Growth projection for exports remains at 4.5 per cent and imports at 5.1 per cent

Continued growth in exports and sustained trade surplus suggest external trade will be one of key factors to support Malaysia’s growth this year.

KUCHING: Analysts have maintained their projection for both Malaysia’s exports and imports to grow at 4.5 per cent and 5.1 per cent, respectively.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), continued growth in exports and sustained trade surplus suggest external trade will be one of key factors to support Malaysia’s growth this year.

“We expect the outlook for exports and trade-oriented industries will be positive given the increased foreign demand for electrical and electronics (E&E) products,” MIDF Research said.

“To a certain extent as a commodity-exporting country, Malaysia will also benefit from the rise in global demand for commodities such as palm oil and petroleum, and also underpinned by high commodity prices.

“In terms of growth outlook, we maintain our projection for both exports and imports to grow at 4.5 per cent and 5.1 per cent, respectively.

“The moderate numbers reflect diminishing low-base effect as growth returns to more normal levels.”

On another note, MIDF Research viewed the economic reopening and relaxation of Covid-19 restrictions by other economies as well as strong demand for the technology and E&E products as upside risks to its external trade outlook.

But, the research arm kept a cautious view on the effects of the ongoing global health crisis, the slowdown in China and prolonged supply disruptions on the global trade activity this year.

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