Surge in Exports Uphold First quarter growth in Malaysia

The Malaysian economy gained momentum during the first quarter which is anticipated to be reflected on Friday report because of high demand for exports as well as the domestic interest. Some economists forecasted the annual growth early this year to be at 4.8 percent, higher than the 4.5 percent in the preceding quarter. Investors reacted as they dispossess their government bonds as much as 27.9 billion ringgit or $6.46 billion raising capital outflows to a record high from November to January.

A strong economy is relevant for the Malaysian government as Prime Minister Najib Razak is expected to request for early polls this year amid elevated day-to-day living costs that could affect his political party alliance.

The Malaysian ringgit appreciated by 3.7 percent against the greenback as the global demand for oil and commodities weakened. The pressure has already dissipated as the account surplus and outflow risks have significantly decreased that supported the currency to stabilize.