KUALA LUMPUR: The reopening of China’s borders is viewed as a catalyst for Malaysia’s external trade and tourism activities, said MIDF Research.
In its research report today, it forecasts Malaysia’s exports and imports to expand by 9.2 per cent and 9.5 per cent for 2023 against 27.1 and 32 per cent, respectively, in 2022.
“The ratifications of the Regional Comprehensive Economic Partnership (RCEP) on March 2022 and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on October 2022 will further boost Malaysia’s 2023 external trade performance and beyond,“ MIDF said.
China’s imports growth in particular is expected to pick-up steadily, supporting improving local economic activities, it said. Exports growth may see some challenges, however, following weakening global demand due to tightening monetary policy effects.
“Looking ahead, market expectations and the World Bank are predicting an economic rebound for China with a gross domestic product (GDP) growth at above four per cent,” it said.
The effects of less restrictive measures can be seen in month-on-month trends in China’s external trade performances, MIDF said.
Chinese exports grew by 7.8 per cent year-on-year (y-o-y) in 2022 against 36.8 per cent a year ago. Imports grew two per cent against 30.6 per cent in 2021. The lower imports growth was mainly due to the series of lockdowns imposed throughout the year.
China’s exports shrank sharply in December, however, as global demand cooled. Imports also tumbled with the surge in Covid-19 infections and a property downturn weighed heavily on domestic demand, highlighting the risks to the country’s economic recovery this year.
Exports was one of the few bright spots in the world’s second-largest economy during the pandemic. This, however, has deteriorated rapidly since late 2022 as overseas consumers cut spending in response to central banks’ aggressive rate hikes to tame inflation.
Source: https://www.thesundaily.my/business/china-s-reopening-a-catalyst-for-malaysia-s-external-trade-tourism-activities-midf-EE10506828