KUALA LUMPUR: Malaysia’s exports unexpectedly fell in July, posting their biggest drop since May 2015, hurt by a combination of a slowdown in major trading partner China, weak oil prices and slumping demand for the country’s commodities, government data showed on Wednesday.
July’s exports declined 5.3 percent from a year earlier, a surprising outcome to the 2.5 percent annual growth forecast by a Reuters poll, and down from the 3.4 percent rise in June. Annual exports of liquefied natural gas fell 25 percent, while exports of agricultural goods declined 10 percent on lower demand for palm oil and natural rubber, according to data from the International Trade and Industry Ministry.
Malaysia’s imports in July also slipped 4.8 percent from a year earlier, sharply down from the previous month’s 8.3 percent rise. July’s trade surplus was 1.9 billion ringgit ($467.98 million), down from 5.5 billion ringgit in June.
Exports to China – Malaysia’s biggest trading partner – fell 22.3 percent on lower shipments of electrical and electronic products, petroleum products and natural rubber, while those to the European Union fell 2 percent from a year earlier. Exports to the U.S. rose 4.1 percent, driven by demand for optical and scientific equipment, and palm oil and palm-based products.
