Too early to tell impact of US interest rate hike on M'sian trade: Mustapa

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said it was still too early to see the impact of the US interest rate hike on Malaysia's trade.

However, he said the hike was expected and had been factored in by currency markets globally.

"There has been an expectation that the Fed will make the decision (to increase the interest rate). So the decision was not totally unexpected.

"The impact (on Malaysian trade) would be seen in two ways -- if the ringgit is lower it could boost exports (and vice versa). On the other hand, we have quite a bit of imported components.

"For some companies they might feel the pressure," he told reporters after delivering a keynote address at The Economic Times Asian Business Leaders Conclave here today.

The US Federal Reserve (Fed) overnight raised the benchmark rate by 25 basis points to 0.75 per cent, the second time since the 2008 financial crisis.

Its Chairwoman Janet Yellen also predicted there would be three further rate increases in 2017, up from the previous expectations of only two rate hikes. - BERNAMA