Malaysia's trade balance likely improved on lower import growth

Malaysia's trade balance likely improved on lower import growth
Malaysia will release April trade data on 5 June. Exports are expected to have dropped 2.7% y/y. Exports grew 2.3% y/y in March, but fell 2.5% y/y in Q1. 

External demand from Malaysia's major trading partners, particularly in Asia, still appears weak. Export growth is expected to remain muted near-term and improve only by year-end. However, the trade balance likely improved to MYR 10.5bn from MYR 7.8bn in March. 

"We expect imports to have contracted 6.1% y/y after they grew 5.8% y/y in March as GST implementation in April likely reversed the front-loading of consumer product imports", said Standard Chartered in a report on Thursday.