KUALA LUMPUR: On the external front, total trade is set to expand significantly, buoyed by a resurgence in global technology demand and resilient exports in key sectors such as electronics, agriculture, and mining.
Rising imports and increased tax revenues further contribute to the country's economic prospects for the coming year.
In total, Malaysia's trade is expected to expand by 9.4 per cent in 2024, reaching RM2,884.3 billion, driven by global technology recovery, strong growth in major economies, and stable commodity prices.
Gross exports are projected to grow by 5.6 per cent, boosted by stronger external demand, particularly in the global semiconductor market.
Meanwhile, manufactured goods exports are forecast to grow by 6 per cent, with electronics and electrical (E&E) products rising by 3.4 per cent due to advancements in artificial intelligence (AI), Internet of Things (IoT), and electric vehicles (EVs).
For non-electrical and electronic (E&E) products, including machinery, metals, and chemicals, is expected to see an 8.3 per cent increase, driven by steady demand from key trading partners.
Agriculture Goods Exports are projected to rise by 4 per cent, with palm oil exports growing by 2.3 per cent, particularly to India, Bangladesh, Germany, Iran, and the Philippines.
Natural rubber exports are expected to surge by 15.9 per cent.
Exports of mining products, including crude petroleum and liquefied natural gas (LNG), are estimated to increase by 2.8 per cent, supported by a 10.1 per cent rise in crude petroleum demand and 2.4 per cent for LNG.
Moreover, Gross imports are forecast to grow by 13.8 per cent in 2024, with the expansion largely fueled by intermediate and capital goods.
Of those, imports of intermediate goods, which make up 55.5 cent of total imports, are expected to rise by 23.2 per cent, reflecting growth in manufactured exports and industrial demand.
Meanwhile, capital goods which account for 11.6 per cent are expected to surge by 24.6 per cent due to robust investment activities.
Also, imports of consumption goods representing 8.6 per cent are anticipated to to increase by 13.6 per cent benefitting from the improvement in household spending.