KUALA LUMPUR (Jan 19): The Ministry of International Trade and Industry (MITI) expects the new year to be challenging for the country's exports segment amid the uncertain economic climate, and urged exporters to work even harder this year.
Its minister Datuk Seri Mustapa Mohamed said the full-year export numbers for 2015 will be released in a few weeks, and that he expects growth of around 1.9% for the year.
"For the first 11 months of 2015, exports grew by 1.9% (from the previous year's corresponding period). In a couple of weeks, we will have the full-year numbers, which are not going to be much different from the first 11 months.
"The outlook for 2016 and 2017 will continue to depend on the global economic situation. Last year was tough and this year, we believe, will still be challenging. We can't be too bullish on the outlook for 2016," said Mustapa at a press conference today.
However, he noted the high growth in exports of manufactured products of 6% for the first 11 months of 2015, which had compensated for the drop in revenue from commodity exports.
In the same period, commodity exports' earnings fell 18% due to persistently dampened prices, he said.
The press conference was held in conjunction with Malaysia External Trade Development Corp's Export Day 2016.
Mustapa added that the upcoming signing of the Trans Pacific Partnership (TPP) agreement will support Malaysian exports, but said the first full-year impact of the agreement, provided that it gets implemented by 2018, will only be seen in 2019.
"We will see the first full-year impact of the TPP in 2019, if the agreement comes into force in 2018. We will only be able to analyse the impact of the TPP in 2020," he said.
In response to the various criticisms on the TPP, Mustapa noted that there are many theories on the impact of the TPP.
"Some say exports will increase while others say it will come down. These are all just theories. In life, we have to realise also the practical realities on the ground. Exports are influenced by many factors, not just economic models," he said.
However, he said if entering the trade agreement turns out to be detrimental, there is a provision for member countries to exit the TPP with a six-month notice.