GEORGE TOWN (April 25): Malaysia's trade growth is now forecast at 5% in 2017, seeing that trade grew at 20% in the first two months of the year, amid a marginal recovery expected in the global economy, said Minister of International Trade and Industry Datuk Seri Mustapa Mohamed.

The target is a revision from 2.7% that was announced earlier this year.

"Trade has been phenomenal January and February with a 20% growth seen compared to previous years. It is driven by the electrical and electronic (E&E) segment.

"Last year, overall growth in trade was 1.5%. For 2017, if that (20%) is a leading indicator of what might come in future, there could be some pick-up in investment. The growth was driven by the E&E sector whereas our forecast (for trade) this year is 5%," he said.

According to the Malaysia External Trade Development Corp (Matrade) total trade for the first two months of 2017 rose to RM270.6 billion compared with RM224.4 billion in the corresponding period of 2016.

Exports were higher by 19.8% at RM142.04 billion while imports increased by 21.5% to RM128.59 billion, resulting in trade surplus of RM13.45 billion.

Speaking to reporters after opening the Semicon Southeast Asia 2017 event, Mustapa said the E&E segment recorded approved investments of RM4 billion in January and February.

Last year, the E&E segment recorded 107 approved projects with total investments of RM9.24 billion, and foreign investments of RM7.9 billion.

"We continue to do well in E&E with 15% to 20% growth (seen so far). Investments in the chemical segment are also coming up. Some are still in the pipeline," he added.

He said the World Bank and International Monetary Fund expect a slight recovery in world economic prospects.

"And consistent with that, our forecast is 4.3% to 4.8% in terms of investment growth in 2017. With that, we expect better investment numbers but we cannot say with a degree of certainty we will achieve same level this year," he added.

Previously, Mustapa had reportedly said investments could drop by 11% or about RM2 billion to RM3 billion this year due to global economic uncertainty.