KUALA LUMPUR, Sept 7 — Malaysia's exports unexpectedly fell in July, posting their biggest drop since May 2015, hurt by a combination of a slowdown in major trading partner China, weak oil prices and slumping demand for the country's commodities, government data showed today.
July's exports declined 5.3 per cent from a year earlier, a surprising outcome to the 2.5 per cent annual growth forecast by a Reuters poll, and down from the 3.4 per cent rise in June.
Annual exports of liquefied natural gas fell 25 per cent, while exports of agricultural goods declined 10 per cent on lower demand for palm oil and natural rubber, according to data from the International Trade and Industry Ministry.
Malaysia's imports in July also slipped 4.8 per cent from a year earlier, sharply down from the previous month's 8.3 per cent rise.
July's trade surplus was RM1.9 billion, down from 5.5 billion ringgit in June.
Exports to China — Malaysia's biggest trading partner — fell 22.3 per cent on lower shipments of electrical and electronic products, petroleum products and natural rubber, while those to the European Union fell two per cent from a year earlier.
Exports to the US rose 4.1 per cent, driven by demand for optical and scientific equipment, and palm oil and palm-based products. — Reuters
