Malaysia trade set to rebound to RM1tril mark this year

MALAYSIA'S trade will bounce back to its RM1 trillion mark volume this year on the back of an improved global economy, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

Total trade slipped off the RM1 trillion mark last year, with a decrease of 16.6 per cent from RM1.2 trillion recorded in 2008.

"It is doable, based on the performance for the past four months (January to April) . From our ballpark figures, the indication shows the trend will be sustainable, Mustapa said when presenting the ministry's annual report yesterday.

Miti has targeted exports to grow between 6 and 7 per cent this year as demand improves in tandem with the global economic recovery.

High economic growth rates in China and India are expected to contribute towards continued recovery of Malaysia's exports, with the support of emerging markets such as Iran, Mexico, Pakistan, Russia and the United Arab Emirates.

Mustapa said Africa is also expected to increase its demand for Malaysia's electrical and electronic (E&E) and chemicals products, jewelleries and processed foods in 2010.

"With challenges still facing the recovery of the economies in the US and EU (European Union), we hope growth in these markets will compensate, with better numbers," he said.

Total exports declined by 16.6 per cent to RM553.3 billion in 2009, due to decreased demand from Malaysia's key trading partners. The manufacturing sector remained the largest contributor, with a 74.4 per cent share of total exports. E&E continued to the largest export item with a 41.2 per cent share of total exports.

Malaysia's trade in services, which totalled RM195 billion 2009, decreased by 3.4 per cent.

Singapore, China, the US, Japan and Thailand were Malaysia's top five trading partners last year

On investments, Mustapa said several "sizeable investment projects" are in the pipeline, and the ministry is pushing for their implementation in the shortest time.

For the first four months, Malaysia attracted RM7.1 billion investments in the manufacturing sector.

Investments in the manufacturing sector totalled RM32.6 billion last year, exceeding the RM27.5 billion target set under the Third Industrial Master Plan.