Malaysia's trade balance likely improved on lower import growth

Malaysia will release April trade data on 5 June. Exports is expected to have dropped 2.7% y/y, says Standard Chartered. 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 likely 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. Imports is likely 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 consumerproduct imports", according to Standard Chartered.