KUALA LUMPUR, July 3 — Alliance DBS Research is maintaining its domestic product (GDP) growth forecast at 5.0 per cent as a brighter external outlook is likely in the second half 2015.
The research house said net exports make up around 10 per cent of Malaysia’s total GDP, and the positive outlook would be a much welcomed boost to overall growth.
In May, exports contracted at a slower pace of 6.7 per cent year-on-year, and against -8.8 per cent in April. However, the decline in imports was more substantial at -7.2 per cent during the month versus -6.9 per cent in April.
Consequently, the trade surplus narrowed to RM5.5 billion, against RM6.9 billion in April. The decline in exports was across the board.
On a brighter perspective, the research house said in May, exports and imports growth came in better than the Bloomberg consensus expectations of -8.7 per cent and -8.5 per cent respectively.
Although the ringgit’s exchange rate remains weak (June average RM3.73 per US dollar), most regional currencies have also been experiencing nominal depreciation against the US dollar since the second half 2014. This is partly attributed to the diverging global monetary policies, the research house said. — Bernama
