Thursday, 6 July 2017

(The Star) Export growth to remain robust in May, says RAM

KUALA LUMPUR: RAM Rating Services Bhd expects Malaysia’s export growth for May to remain at a robust 20%, slightly lower than the 20.6% recorded in April, supported by expansionary momentum.

In a statement, RAM said import growth was envisaged to stay at 20.4%, below April’s 24.7%, supported by the sustained expansion of domestic businesses and ongoing infrastructure projects.

The current cyclical recovery has been providing support for both exports and imports this year, following several years of lacklustre performance, it said.

RAM economic analyst Woon Khai Jhek said such positive outlook on global demand and output was prevalent among export-oriented firms.

These firms had been consistently optimistic on the outlook for the next six months compared to their domestic-oriented counterparts, as highlighted in the RAM Business Confidence Index for third quarter-fourth quarter 2017.

“The exports have benefited from the rebound in demand from China, as shipments of crude materials, mineral fuels and machinery and transport equipment spiked up sharply, in line with its recovery,” Woon said.

Woon said the role of mineral fuels in the revitalisation of overall exports to China was partly boosted by the oil price recovery which was likely to moderate in the near term, given the recent price concerns of a supply glut. — Bernama