Malaysia's June exports unexpectedly increased 5 percent from a year earlier as shipments to China surged, government data showed today.

According to the median forecast from a Reuters poll, economists had forecast exports would decline 0.4 percent on weak liquefied natural gas (LNG) and crude oil prices, although individual estimates varied widely.

While LNG and crude oil were weak, exports of palm oil, chemical products  and electronics all increased last month.

Imports were also better than expected, but still declined 1.5% from last year due to slower consumer spending and a weaker ringgit. Economists had prodicted a 3.7 percent drop.

It was the third consecutive month of falling imports since the government's implementation of a 6% Goods and Services Tax (GST) on April 1. The ringgit is the worst performing emerging Asian currency in 2015, having fell 8.47 percent this year.

The Trade surplus in June grew to RM7.98 billion from RM5.51 billion in May.

Exports to China increased 49.3 percent, the highest since January 2014, due to larger shipments of petroleum products.

US exports grew 9.5 percent on the back of strong demand for manufactured goods, including electrical and electronic products.

- Reuters