22/06/2011 (Business Times) - Malaysia’s trade surplus with the United States is declining following rising imports from the world's biggest economy, says the New York office of the Malaysia External Trade Development Corporation (Matrade).

It said US-Malaysia bilateral trade totalled US$40 billion last year, with Malaysia’s exports amounting to US$26 billion, while imports worth US$14 billion, resulting US$12 billion in trade surplus.

Malaysia’s exports rose by 11.3 per cent but imports posted a strong growth of 34 per cent, says Matrade Commissioner in New York Wan Latiff Wan Musa.

He said Malaysia’s exports in the first quarter of this year posted a modest 1.2 per cent growth while imports grew by 22 per cent in the same period.

"However, we still maintain US$2.5 billion trade surplus in the first quarter of 2011," said Wan Latiff in an interview with Bernama at his New York office.

Taking stock of the post-recession economic situation in the United States, Wan Latiff said he had discerned signs of economic slowdown.

"What is particularly worrisome is the fact that unemployment has risen again to 9.1 per cent, according to the latest data available after having declined to 8.9 per cent in the past few months," he said.

Rising unemployment, which usually curbs consumer spending, could also affect imports from Malaysia, he said.

"We are closely monitoring the situation …our major exports to the United States are still electrical and electronics products. The employment situation, usually has an impact on demand for such products.

"Indeed, there is a debate on whether the economy will relapse into a recession though many believe there will be an economic slowdown, but what is encouraging for us is that exports of palm oil, chemicals, scientific equipment and rubber products are still strong. - AFP