Malaysia´s trade surplus soar by 15.3%

Malaysia´s trade surplus soar by 15.3%

KUALA LUMPUR: Malaysia’s trade surplus in the first nine months of 2019 widened by 15.3% to RM100.86 billion, compared with RM87.47 billion registered in the same period last year.

This was the largest January-September trade surplus recorded during the last 10 years, the International Trade and Industry Ministry (MITI) said in a statement today.

In September 2019, the trade surplus was valued at RM8.34 billion, a decline of 46.5% year-on-year.

On a monthly basis, total trade, exports, imports and trade surplus declined 3.1%, 4.5%, 1.6% and 23.5%, respectively.

Total trade in the third quarter of 2019 (3Q19) contracted 3.7% to RM460.53 billion compared to Q3 2018.

Total exports reached RM247.02 billion, 1.9% lower from the same period last year while imports contracted 5.8% to RM213.51 billion.

The trade surplus in 3Q19 recorded double-digit growth of 33.3% to RM33.51 billion from RM25.14 billion registered in the same quarter of last year.

Exports of manufactured goods in September 2019 contracted 5.8% to RM66.34 billion or 85.4% of total exports, mainly due to lower exports of electrical and electronic (E&E) products, petroleum products, chemicals and chemical products as well as textiles, apparels and footwear.

However, increases were registered in exports of transport equipment, optical and scientific equipment as well as machinery, equipment and parts.

Exports of mining goods (7.3% share) declined 15.2% to RM5.69 billion due to lower exports of crude petroleum following lower volume and Average Unit Value (AUV).

Exports of agriculture goods (6.7% share) down 8.3% to RM5.17 billion due to lower exports of palm oil and palm oil-based agriculture products, especially palm oil which declined 9.3% to RM3.05 billion following lower volume and AUV.

Trade with ASEAN in September 2019, which made up 26.2% of total trade decreased by 8.1% y-o-y to RM38.54 billion.

Exports to ASEAN decreased by 8.6% to RM21.62 billion, owing to lower exports of E&E products.

Trade with China rebounded 3.8 % y-o-y in September 2019 after declining 7.9% in August, while trade with the European Union (EU) decreased by 3.3% y-o-y to RM13.47 billion.

Meanwhile, trade with the United States in September 2019 rose 3.8% y-o-y to RM13.79 billion, accounting for 9.4% of Malaysia’s total trade.