, Malaysia

Malaysia troubled by poor exports performance

Having a more supportive domestic environment will be crucial.

OCBC Treasury Research noted:

Driven by positive cues from the US over the weekend, expect strong buying momentum to boost sentiment in the KLCI this week, with a test of the psychological 1700 mark remains a target in the near-term.

From Malaysia, we expect supportive trade and IPI data for November as well, with the trade balance likely to have posted a modest MYR 9.1bn for the month.

Ahead of the November trade and IPI data due this week, we expect slight improvement in the export figure for the month, with our forecast penciling a 2.1% yoy, up from the -3.2% yoy posted previously.

If anything though, there is still little to cheer from this uptick, noting also that in terms of sequential growth, the performance of Malaysian exports remain poor.

Our 5.2% yoy forecast for IPI growth, however, paints a more optimistic light, especially as it suggested a more supportive domestic environment, which we expect to be a crucial factor for the economy in 2013.

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