KUALA LUMPUR, Dec 28 — MIDF Investment Bank Bhd has revised upward Malaysia’s full-year exports and imports growth projection for 2021 following the strong growth in the recent months.
It said the exports growth projection for 2021 has been revised to 24.5 per cent from 19.8 per cent while the imports growth forecast is revised to 23 per cent from 18.9 per cent previously.
“The performance of foreign trade has been more robust than expected and this will contribute positively to the economic recovery in the fourth quarter of the calendar year 2021 (Q4CY21).
“While Malaysia stands to benefit from the sustained growth in external demand, the slowdown in China and tighter Covid-19 restrictions in other countries are among the risks that could affect exports outlook,” it said in a research note today.
MIDF Investment Bank said it is expecting exports to grow in the coming months driven by strong demand for electrical and electronics (E&E), petroleum and palm oil products.
Going forward, the investment bank said it also foresaw further expansion in imports given the growing domestic spending and improving business activity.
On the November 2021 performance, MIDF Investment Bank said the total trade rose to a new record high, growing grew further by 34.9 per cent to RM205.5 billion year-on-year (y-o-y) following sustained expansion in both exports and imports.
It said exports growth strengthened further to 32.4 per cent y-o-y underpinned by robust external demand from Asean, the United States and European countries.
The investment bank said based on sector breakdown, exports of manufactured goods rose further by 28.2 per cent y-o-y.
“The agriculture sector also recorded stronger exports, up by 76.8 per cent y-o-y primarily due to higher exports of crude palm oil,” it said.
Meanwhile, it said imports growth accelerated to 38 per cent y-o-y driven mainly by rising imports of E&E, petroleum and chemical products.
However, the trade surplus shrank to RM18.9 billion compared to RM26.2 billion in October 2021. — Bernama
