KUALA LUMPUR: Malaysia’s exports in September 2023 increased by 8.2 per cent to RM124.47 billion as compared with August 2023 while imports expanded by 2.1 per cent to RM99.95 billion, resulting in the total trade increasing by 5.4 per cent month-on-month (m-o-m) to RM224.43 billion.
According to the Ministry of Investment, Trade and Industry (MITI), the trade surplus registered a double-digit growth of 42.7 per cent to RM24.52 billion, making it the 41st consecutive month of trade surplus since May 2020.
“Compared to September 2022, exports was lower by 13.7 per cent and imports edged down by 11.1 per cent amid slower global demand, uncertainties in commodity prices and high base effect last year, subsequently, total trade was lower by 12.6 per cent,” MITI said in a statement yesterday.
The ministry said the performance was similar to Malaysia’s major trading partners notably South Korea, China, Taiwan and Indonesia which recorded negative trade growth for September 2023 and a drop in their global imports. It said the trade surplus in September 2023 contracted by 23 per cent year-on-year (y-o-y).
Meanwhile, it said trade for the third quarter (Q3) of 2023 increased by 1.6 per cent to RM653.57 billion compared with the second quarter (Q2) of 2023. It said exports grew by 2.2 per cent to RM356.31 billion, imports expanded by 0.8 per cent to RM297.26 billion and trade surplus rose by 9.6 per cent to RM59.06 billion, respectively.
The ministry said trade, exports, imports and trade surplus declined by 15.7 per cent, 15.2 per cent, 16.3 per cent and 9.1 per cent, respectively, compared with the Q3 of 2022. It said for the period of January to September 2023, trade contracted by 8.6 per cent to RM1.942 trillion compared with the same period of last year while exports surpassed RM1 trillion mark to RM1.060 trillion, declining by 8.4 per cent.
It said in September 2023, exports of manufactured goods, which represented 86.5 per cent or RM107.7 billion of total exports, dipped by 11.8 per cent y-o-y as a result of lower demand for petroleum products, electrical and electronic (E&E) products as well as chemicals and chemical products.
However, it said exports of processed food as well as paper and pulp products registered expansion.
It said exports of agriculture goods (6.5 per cent share) decreased by 23.1 per cent to RM8.04 billion compared with September 2022 following lower exports of palm oil and palm oil-based agriculture products that was affected significantly by weaker export prices of palm oil.
MITI said exports of mining goods (6.4 per cent share) eased by 28 per cent y-o-y to RM7.98 billion attributed to lesser exports of liquefied natural gas (LNG) and crude petroleum. The ministry said trade with ASEAN took up 27.1 per cent or RM60.91 billion of Malaysia’s total trade in September 2023, a contraction of 10.2 per cent y-o-y.
It said exports to ASEAN major markets that recorded expansion were Vietnam, which grew by RM576 million buoyed by higher exports of E&E products, and Thailand, which increased by RM213.8 million backed by strong exports of crude petroleum. However, it said trade and exports edged up by 2.7 per cent and 6.8 per cent, respectively, while imports was lower by 2.7 per cent, compared with August 2023.
For the period of January to September 2023, trade with ASEAN decreased by 7.8 per cent to RM536.11 billion compared with the corresponding period of 2022 while exports contracted by 6.9 per cent to RM314.24 billion, resulting from lower shipments of petroleum products, chemicals and chemical products as well as palm oil and palm oil-based agriculture products.
MITI said in September 2023, trade with China, which composed 17.1 per cent or RM38.27 billion of Malaysia’s total trade, fell at a slower pace of 12.8 per cent y-o-y compared with 18.7 per cent contraction recorded last month. Meanwhile, trade with the United States (US) in September 2023, which accounted for 10 per cent of Malaysia’s total trade, declined by 15.9 per cent y-o-y to RM22.46 billion.
MITI said in September 2023, trade with the European Union (EU) comprised 7.8 per cent of Malaysia’s total trade and shrank by 3.4 per cent y-o-y to RM17.57 billion.
It said exports to the EU markets that recorded growth were Germany, which increased by RM290.8 million, Hungary (up by RM33.6 million) and Finland (increased by RM29.9 million), owing to strong exports of E&E products.
Trade with Japan, which absorbed 5.8 per cent or RM12.95 billion of Malaysia’s total trade in September, fell by 23.6 per cent y-o-y while exports decreased by 25.4 per cent to RM7.35 billion on lower shipments of LNG, E&E products as well as petroleum products while higher demand was seen for crude petroleum, optical and scientific equipment as well as textiles, apparels and footwear.
MITI said trade with Free Trade Agreement (FTA) partners, which contributed 67.5 per cent or RM151.42 billion to Malaysia’s total trade, slipped by 11.9 per cent y-o-y while exports to FTA partners contracted by 14.5 per cent to RM85.1 billion and imports shrank by 8.3 per cent to RM66.32 billion.
Trade with FTA partners during the first nine months of 2023 contracted by 8.3 per cent to RM1.314 trillion compared with the same period of last year while exports was lower by seven per cent to RM739.86 billion and imports decreased by 9.9 per cent to RM573.64 billion. – BERNAMA
