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Malaysia: RAM Ratings sees exports growth rebounding 23% in July
PETALING JAYA: RAM Ratings expects Malaysia’s export growth to rebound to 23.1% in July, or more than double the 10% growth in June.
The ratings agency cited the strong export growth to be underpinned by the anticipated improvement in domestic industrial output in line with stronger demand from China, Singapore and Japan.
As for imports, RAM Ratings expects growth to accelerate to 20%, although still lagging behind exports for the third consecutive month.
“This is as domestic restocking activities continue moving towards an optimal level, thereby reducing incremental demand for imports and the need for a surge in the import of intermediate and capital goods that was experienced towards the beginning of 2017,” it said.
The trade data is scheduled to be released by the International Trade and Industry Ministry at noon today.
Exports and imports will also be boosted by the low-base effect in July, arising from the on-year decline in July 2016.
Under this scenario, the trade surplus is projected to come in at RM4.1bil in July 2017. RAM Ratings pointed out Malaysia, as well as other major producers such as Singapore, South Korea and Taiwan, are the crucial link of the integrated global value chain for electrical and electronic products.
Hence these producers, including Malaysia, will continue benefitting from the current up-cycle for global electronic products.
Source: http://www.thestar.com.my/business/business-news/2017/09/06/ram-ratings-sees-exports-growth-rebounding-23-in-july/#7qJvTGdpA7tvi9oO.99