Export growth to ease in 2019, says RHB Research

Export growth to ease in 2019, says RHB Research

KUALA LUMPUR,. Malaysia’s export growth is expected to ease to four per cent in 2019 on a weaker global trade outlook and a slowdown in export demands from China amid the United States (US)-China trade war, said RHB Research.

In a research note, it said the current account surplus is expected to widen next year to RM45 billion or 2.9 per cent of Gross Domestic Product from 2.7 per cent for 2018 on lower imports of goods and services following the deferment of infrastructure projects.

Meanwhile, the research house said exports in September grew 6.7 per cent year-on-year (y-o-y) to RM83.05 billion after a 0.3 per cent drop in August, but noted that the rebound remains unconvincing to drive further growth as momentum is expected to slow for the rest of the year into 2019.

It attributed the improved performance to a rebound in shipments to the European Union, the US and Asean.

Imports declined by 2.7 per cent to RM67.78 billion during the month, while the trade surplus posted a double-digit growth of 85.9 per cent to RM15.26 billion.

It said electrical and electronic exports grew 6.5 per cent y-o-y following stronger growth in the exports of electrical machinery and apparatus and a rebound in telecommunication and sound recording.

Commodity exports also grew 5.6 per cent y-o-y due to a recovery in liquefied natural gas exports and a smaller drop in palm oil exports, it added. — Bernama