Malaysian exports likely to have risen sharply in January, BNM to keep policy rate on hold

Malaysian exports are likely to have risen sharply in the month of January. According to a DBS Bank research report, exports are expected to have risen 15.2 percent year-on-year, significantly stronger than in December, which had recorded a rise of 4.7 percent. Meanwhile, imports are likely to have risen 12.2 percent.

This should bring the overall trade balance to MYR 7.4 billion. A rebounding global outlook and the fact that manufacturers in China, a key market for Malaysia, will typically ramp up their production ahead of the Lunar New Year, are the main reasons for the uptick.

Meanwhile, the central bank, Bank Negara is set to meet for its policy decision. The central bank is expected to keep the overnight policy rate at 3.25 percent even though growth momentum has been solid, added DBS Bank.

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