KUALA LUMPUR, Feb 18 — MIDF Research has maintained its 2022 projection for both exports and imports to grow at 4.5 per cent and 5.1 per cent, respectively.

In a research note today, the research house said the moderate numbers reflect diminishing low-base effect as growth returns to more normal levels.

"The continued growth in exports and sustained trade surplus suggest external trade will be one of key factors to support Malaysia’s growth this year.

"We expect the outlook for exports and trade-oriented industries will be positive, given the increased foreign demand for electric and electronics (E&E) products,” it added.

MIDF Research said as a commodity-exporting country, Malaysia will also benefit from the rise in global demand for commodities such as palm oil and petroleum, and also underpinned by high commodity prices.

Malaysia’s trade in January 2022 continued to be resilient, expanding 24.8 per cent to RM203.05 billion compared to that of January 2021, the Ministry of International Trade and Industry (Miti) said.

Miti said exports accelerated 23.5 per cent to RM110.73 billion in January 2022, the sixth successive month of double-digit expansion since August 2021, while imports increased 26.4 per cent to RM92.32 billion and trade surplus grew 10.9 per cent to RM18.4 billion.

On another note, MIDF Research said it views the economic reopening and relaxation of COVID-19 restrictions by other economies, as well as strong demand for the technology and E&E products as upside risks to its external trade outlook.

"But, we keep a cautious view on the effects of the ongoing global health crisis, the slowdown in China and prolonged supply disruptions in global trade activity this year,” it said. — Bernama