Malaysia’s exports to contract in 2020

published 04.06.2020 15:01

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MITI said the contraction of manufactured goods, which constituted 85.5 per cent of total exports, was due to lower exports of electrical and electronic products, manufactures of metal, machinery, equipment and parts, petroleum products as well as optical and scientific equipment, the Ministry said.

Commenting on the performance, Senior Minister and the International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said that the declines in both exports and imports were expected given that most countries around the world were under some form of lockdown to contain the spread of Covid-19.

Meanwhile, the Ministry of International Trade and Industry (MITI) said the Covid-19 pandemic has dragged Malaysia to record a trade deficit of RM3.5 billion in April 2020, after 269 consecutive months of surplus on account of higher contraction in exports compared to imports.

“On the other hand, domestic exports which involved high value-added activities declined to a record low of -35.4 per cent year-on-year, dragged down by deteriorating performances of commodity-based sectors and electrical & electronic,” MIDF Research noted.

Malaysia’s exports is projected to further contract by 8.3 per cent this year compared to a negative 1.7 per cent growth last year amid the Covid-19 crisis, according to MIDF Research.