Rafidah positive on 2008 exports

Trade Minister Rafidah Aziz today said the country's export forecast for 2008 is bright despite global uncertainties after exports rose by 2.7 percent in 2007.

"We have managed to see an extension of our exports and it is in that context that exports will continue to be on a positive trend for 2008," Rafidah told reporters.

Rafidah said exports for 2007 reached RM605.1 billion from RM589 billion in 2006, while imports grew by 4.9 percent to RM504.57 billion in 2007 from RM480.5 billion the year before.

Total trade in 2007 grew by 3.7 percent to hit RM1.1097 trillion from RM1.0697 trillion in 2006 - the first time it breached the trillion-dollar mark - with a trade surplus of RM100.53 billion.

Malaysian exports to the US declined by 14.5 percent in 2007, but Rafidah said that weaker demand from the US, a major buyer of Malaysian-made electronic and electrical goods, was offset by exports to emerging markets.

"The predominance of Asia in Malaysia's export markets was a major factor that enabled Malaysia to sustain its export growth in 2007," she said.

Manufactured products

Exports to Asia, which include machinery, furniture, rubber and jewellery, saw growth of 6.2 percent in 2007.

Rafidah said the region contributed 63 percent to total Malaysian exports last year compared to just 55 percent a decade ago.

Manufactured products continued to dominate Malaysia's exports in 2007, making up 74.8 percent of total exports with mineral and mineral fuels accounting for 14 percent and agricultural products at 9.5 percent.

The export value of manufactured products rose slightly to RM452.48 billion from RM451.75 billion in 2006.

The majority of products in the manufacturing sector showed growth, with chemicals and chemical products growing by 14.3 percent to RM33.25 billion.

Rafidah said Malaysian companies needed to do more to identify and target foreign markets that offer the greatest potential.

"They have to ensure that they do what it takes to invest in... skills upgrading, product development, market development in order to make sure that their product and services continue to find market access," she said.