Malaysia’s Export, Import To Grow By 1.9 Pct And 1.8 Pct In April - RAM

KUALA LUMPUR, May 31 (Bernama) -- RAM Rating Services Bhd (RAM Ratings) expects Malaysia’s export and import in April to grow at 1.9 per cent and 1.8 per cent respectively, resulting in an overall trade surplus of RM13.4 billion for the month. In a statement Friday, RAM Ratings said this represented an improvement over the marginal contraction of 0.5 per cent in export and 0.1 per cent in imports recorded in the preceding month. Looking ahead, it said the lacklustre trade momentum was unlikely to recover in the near term, largely due to the escalating dispute between the United States (US) and China. “The tit-for-tat tariff actions between the two countries in the past fortnight and the consequent bans on essential inputs for their high-tech products marks a turning point for the trade tensions, rapidly dimming hopes for a ‘quick fix’ trade deal,” said head of research, Kristina Fong. She said Malaysia could benefit from trade-diversion effects on pockets of the tariffed basket of goods, particularly the sub-basket with the greatest tariff increase, due the country’s competitiveness in producing these goods. “If the US carries through its threat of another round of tariff on the remaining US$300 billion of Chinese imports yet to be taxed, Malaysia’s potential gain from this round of tariffs appears limited. “This is because we have no discernible overall comparative advantage in the production of such items which mainly constitute consumer goods,” she added. -- BERNAMA