Malaysian gross exports to grow 3.9% y-o-y in 2019

Malaysian gross exports to grow 3.9% y-o-y in 2019
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KUALA LUMPUR (Nov 2): Malaysian gross exports are estimated to grow 3.9% year-on-year (y-o-y) in 2019, supported by continuous demand for manufactured goods coupled with a rebound in commodity exports, according to Economic Outlook 2019, titled Fiscal Outlook 2019.

However, this rate is notably lower than the estimated gross exports growth in 2018 at 4.4%.

The Ministry of Finance (MoF) projected manufactured exports to grow 4% in 2019 attributed to higher demand, particularly in E&E, chemicals and chemical products, petroleum products, manufactures of metal, machinery, equipment and parts, as well as optical and scientific equipment.

This, however, contrasted with the 6.6% estimated growth for manufactured goods in 2018, accounting for about 84% of total exports.

In 2019, the E&E subsector is forecast to expand 4.4% benefiting from the extensive use of semiconductors in the automotive industry and consumer electronics such as connected devices and smart appliances.

On the other hand, MoF anticipated that imports will grow 4.1% in 2019, supported by continued imports of intermediate goods and steady re-export activity.

"Imports of intermediate goods are expected to rebound 4.2% and continue to support manufacturing activities," MoF said.

In comparison, gross imports are forecast to expand at a moderate pace of 4% in 2018. weighed down by a contraction in imports of intermediate goods at 4.6%.