Malaysia’s trade continued its upward trajectory in September 2022, registering double-digit growth for trade, exports, imports and trade surplus.
The Ministry of Trade and Industry (MITI) released its Malaysia External Trade Statistics for the period of January-September 2022 on Wednesday which cited the growth was the highest monthly value for the month of September.
Trade rose by 31.4% to RM256.91 billion compared to September 2021, the 20th consecutive month of double-digit growth.
Exports increased by 30.1% to RM144.31 billion, the 14th successive month of double-digit growth while imports expanded by 33.0% to RM112.60 billion.
MITI revealed Trade surplus achieved a new record high, expanding by 20.9% to RM31.71 billion.
The export growth was contributed mainly by robust external demand for electrical and electronic (E&E) products, petroleum products, liquefied natural gas (LNG), crude petroleum, optical and scientific equipment as well as machinery, equipment and parts.
Exports of E&E products, optical and scientific equipment as well as LNG registered the highest monthly value thus far.
Meanwhile, exports to major trading partners notably ASEAN, the United States (US), the European Union (EU) and Japan recorded double- digit growth. Exports to Japan registered the highest monthly value ever.
On a month-on-month (m-o-m) basis, exports and trade surplus rose by 2.2% and 86.1% while trade and imports contracted by 3.2% and 9.4%, respectively.
Trade for the third quarter (Q3) of 2022 edged up by 42.0% to RM774.98 billion, compared to Q3 2021. Exports increased by 38.3% to RM419.65 billion and imports expanded by 46.5% to RM355.32 billion. This was the highest quarterly value for trade, exports and imports.
Trade surplus grew by 5.6% to RM64.33 billion.
Compared to the second quarter (Q2) of 2022, trade, exports, imports and trade surplus rose by 6.1%, 6.5%, 5.7% and 10.8%, respectively.
In the first nine months of 2022, trade climbed by 32.9% to RM2.130 trillion from the same period last year. Exports grew by 30.3% to RM1.159 trillion and imports expanded by 36.2% to RM971.26 billion. Trade surplus edged up by 6.3% to RM187.40 billion.
Trade, exports, imports and trade surplus registered the highest value for the period.
Export Performance of Major Sectors — Exports of Manufactured and Mining Goods Recorded the Highest Value
Exports of manufactured goods in September 2022 reached its highest monthly value at RM122.23 billion or 84.7% of total exports, grew by 28.7% year-on-year (y-o-y). This was the 14th consecutive month of double-digit growth. E&E products, petroleum products, optical and scientific equipment as well as machinery, equipment and parts, each recorded more than RM1 billion increase in exports.
Exports of mining goods (7.7% share) surged by 89.0% y-o-y to RM11.10 billion, the highest monthly value and was the 18th straight month of double-digit expansion. The increase was mainly due to higher exports of LNG and crude petroleum.
Exports of agriculture goods (7.2% share) expanded by 8.0% to RM10.44 billion compared to September 2021 contributed mainly by higher exports of palm oil and palm oil-based agriculture products.
Major exports in September 2022 are as follows:
- E&E products, valued at RM57.41 billion and accounted for 39.8% of total exports, increased by 39.8% from September 2021;
- Petroleum products, RM17.32 billion, 12.0% of total exports, surged by 83.3%;
- Palm oil and palm oil-based agriculture products, RM8.25 billion, 5.7% of total exports, increased by 6.4%;
- Chemicals and chemical products, RM6.93 billion, 4.8% of total exports, increased by 14.5%; and
- LNG, RM6.53 billion, 4.5% of total exports, surged by 142.0%.
Compared to August 2022, exports of manufactured and mining goods rose by 2.3% and 3.4%, respectively while exports of agriculture goods declined marginally by 0.1%.
For the period of January to September 2022, all products recorded export expansion except rubber products. Exports of manufactured goods increased by 27.0% to RM975.51 billion compared to the same period of 2021, attributed to higher exports of E&E products, petroleum products, machinery, equipment and parts, palm oil-based manufactured products as well as chemicals and chemical products.
