M’sia records current account surplus of RM253.4 mln in 4Q23

For the year 2023, the CAB reached a surplus of RM22.8 billion compared to RM55.1 billion a year ago, while the financial account recorded a net outflow of RM18.9 billion against a net inflow of RM12.4 billion in 2022.

Datuk Seri Dr Mohd Uzir Mahidin

KUALA LUMPUR: Malaysia’s current account balance (CAB) recorded a surplus of RM253.4 million in the fourth quarter of 2023 (4Q23), supported by the travel component, the Department of Statistics Malaysia (DOSM) said.

The financial account turned around to a net outflow of RM19.9 billion in 4Q23 from a net inflow of RM14.9 billion in the previous quarter, mainly due to an outflow in other investment at RM14.4 billion and financial derivatives at RM3.8 billion.

“For the year 2023, the CAB reached a surplus of RM22.8 billion compared to RM55.1 billion a year ago, while the financial account recorded a net outflow of RM18.9 billion against a net inflow of RM12.4 billion in 2022,” chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in a statement yesterday.

He said the quarterly comparison showed that the goods account recorded a net export of RM30.8 billion in 4Q23 compared to RM32.7 billion in 3Q23.

“Exports of goods rose by six per cent to RM275.9 billion with the main exports comprising electrical and electronics (E&E), petroleum products and palm oil and palm oil-based products, especially to Singapore, China and the United States (US).

Similarly, goods import showed an increment of 7.6 per cent quarter-on-quarter (q-o-q) to reach RM245.1 billion, mainly contributed by intermediate goods, with

China, Singapore and the US being the top sources of import,” he added.

Concurrently, Mohd Uzir said services recorded a lower deficit of RM7.4 billion in 4Q23, primarily credited to an increment in inbound travel.

“Services export increased by 8.7 per cent q-o-q to record RM55.0 billion, while services import exhibited a similar trend, with a rise of 2.5 per cent, amounting to RM62.4 billion. Travel surplus for this quarter stood at RM6.5 billion, representing an increase of 18.9 per cent compared to the previous quarter,” he said.

He said the primary income account registered a widening deficit of RM20.9 billion compared to RM11.0 billion in the previous quarter, which was attributed to the increase in net payments from direct investment, amounting to RM16.9 billion.

Similarly, the secondary income account also recorded a higher deficit of RM2.3 billion in 4Q23. Pertaining to the accumulated investment, Mohd Uzir said the foreign direct investment position stood at RM926.3 billion as at the end of 2023 while direct investment abroad amounted to RM662.8 billion.

“The total financial assets position was valued at RM2.40 trillion, while total liabilities were RM2.28 trillion. Malaysia’s international investment position accounted for a net asset of RM119.4 billion, while international reserves stood at RM520.7 billion,” he said. — Bernama