Malaysia gross exports hit 35-month low in September

Exports slipped 6.8% no thanks to declines in manufacturing, agriculture, and mining.

Malaysian gross exports posted its sharpest fall in 35 months, slipping 6.8% YoY in September, according to a UOB macro report.

The contraction was seen as a result of declines in the manufacturing, agriculture, and mining goods sectors amidst a shorter working month, and a new 15% US tariff on $110b (MYR456b) worth of Chinese products last September.

Most key export destinations also recorded falling demand, led by Hong Kong, EU, ASEAN, China and Japan.

On the other hand, gross imports ricocheted 2.4% YoY resulting in a slimmer trade surplus of $1.99b (MYR8.3b).

In Q3, both exports and imports fell for the third consecutive quarter by 1.9% YoY and 5.8% YoY respectively with a trade surplus of $8.06b (MYR33.5b), and will likely translate to a smaller account surplus of $2.28b (MYR9.5b) in the same quarter. UOB maintains its 2019 full-year exports forecast at -1.0%.

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