Malaysia’s exports expected to register 2.4% contraction

Amid the depreciation in the ringgit.

Analysts are expecting lacklustre trade figures for December 2014.

According to a report by OCBC, the headline export growth is expected to register a contraction of 2.4% (YoY), down from an expansion of 2.1% in the previous month. Imports are likely to have declined by 1.6%, which should then bring about an overall trade surplus of MYR 9.1bn.

Sharp declines in oil prices offsetting the pace of the depreciation in the ringgit probably has put a huge dent on export performance. Moreover, external headwinds for non-oil products have been strong too. Weak demand from Eurozone, Japan and China, coupled with tepid recovery from the US have compounded the export woes.