KUALA LUMPUR, Aug 3 — Malaysia’s export is forecast to expand at an average of 9.3 per cent in 2018 compared with 18.9 per cent in 2017, underpinned by optimistic signs of key global indicators and gradual recovery in commodities prices.

MIDF Research said the moderating pace was mainly due to a higher base effect and in tandem with the expectation of slight slowdown in overall business performance.

"In fact, for the first half of 2018, exports growth was recorded at 7.0 per cent year-on-year (y-o-y), which is far lower than 20.9 per cent y-o-y registered in the first half of 2017.

"Brewing trade tensions between the US and not only China but also some other countries, on top of escalating geopolitical tensions, could be a headwind to global trade including Malaysia,” it added.

Meanwhile, Malaysia’s trade in the first half of 2018 rose 5.3 per cent to RM904.73 billion compared with RM859.18 billion in the same period last year.

Exports accelerated 7.0 per cent to RM482.64 billion while imports grew at a slower pace of 3.4 per cent to RM422.09 billion.

Trade surplus for the first six months of 2018 surged 41 per cent to RM60.56 billion compared with the previous corresponding period.

MIDF Research predicted global trade activities in the third quarter this year to remain on an upbeat momentum, albeit at a moderating pace, in line with easing global manufacturing Purchasing Managers’ Index at 52.7 points in July. — Bernama