Exports of agriculture goods expanded by 36.3% to RM92.40 billion buoyed by higher exports of palm oil and palm oil-based agriculture products.
Exports of mining goods surged by 71.7% to RM85.69 billion boosted by higher exports of LNG and crude petroleum.
Trade Performance with Major Markets – ASEAN, Robust Growth for Trade, Exports and Imports
In September 2022, trade with ASEAN accounted for 26.4% of Malaysia’s total trade, expanding by 33.6% y-o-y to RM67.85 billion. Exports grew by 31.5% to RM39.97 billion due to higher exports of E&E products and petroleum products. Imports from ASEAN climbed by 36.8% to RM27.89 billion.
Breakdown of exports to ASEAN countries are as follows:
• Singapore RM21.00 billion, increased by 29.1%;
• Indonesia RM5.83 billion, ↑53.3%;
• Viet Nam RM4.76 billion, ↑65.8%;
• Thailand RM4.49 billion, ↑4.6%;
• Philippines RM2.35 billion, ↑21.1%;
• Brunei RM985.1 million, ↑21.1%;
• Myanmar RM314.2 million, ↑35.2%;
• Cambodia RM124.3 million, ↓23.6%; and
• Lao PDR RM107.1 million, ↑2,916.2%.
Exports to ASEAN major markets that recorded increases were Singapore which increased by RM4.74 billion, due to higher exports of E&E products, Indonesia (↑RM2.03 billion, petroleum products) and Viet Nam (↑RM1.89 billion, E&E products).
On a m-o-m basis, trade, exports and imports contracted by 4.2%, 4.8% and 3.3%, respectively.
In the first nine months of 2022, trade with ASEAN grew by 42.2% to RM582.54 billion compared to the same period of 2021. Exports to this region rose by 37.3% to RM337.35 billion owing to higher exports of E&E products, petroleum products, machinery, equipment and parts as well as crude petroleum. Imports from ASEAN edged up by 49.6% to RM245.20 billion.
China – Export Growth Driven by E&E Products
In September 2022, trade with China which made up 17.1% of Malaysia’s total trade climbed by 14.0% y-o-y to RM43.91 billion, the 22nd consecutive month of double-digit growth.
Exports to China recorded a growth of 8% to RM20.09 billion due to higher exports of E&E products. Imports from China was up by 19.5% to RM23.82 billion.
Compared to August 2022, trade and exports expanded by 0.3% and 8.8%, respectively while imports slipped by 6.0%.
Trade with China during the first nine months of 2022 rose by 18.5% to RM360.56 billion compared to the same period of 2021. Exports edged up by 13.4% to RM155.45 billion on account of higher exports of E&E products, LNG as well as metalliferous ores and metal scrap. Imports from China increased by 22.7% to RM205.11 billion.
The US – Highest Trade Value Registered
Trade with the US in September 2022 comprised 10.4% of Malaysia’s total trade, expanding by 42.5% y-o-y to RM26.73 billion and was the highest monthly value thus far. Exports grew by 32.5% to RM16.31 billion on the back of robust exports of E&E products. Imports from the US surged by 61.4% to RM10.42 billion.
On a m-o-m basis, trade, exports and imports rose by 9.0%, 8.9% and 9.0%, respectively.
For the period of January to September 2022, trade with the US edged up by 27.2% to RM198.74 billion compared to the same period of 2021. Exports climbed by 21.1% to RM123.83 billion on higher exports of E&E products, iron and steel products, optical and scientific equipment as well as petroleum products. Imports from the US rose by 38.9% to RM74.91 billion.
The EU – Exports Registered 12 Successive Months of Double-Digit Growth
Trade with the EU which represented 7.1% of Malaysia’s total trade in September 2022 grew by 16.7% y-o-y to RM18.20 billion.
Exports increased by 19.0% to RM10.58 billion, the 12th successive month of double-digit growth boosted by higher exports of E&E products. Imports from the EU expanded by 13.6% to RM7.62 billion.
