by ASILA JALIL/ pic by MUHD AMIN NAHARUL
MALAYSIA’S exports rebounded in June 2020, growing 8.8% to RM82.87 billion compared to June 2019, after recording the country’s first trade deficit in April since October 1997 due to Covid-19.
The country’s trade deficit in April was RM3.5 billion. Malaysia’s trade surplus expanded 98.7% year-on-year (YoY) to RM20.89 billion in June 2020, the highest monthly trade surplus on record.
Total trade for the country expanded by 2.2% to RM144.84 billion from RM141.77 billion recorded in June 2019.
The Ministry of International Trade and Industry said in a statement yesterday that increases in trade were registered primarily with China, the US, Hong Kong and Vietnam.
Total trade, exports and imports recorded double-digit growth of 26%, 32.3% and 18.6% respectively on a month-to-month basis, while trade surplus surged by 101.1%.
“This better performance is in line with the gradual lifting of restrictions due to the Covid-19 pandemic in Malaysia and globally,” it said in the statement.
The improved performance reflected the gradual recovery of the economy as total trade for the country shrank 27.8% in May to RM114.96 billion compared to a year earlier due to the Covid-19 pandemic. Lower trade was recorded primarily with Singapore, Thailand, China, Japan and Indonesia.
For June 2020, exports of manufactured goods increased by 13.7% YoY to RM72.48 billion and contributed 87.5% of total exports.
The expansion was due to higher demand for electrical and electronic products, which valued at RM32.55 billion and constituted 39.3% of total exports, an increase of 15.9% from June 2019.
Other products that contributed to the increase in exports of manufactured goods are rubber products, other manufactures especially solid-state storage devices (SSD), optical and scientific equipment, machinery, equipment and parts, wood products, iron and steel products as well as manufactures of metal.
Exports of agriculture goods rose 30% to RM6.27 billion YoY, underpinned mainly by higher exports of palm oil and palm oil-based agriculture products, valued at RM4.68 billion or accounted for 5.7% of total exports.
However, exports of mining goods dropped 45.6% YoY to RM3.79 billion weighed down by lower exports of crude petroleum and liquefied natural gas.
Malaysia’s trade with China rebounded 22% YoY to RM28.68 billion and constituted 19.8% of total trade. Exports to the country expanded 46.8% to RM14.78 billion while imports from China increased 3.4% to RM13.9 billion.
Total trade with the European Union (EU) contracted 6.5% YoY and valued at RM11.99 billion in June 2020.
“Exports increased by 3.3% to RM7.23 billion, a rebound from a negative growth of 25.4% recorded a month earlier, underpinned by higher exports of rubber products, palm oil and palm oil-based agriculture products as well as other manufactures (SSD). Imports from the EU decreased 18.2% to RM4.76 billion.”
Trade with the US increased 20.5% YoY to RM15.42 billion in June 2020. Total exports registered a growth of 27.6% to RM9.76 billion, dominated by manufactured goods with 97.7% share. Imports from the US expanded 9.9% to RM5.66 billion.