UOB Group’s Senior Economist Julia Goh and Economist Loke Siew Ting review the latest results from the Malaysian trade balance.
Key Takeaways
“Malaysia’s external trade sector unexpectedly outperformed in Feb, largely due to year-ago low base effects. Gross exports advanced by 9.8% y/y last month (Jan: +1.4%), beating our estimate (+1.5%) and Bloomberg consensus (+4.7%). Gross imports also surpassed our expectation (+1.8%) and Bloomberg consensus (+6.4%), reclaiming a double-digit growth of 12.4% (Jan: +2.2%). This resulted in a trade surplus of MYR19.6bn (Jan: +MYR18.1bn).”
“The surprised export outturn in Feb was mainly driven by a growth rebound in shipments of manufactured goods particularly electrical & electronics (E&E) and refined petroleum products amid low statistical comparison a year ago. This alongside sustained demand for mining goods helped to cushion the persistent drag from exports of agriculture products. Stronger demand for Malaysian products was also observed from the US, Hong Kong, South Korea, and ASEAN region during the month.”
“Despite a decent year-to-date (ytd) export expansion of 5.4% in Jan-Feb, we continue to see downside risks to the external trade sector as the year progresses. Global headwinds will remain while year-ago high base effects become more prominent from Mar onwards. A slower-than-expected China recovery and further monetary tightening in the developed markets are also expected to further weigh on global demand momentum ahead, in addition to softer readings of Malaysia’s leading indicators such as imports of intermediate goods and manufacturing PMI. Hence, we keep our full-year export growth forecast of 1.5% for this year (MOF est: +2.2%, 2022: +25.0%).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.