• Exports growth marks the second month of deceleration

• Imports slowed down in September

• Imports surpassed exports for two months in row

• Trade surplus narrowed to RM8.6bn

• Slower export growth was underpinned by all major sectors

• Exports to moderate in the final quarter

Export growth moderates to 14.8% yoy in September, marking the second month of deceleration. The slowdown came on the back of slower commodity and manufactured exports while agriculture shipments were pulled down by declines in crude palm oil and related products. Likewise, imports also slowed down in September to 15.2%. As a result, trade surplus narrowed to RM8.6bn in September as compared to RM10.0bn posted in the previous month. On monthly basis, exports declined by 4.9% (Aug: +4.7%) while imports fell 3.7% (Aug: +2.4%). In seasonally adjusted terms, export and import declined 6.2% and 4.0% mom respectively. Total trade rose by 15.0% yoy and valued at RM147.9bn in September from 22.0% registered in the preceding month. On monthly basis, the total trade dropped 4.3% or RM6.7bn after increasing by 3.6% in August. Total trade stood at RM1.3tn for January to September this year. In 3Q17, total trade expanded by 21.0% yoy to RM451.7bn. Exports soared by 22.1% to RM239.2bn, registering the fastest yoy growth since 2Q10. Imports rose by 19.8% to RM212.5bn. A trade surplus of RM26.7bn was recorded, an increase of 44.6%.

Source: BIMB Securities Research - 6 Nov 2017