Exports Growth Strongest in Almost Seven Years

Economic Research	5 April 2017
Malaysia
Economic Update
Exports Growth Strongest in Almost Seven Years Exports continued to pick up to 26.5% YoY in February, its quickest pace in almost seven years, partly on the back of a recovery in global demand and partly a low base effect. We envisage exports growth to normalise in subsequent months and rise at a more robust pace of 6% in 2017, from +1.1% in 2016 on account of: 1.   Recovery in demand for commodity products, aided by higher prices; 2.   Pick-up in global semiconductor sales since late-2016, translating to higher electrical & electronics (E&E) exports; 3.   Improving global trade outlook on the back of stronger global growth prospects. We expect the current account surplus to improve in 2017 to MYR33.7bn or 2.6% of GDP in 2017, from MYR25.1bn or 2% of GDP in 2016, contributed by a wider surplus in the trade account. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist:  Aris Nazman Maslan  | +603 9280 2184