KUALA LUMPUR (Nov 6): Malaysia's gross export earnings are expected to rebound 2.7% in 2021 after a projected 5.2% decline in 2020, helped by the recovery in global trade and supply chains, according to the Ministry of Finance's (MOF) Economic Outlook 2021 report.
For 2021, the MOF said exports of manufactured goods are anticipated to grow 2.5%, supported by improved demand for electrical and electronics (E&E) and non-E&E products.
"Higher demand for semiconductor, telecommunication equipment parts as well as automatic data processing equipment, in line with the global digital transformation and 5G roll-out, is expected to expand the exports of E&E [products] by 3%.
"Similarly, exports of non-E&E [products] are expected to improve by 2.1%, contributed by higher demand for chemicals and chemical products, rubber products and manufactures of metal," the MOF said.
Meanwhile, exports of agriculture goods are projected to expand 4.4%, led by an increase in demand for palm oil and palm oil-based products as well as natural rubber, according to the MOF.
Mining goods exports are projected to rise 2.1% in line with the world economy and crude oil price recovery, the MOF said.
The MOF said Malaysia's mining goods export earnings growth is expected to be contributed by higher demand for crude petroleum and liquefied natural gas.
On Malaysia's imports, the MOF said the value of the country's gross imports is expected to grow 5.3% in 2021 after a projected 6.4% contraction in 2020.
For 2021, the MOF said the gross imports growth is expected to be "supported by an increase in all types of imports".
The MOF said imports of intermediate, capital and consumption goods are expected to increase 5.2%, 14.3% and 3% respectively.
For more stories on the Economic Report 2020/2021, click here.