MONEY MASTER

Malaysia’s exports fell  3.5% year-on-year  in June, marking the second consecutive month of contraction, as a steep drop in petroleum product shipments offset gains in electronics and agriculture.   June exports : Totalled  RM121.7 billion  (~$28.7 billion) Fell  3.9%  month-on-month Down from  -1.1% YoY  in May Key Drivers of Export Decline : Petroleum products :  -28.1% YoY  to RM8.38 billion Shipments to China  (Malaysia’s top trade partner):  -9.3% YoY  to RM14.84 billion Offsetting Gains : Electronics & electrical products  (over ⅓ of exports):  +1.3% YoY  to RM53.95 billion Palm oil & related products :  +24.7% YoY  to RM6.93 billion Imports : Rose  1.2% YoY  to  RM113.1 billion Driven by capital and consumption goods Purchases of intermediate goods declined Trade Surplus : RM8.6 billion , down  40.1% YoY Summary : June’s trade data highlights weakening globa...

Economists anticipate Malaysia’s trade performance to strengthen in the second half of 2024, supported by a resurgence in the global technology cycle, resilient economic growth in major economies, and potential increases in commodity prices. Key Points: Positive Outlook: RHB Bank’s Economic and Market Strategy report predicts export-oriented sectors, such as electrical and electronic (E&E) products and commodity-based goods, will benefit from brighter global growth prospects. The global semiconductor market showed a 19.3% year-on-year increase in May 2024, driven by strong growth in the Americas and Asia-Pacific regions. June Export Data: June’s export growth decelerated to 1.7% y-o-y (RM126.05 billion), below the consensus estimate of 3.3%. The slowdown was attributed to sluggish exports of manufactured and agricultural goods amid high base effects from the previous year. Commodity Exports: RHB expects higher commodity prices to boost exports of petroleum and petroleum-based produ...