Malaysia: Export growth contracts sharply in October
December 7, 2016
Malaysian exports in USD terms dropped a massive 10.4% annually in October, which contrasted September’s 1.0% expansion and marked a five-month low. While growth in exports to China was strong in October, it was offset by declines in export sales to Singapore, the European Union and other countries in the ASEAN region.
According to the National Statistical Institute, October’s contraction mainly reflected a sharp decline in both oil exports and liquefied natural gas (LNG) exports. Meanwhile, sales of palm oil and electronic products grew mildly. Imports also declined in October, which contrasted September’s 4.1% rise.
The trade balance widened from a USD 1.8 billion surplus in September to a USD 2.3 billion surplus in October, which marked a seven-month high. The 12-month moving sum of the trade surplus edged down from USD 21.8 billion in September to USD 21.2 billion in October.
Author: Luis Lopez Vivas, Economist