Key insights
- Malaysian export growth, while positive at 10.8% in February, missed expectations. Exports to the US surged 42.3%, driven by electrical and electronic goods. The trade ministry cited risks to global trade from the Middle East conflict. While strong US demand is a positive signal, the overall impact on US equities is slightly negative due to broader global trade uncertainties and potential supply chain disruptions.
Investing.com -- Malaysia’s exports increased 10.8% in February from a year earlier, driven by higher demand for manufactured goods, the trade ministry said Thursday.
The figure fell short of the 13.2% rise forecast in a Reuters poll of economists.
Shipments to China grew 13.2% in February from a year earlier, while exports to the United States soared 42.3% on robust demand for electrical and electronic goods.
Imports in February grew 8.2% from a year earlier, the data showed, in line with the poll forecast of an 8% increase.
Malaysia recorded a trade surplus of 16.7 billion ringgit ($4.25 billion) in February, below the poll forecast of 20.5 billion ringgit. It was the 70th consecutive monthly trade surplus since May 2020.
The trade ministry flagged risks to global trade due to the escalating conflict in the Middle East. The situation has created additional uncertainties and disrupted international trade flows, particularly across Asia and Europe, the ministry said.
The ministry said exporters should take advantage of existing free trade agreements, tap into emerging markets and broaden their product portfolios amid the uncertainty.
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