The Department of Statistics reported that the country’s Current Account Balance in the third quarter of 2023 increased marginally by 0.3 percent quarter-on-quarter to record a surplus of RM9.1 billion, equivalent to 2.0 percent of the Gross Domestic Product (GDP).
Meanwhile, the Financial account turned around to a net inflow of RM14.9 billion as against a net outflow of RM11.6 billion in the preceding quarter. In the January to September period, the CAB reached a surplus of RM22.5 billion, while Financial account recorded a net inflow of RM1.0 billion.
Balance of Payments and International Investment Position Statistics for the Third Quarter of 2023 which gauges Malaysia’s cross-border transactions with the rest of the world. On a quarterly basis, the net exports of Goods account noted an uptick in the third quarter, surging to RM32.7 billion from RM29.5 billion in the previous quarter. Goods export rose by 2.2 percent in contrast with the second quarter 2023 to record RM260.4 billion. The main exports were Electrical & electronics (E&E), Petroleum products, and Chemicals & chemical products, especially to Singapore, China, and the United States of America (USA). Similarly, Goods import also showed an increment of 1.0 percent quarter-on-quarter to reach RM227.7 billion, mainly contributed by Intermediate goods. China, Singapore, and the USA were the top sources of import”.
Looking at Services trade performance, the Chief Statistician Malaysia stated that the Services recorded a lower deficit of RM10.3 billion in the third quarter of 2023, primarily credited to a consistent revival of inbound travel commencing in the same period last year.
The net outflow in Direct Investment Abroad (DIA) rose to RM13.4 billion as compared to RM8.0 billion in the previous quarter. The major contributors of DIA were the Services sector, particularly in Financial activities, followed by Mining & quarrying and Agriculture sectors. The top three destinations for DIA were Indonesia, Angola and Viet Nam.
Simultaneously, Foreign Direct Investment (FDI) posted a higher net inflow of RM7.2 billion as against RM3.1 billion in the preceding quarter. The largest recipients of FDI were Services, mainly in Financial activities and Mining & quarrying sectors. Hong Kong, China, and the United Kingdom were the primary sources of FDI.
As of the end of the third quarter of 2023, the cumulative investment positions for FDI and DIA were RM914.9 billion and RM659.6 billion, respectively.