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looks good despite the higher operating expenses and forex loss. SMBU benefitted from the front loading by customers to avoid the liberation day tariffs and SMBU segment should continue to do well for Q3 given the recent talks on semiconductor tariffs.
MI is pretty sensitive to forex particularly USD and followed by RMB and TWD. Every 10% weakening of USD translates to MYR19Mil decrease of PAT, 10% weakening of RMB translates to MYR5Mil decrease of PAT. Quite a number of companies were hit by forex impact due to the weakening of USD in 2025; particularly exporter. Hopefully USD will not weaken further.
And a stronger Q3 in the making with a strong export number for Malaysia in July probably? SINGAPORE (ICIS)–Malaysia’s overall exports in July jumped by 6.8% year on year, due to front-loaded shipments before the US’ reciprocal tariffs took effect on 7 August.
The export growth reversed two months of contraction and was primarily driven by a 22.5% year on year jump in electrical & electronic (E&E) exports, preliminary official data showed on 19 August. Total imports in July grew 0.6% year on year, resulting in a trade surplus of ringgit (M$) 14.98 billion ($3.54 billion).
July exports to the US grew 3.8% year on year to M$18.47 billion amid higher exports of E&E products, manufactures of metal and rubber products. Exports to other major trading partners such as mainland China (6.8% year on year), Singapore (22.2%) and Taiwan (46.6%) also grew in July amid front-loading of shipments.
Chemical and chemical product exports shrank 10.7% year on year in July.
Although Malaysia’s prospects were boosted by the US reducing ‘reciprocal’ tariffs to 19% from 25% previously, its trade outlook is still subject to downside risks for the rest of the year, said Singapore-based UOB Global Economics & Markets Research in a note on 19 August.
Uncertainty persists regarding US-China trade talks after reciprocal tariffs were further suspended to 10 November, and the effect of 19% tariffs will be reflected starting this month, UOB said.
In light of these downside risks, the bank kept its 2025 full-year export growth forecast at 3.8% tentatively, down from the country’s 5.8% shipment growth in 2024.
