MATRADE released the latest trade repoprt for May 2024, based on the data the country’s trade remained resilient and buoyant, recording a double-digit year-on-year growth of 10.3% to RM246.31 billion. The agency said this was the highest value recorded since October 2022 and the fifth consecutive month of y-o-y expansion.
Exports increased for the second consecutive month, expanding by 7.3% to RM128.22 billion. Meanwhile, imports grew by 13.8% to RM118.09 billion, resulting in a trade surplus of RM10.14 billion and the 49th consecutive month of surplus since May 2020.
The growth in exports was contributed mainly by strong exports of electrical and electronic (E&E) products, palm oil and palm oil-based agriculture products, manufactures of metal, optical and scientific equipment as well as iron and steel products. Exports of E&E products sustained positive growth for the second consecutive month. Signs of economic recovery in the nation’s key export markets were seen where exports to major trading partners namely ASEAN, the People’s Republic of China (China), the United States (US), the European Union (EU) and Japan recorded increases. Exports to ASEAN and the US grew significantly with double-digit expansion.
Similarly, exports to Free Trade Agreement (FTA) partners increased by 4.5% y-o-y to RM87.64 billion. Among the FTA partners that registered export expansion were Mexico and Canada, driven by higher exports of E&E products.
Trade, exports and imports during the first five months of 2024 recorded the highest periodic values. Trade grew by 8.7% to RM1.158 trillion compared to the corresponding period in 2023. Exports increased by 4.5% to RM605.25 billion and imports were higher by 13.7% to RM553.24 billion. Trade surplus of RM52.01 billion were posted for the period.
Meanwhile, compared to April 2024, trade performance in May 2024 was seen resilient with trade, exports, imports and trade surplus recorded double-digit growth of 11.1%, 11.8%, 10.4% and 30.9%, respectively.
World Bank in its June 2024 Global Economic Prospects Report, projected global Gross Domestic Product (GDP) growth to increase by 2.6% in 2024 (forecast in January 2024: 2.4%) amid stronger than expected economic performance in the US. It also estimated Malaysia’s GDP growth to edge up by 4.3% in 2024.
Moving forward, Malaysia’s manufacturing sector is poised for positive growth in 2024, supported by industrial reforms spearheaded by MITI and a promising uptick in global semiconductor demand projections. Recently, the World Semiconductors Trade Statistics (WSTS) forecast that the global semiconductor market will see a robust growth of 16% in 2024 on the back of stronger performance in computing end-markets. Malaysia was ranked the 10th largest global exporter of E&E products and the 6th largest exporter of semiconductors in 2023.
