Malaysia's exports in February rose faster than forecast due to stronger palm oil demand and a jump in tech shipments to the United States. Exports in February grew 6.7 percent from a year earlier, government data showed on Wednesday, more than double economists' estimates of 3.1 percent growth. January exports had declined 2.8 percent, falling for the first time since May 2015, hit by the effects of weak global oil prices.
Malaysia, the world's second-largest producer of palm oil, saw a 6.6 percent annual rise in palm oil exports in February, as prices for the commodity improved although weak energy prices continued to pose a drag. Economists said the rebound in exports in February was partly due to a low base of comparison last year. A recovery in commodity prices, however, would help sustain exports and the economy in the coming months although momentum had slowed.
"The healthy trade balance and positive export growth paints an overall resilient picture for Malaysia," Jeff Ng, an economist for Standard Chartered, told Reuters. Exports to the United States in February grew 21 percent from a year earlier to 2.21 billion ringgit ($565.5 million), mainly on higher shipments of electrical and electronic products, particularly photo-sensitive semiconductors. Exports to China also expanded 12 percent. But exports of liquefied natural gas and crude oil remained weak, down 34 percent and 14 percent, respectively.
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