Malaysia records highest-ever trade of RM253b for July this year

Export growth was driven by higher demand for E&E products, petroleum products and LNG, says MITI

by S BIRRUNTHA / TMRpic

MALAYSIA’S trade continued its upward trajectory in July, chalking up double-digit growth in trade, exports and imports.

In a statement today, the Ministry of International Trade and Industry (MITI) said this is the highest monthly value for July, as trade rose by 39.8% year-on-year (YoY) to RM252.65 billion in the 18th consecutive month of double-digit growth.

According to the ministry, exports increased by 38% to RM134.07 billion, the 12th successive month of double-digit growth.

“Imports expanded by 41.9% to RM118.58 billion, while the trade surplus grew by 14.3% to RM15.49 billion,” it added.

MITI said the export growth was driven by higher demand for electrical and electronics (E&E) products, petroleum products and liquefied natural gas (LNG).

It said exports to major trading partners — notably Asean, the US, the European Union (EU) and Japan — also recorded double-digit growth. The highest monthly export value was registered in Asean.

On a month-on-month basis, trade slipped by 6.5%, followed by exports by 8.2%, imports (4.5%) and trade surplus (29.1%).

The ministry said that for January to July, trade was up by 29.9% YoY to RM1.61 trillion.

Exports increased by 27.8% to RM873.07 billion, while imports grew by 32.5% to RM734.51 billion.

The trade surplus climbed by 7.4% to RM138.56 billion.

Trade, exports, imports and the trade surplus registered the highest value for the period.

Meanwhile, MITI said exports of manufactured goods in July, which represented 83.7% of total exports, rose by 35.4% YoY to RM112.26 billion, the 12th straight month of double-digit expansion.

It noted that the growth was attributed to higher exports of E&E products, petroleum products, machinery, equipment and parts, manufacturers of metals, optical and scientific equipment, as well as chemicals and chemical products, with each recording an increase of more than RM1 billion in exports.

The ministry said that for the first seven months of 2022, exports of manufactured goods grew by 23.9% YoY to RM733.81 billion, backed by robust exports of E&E products, petroleum products, manufacturers of metals, palm oil-based manufactured products, chemicals and chemical products, machinery, equipment and parts, as well as optical and scientific products.

It added that exports of agriculture goods climbed by 40.8% to RM71.51 billion, driven by higher exports of palm oil and palm oil-based agriculture products.

“Exports of mining goods surged by 71.3% to RM63.84 billion, owing to strong exports of LNG, crude petroleum, metalliferous ores and metal scrap, as well as petroleum condensates and other petroleum oil,” it said.

On imports performance, MITI said total imports in July expanded by 41.9% YoY to RM118.58 billion.

It added that the three main categories of imports by end use which accounted for 68.6% of total imports were intermediate goods, valued at RM61.83 billion or 52.1% of total imports, increased by 32.2%, following higher imports of processed industrial supplies.

“Capital goods, valued at RM10.97 billion or 9.3% of total imports, expanded by 29.6%, due to higher imports of industrial transport equipment.

“Consumption goods, valued at RM8.52 billion or 7.2% of total imports, rose by 33.2%, as a result of higher imports of processed food and beverages mainly for household consumption,” it noted.

In terms of major markets, MITI highlighted that in July, trade with Asean surged by 63% YoY to RM73.31 billion, constituting 29% of Malaysia’s total trade.

Trade with China — which made up 16.1% of Malaysia’s total trade — rose by 19.3% YoY to RM40.58 billion, the 20th successive month of double-digit growth.

Trade with the US in July, which contributed 9% to Malaysia’s total trade, grew by 29.7% YoY to RM22.82 billion.

Trade with the EU climbed by 14% YoY to RM17.04 billion, representing 6.7% of Malaysia’s total trade.

Trade with Japan — which comprised 5.9% of Malaysia’s total trade — grew by 29.6% YoY to RM15 billion.

Trade with Free Trade Agreement partners which accounted for 66.2% of Malaysia’s total trade increased by 43.5% YoY to RM167.18 billion.