MALAYSIA’S current account balance (CAB) continued to record a surplus in the first quarter of 2023, despite a decrease in net exports of goods.

According to the Department of Statistics Malaysia (DOSM), the CAB surplus was valued at RM4.3 billion, or 1% of gross domestic product (GDP), down from RM27.5 billion (5.9% of GDP) in the previous quarter.

The decline in the CAB surplus was primarily due to a decrease in net exports of goods, said DOSM in a statement today.

The Goods account recorded a net export of RM39.9 billion in the first quarter of 2023, a 30.9% decrease from the previous quarter.

Exports of goods amounted to RM261.5 billion, down by 17.6% from the final quarter of 2022.

The main exports were electrical & electronics (E&E), petroleum and chemicals products, especially to Singapore, China, and the United States of America (USA).

Meanwhile, imports of goods fell by 14.6% quarter-on-quarter to RM221.6 billion. Malaysia’s major imports were intermediate, capital, and consumption goods, particularly from China, Singapore, and Taiwan.

Despite the decline in net exports of goods, DOSM said the CAB surplus was supported by other factors.

The services account posted a higher deficit of RM12.8 billion in the first quarter of 2023, as travel witnessed a lower surplus, and construction turned around from a surplus to record a deficit.

Exports of services were valued at RM41 billion, while imports of services accounted for RM53.8 billion.

The major imports of services were transport at RM14.3 billion, other business services at RM12 billion, and travel expenditure of Malaysia visitors abroad at RM11 billion.

Primary income account recorded a higher deficit of RM16.9 billion as compared to RM11.6 billion in the final quarter of 2022.

This was mainly due to lower receipts of RM16.7 billion, particularly from direct investment, while payments amounted to RM33.6 billion.

In the meantime, secondary income account posted a lower deficit of RM5.9 billion as opposed to RM6.5 billion last quarter.

The smaller deficit was led by higher receipts of RM10.2 billion this quarter, a faster growth of 76.1% quarter-on-quarter as against payments of RM16 billion.

Direct investment abroad (DIA) logged a net outflow of RM1.1 billion, while foreign direct investment (FDI) recorded a lower net inflow of RM12 billion.

Services were the largest sector in FDI, predominantly in financial activities, followed by mining and quarrying, and manufacturing sectors.

The main FDI sources were from Mauritius, Switzerland, and Hong Kong.

As at the end of the first quarter of 2023, FDI position posted RM893.2 billion, while DIA position was RM617 billion.

Malaysia’s international investment position (IIP) registered a net asset of RM84.5 billion, while Malaysia’s international reserves stood at RM509.8 billion.

According to Chief Statistician Malaysia Datuk Sri Dr. Mohd Uzir Mahidin, the, “Financial account recorded a net outflow of RM2.4 billion as compared to RM1.1 billion in the preceding quarter.

“This was mainly led by outflows in portfolio investment at RM33.3 billion and financial derivatives at 900 million.

“Meanwhile, other investment registered a lower net inflow of RM20.9 billion as compared to RM36.6 billion in the previous quarter, while Direct Investment turned around to record a net inflow of RM10.9 billion from a net outflow RM9.3 billion in the final quarter last year,” he said. – TMR / pic TMR File