Matrade has released Malaysia’s 2024 Q1 trade figures, notably the country recorded the highest historical trade, export and import values recording 7.1% growth to RM690.59 billion year-on-year (y-o-y), with a trade surplus of RM34.22 billion.
Q1 2024 exports increased by 2.2% to RM362.41 billion compared to Q1 2023, on the back of higher exports of manufactured and mining goods. Exports of iron and steel products, machinery, equipment and parts, manufactures of metal, crude petroleum and liquefied natural gas (LNG) recorded notable increases. In terms of markets, growth was supported by increased exports to ASEAN, the United States (US) and Japan. On the other hand, imports recorded double-digit growth of 13.1% to RM328.19 billion due to robust imports of capital and intermediate goods meant for the manufacturing of products for exports.
Compared to February 2024, trade, exports and imports in March 2024 recorded double-digit month-on-month (m-o-m) growth of 15.6%, 15.5% and 15.7% respectively. Total trade was RM244.47 billion, historically the highest value for the month of March. Meanwhile, exports amounted to RM128.64 billion and imports were valued at RM115.83 billion, resulting in a trade surplus of RM12.81 billion, which also represents the 47th consecutive month of surplus since May 2020.For the month of March 2024 itself, trade and imports grew by 5.1% and 12.5% y-o-y
respectively, while exports reduced marginally by 0.8%.
The country also posted positive trade growth with Free Trade Agreement (FTA) partners in Q1 2024, increasing by 4.4% to RM456.02 billion, representing 65.3% of total trade. Exports edged up by 0.3% to RM248.17 billion and imports climbed 9.6% to RM207.85 billion compared to the corresponding period in 2023.
The World Trade Organization (WTO) in its recent Global Trade Outlook and Statistics publication has projected world merchandise trade volume to grow by 2.6% in 2024 (2023: -1.2%) amid challenges from regional conflicts and geopolitical tension. Bank Negara Malaysia has projected that Malaysia’s economy will grow between 4% to 5% this year, underpinned by anticipated recovery in external trade, increased inflow of investments as well as the continued expansion of domestic demand.
As a highly open economy with a ratio of merchandise trade to GDP at 144.7% in 2023, Malaysia will also be impacted by global developments. As such, MITI and its key export-focused agency, MATRADE, will remain vigilant to ensure that risks to trade growth and investment inflows are properly monitored and mitigated.
