Malaysia’s February exports rise 10.8% y/y, below forecast

KUALA LUMPUR: Malaysia’s exports rose 10.8% in February from a year earlier, boosted by higher demand for manufactured goods, the trade ministry said on Thursday as it flagged risks to global trade due to the escalating conflict in the Middle East.

Exports came in below the forecast rise of 13.2% in a Reuters poll of economists.

Shipments to China grew 13.2% in February from a year earlier, while exports to the United States soared 42.3% on robust demand for electrical and electronic goods.

Imports in February grew 8.2% from a year earlier, the data showed, in line with the poll forecast of an 8% increase.

Malaysia recorded a trade surplus of 16.7 billion ringgit ($4.25 billion) in February, below the poll forecast of 20.5 billion ringgit.

It was the 70th consecutive monthly trade surplus since May 2020.

The situation in the Middle East has created additional uncertainties and disrupted international trade flows, particularly across Asia and Europe, the ministry said.

“Looking ahead, continued vigilance remains essential, as prolonged geopolitical instability could weigh on global demand and supply chain dynamics, potentially affecting Malaysia’s trade performance,” the ministry said.

It said exporters should take advantage of existing free trade agreements, tap into emerging markets and broaden their product portfolios amid the uncertainty.