Malaysia's Jan-July 2024 Trade Hits RM1.65 Trillion, Highest Value For The Period -- MITI

Malaysia's January-July trade in 2024 grew by 9.8% year-on-year (y-o-y) to hit RM1.652 trillion, the highest value recorded for the period, said the Investment, Trade and Industry Ministry (MITI).

Exports increased by 5.1% to RM862.23 billion and imports by 15.5% to RM789.71 billion during the seven months, resulting in a trade surplus of RM72.52 billion, it said in a statement.

Exports of manufactured goods expanded by 4.8% y-o-y to RM735.76 billion owing to solid exports of machinery, equipment and parts, iron and steel products as well as manufactures of metal.

Exports of mining goods edged up by 4.3% to RM62.85 billion, aided by strong exports of crude petroleum and liquefied natural gas (LNG), while exports of agricultural goods rose 7.9% to RM57.75 billion on the back of increased exports of palm oil and palm oil-based agriculture products as well as natural rubber.

On the performance for July 2024 alone, MITI said trade jumped 18.3% year-on-year (y-o-y), the fastest rate in 21 months.

The value reached RM255.88 billion, the highest since October 2022, the ministry said.

“Exports continued their upward trajectory for the fourth consecutive month, expanding by 12.3% to RM131.15 billion while imports increased by 25.4% to RM124.73 billion.

“The trade surplus amounted to RM6.42 billion, marking the 51st consecutive month of surplus since May 2020,” it said.

MITI said export growth was primarily driven by increased demand for palm oil and palm oil-based agriculture products, machinery, equipment and parts, petroleum products, and electrical and electronic (E&E) products.

Exports to major trading partners, namely ASEAN, the United States (US), the European Union recorded double-digit growth.

The ministry said that compared to June 2024, trade, exports and imports grew by 7.6%, 4.1% and 11.6%, respectively.

MITI said all major sectors registered a strong double-digit export growth in July 2024.

Exports of manufactured goods, which comprised 85.5% of total exports, grew by 10.6% to RM112.08 billion.

This fifth consecutive month of y-o-y expansion was supported by increased exports of machinery, equipment, and parts, petroleum products, E&E products as well as manufactures of metal, it said.

Meanwhile, exports of agriculture goods rose 32.8% to RM10.07 billion, bolstered by higher demand for palm oil and palm oil-based agriculture products that resulted in increased export volumes and prices.

Exports of mining goods expanded by 10.2% y-o-y to RM8.04 billion, driven by strong exports of LNG amid higher export volumes.

MITI said in July 2024, trade with ASEAN, which made up 27.8% of Malaysia's total trade, grew 16.8% y-o-y to RM71.07 million for the fifth consecutive month of growth.

Exports, which had increased consistently since April 2024, climbed 16% to RM40.12 billion while imports from ASEAN rose 17.8% to RM30.95 billion.

It said double-digit growth in exports was recorded to major ASEAN markets -- Singapore (up 18.1% y-o-y to RM21.06 billion), Thailand (up 10% to RM5.56 billion) and Vietnam (up 13.8% to RM4.95 billion) -- as a result of strong exports of petroleum products.

Meanwhile, trade with China, which contributed 16.3% to Malaysia's total trade in July 2024, increased by 12.6% y-o-y to RM41.72 billion, the fourth consecutive month of double- digit expansion.

Trade with the US, which represented 12.4% of Malaysia's total trade, surged by 49.4% y-o-y to RM31.76 billion. Exports grew by 30.9% to RM17.79 billion, marking the highest export value thus far, led by higher demand for E&E products, machinery, equipment and parts as well as palm oil and palm oil-based agriculture products.

Meanwhile, imports from the US soared by 82.2% to RM13.98 billion.

MITI said Malaysia's robust Gross Domestic Product (GDP) growth of 5.9% in the second quarter of 2024, which set to pave the way for the country to achieve Bank Negara Malaysia's (BNM) growth forecast of 4.0% - 5.0% for 2024, will enhance investor confidence and unlock further trade opportunities.

Globally, the World Trade Organisation (WTO) has forecast that the volume of world merchandise (goods) trade will grow 2.6% in 2024, a substantial rise from negative growth of 1.2% recorded in 2023.

“Global economic conditions seem to have improved month by month, attributed to increased global demand, although the WTO has cautioned that geopolitical tensions and political uncertainty may limit the scale of the global trade recovery.

“MITI and its agencies will continue to remain vigilant to global external shocks, which could impact Malaysia's growth trajectory,” it added.