Total trade hits RM1tril despite global slowdown

Exports grew by 15.8 per cent, beating market expectations, while imports grew slower than expected at 4.6 per cent.

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KUALA LUMPUR: Malaysia's total trade crossed the RM1 trillion mark at RM1.05 trillion for the first 10 months of the year, marking a strong achievement during challenging global trading environment.The International Trade and Industry Ministry (Miti), in releasing the data yesterday, said exports in October recorded the highest monthly value at RM63.57 billion. Exports grew by 15.8 per cent, beating market expectations, while imports grew slower than expected at 4.6 per cent. Total trade expanded by 10.6 per cent to RM113.91 billion during the month. Its minister Datuk Seri Mustapa Mohamed said the positive export performance made the six to seven per cent target for the ear "realisable". "Nonetheless, the ripple effect of the financial doldrums of the eurozone and the United States may hit Asia, and it is important for Malaysian manufacturers and exporters to be alert and be prepared for the challenges ahead," Mustapa said. Credit Suisse economist Wu Kun Lung said this was the fifth consecutive month that exports had beaten the consensus forecast. Strong commodity exports have enabled the trade surplus to widen to RM13.2 billion, up from RM9.6 billion in September. According to Miti, the major contributors were chemicals and chemical products, the manufacture of metal and rubber products, which increased by 24.3 per cent, 38.5 per cent and 23.7 per cent respectively. The growth had offset the impact of the lower exports of electrical and electronic products, which declined by nine per cent. Commodities, mainly liquefied natural gas, palm oil and crude and refined petroleum products, contributed 76.2 per cent to export growth in October. In terms of markets, China topped the list, expanding by 37.1 per cent in October. Exports to Japan rose 29.6 per cent, mainly due to meeting post-tsunami and earthquake reconstruction needs and new demand arising from supply chain disruptions caused by floods in Thailand.