KUALA LUMPUR, Sept 4 — Malaysia’s exports in July 2019 are further evidence of trade diversion amid higher exports of electrical and electronics (E&E) products and pick-up in exports to the US and China, said United Overseas Bank (Malaysia) Bhd (UOB Malaysia).
Malaysia’s exports in July 2019 registered an increase of 1.7 per cent to RM88.0 billion year-on-year (y-o-y).
Its senior economist Julia Goh, however, said the overall impact of deteriorating US-China relations remains negative and is evident from weaker import demand as well as August’s manufacturing Purchasing Managers’ Index, which fell for the fourth month with sustained weakness in new orders.
“Given downside risks and high base effects from a year ago for Malaysia’s exports, we maintain our 2019 full-year export growth forecast at 1.0 per cent to 1.5 per cent,” she said in a note.
She said July’s export growth was largely lifted by higher shipments of manufactured goods, particularly E&E, refined petroleum, machinery and equipment, as well as chemicals and chemical products.
“Robust liquefied natural gas exports helped to partially offset a steep fall in exports of crude petroleum. Higher exports to the US, China, Singapore, Taiwan, and Vietnam were key drivers of the July export rebound,” she added. — Bernama
