Malaysia's May trade surplus sinks to decade-low MYR4.6b

Robust 16.2% growth of imports buoyed the dramatic dip.

OCBC said that exports and imports growth came in at 6.7% yoy and 16.2% yoy respectively in May, leaving a decade-low trade surplus of MYR 4.6bn in the month. While the 6.7% export growth recorded for May was within market and our expectation, the robust import growth was a clear positive for the economy’s growth prospect as it clearly indicates that the domestic economy has continued to sustain its strong growth momentum.

"Inflationary pressures have continued to ease, with the latest CPI reading at 1.7% yoy in May, prompting us to revise our 2012 forecast down to 2.5% from 2.8% previously. While the BNM has suggested that they may maintain stable interest rates for now, the central bank has also indicated increasingly high downside risks to the global economy," OCBC added.