Malaysia exports bounce back

Malaysia’s export activity rebounded 3.5% in January from a dip a month earlier as demand from neighbours and the giant Chinese market picked up. January exports were valued at 56.99 billion ringgit (US$18.37 billion), up 3.5% year-on-year, the trade ministry said. Imports rose 16% to 53.72 billion ringgit.

Shipments to China rose 8.6% year-on-year, driven by demand for Malaysian crude oil, rubber, and electronic and chemical products, the ministry said. Malaysia is South East Asia’s third-largest economy relies heavily on exports of its abundant natural resources but also some manufactured goods. Exports to other South East Asian countries -- especially electronics and refined petroleum products -- jumped 29.3% and accounted for a third of Malaysia’s total shipments abroad. Exports to the United States rose 8.6%, while those to Japan fell 14.1%. Shipments had unexpectedly slipped 5.8% in December on weaker demand in China and the U.S. Full-year exports for 2012 grew only 0.6% compared to the previous year.

Analysts have forecast exports to rebound this year as the global economy recovers from the debt crisis Europe, stagnant U.S. growth, and a growth slow-down in China. Malaysia’s economy grew a faster-than-expected 6.4% in the fourth quarter, its best showing in more than two years, and expanded 5.6% for full-year 2012.

The expansion, which exceeded an earlier government forecast of 5%, has been credited largely to steady domestic demand. The government has been pumping money into investment drives and cash handouts to boost the econo-my ahead of elections due by June.