MALAYSIA'S EXPORT GROWTH WITHIN EXPECTATIONS, SAYS AMRESEARCH

KUALA LUMPUR, Aug 4 (Bernama) -- Malaysia’s export growth which accelerated
to 8.6 per cent in June is within expectations, AmResearch Sdn Bhd says.

"The numbers were a pleasant surprise as they came close to our estimates
of 8.8 per cent," said senior economist Manokaran Mottain in the research
house's Economic Update today.

He said the strong numbers were largely due to commodity exports, which had
an impressive run on prices.

According to the International Trade and Industry Ministry, the country's
exports increased 8.6 per cent to RM57.35 billion (US$19.1 billion) in June from
RM52.83 billion (US$17.61 billion) in the same month 2010.

Export growth outpaced the increase in imports, resulting in a trade surplus
of RM7.60 billion (US$2.53 billion) -- the 164th consecutive month of trade
surplus since November 1997.

"The bulk of the increase came from higher commodity exports, namely crude
palm oil, liquefied natural gas (LNG), mainly to China and India," said the
economist.

Manokaran said higher exports of LNG and refined petroleum products could be
attributed to Japan, which had been hit by power shortage following the March 11
disaster.

"While exports to the EU and the US recorded a decline, demand for Malaysian
exports from Asian countries continued to remain strong namely from India,
Singapore and China," he added.

However, he noted, that exports to Japan fell further on month-on-month
basis but the decline had moderated in June.

"We believe activities have returned to normal levels, after two months of
disruptions which included port closures," he said.

One-tenth of Malaysian exports are channelled to Japan.

"Ahead, we expect continuing weakness in the US and the EU, especially given
the slowing economic recovery in the US and the unfolding of more countries in
crisis in the EU, namely Italy and Spain."

Nonetheless, Manokaran maintained Malaysia’s export growth at between six
and seven per cent for this year.