Malaysia’s Trade Surplus Widened in May, Says MITI
Malaysia registered the 37th consecutive month of trade surplus in May 2023, registering double-digit growth of 21.4% to RM15.42 billion. Total trade slipped by 2% to RM223.8 billion, in tandem with slower global demand and lower commodity prices.
Exports showed signs of recovery, posting a marginal contraction of 0.7% to RM119.61 billion compared to double-digit decline recorded last month.
Imports decreased by 3.3% to RM104.19 billion. The performance was similar to other regional countries namely China, Taiwan and the Republic of Korea (ROK) which recorded negative trade growth for May 2023.
Despite the decline, exports to major trading partners notably China, the United States (US) and Japan recorded expansion. Meanwhile, higher exports was seen for petroleum products, electrical and electronic (E&E) products, machinery, equipment and parts as well as processed food.
Compared to April 2023, trade, exports, imports and trade surplus recorded double-digit expansion of 13.2%, 13.7%, 12.6% and 22.1%, respectively.
In the first five months of 2023, total trade surpassed RM1 trillion to reach RM1.066 trillion, a decrease of 1.7% compared to the corresponding period of 2022. Exports was down by 2.3% to RM579.39 billion and imports declined by 1% to RM486.96 billion. Trade surplus edged down by 8.7% to RM92.43 billion.
Export Performance of Major Sectors
Exports of Manufactured and Mining Goods Rebounded after Two Months of Contraction
In May 2023, exports of manufactured goods which constituted 85.4% or RM102.18 billion of total exports rebounded by 1.8% year-on-year (y-o-y) after registering two consecutive months of export contraction. This was on account of increased exports of petroleum products, E&E products, machinery, equipment and parts, processed food as well as optical and scientific equipment.
Exports of mining goods (7.7% share) rose by 5.9% y-o-y to RM9.26 billion buoyed by strong exports of liquefied natural gas (LNG).
Exports of agriculture goods (6.2% share) totalled RM7.44 billion, shrank by 30.9% compared to May 2022 owing mainly to lower export value of palm oil and palm oil based agriculture products.
Major exports in May 2023:
• E&E products, valued at RM46.53 billion and accounted for 38.9% of total exports, increased by 1.3% compared to May 2022;
• Petroleum products, RM13.81 billion, 11.5% of total exports, increased by 10.5%;
• Chemicals and chemical products, RM6.26 billion, 5.2% of total exports, increased by 1.7%;
• Palm oil and palm oil-based agriculture products, RM5.41 billion, 4.5% of total exports, decreased by 39.2%; and
• LNG, RM5.24 billion, 4.4% of total exports, increased by 9.3%.
On a month-on-month (m-o-m) basis, exports of manufactured, mining and agriculture goods expanded by 12.5%, 43.7% and 3.2%, respectively.
For the period of January to May 2023, exports of manufactured goods fell by 1.5% to RM492.15 billion compared to the same period last year following lower demand of rubber products, manufactures of metal, palm oil-based manufactured products as well as chemicals and chemical products. However, robust exports of petroleum products, E&E products, optical and scientific equipment as well as paper and pulp products offset the impact of the decline.
Exports of mining goods rose by 7.2% to RM45.56 billion boosted by higher exports of LNG.
Exports of agriculture goods was valued at RM38.23 billion, dropped by 20.6% mainly due to lower y-o-y prices of palm oil and palm oil-based agriculture products.
Trade Performance with Major Markets
ASEAN – Exports of E&E Products Recovered in May
In May 2023, trade with ASEAN represented 28.4% or RM63.61 billion of Malaysia’s total trade, reduced by 5% y-o-y. Exports edged down by 1.6% to RM36.38 billion, attributed to lower demand of palm oil and palm oil-based agriculture products, iron and steel products and petroleum products. Despite the contraction, robust exports were registered for E&E products, machinery, equipment and parts as well as processed food. Imports from ASEAN declined by 9.1% to RM27.24 billion.
Breakdown of exports to ASEAN countries:
• Singapore RM19.60 billion, increased by 6.8%;
• Thailand RM5.12 billion, ↓8.8%;
• Indonesia RM4.19 billion, ↓11.8%;
• Viet Nam RM4.09 billion, ↓0.7%;
• Philippines RM2.19 billion, ↓21.5%;
• Myanmar RM467.5 million, ↑16.7%;
• Brunei RM410.9 million, ↓27.2%;
• Cambodia RM303.3 million, ↑107.0%; and • Lao PDR RM11.3 million, ↓95.7%.
Exports to ASEAN major market, Singapore grew by RM1.26 billion led by strong exports of E&E products. Meanwhile, exports to Myanmar increased by RM66.9 million supported by higher exports of petroleum products.
Compared to April 2023, trade, exports and imports registered double-digit expansion of 19.4%, 17.8% and 21.6%, respectively.
For the period of January to May 2023, trade with ASEAN fell by 1.2% to RM293.08 billion compared to corresponding period of 2022. Exports rose by 1% to RM172.99 billion backed by higher exports of petroleum products and E&E products. Imports from ASEAN dipped by 4.2% to RM120.08 billion.
China – Exports Improved after Five Consecutive Months of Decline
In May 2023, trade with China which contributed 16.6% or RM37.07 billion to Malaysia’s total trade declined marginally by 0.2% y-o-y. Exports to China improved by 1.5% to RM15.49 billion after registering five consecutive months of decline. The growth was driven by higher demand of metalliferous ores and metal scrap, LNG as well as chemicals and chemical products. Imports from China reduced by 1.4% to RM21.58 billion.
Compared to April 2023, trade, exports and imports edged up by 8.9%, 12.1% and 6.7%, respectively.
Trade with China during the period of January to May 2023 eased by 4.3% to RM179.76 billion compared to the same period of 2022. Exports contracted by 8.9% to RM75.31 billion attributed to lower exports of iron and steel products, E&E products and petroleum products. On the contrary, strong exports was recorded for LNG as well as metalliferous ores and metal scrap. Imports from China was down by 0.6% to RM104.45 billion.