KUALA LUMPUR, Oct 28 — MIDF Investment Bank Bhd (MIDF Research) has revised upward its growth projection for 2021 on exports and imports following the economic reopening from the full lockdown has been stronger than expected.

MIDF Research said the exports growth projection for 2021 rose to 19.8 per cent from 13.5 per cent, taking into account the better-than-expected commodity exports, especially palm oil and petroleum products.

In a note today, it said the expectation on increased demand for manufactured goods, particularly electric and electronics products will help to support exports growth.

Meanwhile, looking at the encouraging recovery in imports in the recent months, MIDF Reseach also upgraded the full-year imports growth to 18.9 per cent from 12.7 per cent.

"We expect the imports will continue to recover and grow in the coming months in view of improved business condition and increased domestic economic activities following the relaxation of lockdown restrictions and further reopening of the economy,” it said.

The Department of Statistics Malaysia (DOSM) today revealed that Malaysia’s total trade performance in September 2021 expanded by 25.5 per cent year-on-year (y-o-y) to RM195.5 billion as the country’s exports and imports recorded strong double-digit growth.

The exports reached a new high of RM110.8 billion, expanding by 24.7 per cent compared to the previous year while imports also registered an increase of 26.5 per cent to RM84.7 billion y-o-y.

MIDF Research said the recent strength in both exports and imports have been driven by higher demand for commodities, and Malaysia is in a position to benefit from the rise in commodity prices.

Despite the optimism on better trade outlook, the renewed jump in COVID-19 infections and ongoing constraints in the global supply chain remain as key downside risks which could affect the strength of growth in Malaysia’s trade sector. — Bernama