KUALA LUMPUR (June 30): RHB Investment Bank Bhd has maintained its nominal exports forecast for Malaysia to fall 10% for the year after exports and imports contracted further to -25.5% and -30.4%.
In an economics view note today, RHB’s Ahmad Nazmi Idrus said exports continued to fall sharply in May, recording the deepest contraction since 2009 as the COVID-19 pandemic weakened demand.
Ahmad Nazmi said on the plus side, the trade balance has reverted back into positive territory as the strong increase in capital imports seen in April was seen as one-off.
Trade balance recorded a surplus of RM10.4 billion.
“We expect continued weakness in trade data although the easing of global lockdowns in June should provide some upside to demand.
“With year-to-date exports averaging at -8.8%, we maintain our nominal exports forecast to -10% for the year,” he said.