Malaysia's export sector is expected to improve for the remaining months towards the end of the year following stronger than expected export growth of 12.3% recorded in July 2024.
The optimism rests on higher demand for electricity and electronics (E&E) and is driven by the global technology upcycle following resilient demand for commodity-based products.
Malaysia's exports in July 2024 surpassed economists' estimates with a record growth of 12.3% year-on-year to RM131.15 billion compared to RM116.75 billion a year ago.
This brought export growth to 5.1% between January and July.
Growth of 12.3% in July 2024 was the highest since November 2022 and exceeded consensus estimates expected by and . Both forecast the country's exports to grow by 9%.
Strong export data has prompted UOB Global Economics and Markets Research to revise its full-year export growth forecast to 7.6%, up from 3.5% previously.
Previously, Bank Negara Malaysia put the consensus for the country's exports to grow 5% in 2024 following an 8% contraction in 2023.
Furthermore, the bold and effective implementation of the Malaysian government to diversify the country's master plan including the National Semiconductor Strategy is able to add to trade prospects in the near term.
Meanwhile, relatively strong Malaysian import growth continues to be supported by companies increasing raw material purchases to meet growing demand as well as restocking activities to minimize the risk of supply chain disruptions.
