Malaysia sees below-forecast rise in February CPI, exports

[KUALA LUMPUR] Malaysia’s consumer price index (CPI) rose 1.4 per cent in February from a year earlier, government data showed on Thursday (Mar 19).

The rise was less than the 1.6 per cent increase forecast by economists in a Reuters poll. The index rose 1.6 per cent in January.

Malaysia’s exports rose 10.8 per cent in February from a year earlier, boosted by higher demand for manufactured goods, the trade ministry said on Thursday, as it flagged risks to global trade due to the escalating conflict in the Middle East.

Exports came in below the forecast rise of 13.2 per cent in a Reuters poll of economists.

Shipments to China grew 13.2 per cent in February from a year earlier, while exports to the US soared 42.3 per cent on robust demand for electrical and electronic goods.

Imports in February grew 8.2 per cent from a year earlier, the data showed, in line with the poll forecast of an 8 per cent increase.

Malaysia recorded a trade surplus of RM16.7 billion (S$5.4 billion) in February, below the poll forecast of RM20.5 billion. It was the 70th consecutive monthly trade surplus since May 2020.

The situation in the Middle East has created additional uncertainties and disrupted international trade flows, particularly across Asia and Europe, the ministry said.

“Looking ahead, continued vigilance remains essential, as prolonged geopolitical instability could weigh on global demand and supply chain dynamics, potentially affecting Malaysia’s trade performance.”

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It said exporters should take advantage of existing free trade agreements, tap into emerging markets and broaden their product portfolios amid the uncertainty. REUTERS