Malaysia's trade is expected to continue an uptrend in 2004 after resilient growth in the past decade despite Sars and global terrorism, the government said today.

"Malaysia's exports are expected to continue their upward thrust, buoyed by strong external demand and recovery of the global electronics sector," Minister of International Trade and Industry Rafidah Aziz told a briefing on Malaysia's 1994-2003 trade performance.

Malaysia's trade performance had been "resilient" despite the Asian currency crisis of 1997-1998, the Sept 11 terror attacks, the Iraq war and the outbreak of Severe Acute Respiratory Syndrome (Sars), Rafidah said.

The country recorded only five probable Sars cases but its tourism industry was devastated by fears about the outbreak in the region. Worldwide, Sars killed about 800 people and infected some 8,000 last year.

But Malaysia's global trade expanded by 2.3 times, with exports increasing 2.6 times and imports two-fold in the 10-year period, Rafidah said, attributing the expansion to government efforts at stimulating growth.

"Exports had picked up significantly since March 2003 and have been on an upward momentum, undeterred by the after-effects of the Iraq war and the Sars outbreak," she said.

Good indicators

Export figures in January and February 2004, which marked the highest ever attained in the first two months of any year - at RM34.52 billion and RM31.67 billion - were a good indication of a continued uptrend, Rafidah said, adding the outlook for this year was "bright".

She did not say by how much Malaysian exports and imports were expected to grow this year. Exports in 2003 grew by 11.5 percent compared with 2002, surpassing the US$100 billion mark for the first time, while imports rose 4.8 percent.

Imports are also expected to increase to support higher levels of industrial production and an increase in domestic consumption arising from the better economic performance expected this year, she said.

Malaysia's trade with growing markets in Asia such as China, India and the Middle East is expected to increase due to greater demand, Rafidah said.

Asked if the weak ringgit, pegged at 3.8 to the US dollar, was a strong factor behind Malaysia's increased exports, she said: "It's been quite a while now since we've pegged the ringgit... Malaysian producers and exporters know they cannot depend on just the currency factor for competitiveness. - AFP