Malaysia sees negative 2009 exports growth

From the Business Times:

In its 2008 report released today, MITI also said that despite the economic slowdown in Japan, the US and European Union (EU), Malaysian exports to these countries will remain significant.

"Electrical and electronic (E&E), chemicals and chemical products, machinery, appliances and parts will continue to be Malaysia's major export products," it said.

Malaysia's emerging regional export markets, which include West Asia, Africa and South Asia are expected to maintain their demand for Malaysia's export of E&E products, chemicals and chemical products, jewellery and processed food and thus continue as important export destinations for Malaysia in 2009, it added.

"The manufacturing sector will continue to be the leading export sector which has contributed to 70 per cent of total monthly exports throughout 2008," it said.

MITI said E&E products would remain as Malaysia's largest contributor to total exports despite the negative growth in 2008.

Other Malaysia's mainstay export products in 2009 are crude and refined petroleum, liquefied natural gas (LNG), palm oil and crude rubber, it added.

Singapore, the US, Japan, China and Thailand remained Malaysia's top five trading partners in 2008.

Malaysia has a long way to go if it is trying to make itself a nation that does not depend on exports for growth. I for one, think it is fine to depend on strong export market for growth. If this is the case, policy should be directed towards this area. Malaysia wants to have the best of both worlds, less dependence on the world for exports during the downturn, yet in recovery wants to benefit from global growth. It's a dilemma, which do you help, the export oriented industries or trying to develop home grown sustainable growth. Doing both has a strong chance of getting you here nor there.

Spending unnecessarily destroys wealth. If Malaysia wants to grow through exports then they can by hunkering down for the recessions. Eventually global growth will pick up and then they can come out of the downturn stronger than all the other nations spending needlessly.

Unfortunately, the way things are going now, I'm not sure exactly which way Malaysia wants to go.