KUALA LUMPUR (March 21): Malaysia’s export growth is expected to soar this month amid sharp increases in commodity prices, CGS-CIMB Research said.
The research house said prices of commodities, including palm oil, liquefied natural gas, crude oil and refined petroleum products, rose dramatically after Russia invaded Ukraine last month. last.
“Commodities remained the stars in February. These products accounted for 17% of Malaysia’s export value in February,” he said in a note on Monday March 21.
CGS-CIMB said the current robust export growth is likely to be volatile, depending on developments in global commodity prices, as underlying demand remains subdued.
On Malaysia’s trade surplus, CGS-CIMB said it widened slightly to RM19.8 billion in February, in line with market expectations but lower than its forecast of RM21.6 billion.
He said that due to a shorter month with the festive season holidays, exports in February were down 7.9% month-on-month (mom) in value, while imports fell 10 .8% month-on-month.
On an annual basis (year-on-year), exports and imports grew at a slower pace than expected, by 16.8% and 18.4%, respectively.
Meanwhile, CGS-CIMB said a special withdrawal of RM10,000 from the Employees Provident Fund (EPF) could support imports of consumer goods.
“We suspect that this (the withdrawal of the EPF) could provide some support for imports of consumer goods.
“Primary food and beverage imports had contracted in February (-13.8% yoy and -40.0% mv), leading to a slowdown in overall consumer goods imports,” it said. he declared.