Malaysia's Aug exports drop 2.9% y-o-y, worse than forecast

[KUALA LUMPUR] Malaysian exports dropped 2.9 per cent in August from a year earlier, contrary to expectations for an increase, as shipments to key markets tumbled and demand for manufacturing, agriculture and mining goods dropped, government data showed on Monday.

The contraction was far below the 4.8 per cent growth forecast by analysts in a Reuters poll, and a sharp dip from the 3.1 per cent rise in July.

Imports in August shrank by 6.5 per cent from a year earlier, slowing from the 8.7 per cent decline in the prior month, data from the International Trade and Industry Ministry showed. Analysts had expected a fall of 4.3 per cent.

Malaysia's trade surplus narrowed to RM13.2 billion (S$4.36 billion), moderating from a historic high of RM25.15 billion in July.

REUTERS