UOB Group’s Senior Economist Julia Goh and Economist Loke Siew Ting comment on the recently published trade balance figures in the Malaysian economy.
Key Takeaways
“Malaysia’s external trade outperformed last month with total trade, export, and import values breaching their all-time highs. Both export (Jun: +38.8% y/y, May: +30.4%) and import (Jun: +49.3%, May: +37.3%) growth beat our estimates (exports: +18.5%, imports: +34.0%) and Bloomberg consensus (exports: +21.2%, imports: +32.0%), leaving a larger trade surplus of MYR21.9bn in Jun (May: +MYR12.7bn).”
“Jun’s export growth was mainly driven by increased demand for electrical & electronics (E&E) and commodity related products (i.e. refined petroleum, liquefied natural gas (LNG), and palm oil) amid higher commodity prices. Overseas shipments to most trading partners also penciled in strong increases with exports to the ASEAN region, Japan, and New Zealand surging more than 50%. Highest monthly export value was also registered to ASEAN, the US and the EU.”
“We raise our 2022 full-year export growth forecast to 18.0% (from 8.0% previously, BNM est: +10.9%, 2021: +26.0%) after taking into account robust export growth of 26.1% in 1H22 and expectations of softer export growth momentum in 2H22 brought by rising cost pressures, shortages of raw materials and foreign labour, and currency volatility. In addition, there are signs of global tech cycle entering a soft patch. The near-term outlook for Malaysia’s palm oil exports is also clouded by the recent sharp fall in crude palm oil prices as well as Indonesia’s excess supplies and removal of export levy.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains vulnerable near multi-month low after Aussie data
AUD/USD reacts little to better-than-expected Australian Goods Trade Balance data and hangs near a multi-month low touched on Wednesday amid rising bets for an early RBA rate cut. Furthermore, China's economic woes, US-China trade war fears and geopolitical risk undermine the risk-sensitive Aussie.
USD/JPY retreats further from the weekly top, slides below mid-150.00s
USD/JPY struggles to build on the previous day's strong move up to the weekly top and trades with a mild negative bias during the Asian session on Thursday. Bets for a December BoJ rate hike and the overnight sharp fall in the US bond yields lend some support to the lower-yielding JPY.
Gold price lacks firm near-term direction and is stuck in a familiar range
Gold price extends its sideways consolidative price move in a familiar range, awaiting a fresh catalyst before the next leg of a directional move. Geopolitical tensions, trade war fears and the overnight decline in the US bond yields offer support to the safe-haven XAU/USD.
Ripple's XRP could see a price rebound despite retail activity decline, RLUSD launch delay
XRP traded near $2.4 on Wednesday as Ripple Labs clarified that its RLUSD stablecoin will not debut on exchanges despite a rumored launch among crypto community members. Amid a sharp decline in XRP's price, on-chain data shows the remittance-based token still has the potential to resume its rally.
Four out of G10
In most cases, the G10 central bank stories for December are starting to converge on a single outcome. Here is the state of play: Fed: My interpretation of Waller’s speech this week is that his prior probability for a December cut was around 75% before the data.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.