- Malaysia’s exports grew by +2.0% YoY to RM64.52bil in September (August: +1.7% YoY), driven by the exports of manufactured goods and agriculture goods.

- The overseas shipment of E&E registered +5.3% YoY (August: +3.9%). Meanwhile, exports of non-E&E products grew by 0.1% (August: +0.7%).

- As for the exports of commodities, we note that the shipments of palm oil has advanced by 17.8% (August: -3.7%) while crude petroleum fell by 9.0% (August: +21.4%).

- In terms of export markets, shipments to the US registered a healthy growth in September. Exports surged by 16.2% (August: +6.3%), driven by E&E products, chemicals and chemical product, and optical and scientific equipment.

- Aside from that, exports to the EU increased by 2.2% to RM6.07bil (August: +5.7%), attributable to the rise in exports of E&E products, machinery, appliances and parts, as well as processed food.

- Contrastingly, exports to China fell by 8.4% YoY (August: -21.9%), due to lower exports of palm oil, crude natural rubber, and LNG.

- We note that the weak Ringgit currency had adversely affected purchasing power and imports growth in September. By end-September, Ringgit slipped by 4.1% to close at RM3.28 per USD vs. RM3.15 per USD as at end-August.

- Malaysia’s total imports increased by 1.1% to RM55.19bil (August: +7.6%), led by the increase in intermediate goods.

- As such, total trade amounted to RM119.72bil in September, which was an increase of 1.6% YoY (vs. +4.5% in August). Trade balance also advanced to record a healthy surplus of RM9.33bil during the month vs. RM3.86bil in August.

- On a YTD basis, total trade grew by 7.1% YoY driven by the advancement in exports of 8.6% and imports growth of 5.5%. Trade balance recorded a surplus of RM61.64bil.

- In 3Q14, Malaysia’s trade segments posted slower growth momentum compared to the preceding quarter.

- Exports increased by 1.5% (vs. +14.4% in 2Q14); imports grew by 2.6% (vs. +8.5% in 2Q14); while trade surplus narrowed by RM1.66bil QoQ to RM16.83bil.

- For the full year, we envisage overall trade balance to register a surplus of RM78.47bil in 2014 (2013: RM70.63bil).

- Ahead of the GDP statistical release for 3Q14 on 14 November, we expect the economy to advance by 5.6% in 3Q14 vs. 6.4% in 2Q14.

- Mainly, the moderation in GDP growth reflects the slowdown private consumption expenditure and softer net trades during the quarter.

Source: AmeSecurities