KUALA LUMPUR, July 5 — Malaysia’s annual export growth slowed sharply in May from the previous month, amid lower demand for palm oil, a major export commodity, government data showed today.

Export growth slowed to 3.4 per cent from a year earlier and was sharply down from the 14 per cent annual growth in April. A Reuters poll had forecast a 6.4 per cent annual rise for May.

Exports of agricultural goods declined 21.9 per cent year-on-year in May, mainly due to lower exports of palm oil and palm oil-based agricultural products, the International Trade and Industry Ministry said in a statement.

May’s exports of mining goods, however, rose 40 per cent from a year earlier on higher demand for liquefied natural gas and crude petroleum.

Shipments of manufactured goods, which account for 83 per cent of the country’s exports, grew 3.2 per cent.

May’s imports rose 0.1 per cent annually, down from a 9.1 per cent rise in April, with declines posted in all three major categories of imports: Intermediate, capital and consumption goods. The forecast was for a fall of 2.6 per cent.

Imports of intermediate goods, which account for 54 per cent of total imports fell 5.3 per cent from a year earlier in May.

Imports of capital and consumption goods declined 0.7 per cent and 10.2 per cent respectively.

Malaysia reports trade data in ringgit.

May’s trade surplus narrowed to RM8.1 billion (US$2 billion) from RM13.1 billion in the previous month. — Reuters