Malaysia's May export growth seen

KUALA LUMPUR: Malaysian exports may show growth in May, helped by high commodity prices although this will be offset by weaker demand for electrical and electronic (E&E) products.

The International Trade and Industry Ministry is expected to release the details today.

A Business Times poll expects exports to record an average growth of 10.32 per cent, imports to rise 6.56 per cent and the trade balance to average RM10.62 billion.

Kit Wei Zheng of Citi thinks growth will soften as Malaysia’s E&E sector feels the impact of the slowdown in electronics and supply disruption from Japan following the earthquake in March.
Standard Chartered Bank expects May exports to maintain the strength seen in April.


Rising commodity prices on a year-on-year basis, including crude palm oil and liquid natural gas should continue to have supported export growth.

Crude palm prices have recovered from the sharp fall between February and March.

DBS Bank economist Irvin Seah also believed export growth will likely to register a fairly healthy expansion.
Although export growth in May and in April has been rather encouraging, the low base last year has masked a rather dismay performance, he said.

“Electronics supply-chain disruption arising from the calamity in Japan is probably the key reason for the less impressive set of exports and industrial output numbers in recent months.

“While overseas demand may have suffered some knock-on effect directly or indirectly from the disaster, imports of electronics components from Japan certainly was affected, which consequently disrupted production and sales.”