Malaysia's June exports rebound, but Q2 growth still seen as weak

Kuala Lumpur

MALAYSIA'S June exports grew 5 per cent or RM3 billion (S$1.06 billion) to RM64.3 billion year-on-year, but notwithstanding the strong rebound from the previous months, economists expect second quarter GDP growth to moderate to around 4 per cent.

As exports contracted 7.8 per cent from April to May, many had expected a continuing contraction in June, with the consensus forecast 2.2 per cent. June's performance marked the fastest growth in 12 months, and boosted the trade surplus by nearly RM8 billion. While oil and gas exports and LNG shipments fell as expected, exports were boosted by robust sales of metal manufactures, palm oil and electrical and electronic products.