Malaysia’s exports drop 6.9% in June
Malaysia’s exports in June 2013 fell 6.9 per cent year-on-year to $17.45 billion for the fifth consecutive month, mainly due to a decrease in semiconductor sales to China, South Korea, Japan, Taiwan and the US. Apart from a slump in demand for electronic integrated circuits, optical and scientific equipment and palm oil export fell.
Exports to China, Malaysia’s largest trading partner, declined sharply by 20.5 per cent year-on-year.
Malaysia’s imports in June increased by 1.3 per cent to $16.14 billion as compared to June 2012. The total trade stood at $33.61 billion, a 3.2 per cent decline, while Malaysia enjoyed a $1.32 billion trade surplus.
Although central bank and government officials insisted that a strong domestic demand will continue to drive economic growth, some analysts predict that the country would fall short of the 5 per cent growth target this year.
Rating agency Fitch cut Malaysia’s outlook to ‘negative’ last week, citing its rising debt levels and lack of budgetary reform.
“Export growth remains under pressure from soft commodity prices and the sluggish state of the global economy,” says OCBC economist Gundy Cahyadi. He adds that a significant recovery in export growth isn’t expected until closer to year-end.
[caption id="attachment_13550" align="alignleft" width="300"] Malaysia's semiconductor industry has come under pressure[/caption] Malaysia's exports in June 2013 fell 6.9 per cent year-on-year to $17.45 billion for the fifth consecutive month, mainly due to a decrease in semiconductor sales to China, South Korea, Japan, Taiwan and the US. Apart from a slump in demand for electronic integrated circuits, optical and scientific equipment and palm oil export fell. Exports to China, Malaysia's largest trading partner, declined sharply by 20.5 per cent year-on-year. Malaysia's imports in June increased by 1.3 per cent to $16.14 billion as compared to June 2012. The total trade stood...
Malaysia’s exports in June 2013 fell 6.9 per cent year-on-year to $17.45 billion for the fifth consecutive month, mainly due to a decrease in semiconductor sales to China, South Korea, Japan, Taiwan and the US. Apart from a slump in demand for electronic integrated circuits, optical and scientific equipment and palm oil export fell.
Exports to China, Malaysia’s largest trading partner, declined sharply by 20.5 per cent year-on-year.
Malaysia’s imports in June increased by 1.3 per cent to $16.14 billion as compared to June 2012. The total trade stood at $33.61 billion, a 3.2 per cent decline, while Malaysia enjoyed a $1.32 billion trade surplus.
Although central bank and government officials insisted that a strong domestic demand will continue to drive economic growth, some analysts predict that the country would fall short of the 5 per cent growth target this year.
Rating agency Fitch cut Malaysia’s outlook to ‘negative’ last week, citing its rising debt levels and lack of budgetary reform.
“Export growth remains under pressure from soft commodity prices and the sluggish state of the global economy,” says OCBC economist Gundy Cahyadi. He adds that a significant recovery in export growth isn’t expected until closer to year-end.
