Monday, June 07, 2010

Malaysia's Exports To China Shows Big Decline

From Malaysia Department of Statistics: Preliminary Release of Malaysia External Trade Statistics April 2010 (Updated:04/06/2010)

The following caught my attention...
  • Exports to the PRC increased by 28.0% from April 2009 to RM6.53 billion. This was mainly contributed by higher exports of E&E products, palm oil, chemicals and chemical products, rubber products and LNG. Compared with March 2010, exports to the PRC contracted by 18.1%.

On a y-y our exports to PRC did increase by 28% but that comparison to 2009 is a waste of time because 2009 was a period where everything collapsed. (ps: do see this posting: Do Not Be Fooled By Headline Numbers )

So in my flawed opinion the biggest concern is...

  • exports to the PRC contracted by 18.1%.

See posting last month: Regarding Malaysia Booming Trade

  • Exports to the PRC rose to a new monthly high of RM7.98 billion

Our Aprils exports to the PRC is now only RM6.53 billion.

Is the contraction a worry?


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1 comment:

  1. snowball10:05 PM

    It is indeed a worrying sign when export to China contracted. But reports have state that China have reduces their commodities imports in recent months and have been using their huge inventory of commodities accumulated during the cheap commodities period. I hope this is the case as we don't have any breakdown.

    But, a more worrying sign would be that if China is cutting down on imports of intermediate goods such circuits boards, which may mean that they are producing it on their own or the global demand decrease. If it is the former, I fear for Malaysian factories, it means China have move up the value-chain and compete against us.

    I have a blog post on that at http://goodstockbadstock.blogspot.com/2010/06/china-not-low-cost-factory-any-more.html , but it is mainly on China with some on the effects on Malaysia.

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