Malaysia's August exports rise more than forecast

Shipping containers are stacked at North Point in Port Klang, Selangor, Malaysia, on Feb 27, 2010.
Shipping containers are stacked at North Point in Port Klang, Selangor, Malaysia, on Feb 27, 2010. PHOTO: BLOOMBERG

KUALA LUMPUR (REUTERS) - Malaysia's exports in August rose 4.1 per cent from a year earlier thanks to rising shipments to Singapore, China and the United States.

The August figures were up from July's 3.5 per cent increase, supported by higher exports of electrical and electronic products, and beat economists forecast of a 2.0 per cent rise.

Imports, however, declined 6.1 per cent on slowing demand for intermediate and capital goods, and undershot economists' expectations of a 1.6 perc ent increase.

Malaysia's imports have slowed since the government implemented a consumption-based Goods and Services Tax (GST) in April, despite a surprise jump of 5.9 per cent in July.

The trade surplus rose to RM10.19 billion (S$3.36 billion) in August from RM2.38 billion in July.

Exports to China and the US increased by 32.4 per cent and 12 per cent respectively on the back of rising demand for electrical and electronic goods.