KUALA LUMPUR, March 18 — MIDF Research has revised higher its growth forecasts for exports and imports to 7.8 per cent and 9.6 per cent, respectively.

The research house said while the moderation in the external trade has been in line with its expectations, the pace of growth for both exports and imports has been stronger than projected, with double digit expansion seen from January to February 2022.

"After strong growth last year, the growth rate will moderate this year due to the diminishing low base effect. Overall, we expect growing foreign demand for electrics and electronics (E&E) and commodities, especially palm oil and oil and gas, to support expansion in exports in the coming months,” the research house in a note today.

MIDF Research said Malaysia stands to benefit from high commodity prices and further economic reopening in Malaysia and other countries.

However, the risk from prolonged supply chain disruptions following the reimposition of lockdown in China and the war in Ukraine could constrain global production and trade activity.

"Moreover, the outlook for external demand could also be weighed by elevated inflation given the high prices of energy and other commodities,” it said.

Earlier, Senior Minister and Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali said Malaysia’s trade continued its upward trajectory in February 2022, chalking up double digit growth for trade, exports, imports, and trade surplus.

Trade rose by 17.5 per cent to RM184.75 billion compared to February 2021, marking the 13th consecutive month of double digit growth.

Exports surpassed the RM100 billion mark, increasing by 16.8 per cent to RM102.27 billion – the seventh consecutive month of double digit growth, while imports expanded by 18.4 per cent to RM82.48 billion and trade surplus grew 10.7 per cent to RM19.79 billion. — Bernama