Malaysia's Aug exports up 1.7%, beating forecast

Kuala Lumpur

MALAYSIA'S exports grew by a moderate 1.7 per cent in August from a year ago, outdoing the street's expectations of a 1.4 per cent contraction, but still suggestive of a waning growth momentum that first surfaced in July's 0.8 per cent export-growth figure.

The figures reinforced the views of many economists, who generally expect slower gross domestic product (GDP) growth in the second half of this year, compared to the 6.3 per cent registered in the first half. The slowing momentum is likely to deter the central bank from raising interest rates at its next monetary meeting in November. Export growth was driven mainly by machinery and appliances, crude petroleum and optical and scientific equipment; palm oil and metal manufactures declined.