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New Straits Times
19 hours ago
- Business
- New Straits Times
Robust exports to support trade outlook
KUALA LUMPUR: Malaysia's trade prospects for 2025 remain supported by robust exports, after bouncing back to growth in July with the highest monthly value ever, economists said. But they warn that the outlook for next year will likely be riddled with headwinds as the full impact of the 19 per cent tariff imposed by the US sets in. Malaysia's trade hit a record high of RM265.92 billion in July, up 3.8 per cent from RM234.85 billion a year earlier, supported by stronger exports that reached their highest level in nearly three years. Investment, Trade and Industry Ministry said exports rose 6.8 per cent to RM140.45 billion, the strongest monthly performance since September 2022, reflecting sustained global demand for Malaysian goods. "Imports edged up by 0.6 per cent to RM125.47 billion, while trade surplus continued for the 63rd consecutive month, valued at RM14.98 billion for July 2025," it said in a statement. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said exports to the United States have been "commendable", growing more than 20 per cent in the first seven months of this year. This goes to show that front-loading activities among the US importers have been growing at a healthy clip and such trends are quite similar to the regional economies, he added. "In some sense, this should alleviate concern on the overall growth performance for 2025. Therefore, 2026 would be much more critical as the impact of the full 19 per cent tariff rate will be felt more visibly," he told Business Times. Meanwhile, economist Dr Geoffrey Williams said while the export and total trade figures are part of a continuing improvement in overall trade, the net trade figures are the indicator to watch. He noted that the current account surplus sank to just RM0.3 billion, or 0.1 per cent of gross domestic product (GDP), in the second quarter of 2025. In June 2025, Malaysia had a trade surplus of RM8.6 billion which was an increase from the RM0.8 billion surplus in May. "So the July figure is more positive, which is almost double the month before. Nonetheless the trade surplus is very volatile and has been on a general downwards trend since August 2023," he said. Williams expects continued global headwinds which will affect net trade volatility in the coming months and will reduce the contribution of net trade to GDP growth. "Already (Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said this week that the US tariff issue will cut 0.6-1.2 per cent off GDP, so on average this is a loss of RM20 billion," he said. Elaborating on the trade performance, the ministry said exports of electrical and electronic (E&E) products jumped by nearly RM12 billion to RM63.31 billion, a 22.5 per cent year-on-year increase. For the January-July 2025 period, total trade rose 4.7 per cent year-on-year to RM1.731 trillion, with exports expanding 4.3 per cent to RM900.47 billion and imports increasing 5.1 per cent to RM830.16 billion. This resulted in a trade surplus of RM70.32 billion, the highest cumulative value to date. The ministry said Malaysia's trade performance in the first seven months of 2025 reflected a cautiously improving global trade outlook. The US decision to cut reciprocal tariffs on Malaysian exports to 19 per cent from 25 per cent underscored the country's disciplined trade diplomacy, it added. "This tariff rate, which is roughly in line with the rest of our peers in Asean, will continue to support our competitiveness. "Despite global trade and US tariff headwinds, Malaysia's steady trade performance has contributed to the expansion of the nation's gross domestic product by 4.4 per cent in the second quarter of 2025."
Barnama
a day ago
- Business
- Barnama
Ringgit Up Against Major Currencies, Holds Steady Against Greenback On Strong Trade Data
WORLD By Zufazlin Baharuddin KUALA LUMPUR, Aug 19 (Bernama) -- The ringgit appreciated against major currencies and held firm versus the US dollar at the close on Tuesday as Malaysia posted a stronger trade performance, returning to positive growth in July. According to the Ministry of Investment, Trade and Industry (MITI), the country's trade performance rebounded by 3.8 per cent year-on-year (y-o-y) to RM265.92 billion in July, the highest monthly trade value ever. At 6 pm, the local note made a marginal retreat to 4.2215/2255 against the greenback from yesterday's close of 4.2200/2240. MITI said exports in July jumped 6.8 per cent to RM140.45 billion, the highest monthly value since September 2022, while imports edged up by 0.6 per cent to RM125.47 billion. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest export print suggests Malaysia's external sector is still 'fairly decent' despite having to contend with US tariffs. 'Hence, the case for a strong ringgit going forward remains intact,' he told Bernama. Meanwhile, he said market players will monitor the US Federal Reserve (Fed) meeting at the Jackson Hole Symposium later this week, with chair Jerome Powell's speech this Friday in focus. 'Traders and investors appear to lean towards a possible 25 basis points cut in September as signs of a weaker US labour market have become increasingly apparent. Hence, a dovish tilt by the Fed is something that the market wants to hear. Therefore, any deviation from this view could have an impact on the currency market trajectory,' he added. At the close, the ringgit settled mostly higher against a basket of major currencies.
