Malaysia's Oct exports better than expected

Malaysia's exports and industrial production growth posted a better than
expected performance in October, up 15.8 per cent year-on-year (Y-O-Y)
and 2.8 per cent Y-O-Y respectively, despite the slowdown in global
trade.


HSBC Global research said the October trade and industrial
production numbers showed that economic activity has moderated and has
proved to be more resilient than anticipated.


"So far, commodities have held up the flag on the export side,
countering the falling external demand for electronic products," it said
in a research note today.


Looking ahead, it said the global slowdown would continue and
broaden with the protracted sovereign debt crisis in Euro zone expected
to remain a drag on global trade. However, solid domestic demand is
expected to cushion against the slowdown spilling over through the
external channel.






The research house said Bank Negara Malaysia's move to keep on hold any
changes to rates has been also justified with the better exports and
production figures.


"This, however, may change if the global weakness lingers," it added.-- Bernama