Exports likely to hit RM700bil this year

KUALA LUMPUR: Malaysia's total export value is expected to reach RM700bil this year from RM639.4bil last year.

International Trade and Industry Minister Datuk Seri Mustapa Mohamedsaid the expected increase this year would be in line with 10th Malaysia Plan export growth target of 10.6%.

According to the Miti Report 2010 that was launched yesterday, manufactured products which dominated the bulk of the country's total exports last year saw an increase of 11.6% to RM461bil against 2009, accounting for 72.1% of the total exports.

Meanwhile, mining exports increased by 28.5% to RM101.9bil while agricultural goods grew by 29.6% to RM71.8bil last year.

Specifically, the major exports last year were electrical and electronics products, palm oil, chemicals and chemicals products, liquefied natural gas and crude petroleum.

With import value growth of 21.8% to RM529.2bil last year, the trade surplus was at RM110.2bil.

In terms of foreign direct investment (FDI) this year, Mustapa was confident Malaysia would surpass or at least be at par with last year's figure of RM29bil.

“This is based on the FDI figure for the first quarter of this year at RM11bil. At this juncture, the FDI figure looks good.

“The investment committee jointly chaired by me and Pemandu chief executive officer Datuk Seri Idris Jala meets every fortnight to look at investment figures as well as issues and problem to achieve our target. At the moment, I can say that we are on track,” he told reporters at the report launch yesterday, the 19th annual report of the ministry to date.

“I am telling this because we are doing things differently now in making sure the smooth inflows of FDI into the country.”

For total trade of the country, Miti was pleased that last year's achievement of RM1.17bil, which reflected a 18.4% increase over 2009, was close to the country's pre-global economic crisis level of RM1.18bil in 2008.

“So far this year, the total trade performance has been quite good with a 10% increase in the first four months compared with the same period last year,” said Mustapa.

In terms of industries' contribution to the gross domestic products (GDP), the report said while the manufacturing sector would continue to contribute significantly to the overall GDP growth, the services sector would be developed as a growth engine and contribute 57.7% to the country's GDP this year.

Last year, the services sector contributed 57.4% to the country's GDP. By the end of the 10MP, the services sector is expected to contribute to 61% of the GDP.

Other key figures released in the report included RM47.2bil in total investments were received for 910 manufacturing projects approved and 97,319 jobs were created.

On the development of free trade agreements (FTA) in 2010, regional Asean FTAs with India, Australia and New Zealand came into force on Jan 1 while bilateral FTA with New Zealand was effective on Aug 1 last year.

Bilateral FTA with Chile and India negotiations have been successfully concluded and bilateral FTA negotiations with Turkey and the European Union have commenced.

Malaysia was also accepted as a full negotiating partner in the Trans-Pacific Strategic Economic Partnership last year.