August exports seen improving
KUALA LUMPUR: Exports are likely to improve slightly in August compa-red to July. A poll suggests exports will grow by an average 5.43 per cent year-on-year, imports by 10.5 per cent and trade balance coming in at an average RM5.14 billion.
The International Trade and Industry Ministry will release the data today.
Bank of America Merrill Lynch economist Dr Chua Hak Bin said exports will remain healthy in August.
"Tech and other machinery equipment exports are likely to continue to expand, in line with Asian peers South Korea and Taiwan."
Palm oil exports probably edged higher as data from the Malaysian Palm Oil Board showed higher volumes of shipments in August.
Other commodity exports probably continued to contract, given the soft prices, he said.
Citi commented that China's imports from Malaysia slowed in August (from one per cent in July) while Japan's imports plunged in the same month (from 10.3 per cent).
It said Singapore's imports from Malaysia likely surged 8.9 per cent.
"Imports growth is likely to have surged on base effects as China's exports to Malaysia surged (from 26.7 per cent in July) while Japan's decline moderated, although Singapore's exports to Malaysia slowed."
Total trade in July this year amounted to RM118.59 billion, increased by 5.3 per cent and supported by exports, which expanded by 4.5 per cent to RM60.73 billion compared with July last year, the highest monthly exports recorded for the first seven months of this year.