(Corrects publication date of Commerce Department report in sixth paragraph.)

May 3 (Bloomberg) -- Malaysia's exports probably rose at the slowest pace in 16 months in March as consumers in the U.S. and Europe spent less on computers and mobile phones, curbing demand for semiconductors.

Exports probably gained 9 percent from a year earlier after climbing 13.2 percent in February, according to the median forecast of eight economists in a Bloomberg News survey. The government report is due at 12:01 p.m. on May 4. Growth of 9 percent would be the slowest since November 2003.

Malaysia's export growth has slowed as interest rates rise in the U.S., its biggest market, and higher oil prices leave consumers with less money to spend. Malaysia's economic growth may slow to as little as 5 percent this year from 7.1 percent in 2004 as exports slow, the government forecasts.

``Interest rates are climbing and consumer spending in the U.S. and Europe has been affected by higher oil prices,'' said Suhaimi Ilias, chief economist at Affin Securities Sdn. in Kuala Lumpur. ``In the first half of the year, there'll be a softening in external demand.''

The government of Prime Minister Abdullah Ahmad Badawi plans to speed up the construction of schools, hospitals and other projects to boost growth. Interest rates will be kept low to support growth, central bank governor Zeti Akhtar Aziz said on April 28.

Crude Oil

The U.S. economy grew at a 3.1 percent annual rate in the first three months of the year, the slowest in two years, the Commerce Department said on April 28. Crude oil reached $58.28 a barrel on the New York futures market on April 4, the highest since the contract began in 1983.

Shares of Malaysian Pacific Industries Bhd., the country's largest semiconductor assembler and tester, have fallen almost a fifth this year on concern demand for its chips will falter. Shares of rival Unisem have declined 24 percent. Semiconductors and other electrical and electronics goods make up about half of Malaysia's exports.

Exports amount to about 120 percent of Malaysia's gross domestic product, with the U.S. buying about 18 percent of the total. Sales of commodities such as crude oil and liquefied natural gas as well as surging demand from China may help counter slowing demand for electronics, Suhaimi said.

Malaysian imports probably rose 7.2 percent in March from a year earlier, slower than February's 11.4 percent. The trade surplus probably widened to 8 billion ringgit ($2.11 billion), the survey showed.

Bloomberg Survey

The following is a table of economists' forecasts for March exports and imports, and the trade balance for the month.

-------------------------------------------------------
Forecaster                   Exports    Imports  Surplus
-------------------------------------------------------
Median                          9.0       7.2       8.0
Average                         8.7       6.9       7.9
Number of Forecasts               8         8         8
--------------------------------------------------------
Action Economics               13.0       7.5       8.1
CIMB                            7.1       4.8       8.1
CLSA Singapore                  8.8      10.8       6.8
DBS Bank                        6.8       6.9       7.3
Forecast Ltd.                   9.1       7.9       7.9
GK Goh Holdings                 9.7       7.8       8.1
RHB Research Institute          3.4       3.9       6.9
UOB Kay Hian Research          11.9       5.2       9.9
--------------------------------------------------------

To contact the reporter on this story: Kate Mayberry in Kuala Lumpur at kmayberry@bloomberg.net.

Last Updated: May 2, 2005 21:21 EDT