The Star
a day ago
- Business
- The Star
Ringgit up against major currencies, holds steady against greenback on strong trade data
KUALA LUMPUR: The ringgit appreciated against major currencies and held firm versus the US dollar at the close on Tuesday as Malaysia posted a stronger trade performance, returning to positive growth in July. According to the Ministry of Investment, Trade and Industry (MITI), the country's trade performance rebounded by 3.8 per cent year-on-year (y-o-y) to RM265.92 billion in July, the highest monthly trade value ever. At 6 pm, the local note made a marginal retreat to 4.2215/2255 against the greenback from yesterday's close of 4.2200/2240. MITI said exports in July jumped 6.8 per cent to RM140.45 billion, the highest monthly value since September 2022, while imports edged up by 0.6 per cent to RM125.47 billion. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest export print suggests Malaysia's external sector is still "fairly decent' despite having to contend with US tariffs. "Hence, the case for a strong ringgit going forward remains intact,' he told Bernama. Meanwhile, he said market players will monitor the US Federal Reserve (Fed) meeting at the Jackson Hole Symposium later this week, with chair Jerome Powell's speech this Friday in focus. "Traders and investors appear to lean towards a possible 25 basis points cut in September as signs of a weaker US labour market have become increasingly apparent. Hence, a dovish tilt by the Fed is something that the market wants to hear. Therefore, any deviation from this view could have an impact on the currency market trajectory,' he added. At the close, the ringgit settled mostly higher against a basket of major currencies. It strengthened versus the Japanese yen to 2.8572/8601 from Monday's close of 2.8632/866, gained against the British pound to 5.7066/7120 from 5.7139/7193, but dropped vis-à-vis the euro to 4.9307/9354 from 4.9290/9336. The ringgit traded higher against other ASEAN currencies. It gained versus the Singapore dollar to 3.2901/2935 from 3.2902/2936 at Monday's close and strengthened against the Thai baht to 12.9848/13.0027 from 12.9942/13.0121. The ringgit also gained vis-à-vis the Philippine peso to 7.39/7.40 from 7.40/7.42 previously and edged up against the Indonesian rupiah to 259.8/260.2 from 260.4/260.9. - Bernama
Barnama
a day ago
- Business
- Barnama
Malaysia's Trade Rebounds 3.8 Pct To RM265.92 Bln In July -- MITI
BUSINESS KUALA LUMPUR, Aug 19 (Bernama) -- Malaysia's trade performance returned to positive growth in July 2025, rebounding by 3.8 per cent year-on-year (y-o-y) to RM265.92 billion, the highest monthly trade value ever, according to the Ministry of Investment, Trade and Industry (MITI). In a statement today, MITI said exports grew by 6.8 per cent to RM140.45 billion, the highest monthly value since September 2022, while imports edged up by 0.6 per cent to RM125.47 billion. Trade surplus continued for the 63rd consecutive month, valued at RM14.98 billion for July 2025, it added. The ministry noted that exports of electrical and electronics (E&E) products improved significantly by nearly RM12 billion to RM63.31 billion, an increase of 22.5 per cent y-o-y, compared to July 2024. 'It remained the key driver of Malaysia's export growth, alongside optical and scientific equipment as well as processed foods. 'All these product categories recorded the highest export value thus far. Other contributors to export growth included machinery, equipment and parts as well as palm oil-based manufactured products,' it said. According to MITI, exports to all key trading partners, namely ASEAN, China, the United States (US), Taiwan and the European Union, registered positive growth, with exports to Taiwan reaching its highest value to date. It said exports to free trade agreement partners also expanded, with notable increases in shipments to Mexico and the Republic of Korea, driven primarily by higher exports of E&E products. For the period of January to July 2025, trade, exports, and imports achieved their highest cumulative value, with trade rising 4.7 per cent to RM1.731 trillion y-o-y, exports expanding 4.3 per cent to RM900.47 billion and imports up by 5.1 per cent to RM830.16 billion, resulting in a trade surplus of RM70.32 billion.
The Sun
2 days ago
- Business
- The Sun
Malaysia's trade rebounds 3.8 pct to RM265.92b in July 2025
KUALA LUMPUR: Malaysia's trade performance rebounded in July 2025, growing 3.8 per cent year-on-year to RM265.92 billion, the highest monthly value on record. The Ministry of Investment, Trade and Industry (MITI) reported exports rose 6.8 per cent to RM140.45 billion, the strongest since September 2022. Imports saw a modest 0.6 per cent increase to RM125.47 billion, maintaining Malaysia's trade surplus for the 63rd consecutive month at RM14.98 billion. Electrical and electronics (E&E) products led the export surge, jumping 22.5 per cent to RM63.31 billion compared to July 2024. Optical and scientific equipment, processed foods, and machinery also contributed significantly, achieving record-high export values. Exports to major trading partners, including ASEAN, China, the US, Taiwan, and the EU, all posted positive growth, with Taiwan reaching an all-time high. Free trade agreement partners like Mexico and South Korea saw notable increases, driven by higher E&E product shipments. From January to July 2025, cumulative trade rose 4.7 per cent to RM1.731 trillion, with exports up 4.3 per cent to RM900.47 billion. Imports grew 5.1 per cent to RM830.16 billion, resulting in a RM70.32 billion trade surplus. MITI attributed the strong performance to a cautiously improving global trade outlook, with the WTO revising its 2025 growth forecast to 0.9 per cent. The US tariff reduction on Malaysian exports from 25 per cent to 19 per cent further supported competitiveness, aligning with ASEAN peers. MITI emphasised that disciplined trade diplomacy efforts played a key role in sustaining Malaysia's export momentum. The ministry remains optimistic about maintaining growth amid evolving global trade conditions. - Bernama
