KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Malaysia’s export growth slowed sharply in August but still managed to stay positive, driven by resilient demand for electrical and electronic (E&E) products.
Market Snapshot
Exports: +1.9% YoY (July: +6.5%), below consensus +3.0%.
Imports: –5.9% YoY (July: +0.6%), steepest drop since Sept 2023.
Trade surplus: RM16.1b (July: RM14.6b), beating forecasts.
Total trade: –1.9% YoY, lowest in 20 months.
Key Drivers
E&E exports: +10.1% (July: +22.5%), making up 42.2% of total exports.
Weak spots: Crude petroleum (–28.8%), petroleum products (–17.6%), LNG (–2.6%).
Bright spots: Palm oil & related products rebounded +9.7%; agriculture overall +4.5%.
Regional flows:
US: –16.7% (sharpest in 20 months, hit by tariffs)
China: +10.4% (supportive)
Singapore: +2.7% (slower)
Taiwan: +32.7% (slowed from prior surge)
Imports Breakdown
Retained imports: –12.4% (2nd straight month of decline).
Intermediate goods: –16.8%
Consumption goods: –8.9%
Capital goods: +11.0% (July: +20.3%)
Outlook
Kenanga IB keeps 2025 export growth forecast at 3.1% (2024: 5.7%).
Drivers: AI, 5G, automation, EV-related demand expected to sustain E&E exports.
Risks: US trade policy, uneven global growth, geopolitical tensions.
GDP outlook: 2025 forecast retained at 4.3% (2024: 5.1%), with growth support from accommodative policy, approved investments, and tourism.
Key Takeaway
Despite slowing export growth, Malaysia’s strong E&E demand and widening trade surplus provide support for the economy. Analysts expect exports to remain resilient in 2025, though external risks could weigh on momentum.
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