Malaysia’s Total Trade Fell by 16.3% in June 2023

Malaysia’s total trade fell by 16.3% to RM222.1 billion in June 2023, from RM265.4 billion a year earlier. The Department of Statistics Malaysia (DOSM) said exports and imports also posted decreases of 14.1% and 18.9%, respectively. However, Malaysia’s trade surplus increased to RM25.8 billion, year-on-year (y-o-y). This was the 38th consecutive month of trade surplus since May 2020.

In comparison to May 2023, exports and trade surplus grew by 3.7% and 64.4%, while imports and total trade contracted by 5.4% and 0.5%, respectively. In terms of the commodity group, 144 out of 257 groups showed decreases as compared to the same month of the previous year and led by refined petroleum products. As for imports, 174 out of 259 groups recorded negative growth.

Source: https://www.nst.com.my/

The reduction in exports was mainly contributed by the United States (RM3.2 billion), followed by the European Union (RM2.7 billion), Bangladesh (RM1.9 billion), Japan (RM1.8 billion), India (RM1.7 billion), Thailand (RM1.6 billion), China (RM1.5 billion), Taiwan (RM1.1 billion) and Hong Kong (RM1.0 billion).

The decrease in imports was mainly attributed from China (RM6.1 billion), Taiwan (RM2.7 billon), Republic of Korea (RM2.6 billion), the United States (RM2.5 billion), Singapore (RM2.4 billion), Indonesia (RM1.9 billion), Australia (RM1.6 billion), the European Union (RM1.6 billion) and India (RM1.1 billion).

The fall was driven by palm oil & palm oil-based agricultural products (RM5.3 billion); petroleum products (RM5.1 billion); liquefied natural gas (RM2.6 billion); crude petroleum (RM1.4 billion); palm oil-based manufactured products (RM1.4 billion) and chemical & chemical products (RM1.3 billion). The contraction in imports was recorded for electrical & electronic products (RM7.2 billion), petroleum products (RM7.1 billion), chemical & chemical products (RM2.2 billion), manufactures of metal (RM1.5 billion), transport equipment (RM1.4 billion), liquefied natural gas (RM1.1 billion); and iron & steel products (RM1.0 billion).

Total trade for the second quarter (2Q) of 2023 declined by 11.3% to RM643.2 billion, compared to 2Q2022. Exports dropped by 11.1% from RM392.3 billion in the preceding year to RM348.7 billion, and imports with a value of RM294.5 billion, eased by 11.5%. A trade surplus of RM54.1 billion was recorded for the period, having shrunk by 8.8%.

During the first six months of 2023 (1H2023), total trade, exports, imports and trade surplus registered a decrease. Total trade decreased by 4.6%, supported by the decline in exports (-4.5%), as well as imports (-4.7%). Consequently, trade surplus recorded a higher value of RM118.5 billion.

Trade is a good barometer of the vibrancy of an economy. We can see the impact of China and U.S. trade on our economy. It is how we re-position that matters. Many nations are impacted but those who remain agile will be able to withstand or remain resilient in the face of adversity.

Reference:

Malaysia’s total trade fell 16.3% y-0-y in June to RM222.1 bil, Surin Murugiah, TheEdgeMalaysia, 21 July 2023