Electronics exports continue to outperform

Malaysia’s export growth not only remained in positive territory for a second consecutive month in May, but it was also better than consensus. Reported in local currency (Malaysian ringgit, or MYR) terms exports grew by 2.5% year-on-year in May, surpassing the consensus median of 2.2% growth and up from 1.1% growth in April.

Electronics and electrical exports with a 38% weight in total exports, remained a key growth driver despite some slowdown in their rate of growth to 0.5% in May from 3.9% in April. This still represents a significant outperformance in the face of the ongoing electronics export weakness observed elsewhere in the region reflecting the global tech slump. This is also in stark contrast with Singapore, which is leading the global tech slump with a negative electronics export trend since end-2017. This could reflect Malaysia taking market share from Singapore. Even so, it’s hard to see Malaysia’s electronics exports continuing to buck the global downturn.