Exports Momentum Still Strong But Outdone By Imports

Economic Research	8 May 2017
Malaysia
Economic Update
Exports Momentum Still Strong But Outdone By Imports Exports continued expanding at a robust pace of 24.1% YoY in March, although growth eased slightly from February. Despite the slowdown, all three major export groups maintained its strong momentum, growing at rates above 20%. Given the robust 1Q performance, we are raising our export growth forecast to 10% for 2017, from the previous estimate of +6% and compared with +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. Imports accelerated to its quickest pace in nearly seven years in March, attributed to a quicker growth in capital goods imports, while imports of consumer goods reversed into a growth. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist:  Aris Nazman Maslan  | +603 9280 2184