Malaysia: Exports contraction moderates in November
January 7, 2016
Exports in USD terms fell 15.5% in annual terms in November, following the 18.4% contraction tallied in October. The contraction was more severe than analysts had expected and marks the lowest figure in nine months. The result marks 14 consecutive months of contraction, as global demand for key Malaysian exports dwindles, and the MYR loses ground against the USD. Meanwhile, imports declined 16.5% in November, which was a less severe contraction than the 20.8% fall recorded in the previous month.
The trade balance narrowed from a USD 3.0 billion surplus in October to a USD 2.3 billion surplus in November. The 12-month moving sum of the trade balance fell from USD 25.6 billion to USD 24.6 billion in November. The 12-month figure has been falling steadily since the middle of last year and indicates that declining oil and gas exports have not been completely offset by manufacturing exports.
Author: Robert Hill, Economist