Malaysia's import growth to drop 4.3%

Trade balance to be lifted to MYR1.3bn.

According to DBS, Malaysia's import growth is likely to come in at 4.3%, down from a robust expansion of 9.2% previously. This will lift trade balance to MYR 1.3bn for the month, which is still low by Malaysia’s standard.

Here's more:

May trade data due this Friday will be interesting. Not so much about the export performance butrather, where trade balance has headed in May after it hit a multi-yearlow of MYR 943mn in April.

Export growth remaining in the red is almost a given. A sluggish external demand and overhanging uncertainties aboutthe globalrecovery will continue to
weigh on export sales.

The headline number is expected to register a decline of 1.7%YoY. While this is an improvement from a deeper contraction of 3.3% in the previous month, imports will continue to outpace exports, thereby putting pressure of the trade balance.