MARKET DEVELOPMENT
Malaysia October Exports Likely Down 0.5% On-Year
Malaysia October Exports Likely Down 0.5% On-Year
04/12/2014 (NASDAQ) - Malaysia's exports likely fell year-on-year in October, its first monthly contraction since June last year, on the back of weak global demand for electronics and falling commodity prices.
A Wall Street Journal survey of 11 economists showed a median forecast for a decline of 1.0% in October shipments from a year earlier. This compares with September's 2.0% on-year growth. Malaysia is one of Asia's largest oil and gas exporters and ranks globally among the biggest producers of rubber and palm oil.
Economists say shipments of electronics, which typically makes up about one-third of total exports, likely slowed reflecting sluggish exports faced by other major Asian exporters such as Singapore and Taiwan during the same month. Weaker oil price also weighed sharply.
"Commodity exports should soften given the recent easing in commodity prices, particularly palm oil and natural gas prices," Australia & New Zealand Banking Group Ltd said in a note. Further, a relatively higher base of comparison would worsen the decline of Malaysia's exports, it added.
The same WSJ poll also predicts imports to contract 1.4% from the same month last year with trade surplus likely narrowing to 8.60 billion ringgit ($2.50 billion) from surplus of 9.33 billion ringgit in September.
The official data is due Friday 0401 GMT.
A Wall Street Journal survey of 11 economists showed a median forecast for a decline of 1.0% in October shipments from a year earlier. This compares with September's 2.0% on-year growth. Malaysia is one of Asia's largest oil and gas exporters and ranks globally among the biggest producers of rubber and palm oil.
Economists say shipments of electronics, which typically makes up about one-third of total exports, likely slowed reflecting sluggish exports faced by other major Asian exporters such as Singapore and Taiwan during the same month. Weaker oil price also weighed sharply.
"Commodity exports should soften given the recent easing in commodity prices, particularly palm oil and natural gas prices," Australia & New Zealand Banking Group Ltd said in a note. Further, a relatively higher base of comparison would worsen the decline of Malaysia's exports, it added.
The same WSJ poll also predicts imports to contract 1.4% from the same month last year with trade surplus likely narrowing to 8.60 billion ringgit ($2.50 billion) from surplus of 9.33 billion ringgit in September.
The official data is due Friday 0401 GMT.