Total Trade Expanded by 21%!

 Malaysia’s total trade expanded by 21.1% to RM245.2bil in October, marking the 21st consecutive month of double-digit growth. This is according to the International Trade and Industry Ministry (Miti).

Exports rose by 15% to RM131.63bil – the 15th consecutive month of year-on-year (y-o-y) growth -- and imports were higher by 29.2% y-o-y at RM113.54bil, while trade surplus decreased by 32% y-o-y to RM18.09bil. Export growth was mainly boosted by higher shipments of petroleum products, electrical and electronics (E&E) products, liquefied natural gas (LNG), as well as crude petroleum.

Source: The Star, 15 May 2021

Miti also said that exports to major trading partners, notably Asean, China, the United States, the European Union and Japan recorded growth. Trade expanded by 31.6% y-o-y to RM2.37 trillion and exports increased by 28.5% y-o-y to RM1.29 trillion, while imports exceeded the RM1 trillion mark for the first time, rising by 35.4% y-o-y to RM1.085 trillion, and trade surplus grew by 1.3% y-o-y to RM205.61bil.

On export performance by sector, exports of manufactured goods in October 2022 – which accounted for 84.5% of total exports – rose by 12.6% y-o-y to RM111.18bil, with petroleum products and E&E products posting more than RM1bil increase in exports, respectively. Exports of mining goods surged by 85.9% y-o-y to RM11.22bil, marking the 19th straight month of double-digit expansion, mainly due to higher exports of LNG and crude petroleum.

Exports of manufactured goods breached the overall value registered in 2021, expanding by 25.3% y-o-y to RM1.087 trillion, due to higher exports of E&E products, petroleum products, machinery, equipment and parts, palm oil-based manufactured products as well as chemicals and chemical products.

On trade with major markets, the ministry said in October, trade with Asean accounted for 25.8% of Malaysia’s total trade, after expanding by 20.5% y-o-y to RM63.35bil. Trade with China, which accounted for 16.9% of Malaysia’s total trade, grew by 13.1% y-o-y to RM41.54bil – the 23rd consecutive month of double-digit growth. Exports to China recorded a growth of 4.3% to RM18.42bil on the back of robust exports of E&E products, while imports rose by 21.2% to RM23.13bil. Trade with the United States rose by 20.3% y-o-y to RM23.98bil, marking the 14th straight month of double-digit expansion. Exports grew by 8.8% to RM13.73bil on account of strong exports of E&E products while imports expanded by 40.4% to RM10.24bil.

2023 will be a more difficult year. Trade performance will taper because of perceived impending recession in the U.S., China and Europe. The greatest hit will be on the E&E sector. We may need to brace for impact!

Reference:

Total trade expands 21% to RM245.2 bil in October, The Star, November 18, 2022