Malaysia's trade prospects are bright as business links with its Asian neighbours prosper, Trade Minister Rafidah Aziz said today as new data showed exports growing 10.9 percent year-on-year in May.

The Trade Ministry said exports rose to RM42.65 billion in May, while imports grew 14.1 percent to RM36.11 billion, giving a trade surplus of RM6.54 billion.

"Malaysia's pattern of trade indicates that Malaysia's trade with Asia is growing at a faster rate than that with North America or the European Union," Rafidah said at an economic briefing.

"This pattern of trade can be expected to continue as Malaysia engages in Free Trade Agreements with its trade partners in Asia, both regionally or bilaterally," she said.

From 1999 to 2004, total trade with Asia grew at an 11.9 percent average rate, compared with 4.6 percent for North America and 4.7 percent for the 15 original members of the European Union, the minister added.

Dampening factors

Rafidah said trade had withstood a range of dampening factors to rise a record 23.3 percent in 2004 to RM880.8 billion.

"Last year, Malaysia's trade and investment performance continued to contribute significantly to the country's overall economic performance," she told an audience of industry leaders and diplomats.

"This was despite the global challenges, in the form of high oil prices, the relative weakening of the US dollar and the softening of the global semiconductor market."

The May increase in exports mainly involved electrical and electronic products, crude petroleum, refined petroleum products, wood products and machinery, appliances and parts, the ministry said.

Malaysia, a net oil producer, saw a 41 percent jump in exports of crude petroleum in May from a year ago. Exports of refined petroleum products soared 26.9 percent while palm oil increased 4.1 percent and liquefied natural gas 6.1 percent.

Total trade for the first five months of the year was RM377.54 billion, with a surplus of RM40.01 billion, the Trade Ministry said.

Exports in the period rose 12.3 percent compared to the first five months of the previous year while imports increased 9.7 percent.

May was the 91st consecutive monthly trade surplus since November 1997.