KUALA LUMPUR (Oct 5): Standard Chartered said Malaysian exports could have risen 5.8% on year in August compared to the 3.5% growth in July as the weaker ringgit spurred sales of crucial products to major importers.

In July, Standard Chartered said in its global research report today that Malaysian exports to the US and China had picked up strongly.

"Exports in volume terms have been positive on a year-on year (y-o-y) basis recently. By product, electronics exports rose strongly in June and July, while commodity exports were the main drag on export performance.

""We think Malaysian ringgit (MYR) weakness against the USD also helped export performance in July, with trade data being reported in MYR terms. Imports likely rose 2.2% y-o-y as improving electronics exports likely required more intermediate-goods imports," Standard Chartered said.

Based on the August export-import forecast, Standard Chartered said Malaysia's trade surplus could have increased to RM6.2 billion from RM2.4 billion in July.

Standard Chartered's note came ahead of Malaysia's August external trade data announcement this Wednesday.

The ringgit has depreciated amid US interest rate hike expectation this year, cheaper crude oil and state-owned 1Malaysia Development Bhd investigations.

Today, the ringgit changed hands at 4.4003 against the US dollar. Over the last one year, the ringgit has weakened to current levels from the strongest point at 3.2330.