MATRADE reported the latest trade figures with Malaysia’s trade surplus in July 2023 increasing by 7.9% year-on-year (y-o-y) to RM17.09 billion and was the 39th consecutive month of trade surplus since May 2020. However, total trade fell by 14.4% to RM216.41 billion affected by softer global demand and lower commodity prices. Exports decreased by 13.1% to RM116.75 billion and imports contracted by 15.9% to RM99.66 billion. The performance was similar to other regional markets notably Indonesia, China, Taiwan and the Republic of Korea (ROK) which recorded negative trade growth for July 2023.
Despite the decline, exports of electrical and electronic (E&E) products remained robust while exports to major trading partners notably China and the United States (US) rebounded in July 2023.
Compared to June 2023, imports grew by 1.3% while trade, exports and trade surplus edged down by 2.7%, 5.8% and 33.1%, respectively.
For the period of January to July 2023, trade was down by 6.1% to RM1.505 trillion compared to the same period of last year. Exports dropped by 5.9% to RM820 billion, imports fell by 6.5% to RM684.65 billion and trade surplus shrank by 2.5% to RM135.35 billion, respectively.
Exports of E&E Products Maintained an Upward Trend
In July 2023, exports of manufactured goods which made up 86.7% or RM101.25 billion of total exports reduced by 9.8% y-o-y due to lower demand for petroleum products, palm oil-based manufactured products as well as machinery, equipment and parts. Meanwhile, exports of E&E products recorded positive growth.
Exports of agriculture goods (6.5% share) totalled RM7.56 billion, slipped by 28.1% compared to July 2022 on the back of lower exports of palm oil and palm oil-based agriculture products affected significantly by weaker export prices of palm oil.
Exports of mining goods (6.3% share) declined by 33.6% y-o-y to RM7.34 billion on slower exports of liquefied natural gas (LNG) and crude petroleum.
Major exports in July 2023:
- E&E products, valued at RM50.45 billion and accounted for 43.2% of total exports, increased by 7.3% compared to July 2022;
- Petroleum products, RM9.64 billion, 8.3% of total exports, ↓48.7%;
- Chemicals and chemical products, RM5.83 billion, 5% of total exports, ↓9.1%;
- Palm oil and palm oil-based agriculture products, RM5.56 billion, 4.8% of total exports, ↓34.4%; and
- Optical and scientific equipment, RM4.88 billion, 4.2% of total exports, ↓4.2%.
On a month-on-month (m-o-m) basis, exports of agriculture and mining goods expanded by 1.8% and 6.2%, respectively while exports of manufactured goods was lower by 6.9%.
Trade Performance with Major Markets
ASEAN – Slower Trade Growth
In July 2023, trade with ASEAN represented 28.1% or RM60.8 billion of Malaysia’s total trade, eased by 17% y-o-y. Exports shrank by 18.8% to RM34.53 billion, mainly due to lower exports of petroleum products while higher exports was recorded for crude petroleum. Imports from ASEAN contracted by 14.6% to RM26.27 billion.
China – Exports Recovered from Negative Growth
In July 2023, trade with China which constituted 17.2% or RM37.13 billion of Malaysia’s total trade slipped by 8.4% y-o-y. Exports to China rebounded by 6.1% to RM16.8 billion, boosted by strong exports of E&E products, petroleum products as well as paper and pulp products. Imports from China edged down by 17.7% to RM20.33 billion.
Compared to June 2023, trade, exports and imports grew by 3.3%, 0.1% and 6.1%,
respectively.
The US – Exports Picked Up Supported by Robust Exports of E&E Products. Trade with the US in July 2023 which represented 9.8% of Malaysia’s total trade weakened by 6.7% y-o-y to RM21.27 billion. Exports improved by 2.2% to RM13.59
billion following strong demand for E&E products. Imports from the US slipped by 19.3% to RM7.67 billion.
