov were lifted by robust shipments of electrical and electronic (E&E) products (17.4% y/y), petroleum products (111.6%), palm oil and palm-oil based agriculture products (97.4%), and LNG (99.5%). Exports to key markets included ASEAN, China, USA, EU and Japan, which recorded double-digit growth.”
“With year-to-date (YTD) export growth of 25.7% y/y, this has surpassed our export target of 25%. Nevertheless, we expect a bumpy recovery in the coming months with a projected 2.0% export growth for 2022. The Omicron variant, ongoing supply-chain disruptions, and higher prices of traded goods could pose downside risks to the trade outlook. Domestically, worker shortages and the floods have dampened production in selected sectors and areas.”
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
