KUALA LUMPUR: AmBank Research projected today that Malaysia's domestic economy would grow around 5.5 percent this year, while export was expected to grow around 5 to 6 percent.
The research house said exports and imports continued to perform favourably with November's export up for the 12th consecutive month at double digits by 20.4 percent year-over-year (y-o-y), bringing the November's trade balance at RM9.9 billion.
"We remain upbeat on the economic performance in part due to strong imports and capital up 12.2 percent y-o-y, the fastest in four months whilst intermediate imports expanded by double-digit pace for 11th consecutive months by 13.8 percent y-o-y, which act as an injection to the overall economic activity.
"The robust expansion in capital and intermediate imports fall in line with the 43-month high of the Purchasing Manufacturing Index which read at 52 points in November" it said.
In addition, the electrical and electronics (E&E) segment of exports continued to expand strongly by 21 percent y-o-y in November from 16.9 percent y-o-y in October. This segment is envisaged to perform robustly, benefitting from the cyclical growth underpinned by a healthy external demand.
AmBank said exports were being supported by chemical and chemical products, which were up 20.2 percent. Manufacture of metals rose 20.8 percent y-o-y while petroleum products grew 1.2 percent y-o-y. Besides, export volume grew strongly by 9.7 percent y-o-y in November.