Malaysia Trade agency, MATRADE reported January’s trade data indicating a strong rebound with a double-digit expansion by 13.3% to RM234.73 billion after registering 10th consecutive month of year-on-year (y-o-y) contraction. According to the agency, exports edged up by 8.7% to RM122.43 billion and imports increased by 18.8% to RM112.3 billion. This was also the highest monthly value recorded for the month of January. Meanwhile, trade surplus amounted to RM10.12 billion and marked the 45th consecutive month of trade surplus since May 2020.
The export growth was boosted by higher shipments of petroleum products, machinery, equipment and parts, iron and steel products as well as manufactures of metal. Exports to major trading partners namely ASEAN, the United States (US), the European Union (EU) and Japan recorded expansion.
Compared to December 2023, trade, exports and imports increased by 4.3%, 3.4%, and 5.3%, respectively while trade surplus contracted by 13.8%.
MATRADE noted exports of Manufactured Goods Remained Robust which accounted for 84.7% of total exports improved by 9.3% y-o-y to RM103.65 billion. Almost all manufactured goods recorded double-digit export expansion except for electrical and electronic (E&E) products which dropped by 6.5% mainly to China and Singapore. Higher exports were seen for petroleum products, machinery, equipment and parts, iron and steel products as well as manufactures of metal. Exports of mining goods (7.9% share) declined by 4.9% y-o-y to RM9.72 billion following reduced exports of liquefied natural gas (LNG). Exports of agriculture goods (6.7% share) rebounded with a double-digit expansion of 17.5% to RM8.24 billion after recording negative y-o-y growth since November 2023. This was backed mainly by robust exports of palm oil and palm oil-based agriculture products. All agriculture goods recorded double-digit export growth.
E&E products, valued at RM44.02 billion and accounted for 36% of total exports, decreased by 6.5% compared to January 2023; Petroleum products, RM14.81 billion, 12.1% of total exports, increased by 24.2% Palm oil and palm oil-based agriculture products, RM6.15 billion, 5% of total exports, increased by 16.3%; LNG, RM6.05 billion, 4.9% of total exports, decreased by 9.3%; and Chemicals and chemical products, RM6.03 billion, 4.9% of total exports, increased
by 4.4%.
On a month-on-month (m-o-m) basis, exports of manufactured and agriculture goods rose by 4.8% and 0.9%, respectively while exports of mining goods shrank by 6.1%.
Trade Performance with Major Markets- ASEAN – Trade Registered Double-Digit Growth
For January 2024, trade with ASEAN accounted for 27.6% of Malaysia’s total trade, registering a double-digit growth of 17.4% y-o-y to RM64.87 billion. Exports was up by 9.5% to RM37.33 billion, bolstered by higher exports of petroleum products, machinery, equipment and parts as well as chemicals and chemical products. Imports from ASEAN rose by 30.2% to RM27.54 billion. Singapore RM17.44 billion, decreased by 2.6%, y-o-y while Vietnam grew to RM6.00 billion, ↑53.7% and as well as Indonesia at RM5.57 billion, ↑60.6%;
- China – Trade Recorded Expansion
- In January 2024, trade with China which took up 16.9% of Malaysia’s total trade edged up by 6.9% y-o-y to RM39.57 billion. Exports to China was valued at RM13.87 billion, fell by 7.4% as a result of lower exports of E&E products. However, the contraction was cushioned by strong exports of petroleum products, manufactures of metal as well as paper and pulp products. Imports from China grew by 16.7% to RM25.7 billion.
The US – Trade, Exports and Imports Recorded Double-Digit Growth
Trade with the US which represented 9.4% of Malaysia’s total trade in January 2024 recorded a double-digit growth of 18.2% y-o-y to RM22.11 billion. Exports improved by 11.9% to RM13.48 billion aided by robust exports of E&E products, iron and steel products as well as wood products. Imports from the US edged up by 29.5% to RM8.63 billion.
The EU – Trade, Exports and Imports Rebounded
In January 2024, trade with the EU which made up 7.6% of Malaysia’s total trade recovered by 5.4% y-o-y to RM17.87 billion. Exports improved by 6.4% to RM9.95 billion led by robust exports of E&E products, palm oil-based manufactured products as well as manufactures of metal. Imports from the EU expanded by 4.1% to RM7.92 billion.
