M`SIA TO RECORD HIGHER TRADE SURPLUS WITH CHINA, SAYS MATRADE

From Vincent Low

NANNING, Oct 22 (Bernama) -- Malaysia is expected to record a higher trade
surplus with China this year if Malaysia External Trade Development Corporation
(Matrade) figures are anything to go by.

Between January and August, Malaysia's trade with China totalled US$30.23
billion, with US$2.92 billion trade surplus.

Malaysia's exports to China amounted to US$16.58 billion and imports US$13.66
billion during the same period, said Matrade chief executive officer
Noharuddin Nordin.

He said Malaysia-China bilateral trade totalled US$36.34 billion last year, with
exports to China amounting to US$19.10 billion, and imports touching US$17.23
billion, with US$ 1.87 billion trade surplus.

"Our exports to China are growing though overall exports to other parts of the
world are declining," he told Malaysian journalists covering the 7th China Asean
Expo (CAEXPO) here Thursday.

Noharuddin said the China-Asean Free Trade Area (CAFTA) and early recovery of
China's economy contributed to the significant growth, and there was continued
growth tendency. The CAFTA came into force on Jan 1.

Trade surplus or deficit might not necessarily bring about good or bad effects
to Malaysia's economy, he said, adding that it depended very much on the type of
imports.

"In our trade with China, the strong export performance is mainly attributed to
strong demand for electrical and electronic products, chemical and chemical
products, rubber products, machinery, transport equipment and processed food.

"China is Malaysia's second largest export market. Our major imports from China
are manufactured goods which account for 93.4 per cent of Malaysia's total
imports from that country.

"China was Malaysia's largest source of imports last year, making up 14 per cent
of Malaysia's total imports," he added.
-- BERNAMA