Tengku Zafrul: Strong trade recovery likely in 2024

"We are forecasting growth this year to be around 5% of total trade,” Tengku Zafrul said.

KUALA LUMPUR: The government is projecting a 5% growth in trade this year, buoyed by the better-than-expected rebound in January 2024.

It is slightly higher than the trade growth projected by the World Trade Organisation of 3.3% for 2024.

This will be a strong recovery in trade numbers, having posted a 7.3% decline year-on-year (y-o-y) to RM2.6 trillion in 2023, dragged by slower global demand, lower commodity prices, geopolitical uncertainties, high inflation rate, downcycle in the semiconductor sector and high base effect in the previous year.

“We have seen the number for January for Malaysia whereby trade has posted an increase of 13.3% y-o-y.

“After discussions with my team and the team at Matrade, we are forecasting growth this year to be around 5% of total trade,” Investment, Trade and Industry (Miti) Minister Tengku Datuk Seri Zafrul Abdul Aziz said at the sidelines of Miti and its agencies’ Chinese New Year reception.

“This will definitely improve compared to last year and we hope the growth in trade, along with the increase in investment, will drive towards achieving the forecast economic growth of around 4% to 5%,” he added.

Malaysia’s trade in January 2024 rebounded with a double-digit expansion of 13.3% to RM234.73bil, after registering its 10th consecutive month of y-o-y contraction.