Malaysia export growth for 2018 to be sustained at 6.5%, says RHB Research

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KUALA LUMPUR (Oct 9): RHB Research Institute Sdn Bhd expects Malaysia’s export growth to be sustained at 6.5%.

In an economic update today, the research house said exports grew at a robust 21.5% year-on-year (-y-o-y) in August, albeit slowing from 30.9% in the previous month.

It said this was likely on the back of a waning low-base effect.

“Given the strong performance in external activities year-to-date, we expect 2017 exports and imports to pick up to 15.2% and 18.6% from 1.1% and 1.9% in 2016 respectively.

“For 2018, we expect export growth to be sustained at 6.5%, albeit slower after a surge in the previous year,” it said.

The research house said that overall, the external outlook continues to be supported by:

1.   Improving global growth prospects, moving into 2018;

2.   Strong global E&E demand, as seen in the recovery of global semiconductor sales;

3.   Recovery in demand for commodity products, aided by higher prices.