Finance and Economic

Malaysia’s exports unexpectedly rose for the first time in a year in October as demand from China jumped amid an Asian economic recovery.

Overseas shipments climbed 1.6 percent from a year earlier to 54.3 billion ringgit ($16 billion) after falling 24.2 percent in September, the trade ministry said in a statement in Kuala Lumpur today. The median estimate in a Bloomberg News survey of 13 economists was for a 10.5 percent decline, with none expecting an increase.

Asia is leading the world’s recovery from its worst recession since the 1930s after policy makers pledged more than $950 billion in stimulus measures and cut interest rates to revive growth. Malaysia’s government, which raised its 2009 economic forecast in October, said this week that next year’s expansion may exceed the current 2 percent-to-3 percent target.

“The outlook on the export front is getting brighter as recovery remains unabated,” said Irvin Seah, an economist at DBS Bank Ltd. in Singapore. “Investment is still a drag on the economy as companies have remained cautious on business spending while waiting for outlook to improve further. This will change if the improvement in export performance proves sustainable.”

Malaysia is able to achieve economic growth of 5 percent next year, aided by private investment, Second Finance Minister Ahmad Husni Hanadzlah said Dec. 2. That target may be “easily” achieved as improving exports spur business expansion and employment, boosting consumption, Seah said.

Stimulus Measures

Prime Minister Najib Razak has unveiled 67 billion ringgit of stimulus measures in the past year to help the nation climb out of its recession no faxing payday loans. Southeast Asia’s third-largest economy shrank 1.2 percent in the three months through September, the smallest decline in three quarters.

The benchmark stock index has risen more than 40 percent this year as Asia’s recovery boosted demand for emerging-market assets. The ringgit has increased more than 3 percent in the past six months.

Shipments to China, Malaysia’s second-biggest market during the month, jumped 39.2 percent in October from a year earlier as electronics sales rose, the trade ministry said. Exports to Hong Kong surged 28.2 percent, while those to Thailand and Australia also gained. The decline in sales to Singapore, Japan and the U.S. eased.

Sales of electrical and electronics products by companies including Malaysian Pacific Industries Bhd. and Unisem (M) Bhd. climbed 18.4 percent in October, compared with a 19.2 percent decline the previous month. Such goods made up 43 percent of total exports.

Malaysia’s imports dropped 2.3 percent in October from a year earlier to 42.8 billion ringgit, the smallest decline in a year. That widened the trade surplus to 11.5 billion ringgit.

Exports fell 20.7 percent to 448.58 billion ringgit in the 10 months through October while imports contracted 21.4 percent to 351.2 billion ringgit, resulting in a trade surplus of 97.4 billion ringgit, the report showed.

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