-  Malaysia’s exports grew by 6.7% YoY to RM62.25bil in November vs. our and street projections of 10.0% and 10.3% respectively.

-  In particular, the overseas shipment of E&E had advanced by 14.5% to RM21.45bil. Meanwhile, the exports of non-E&E products surged by 3.1% YoY to RM40.80bil.

-  In terms of export markets, ASEAN had contributed a bulk of the exports, accounting for 25.4% (or RM15.81bil) of total exports.

-  Aside from that, Malaysia’s exports to China grew by 31.1% YoY to RM9.98bil. China had accounted for 16.0% of total exports in November.

-  Elsewhere, exports to the EU registered a strong growth of 14.5% to RM5.61bil, contributed mainly by increases in exports to Netherlands and Germany.

-  We note that exports to the US continued to remain weak as it contracted for the tenth straight month to register -2.1% YoY in November (or contributing 7.7% to total exports).

-  Meanwhile, total imports increased at a moderated pace of 6.4% to RM52.53bil driven by the increase in intermediate goods (+9.9% YoY) and consumption goods (+7.8% YoY). In October, total imports had advanced by a healthy 13.9%.

-  Nevertheless, imports of capital goods had declined by 16.9% to RM7.57bil as manufacturers probably restrained from capex expansion.

-  All in all, net trades had been encouragingly strong as it soared to RM9.72bil in November, the highest trade surplus achieved for the year (October: RM8.23bil).

-  As of YTD November 2013, exports grew by 1.4% to RM654.08bil while imports expanded by 6.3% to RM592.91bil. Thus, trade surplus had amounted to RM61.16bil.

-  Even with the improvements in external demand during 2H13, total trade surplus had declined by 30.1% YoY as of YTD November 2013 (or RM26.34bil lower than the same period in 2012).

-  GDP growth in 4Q13 will be bolstered by the relatively stronger net trades as compared to the first three quarters of 2013. In October and November alone, total trade surplus had amounted to RM17.95bil.

-  In nominal terms, net trades had registered surpluses of RM16.35bil/RM8.23bil/RM18.63bil in 1Q/2Q/3Q13 respectively.

-  That said, improvements in the overall trade balance will be offset by the softer private sector spending during the final quarter of 2013. 

Source: AmeSecurities