KUALA LUMPUR, Feb 5 — Malaysia’s exports are expected to grow by 1.0 per cent to 2.0 per cent for the full year of 2020 as external demand will be supported by resource-based products, a recovery in the global semiconductor sector and receding uncertainties from trade-related policies.
However, AmBank Research said the risk to its projection remained at this juncture as much depends on the severity and duration of the novel coronavirus outbreak.
Export growth accelerated to 2.7 per cent year-on-year in December 2019 from -5.5 per cent year-on-year in November, supported by resource-based products, while imports rebounded by 0.9 per cent from -3.6 per cent year-on-year in November.
“As a result, the trade surplus widened to RM12.6 billion from RM6.5 billion in November. However, our overall trade performance in 2019 was tepid,” it said in a note today.
The stronger export was broadly supported by resource-based exports such as petroleum products, up 36.5 per cent year-on-year in December from -17.2 per cent year-on-year in November and palm oil and palm oil-based products which surged 34.2 per cent year-on-year from -3.5 per cent year-on-year in November.
Demand from major trading partners, exports to China climbed 17.8 per cent year-on-year in December from 4.1 per cent year-on-year in November contributed by front-loading activities ahead of the festive season and growing optimism on the trade front.
Likewise, outbound shipments to the US accelerated to 15.1 per cent year-on-year in December compared to 6.5 per cent year-on-year in November, supported by non-resource products, which rose 17.5 per cent year-on-year from 7.0 per cent year-on-year in November. — Bernama
