Malaysia's exports accelerated further to a record high in September, prompting some research houses to upgrade their growth projection this year.

The country's exports maintained above RM100 billion for the fourth time this year, having grown 24.7 per cent to RM110.83 billion last month, according to the Malaysian External Trade Corp (Matrade).

The overall trade grew 25.5 per cent to RM195.54 billion in September from RM155.85 billion recorded in the same period a year ago, Matrade said.

For the first nine months, Malaysia's trade expanded 23.2 per cent to RM1.6 trillion from RM1.3 trillion a year ago.

Exports grew 24.9 per cent to RM889.32 billion, imports rose 21.1 per cent to RM712.99 billion and trade surplus surged 43.1 per cent to RM176.33 billion.

MIDF Research said the value of total exports rising to a record high in September, driven by stronger external demand for commodity products such as palm oil and palm oil-based products, petroleum products, and manufactures of metal.

This indicated further improving foreign trade activities as Malaysia gradually relaxed the full lockdown restrictions.

By destination, the robust exports was driven by stronger outbound shipments to major markets namely China, the US and Asean.

Increased exports to China was driven primarily by higher demand for manufactures of metal, iron & steel and LNG.

MIDF Research revised up its exports growth projection for 2021 to 19.8 per cent from 13.5 per cent previously.

This takes into account the better-than-expected commodity exports especially palm oil and petroleum products.

Looking at the encouraging recovery in imports in the recent months, the firm also upgraded its full-year imports growth to 18.9 per cent from 12.7 per cent previously.

"The recovery in foreign trade activities following the economic reopening from the full lockdown has been stronger than expected. In particular, the recent strength in both exports and imports have been driven by higher demand for commodities, and Malaysia is in a position to benefit from the rise in commodity prices," MIDF Research said.

Juwai IQI chief economist Shan Saeed said solid policy was bolstering the trade numbers, reflecting the government's total commitment to maintain the economic momentum and enhance commerce.

"We expect trade volume to continue to grow bigger as many advanced economies are struggling to open up and trade pivot is moving to Asia and Asean," he told the New Straits Times (NST) today.

Shan said global players valued Malaysian economic outlook and prefered to enhance trade relationship due to macroeconomic stability, productive labour force, solid trade policies, modern infrastructure and adoption of technology.

"Malaysia will continue to upsurge in economic outlook as 95 per cent of the population is vaccinated, economy is looking buoyant and above all government is in total control of the economy at the macro level," he added.

Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the latest print on export and import suggested that Malaysia has been benefitting from the global recovery.

"Higher commodity prices too have been a boon to Malaysia's trade with exports for palm oil, liquified natural gas and petroleuem related products have been recording strong pace."

Afzanizam said the external sector looks favourable to be the key driver for gross domestic product growth while the decision to uplift the interstate travel ban recently would helped to reinvigorate the domestic engine in particular the tourism related sector.

"Against such a backdrop, the prospects for Malaysian looks increasingly better and therefore, the 2022 Budget, which is likely to be expansionary should helped to solidify the country's economy in 2022 and beyond," he added.

Read more here: https://www.nst.com.my/business/2021/10/740721/malaysias-trade-accelerates-record-exports-september

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