KUALA LUMPUR, June 8 (NNN-Bernama) — Malaysia’s export is expected to continuously benefit from the positive trend on China’s import performance, due to its position as Malaysia’s largest export destination.
In a research note today, MIDF Research said China’s external trades are expected to continue performing in upcoming months, buoyed by continuous recovery in global demand and higher commodity prices.
“This will continue to benefit Malaysia’s export performance moving forward. Robust performance in external trade serves as a buffer to risks of falling domestic demand in Malaysia, associated to restrictions currently in place to curb COVID-19,” it said.
According to MIDF Research, China’s trade surplus narrowed to US$45.5 billion in May 21, 2021 from US$61.9 billion in the same month last year as imports soared faster than exports.
“Exports expanded 27.9 per cent year-on-year (yoy) while imports accelerated 51.1 per cent yoy. The continuous robust increase in outbound shipment on May 21 came in despite several concerns, including strengthening yuan, higher raw material costs, global chip shortage, lower capacity in Guangdong due to a surge in COVID-19 cases, and logistics bottlenecks,” it said.
By product, the research firm said China’s sales rose for unwrought aluminium & aluminium products, steel products and rare earth, among others, while by destination, shipment to all major trading partners increased, including to ASEAN, the European Union, the US, Taiwan, South Korea, and Japan.
For imports, MIDF REsearch said it was the strongest growth since Jan 11, 2021 as domestic demand strengthened besides low-base effect last year with purchases increased for natural gas, soybeans, rubber and copper ores & concentrates, among others.
“Similar to exports, imports from all major trading partners increased during the month. Imports from ASEAN in particular soared 53.8 per cent yoy, while (imports) from Malaysia accelerated 72.7 per cent yoy,” it added.
— NNN-BERNAMA