KUALA LUMPUR: Malaysia’s trade surplus ballooned to RM137.39 billion last year, up 11% from RM123.78 billion in 2018. It is the largest trade surplus since 2009. While a wider trade surplus is usually viewed as positive, Socio-Economic Research Centre executive director Lee Heng Guie, however, pointed out that last year’s overall trade figures that are weighed by lower total imports could be a reflection of a weakening economy. “Overall, we still have a trade surplus, which is good, but if the trade surplus is coming from a sharp import compression then it doesn’t look good,” said Lee. Thus, lower exports will translate into lower imports of intermediate goods and services, thereby assuring a trade surplus.

Source: The Edge Markets February 05, 2020 00:33 UTC