KUALA LUMPUR: Malaysian ringgit has lost 18.5 per cent of its value against the dollar in 2015 amid a crisis of confidence owed to political turmoil and a collapse in budget revenue-dependent commodity prices.
While surging exports aren’t enough to cure the headache, they help. New data shows September exports rose by 8.8 per cent from a year ago, a fourth straight rise and the strongest gain since May 2014.
Imports jumped by 9.6 per cent, reversing from a 6.1 per cent decline in August with the strongest reading in 11 months.
Both sides of the trade equation were better than anticipated, with forecasters predicting 3.6 per cent export growth and 3 per cent import growth.
“Exports are benefiting from the weak ringgit, which has fallen to a 17-year low against the US dollar. This is helping to offset declining global demand for energy products, whose global prices have fallen through most of 2015,” said Moody’s Analytics before the release.
“The weak currency is also putting upward pressure on the import bill, which likely grew year on year this month.”
The trade surplus for the month was Myr9.6bn, smaller than forecasts because imports outpaced exports.
Shipments to China, Malaysia’s biggest customer, fell 4 per cent month on month. But shipments to the US were steady, while exports to Singapore, Japan, India and Hong Kong all increased.
