Exports growth in Malaysia falls 5.4 pct
KUALA LUMPUR - Agence France-Presse
Motorists pump natural gas at a station owned by Petronas, the largest company in the country. Energy-products sale constitutes a large portion of Malaysian exports. REUTERS photo
Malaysia’s June export growth slowed to 5.4 percent but rising demand from regional heavyweights China and Japan helped offset shrinking shipments to struggling Europe, the government said yesterday.
Malaysian exports reached 61 billion ringgit ($19.6 billion) in June, marking a slowdown compared to June 2011, when exports grew a year-on-year 8.6 percent, and May’s 6.7-percent increase, the trade ministry said.
However, analysts said the country’s vital export sector beat expectations and called the performance positive amid global sluggishness, particularly as regional economies such as Singapore and South Korea have seen recent export declines.
Exports to the Association of Southeast Asian Nations’ 10 member countries rose 4.2 percent to 15.3 billion ringgit while shipments to China surged 13.2 percent to 8.3 billion, and those to Japan rose 25 percent to 7.1 billion ringgit.
Exports to struggling European Union economies, however, fell 8.4 percent to 5.37 billion ringgit, the third straight monthly decline.
The trade performance will sustain hopes that Malaysia can achieve targeted economic growth of 4-5 percent for 2012, said Yeah Kim Leng, chief economist with financial research firm RAM Holdings.
“The June numbers have eased concerns of a slowdown in Malaysian exports,” he said.
“We hope a revival in China’s growth and a further recovery in Japan will boost global demand.” Southeast Asia’s third-largest economy, Malaysia saw exports shrink slightly in March and April due in large part to the debt crisis in eurozone countries.
The resource-rich nation relies heavily on exports of commodities such as palm oil and energy products as well as some manufactured goods such as electronics. China, the world’s number two economy, supplanted Singapore last year as Malaysia’s top export market.