KUALA LUMPUR: Malaysia's trade is expected to remain strong for the rest of the year despite the weakness in the ringgit, Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said.
Azmin said Malaysia's trade performance had been quite strong and commendable for the past few years including 2021.
"While the world is still struggling with the Covid-19 pandemic, the country's exports volume continues to grow.
"Tomorrow, I will present to the Cabinet the country's trade performance for April 2022 and once again the figures we have recorded are very encouraging," he told the New Straits Times and Berita Harian on the sidelines of the ministry's Hari Raya open house
In April, the country's total trade rose 21.3 per cent year-on-year to RM231.44 billion, the 15th consecutive month of double-digit growth.
Exports increased 20.7 per cent to RM127.49 billion, while imports grew 22 per cent to RM103.95 billion.
Azmin said the export growth was boosted by higher shipments of electrical and electronic products, mainly semiconductors driven by global digitalisation trends.
Economists believe with solid trade numbers and strong economic confidence, Malaysia remained on steady course to achieve growth trajectory this year.
Juwai IQI chief economist Shan Saeed said Malaysia continued to move aggressively in trade and commerce with highest monthly targets achieved.
"These numbers speak solid effort from International Trade and Industry Ministry and Malaysian Investment Development Authority to maintain positive momentum in trade outlook."
Juwai IQI has previously shared that Malaysian trade would meander around RM1.3 and RM1.5 trillion in 2022.
After settling around the 4.389-4.397 level, the ringgit appreciated by 0.23 per cent week-on-week (WoW) against the US dollar on May 27 as the USD index (DXY) fell below the 102.0 threshold, Kenanga Research said.
On top of that, the ringgit also benefited from a 6.1 per cent WoW rise in Brent crude oil price amid tight global supply.
"However, due to the lack of pro-ringgit catalysts and global central banks' shift towards monetary tightening, the ringgit weakened against most major currencies.
"Uncertain global economic conditions and gloomy market sentiment may continue to induce volatility for risk-off assets, exerting downward pressure on the ringgit."
Kenanga Research said for this week, the DXY might regain some of its losses as the US unemployment rate was projected, according to consensus, to fall to a pandemic low of 3.5 per cent.
"The expected improvement in the DXY and the potential for further weakness in the yuan may push the US dollat-ringgit pair back above the 4.390 level," it added.
Source: https://www.nst.com.my/business/2022/05/801082/malaysias-trade-remain-strong-2022