KUALA LUMPUR - Malaysia's export sector demonstrated signs of resilience in October, with the pace of contraction easing more than expected. The latest data shows exports decreased by 4.4% year-on-year, surpassing analysts' predictions of a 5% decline. This improvement was mirrored in import activity, which also exceeded expectations with a marginal dip of 0.2%, contributing to a trade surplus of MYR12.9 billion—the smallest seen in the last six months.
The agriculture sector provided a silver lining as it reported growth following a 13-month streak of declines. Meanwhile, manufactured goods and the mining sectors saw slower rates of decrease, buoyed by increased demand from key trading partners including the United States and India.
In light of these developments, together with an upswing in the global technology cycle, Malaysia has revised its full-year export forecast for 2023. The country now anticipates a less severe contraction of 7.2%. However, looking ahead to 2024, the forecast remains cautious at a growth rate of 3.5%, taking into account ongoing global challenges such as geopolitical conflicts and enduring trade tensions.
The uptick in exports is a positive indicator of Malaysia's economy, suggesting that despite external pressures, there is robust demand for Malaysian products. This bodes well for the nation's economic stability as it navigates through uncertain global economic conditions.
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