KUALA LUMPUR, Aug 31 — RHB Research expects August’s trade performance to remain at the current trend.
Over the longer term, old issues such as the US-China trade war may resurface as countries shift their focus away, which could pose significant downside risks ahead,” it said in a note.
RHB has also revised its 2020 nominal export forecast to -6 per cent year-on-year from -10 per cent given the slightly better than expected export data.
Year-to-date export growth averaged at -5.6 per cent and the revision accounts for the possibility of both upside and downside risks to trade.
In July, both exports and imports moderated by 3.1 per cent and -8.7 per cent, while trade balance posted a record surplus of RM25.1 billion.
Exports were partly supported by the improvement in palm oil prices, which propped up agriculture exports, alongside explosive growth in exports of rubber products, RHB Research added. — Bernama
