MALAYSIA’S exports and imports are expected to get back to normal in the middle of the year after a slump in February, said International Trade and Industry Minister Darell Leiking.

The fall in imports and exports in the early part of 2019 was more to do with the Chinese New Year, when trade was expected to drop, he said.

“This has happened before. This is the part of the year when new orders are coming and some (traders) are reviewing their orders and some of them are not trading,” Leiking told reporters at his office in Kuala Lumpur today.

“Chinese New Year was in February and a lot of importers were not ordering because they had already made earlier orders,” Leiking said.

Exports had dipped by 5.3% compared to last year to RM66.6 billion in February, the lowest since August 2016. This was mainly due to falling palm oil, palm oil based products, refined petroleum products and crude oil exports .

Imports, meanwhile, had also fallen by 9.4% to RM55.5 billion, the lowest level since May 2016.

Experts have warned that the dip signals a slowing global economy, which could impact the country’s export-oriented industries such as manufacturing, oil and gas and commodities.

Leiking, however, said the pattern was normal and that both imports and exports will likely rebound in June.

He added the drop in imports could also boost demand for local products which can supplement the loss.

“When imports are down, Malaysians tend to look for local products to make up for the loss.” – April 18, 2019.