KUALA LUMPUR, Dec 19 — MIDF Research predicted exports and imports growth to be robust at 27.1 per cent and 32 per cent respectively this year.
The research house said the overall export growth for 2022 has been better than expected on the back of strong global demand for electrical and electronic (E&E) and commodities such as petroleum and palm oil, which was also influenced by fluctuation in global commodity prices.
“We opine the continued rise in global demand for these products would support Malaysia’s export outlook going forward,” it said in a research note today.
It said import performance also exceeded MIDF Research’s initial predictions driven by higher than expected recovery in domestic spending this year.
“Although the rate of growth has been moderating and more normalised because of the diminishing low base effect, we still expect imports to grow positively as we predict domestic demand will continue to increase next year,” it said.
However, the research house said it kept a cautious view on several downside risks that could drag down the trade outlook in 2023 but foresaw external trade to grow further despite slower global growth next year.
MIDF Research added the risk included the heightened recession and possibility of a deeper slowdown in global growth; collapse in final demand amid elevated inflation and increased borrowing costs; and possible escalation of geo-political tensions and trade war.
Earlier, the Ministry of International Trade and Industry (Miti) announced that Malaysia’s trade continued its stellar performance and maintained an upward trajectory in November 2022 with trade expanded by 15.6 per cent to RM238.17 billion compared with November 2021, the 22nd consecutive month of year-on-year (y-o-y) double-digit expansion.
The ministry said exports rose by 15.6 per cent to RM130.24 billion while imports and trade surplus increased by 15.6 per cent each to RM107.93 billion and RM22.3 billion respectively.
— Bernama
