Global economic slowdown, low commodity prices see trade expectations in the negative

Malaysia's total trade is expected to grow 2.3 percent in 2016 with gross export and import projected to grow at 1.4 percent and 3.3 percent, respectively.

While for the full current year, trade is expected to contract 0.9 percent with gross export expected to contract 0.7 percent and gross import projected to decline at 1.2 percent.

This largely comes on the back of weak growth prospects of the nation's key trading partners as well as the dim outlook on worldwide commodity prices.

However, trade surplus is expected at a respectable level of RM85.3 billion.

The export of electric and electronic goods is expected to remain a key driver of export growth fueled by solid demand from Singapore, China dan the European Union.

As for the first 8 months of 2015, Malaysia's total trade deteriorated 1.7 percent to RM841.9 billion.

This is due to the slowdown in global demand, the slowdown in China, weak commodity prices as well as the depreciation of the local currency.

Despite gross export and import declining 1.4 percent and 2.0 percent respectively as at August 2015, trade surplus is seen to have risen to RM54.2 billion.