Supply Chain Research

Malaysia’s exports jumped 21% on a year earlier in April, the sixth straight rise and the consequence of a 51% leap in sales to China. That in turn was likely the result of higher energy exports – oil climbed 66% and LNG by 50% at the national level – as well as higher semiconductor shipments. The risk to Malaysia comes from the slowdown in Chinese managers’ import orders – sentiment there has been falling and is now balanced between increases and decreases. A decline in exports to China may make the Malaysian government more willing to sign up to the RCEP trade deal.