In a statement yesterday, the rating agency said this was largely premised on expectations of a rebound in export growth to Singapore and Japan, as well as a boost from the low-base effects of October last year.

It said mineral fuel exports were anticipated to support overall export growth through the next few months.

“This is on the back of markedly stronger Brent crude oil prices since September, which should lead to higher average export prices and, in turn, the nominal growth of mineral fuel exports,” it said.

Import growth was expected to rise by 20.2% yoy in October, given its strong correlation as a key input factor for exported goods and amid Malaysia’s close linkage with the global value chain, RAM said.

Going forward, it said, the momentum would likely moderate in the last two months of the year.

Overall, RAM said, trade surplus for October this year was projected to come in at RM10.2 billion.

“This is due to the higher-base effects from the previous corresponding periods and the projected deceleration of restocking activities for electronic goods, once inventory requirements have been fulfilled.

“Such moderation is consistent with the slower increase in electronics orders from key economies like Japan and Taiwan.”

The resilient pace of industrial activity and upbeat global demand are anticipated to continue supporting the healthy expansion of exports and imports through the rest of this year, it said.