PETALING JAYA: Malaysia’s exports again showed an outstanding performance with a 10.7% year-on-year (y-o-y) growth in December, the highest for the last 14 months, and for the first time, breaking through the RM75bil benchmark.
There were about RM75.6bil worth of exports and RM142.4bil worth of total trades conducted in December 2016.
For the whole of 2016, exports grew by a marginal 1.1% y-o-y.
“However, the rebounding trend of Malaysia’s exports, particularly in the last two months of 2016, becomes a good kick-off for the year 2017 – in which we are expecting the economy will benefit from better trade performance,” said MIDF Investment Research in a statement.
Meanwhile, imports surged by 11.5% y-o-y in December, with imports of capital taking the lead. Imports increased by 11.5% y-o-y in December, which leads to 1.9% y-o-y growth for the whole of 2016.
“Once again, looking at the November and December numbers, the future of trade looks optimistic. Imports of intermediate and capital goods rose by 9.8% and 11.8% y-o-y, respectively.
“Looking forward, this should lead to higher domestic investment, manufacturing and exports activity,” said MIDF.
China is still leading the rebound in global trade activity. With a growth of as high as 22.2% y-o-y, China remains the main reason on why the global trade activity has been rebounding – something that MIDF has been expecting to see since the beginning of last year.
MIDF is maintaining its exports forecast of 3% growth for year 2017.