Exports Growth Slower In June Due To Festivities

Economic Research	7 August 2017
Malaysia
Economic Update
Exports Growth Slower In June Due To Festivities Export growth slowed in June to 10% YoY, mainly on the back of base effects and a distortive festive period. Shipments of both E&E and non-E&E categories saw growth easing in June. On a quarterly basis, exports remained robust at 20.6% YoY in 2Q17, sustaining its pace from the previous quarter. Given the strong performance in 1H, we are lifting both our gross export and import forecast to 15.2% and 18.6% in 2017 respectively, from 10% and 13% previously. Overall, the external outlook continues to be supported by: 1.   Improving global growth prospects into 2018; 2.   Strong global E&E demand, as seen in the recovery of global semiconductor sales; 3.   Recovery in demand for commodity products, aided by higher prices; Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist:  Aris Nazman Maslan  | +603 9280 2184