04 Jul 2019
With the second quarter of 2019 just passing, Malaysia’s GDP growth improved, leading to predictions that the growth and monetary policy will stay strong and steady for the remaining of the year. Manufacturing information and income from exports have managed to set up a better second quarter than the first, in terms of GDP growth.
Exports exceeded the consensus median of 2.2%, having risen to 2.5% year-on-year. Impressively, Malaysia did very well during a bad period for technological exports in the region. 38% of the exports done were electronics and electrical goods. On the other hand, Singapore has been on the other end of the tech slump, having not done so well since the end of 2017. It is possible that Malaysia’s market is attracting more traders to it rather than Singapore.
In addition, exports of machinery and appliances, and chemicals have also pushed exports further. In May, machinery and appliances exports grew by 15% whilst chemical exports by 8%.
May’s imports grew by 14% – slower than the expected growth of 3.2% leading to a trade surplus of MYR 9.1bn.
Malaysia’s central bank may view the economic risks as being in order and fair, and keep the overnight policy rate at 3.0%.