Malaysia's exports will continue to grow on an annual basis and should not be affected by fluctuations in the ringgit, said International Trade and Industry Minister Rafidah Aziz today.

Rafidah said recent dips in monthly export figures were cyclical abberations, such as the 12.5 percent fall in February exports to RM41.21 billion from January due to it being a festive season.

"When we see exports declining, it is not a declining trend. It is a monthly fluctuation. The overall annual growth is there," she said.

"In the long run, every year there has been growth, even in a recession because the ringgit was low. The trend is still upwards," she said at an economic briefing.

Rafidah said currency fluctuations should not have a significant impact.

"Our own manufacturers and exporters must now understand what it takes to cost their goods and services and not just rely on the bonuses which the currency rates provide," she said.

Export growth will be driven by the opening up of overseas markets as countries further liberalise trade and Malaysia's own efforts to promote its products, the minister added.

Competitive location

Malaysian exports rose 10.3 percent to RM589 billion in 2006.

According to the ministry, except for 2001, the country's exports have risen annually in the last 10 years.

Rafidah said Malaysia continues to attract foreign investors.

"In terms of investments, Malaysia will have to compete with other emerging economies to get a share of the global foreign direct investment inflows," Rafidah said.

The government will ensure that Malaysia remains a competitive location for investments in the manufacturing and services sectors, she added.

"We have to work towards getting the right companies to come here and invest, and to get the companies which are already here to move up to a higher level by making new investments to expand and diversify their operations," she said.