08/12/2012 (Live Trading News) - Malaysia’s exports contracted by 3.2% in October from a year earlier, a bit worse than market expectations, as the protracted eurozone debt crisis and the slowing economies of India and China squeezed demand for electronics and Palm Oil.

Shipments to the US from the Southeast Asian nation grew for the sixth consecutive month, helping to cushion a sharp decline of exports from the trade-reliant country.

Exports totaled 61.29-B Ringgit ($20.10-B) in October, down from MYR 63.35-B a year earlier, the Ministry of International Trade and Industry said in a statement Friday.

The median forecast from a poll of 13 economists polled was for a 3.0% decline.

Shipments of electrical and electronic products, which account for about a third of total exports, fell 1.1% on year in October to MYR 19.84-B, mainly because of a fall in demand from the European Union.

Palm Oil, a Key commodity export for Malaysia, fell 17.5% to MYR 5.22-B due to lower shipments to China, the Ministry said.

Imports grew 5.7% in October from a year earlier to MYR 51.71-B, sharply lower than the median 10.9% rise expected in the same survey. The ministry noted a decrease in orders for intermediate goods.

Intermediate goods–such as electronic circuits and automotive parts–are mainly semi-finished items used in the final assembly of computers and cars.

The trade surplus for October amounted to MYR 9.58-B, widening from September’s MYR 6.47-B surplus, the Ministry added.