E&E Helped Export Growth By 20.7%yoy in Apr

Exports growth moderated as expected to +20.7%yoy (Mar-22: +25.3%yoy), says MIDF.

“Export growth moderated as we expected, mainly underpinned by a slower exports growth to regional ASEAN countries.

“Increased exports in Apr-22 continued to be driven by strong demand for E&E products and other commodities such as palm oil & palm oil products as well as LNG and crude petroleum.”

E&E was major contributor to overall exports growth. Exports performance for all major industries moderated in Apr-22.

Exports of mining goods recorded strong growth at +64.6%yoy (Mar-22: +105.8%yoy), while agriculture sector’s exports grew by +29.9%yoy (Mar-22: +41.8%yoy).

Manufactured goods, which accounted 84.2% of total exports in Apr-22, also grew at moderate pace of +17.2%yoy (Mar-22: +19.1%yoy), but continued to be underpinned by strong exports of E&E. Exports of E&E alone contributed 9.5%-point to the overall exports growth in Apr-22.

Export Growth revised

The analyst firm says it is revising the 2022 growth projection higher for both exports and imports.

Malaysia will stand to benefit from growing global demand, particularly for E&E and commodities such as palm oil, LNG and petroleum.

“On the other hand, we foresee imports to grow further amid further reopening of the economy and relaxation of Covid-19 restrictions and SOPs.

“Therefore, taking into account the recent trade performance and expected growth going forward, we upgrade our 2022 growth forecast for both exports and imports to +16.9% and +19.2%, respectively, this year.”