Malaysia exports surge in December, seen robust in 2014
Reuters – Malaysia’s exports and imports both surged by more than 14 per cent in December from a year earlier, much better than expected, strengthening expectations that a robust trade performance will support the Southeast Asian economy this year amid a cooling of consumer demand.
Exports climbed 14.4 per cent from a year earlier, driven by a strong rise in electronics shipments and petroleum products, while imports jumped 14.8 per cent, government data showed today. Economists in a Reuters poll had forecast gains of 9.0 per cent and 8.0 per cent, respectively.
Exports to China, Malaysia’s largest trade partner, surged 37.1 per cent from a year earlier.
The December trade surplus was RM9.5 billion (US$2.97 billion), according to data from the Statistics Department. Economists had forecast a trade surplus of 9.6 billion ringgit, compared with RM8.0 billion in November.
Robust exports, helped by a weaker ringgit currency, are expected to support Malaysia’s economy this year as domestic demand cools in the wake of government moves to cut food and fuel subsidies that have weighed on public finances.
The ringgit has fallen about 1.4 per cent against the dollar this year amid flagging investor confidence in emerging markets, adding to losses of more than 6 per cent last year.
The trade ministry forecast a 3-4 per cent rise in exports in 2014, with imports seen up 8 per cent.
A stronger trade performance in the last months of 2013 helped make up for a weak first half of the year. In April, Malaysia’s trade surplus fell to its lowest level since the 1997 Asian financial crisis, raising fears the country could soon be running a trade deficit.
For the whole of 2013, Malaysia’s exports gained 2.4 per cent, while imports were up 7 per cent, partly driven by large infrastructure projects under the government’s flagship economic development programme.
Most analysts expect Malaysia’s economy to grow 5 per cent or more this year, following an expected expansion of 4.5-5.0 per cent in 2013, helped by a brighter global economy.
