2nd highest monthly value for trade, exports and imports recorded in June

by S BIRRUNTHA / pic by TMR FILE

MALAYSIA’S trade performance continued with its growth momentum in June this year with trade increasing by 29.3% to RM188.7 billion compared to June 2020.

Trade, exports and imports recorded the second highest monthly value after April 2021.

It noted that this was also the highest monthly value for the month of June and double-digit growth for five successive months.

“Exports recorded the 10th consecutive month of year-on-year (YoY) expansion since September 2020, registering a strong growth of 27.2% to RM105.47 billion. This was the third time exports exceeded RM100 billion.

“Imports increased by 32.1% to RM83.23 billion and the trade surplus expanded by 11.7% to RM22.24 billion,” the International Trade and Industry Ministry (MITI) said in a statement yesterday.

The export growth was contributed by strong demand for petroleum products, electrical and electronic products mainly electronic integrated circuits used in the production of smartphones, cars, computers and home appliances, as well as rubber products.

Exports to all major markets namely Asean, China, the US, European Union and Japan recorded double-digit expansion.

In terms of imports, intermediate goods recorded a 25.3% increase YoY to RM43.71 billion (accounting for 52.5% of total imports), following higher imports of processed industrial supplies particularly copper and articles.

Capital goods, valued at RM8.57 billion, grew by 15.2%, due mainly to higher imports of capital goods (except transport equipment), primarily parts for machinery and mechanical appliances.

Consumption goods, valued at RM7.35 billion, rose by 19.2%, as a result of higher imports of processed food and beverages mainly for household consumption, especially meat and edible meat offal.

Meanwhile, on a month-on-month basis, trade, exports, imports and trade surplus increased by 10.4%, 14.3%, 5.9% and 61.7%, respectively.

Trade for the second quarter of 2021 (2Q21) increased by 39% to RM550.4 billion compared to 2Q20, where exports surged by 44% to RM303.37 billion and imports expanded by 33.3% to RM247.02 billion.

“This was the highest quarterly value for trade, exports and imports thus far. A trade surplus of RM56.35 billion was recorded for the period, surged by 122.7%.

“Compared to the 1Q21, trade, exports and imports grew by 8.8%, 7.5% and 10.5%, respectively, while the trade surplus contracted by 4%,” MITI said.

Additionally, the ministry also noted that the country’s total trade surpassed RM1 trillion in just six months, the shortest period to breach this milestone.

It said for the first half of 2021, trade totalled RM1.06 trillion, an expansion of 26% from the same period last year, where exports rose by 30.2% to RM585.56 billion and imports increased by 21.1% to RM470.53 billion.

“This was the highest half year value recorded for trade, exports and imports. Trade surplus surged by 87.7% to RM115.04 billion,” it added.

In terms of trade performance with major markets in June 2021, trade with Asean rose by 25.8% YoY to RM44.98 billion, accounting for 23.8% of Malaysia’s total trade.