Trade Minister Rafidah Aziz today painted a positive outlook for Malaysia's exports this year after the nation breached the RM1 trillion (US$306 billion) mark in total trade in 2006.

"Despite the forecast moderation in the expansion of the world economy and world trade, Malaysia is expected to sustain the growth of its exports," Rafidah told reporters at the release of full trade figures for 2006.

Total exports for 2006 grew 10.3 percent to RM589 billion while imports rose 10.7 percent to RM480.5 billion.

A "factor that works in Malaysia's favour is the continued demand projected for 2007 for high technology consumer electronic products ... which will enhance export opportunities," Rafidah said.

She noted that Malaysia, a major chip manufacturer, will also benefit from forecasts for global microchip sales to rise 10 percent in 2007.

Given prospects for solid economic growth in Southeast Asia, Malaysia stands to benefit. "Our strengths are in this part of the world," said Rafidah.

The United States is Malaysia's single largest export destination but the minister dismissed concerns any slowdown there would affect exports.

"We are now expanding and diversifying our exports, so even if there is some little decrease - which I doubt will happen - that will be more than offset by growth elsewhere - China, West Asia. So I doubt very much that it will affect us significantly," she said.

She also downplayed fears over impact of the strengthening ringgit against the dollar on the competitiveness of Malaysia's exports, saying regional currencies were also appreciating in tandem.