KUALA LUMPUR: Malaysia’s monthly trade surplus is likely to narrow to RM8.1 billion in September, from RM9.8 billion in August, according to a forecast by Moody’s Analytics.
According to the economics research firm, the narrowing trade surplus is anticipated on the back of cooling export, which is slated to slip from a 21.6% year-on-year (y-o-y) expansion in August and July’s “lofty” 31.2% y-o-y increase. “Electronics are driving the solid growth, especially for smartphones being made available in late 2017. The electronics and electrical export category is the largest single component in merchandise exports and registered double-digit growth in August for an eighth straight month,” Moody’s Analystics said in its latest weekly Asia Pacific economic preview report. Forward indicators including the purchasing managers’ index (PMI), a manufacturing data compiled by two firms — Nikkei and Markit, suggests that Malaysian manufacturing will cool heading into 2018. “(This is a) likely a symptom of global technology demand passing its peak, and this should temper export growth,” Moody’s Analytics added. The Statistics Department is scheduled to release the country’s trade performance, particularly imports and exports for the month of September, next Friday (Nov 3). It is worth noting that Malaysia’s total trade from January to August breached the RM1 trillion mark in July. In 2016, Malaysia’s total trade breached RM1 trillion in September.
