KUALA LUMPUR (March 6): RHB Research Institute Sdn Bhd expects Malaysia’s current account surplus to improve in 2017 to RM33.7 billion or 2.6% of GDP in 2017, from RM25.1 billion or 2% of GDP in 2016, contributed by a wider surplus in the trade account.

In an economic update today, the research house said exports continued to accelerate to 13.6% year-on-year (y-o-y) in January, on the back of a recovery in global demand and a broad-based pick-up in all three major groups of exports.

It said due to the recovery in global trade activity, we envisage exports to grow at a more robust pace of 6% in 2017, from +1.1% in 2016 on account of:

1.    Recovery in demand for commodity products, aided by higher prices;

2.    Pick-up in global semiconductor sales in late-2016, translating into higher electrical & electronics (E&E) exports;

3.    Improving global trade outlook on the back of stronger global growth prospects.

RHB Research said the acceleration in exports was mainly led by a stronger growth of shipments to China, the ASEAN region, the EU and the US.

“Imports accelerated during the month, attributed to a quicker growth in capital and intermediate goods imports,” it said.