05/03/2010 (Bloomberg) - Malaysia’s exports surged by the most in more than 11 years in January as manufacturers shipped more goods to China and Europe amid a global economic recovery.

“It reflects the solid rebound over the past year, paralleling that across the region on the turnaround in global demand,” David Cohen, a Singapore-based economist at Action Economics, said before the report.

Malaysia’s recovery is “firmly established” as the nation emerges from its recession, the central bank said yesterday as it raised interest rates for the first time in almost four years. International Trade and Industry Minister Mustapa Mohamed said this week exports of Sime Darby Bhd. palm oil and other goods may climb at twice the pace predicted earlier in 2010.

“The economic recovery in Malaysia is now starting to appear sustainable, although the path of recovery is likely to be uneven over the next few months,” Rahul Bajoria, an economist at Barclays Capital in Singapore, said before the report. “Meanwhile, the inflation picture is benign. We believe Bank Negara Malaysia will adopt a gradual approach to monetary tightening at least in the next three to nine months.”

Shipments to China, Malaysia’s biggest market during the month, more than doubled in January from a year earlier to 7.1 billion ringgit. Exports to the U.S., the European Union and Japan also gained.

Electronics, Oil
Sales of electrical and electronics products by companies including Malaysian Pacific Industries Bhd. and Unisem (M) Bhd. climbed 55.6 percent in January, compared with a 33.3 percent gain the previous month. Such goods made up 41 percent of total exports.

Oil exports surged 35.5 percent, while palm oil sales jumped 43.8 percent.

Malaysia’s imports rose 31 percent in January from a year earlier to 39.5 billion ringgit. The trade surplus widened to 12.9 billion ringgit from 12.1 billion ringgit in December.

Overseas shipments may increase 6 percent or 7 percent this year, more than a previous forecast of 3.5 percent, Mustapa said March 2. Exports slumped 16.6 in 2009, the first decline in eight years. In neighboring Singapore, the government predicts non-oil domestic exports will probably gain between 10 percent and 12 percent in 2010 after shrinking 10.6 percent last year.