In a note today, the research firm said that April’s weak trade data – significantly below historical averages – was a temporary anomaly.

“The gradual recovery of the global economy in the summer should be supportive of Malaysia’s trade performance as well. The export and import momentum in both nominal and real terms have trended higher for the month of May,” it said.

“Export growth has bottomed out in Q2 2023. In our view, the recovery in export growth could commence as early as July,” it added.

In comparison to April 2023, RHB Research said both exports and imports rebounded by 13.7% and 12.6% year-on-year respectively.

Higher outbound shipments were seen for most product categories, except palm oil and palm oil-based products, with noticeable improvements for electrical and electronics, and machinery and equipment shipments, it said.

In terms of destination, higher shipments were recorded for major economies, such as the US, the European Union and China.

“Meanwhile, shipments to Singapore remain flattish for the month. Likewise, the import momentum gained pace amid higher imports of capital and consumption goods,” it said.