Malaysia’s trade value records new high in June 2022

by S BIRRUNTHA / graphic by TMR

MALAYSIA’S trade performance maintained a stellar performance in June 2022, registering an all-time record high for trade, exports and imports.

Trade increased by 43.4% to RM270.39 billion compared to June 2021, the 17th consecutive month of double-digit growth.

Meanwhile, exports recorded the 11th consecutive month of double-digit expansion, registering a strong growth of 38.8% to RM146.16 billion. 

Imports rose by 49.3% to RM124.23 billion while trade surplus declined marginally by 0.8% to RM21.93 billion.

Senior Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali said the export growth was contributed by strong demand for electrical and electronic (E&E) products, petroleum products, liquefied natural gas (LNG), as well as palm oil and palm oil-based agriculture products.

He added that exports to most major trading partners notably Asean, the US, the European Union (EU) and Japan recorded double-digit growth. 

The minister noted that the highest monthly export value was registered to Asean, the US and the EU.

“On a month-on-month (MoM) basis, trade, exports, imports and trade surplus expanded by 18.4%, 21.3%, 15.2% and 72.7% respectively,” he said in a statement today.

According to Mohamed Azmin, trade for the second quarter of 2022 (2Q22) grew by 32.7% to RM730.36 billion compared to 2Q21.

He highlighted that exports climbed by 30% to RM394.24 billion and imports increased by 36.1% to RM336.13 billion. 

“This was the highest quarterly value for trade, exports and imports. Trade surplus edged up by 3.2% to RM58.11 billion,” he said.

Commenting further, Mohamed Azmin said compared to 1Q22, trade, exports and imports rose by 16.9%, 14.3% and 20.1% respectively while trade surplus contracted by 10.6%.

He added that for the first half of 2022 (1H22), trade was up by 28.2% to RM1.35 trillion from the same period last year. 

“Exports increased by 26.1% to RM739.13 billion and imports grew by 30.9% to RM616 billion. 

“Trade surplus climbed by 6.7% to RM123.13 billion. This was the highest half-year value recorded for trade, exports, imports and trade surplus,” he said.

In June 2022, exports of all three sectors recorded strong double-digit growth compared to the same month last year.

Exports of manufactured goods reached their highest monthly value at RM122.07 billion or 83.5% of total exports, increased by 33.8% year-on-year (YoY) and was the 11th consecutive month of double-digit growth. 

Export products that expanded by more than RM1 billion were seen for E&E products, petroleum products, machinery, equipment and parts, manufacturers of metal, as well as optical and scientific equipment.

Exports of agriculture goods (8.8% share) rose by 46.8% YoY to RM12.93 billion, the highest monthly value, driven mainly by higher exports of palm oil and palm oil-based agriculture products.

Exports of mining goods (7.2% share) leaped by 116.3% YoY to RM10.53 billion underpinned by higher exports of LNG and crude petroleum.

Meanwhile, total imports in June 2022 grew by 49.3% YoY to RM124.23 billion. 

The three main categories of imports by end use which accounted for 68.3% of total imports were intermediate goods, capital goods and consumption goods.

Intermediate goods, valued at RM64.41 billion or 51.8% of total imports, increased by 46.9%, following higher imports of processed industrial supplies.

Capital goods, valued at RM11.15 billion or 9.0% of total imports, grew by 30.4%, due mainly to higher imports of industrial transport equipment.

Consumption of goods, valued at RM9.23 billion or 7.4% of total imports, rose by 25.6%, as a result of higher imports of processed food and beverages mainly for household consumption.

On trade performance with major markets in June 2022, trade with Asean surged by 65.5% YoY to RM74.00 billion, accounting for 27.4% of Malaysia’s total trade.

Trade with China, which made up 16.5% of Malaysia’s total trade, grew by 17.3% YoY to RM44.52 billion, the 19th successive month of double-digit growth.

Trade with the US in June 2022 grew by 35.4% YoY to RM25.91 billion in June 2022, comprising 9.6% of Malaysia’s total trade, while trade with the EU represented 8% of Malaysia’s total trade grew by 37.2% YoY to RM21.72 billion. 

Trade with Japan which constituted 5.9% of Malaysia’s total trade grew by 32.9% YoY to RM15.84 billion.

Trade with Free Trade Agreement (FTA) partners, which absorbed 65.8% of Malaysia’s total trade, expanded by 43.0% YoY to RM178.00 billion.