Malaysia: Merchandise exports increase at a softer rate in September
Latest reading: Merchandise exports expanded at a softer rate of 9.5% on an annual basis in September, following August’s 17.0% upturn. Meanwhile, merchandise imports rose 21.8% in annual terms in September (August: +31.8% yoy).
As a result, the merchandise trade balance improved from the previous month, recording a USD 3.1 billion surplus in September (August 2024: USD 1.2 billion surplus; September 2023: USD 5.2 billion surplus). Lastly, the trend deteriorated, with the 12-month trailing merchandise trade balance recording a USD 27.6 billion surplus in September, compared to the USD 29.7 billion surplus in August.
Panelist insight: Julia Goh and Loke Siew Ting, analysts at the United Overseas Bank, commented:
“There are still (positive) catalysts for the trade sector as we enter 2025 with the assumption of a global soft landing, contained Middle East conflicts and progressive easing of global monetary policy to aid growth. Budget 2025 measures, that will be tabled today (18 Oct), will also be closely watched for further incentives to uplift Malaysia’s exports in the global supply chain. Thus, we maintain our full-year export growth forecast at 7.6% for 2024 and 4.5% for 2025 for now.”