Shipments of palm oil, which contributed 6.5% to total exports, may drop as Indonesia recently reduced its export levy for crude palm oil (CPO) to zero from US$200 (RM889) per tonne.
EXPORTS expanded strongly in June, growing by 38.8% year-on-year (y-o-y), but palm oil exports could face stiffer competition from Indonesia and oil and gas shipments could moderate on softening energy prices.
While exports are buoyed by a weak ringgit, the momentum may cool on slowing global growth as a US recession may set in. With the US Federal Reserve (Fed) cutting interest rates, the dollar will weaken and the stronger ringgit may no longer be a boost to our exports.
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