Malaysia’s Exports Expected to Increase in 2020

Malaysia’s Exports Expected to Increase in 2020, According to Economists

Country Expected to Record a Growth of 1.5% in the Export Sector

Economists are predicting Malaysia’s exports will experience a 1.5% growth year-on-year this 2020, strengthened by its commodity-based sectors.

Based on the latest trade figures for the country, it seems the trade sector is ready to rebound and come back strong.

 

Why Malaysia’s Exports Are Getting Stronger

As of December 2019, Malaysia recorded a total positive-growth year-on-year of 1.9%. This effectively ended the contraction streak which lasted 6-months, since both the import and export sector experienced growth.

In December 2019, Malaysia’s exports grew by 2.7% year-on-year. This comes after the negative growth it experiences for four months straight. Imports also experienced a tepid growth of 0.9% after months on the decline.

Several factors are contributing to the projected growth of Malaysia’s exports. Better prices for palm oil over recent months is one of those factors. Higher demand from electronics and non-electrical and non-commodity products are among the other contributing factors. Liquefied natural gas exports are also expected to perform well, thanks to the Petronas Floating LNG Facility 2. The facility is expected to commence operations this year.

However, those numbers should still be viewed with caution given the certain difficulties on the global front. In particular, the modest economic growth coming out of the United States and China. The covid-19 coronavirus is another potential risk factor which could impact the economic numbers. With the trade war uncertainties still going on, some policy easing may occur.