Breakdown of exports to the top 10 EU markets which accounted for 91.6% of Malaysia’s total exports to the EU were:
• Netherlands RM3.63 billion, increased by 20.0%;
• Germany RM2.51 billion, ↑8.9%;
• Belgium RM841.2 million, ↑72.3%;
• Italy RM631.7 million, ↓4.9%;
• France RM579.1 million, ↑85.6%;
• Spain RM485.3 million, ↑12.9%;
• Czech Republic RM340.5 million, ↑22.1%;
• Poland RM284.1 million, ↑15.3%;
• Hungary RM205.0 million, ↑2.7%; and
• Sweden RM192.5 million, ↑17.8%.
Exports to the EU major markets that recorded increases were the Netherlands which grew by RM603.9 million due to higher demand for E&E products, Germany (↑RM205.0 million, E&E products) and Belgium (↑RM353.0 million, iron and steel products).
Compared to August 2022, trade, exports and imports rose by 4.7%, 5.4% and 3.7%, respectively.
In the first nine months of 2022, trade with the EU was up by 22.1% to RM160.10 billion compared to the same period of 2021. Exports climbed by 24.5% to RM93.99 billion, following higher exports of E&E products, manufactures of metal and petroleum products. Imports from the EU increased by 19.0% to RM66.11 billion.
Japan – Highest Export Value Ever Recorded
In September 2022, trade with Japan which accounted for 6.7% of Malaysia’s total trade rose by 49.5% y-o-y to RM17.11 billion. Exports surged by 74.6% to RM9.93 billion, the highest monthly value and was the 19th straight month of double-digit expansion.
The growth was supported by higher exports of LNG, E&E products and petroleum products. Imports from Japan increased by 24.6% to RM7.18 billion.
On a m-o-m basis, trade and exports grew by 1.1% and 8.9%, respectively while imports declined by 8.0%.
For the period of January to September 2022, trade with Japan was up by 23.4% to RM135.11 billion compared to the same period of 2021. Exports expanded by 31.8% to RM72.89 billion underpinned by higher exports of LNG, crude petroleum, palm oil and palm oil-based agriculture products as well as petroleum products. Imports from Japan increased by 14.9% to RM62.22 billion.
Trade with FTA Partners
In September 2022, trade with Free Trade Agreement (FTA) partners which represented 65.9% of Malaysia’s total trade rose by 28.9% y-o-y to RM169.25 billion.
Exports to FTA partners grew by 29.4% to RM97.42 billion and imports expanded by 28.1% to RM71.82 billion.
Increases in exports were recorded to Hong Kong SAR, by 30.4% to RM10.18 billion, India, (↑5.7% to RM4.54 billion) and the Republic of Korea (↑41.9% to RM4.97 billion) due to growing exports of E&E products.
Exports to Australia rose by 120.1% to RM5.39 billion and New Zealand, (↑48.4% to RM618.4 million) led by higher exports of petroleum products while exports to Chile (↑215.5% to RM140.3 million, chemicals and chemical products).
Compared to August 2022, exports grew by 1.9% while trade and imports declined by 1.5% and 5.7%, respectively.
Trade with FTA partners during the first nine months of 2022 which constituted 66.2% of Malaysia’s total trade rose by 31.9% to RM1.410 trillion compared to the same period of 2021. Exports was higher by 30.9% to RM778.77 billion and imports increased by 33.2% to RM631.73 billion.
Import Performance
Total imports in September 2022 grew by 33.0% y-o-y to RM112.60 billion. The three main categories of imports by end use which accounted for 70.3% of total imports were:
• Intermediate goods, valued at RM58.57 billion or 52.0% of total imports, increased by 35.1%, following higher imports of processed industrial supply;
• Capital goods, valued at RM11.80 billion or 10.5% of total imports, grew by 30.5%, due to higher imports of capital goods (except transport equipment); and
• Consumption goods, valued at RM8.83 billion or 7.8% of total imports, rose by 28.2%, as a result of higher imports of processed food and beverages mainly for household consumption.
For the period of January to September 2022, imports expanded by 36.2% to RM971.26 billion from the same period of 2021. Imports of intermediate goods grew by 35.5% to RM530.89 billion, capital goods (↑17.5% to RM89.08 billion) and consumption goods (↑25.4% to RM76.75 billion).
