Drop in imports due to weaker ringgit, battered stock market, says economist

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Hoo Ke Ping says it is unlikely that the 9.4% fall in imports in February was due to the midweek Chinese New Year celebrations.

Economist Hoo Ke Ping says the weaker ringgit has made it more expensive to import goods.

But Hoo said this was unlikely. He said on a month-on-month basis, imports had dropped in November and December , increasing 1.4% in January before dropping 24.8% in February. “The consequences are reflected in lower domestic sales figures across most sectors, as well as the drop in business confidence,” he added.Although a relatively small group of people hold shares in the stock market, a majority of them are businessmen and those who consume a lot as they have high levels of disposable income, he said.

 

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