Malaysia recorded extraordinary growth of trade, surpasses RM1t mark

It marks the highest monthly value for August 2022

by AUFA MARDHIAH / pic TMR FILE 

MALAYSIA’S trade performance recorded RM1 trillion exports in eight months with double-digit growth recorded for trade, exports and imports, marking the highest monthly value for August 2022.

“Trade grew 56.7% to RM265.74 billion compared to August 2021, making it the 19th consecutive month of double-digit growth, while exports grew 48.2% to RM141.33 billion which also marked the 13th successive month of double-digit growth.

“On the other hand, imports surged 67.6% to RM124.41 billion and trade surplus contracted by 19.9% to RM16.92 billion,” the International Trade and Industry Ministry (MITI) said in a statement today.

The ministry added that the export expansion was attributed to higher shipments of electrical and electronic (E&E) products, petroleum products, palm oil and palm oil-based agriculture products, liquefied natural gas (LNG), as well as optical and scientific equipment, with petroleum products, LNG, as well as optical and scientific equipment registered the highest monthly value.

Meanwhile, exports to major trading partners notably Asean, China, the US, the European Union and Japan recorded double-digit growth, with Japan registering the highest monthly export value (39.5% year-on-year [YoY] to RM16.98 billion in August 2022, contributing 6.4% of Malaysia’s total trade.

On a month-on-month (MoM) basis, meanwhile, exports, imports and trade surplus grew 5.2%, 5.4%, 5% and 8.6%, respectively.

On a year-to-date (YtD), trade expanded by 33.1% to RM1.87 trillion compared to the same period in preceding year. Exports reached RM1.01 trillion and grew 30.3% from RM1 trillion (shortest period to reach milestone), while imports grew 36.7% to RM858.83 billion and trade surplus increased 3.7% to RM155.57 billion. All four divisions registered the highest value for the period.

On the major sectors export performance, manufactured goods grew 47.7% YoY to RM119.48 billion, underpinned by higher exports of E&E products, petroleum products, optical and scientific equipment, as well as machinery, equipment and parts, with each recorded more than RM1 billion increase in exports.

Meanwhile, mining goods grew 59.1% YoY to RM10.77 billion and agriculture goods grew 42.6% YoY to RM10.47 billion with the surge attributed to the growing exports of LNG and crude petroleum, and strong exports of palm oil and palm oil-based agriculture products, respectively.

For August 2022, all major sector recorded improvement — E&E products grew 48.5% YoY, petroleum products (180.3%), palm oil and palm oil-based agriculture products (47.9%), chemicals and chemical products (15.3%) and LNG (72.9%).

Compared to July 2022, exports of manufactured goods expanded by 6.4% while mining and agriculture goods decreased by 0.4%, respectively.

“For the first eight months of 2022, exports of manufactured goods increased 26.7% to RM853.29 billion on robust exports of E&E products, petroleum products, palm oil-based manufactured products, manufacturers of metal, machinery, equipment and parts, chemicals and chemical products, as well as optical and scientific equipment.

“Exports of agriculture goods increased 41% to RM81.97 billion driven by higher exports of palm oil and palm oil-based agriculture products.

“Exports of mining goods increased 69.4% to RM74.61 billion owing to strong exports of LNG, crude petroleum, metalliferous ores and metal scrap as well as petroleum condensates and other petroleum oil,” the ministry added.

On the trade performance with major market, MITI stated that the trade with Asean increased 61% YoY to RM70.87 billion and encompasses 26.7% of the country’s total trade.

“Exports grew 60.4% to RM42.02 billion (fastest growth registered) and was buoyed by higher exports of petroleum products and E&E products. Imports from Asean soared by 61.9% to RM28.85 billion.

“Exports to all Asean markets recorded increases notably to Singapore (RM7.36 billion) due to higher exports of E&E products, Indonesia (RM3.51 billion, petroleum products), Thailand (RM2.18 billion, E&E products) and Vietnam (RM310.5 million, E&E products). On a MoM basis, the trade, exports and imports value decreased by 3.3%,1.2% and 6.2%, respectively,” added MITI.

On a YtD, trade and exports with Asean increased by 43.5% to RM514.73 billion and 38.1% to RM297.41 billion, respectively, led by higher exports of E&E products, petroleum products, crude petroleum as well as machinery, equipment and parts, whereas imports from Asean also grew 51.5% to RM217.32 billion.

On Malaysia’s trade with major continents, China bolstered export expansion on E&E products.

“In August 2022, trade with China expanded by 36.2% YoY to RM43.85 billion while exports to China grew by 21.3% to RM18.46 billion bolstered by robust exports of E&E products. Imports from China also grew 49.5% to RM25.39 billion. In comparison to July 2022, trade, exports and imports were up by 8.1%, 16.3% and 2.8%, respectively,” added MITI.

On Malaysia’s import performance, total imports in August 2022 grew 67.6% YoY to RM124.41 billion.

The three main categories of imports (accounted for 69% of total imports) include — intermediate goods recorded an increase of 56.1% following higher imports of processed industrial supplies; capital goods grew 23.7% due to higher imports of capital goods except transport equipment; and consumption goods grew 43.1% as a result of higher imports of processed food and beverages mainly for household consumption.

“On YtD, imports grew 36.7% to RM858.83 billion compared to the same period in 2021. Imports of intermediate goods grew 35.5% to RM472.31 billion, capital goods (up by 15.9% to RM77.42 billion) and consumption goods (up by 25.1% to RM67.98 billion),” said MITI.