Trade rebounds in January with double-digit increase

Global growth and demand shifts spur Malaysia’s performance with higher exports and imports

Moderate growth in the worldwide economy, coupled with changes in demand for Malaysia’s goods from abroad, led to better levels of trade, supported by both exports and imports.

Total trade witnessed a double-digit increase by 13.3% to RM234.7 billion, attributable to exports (+8.7%) of RM122.4 billion and imports (+18.8%) of RM112.3 billion. On the contrary, trade balance fell by 44.2% to RM10.1 billion in January 2024 as reported yesterday in Malaysia External Trade Statistics bulletin January 2024.

Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said, “Malaysia’s export performance increased in January 2024 in line with the rise in domestic exports and re-exports. Domestic exports worth RM94.7 billion, contributing 77.4% to total exports rose by 10.1% and re-exports amounted to RM27.7 billion, grew by 4.1% as compared to January 2023. Imports in January 2024 worth RM112.3 billion, increased by 18.8% as compared to the same month last year.

Meanwhile, he added trade surplus was valued at RM10.1 billion, was the 45th consecutive month of trade surplus since May 2020.

As compared to December 2023, he said the performance of exports, imports and total trade recorded an increase of 3.4%, 5.3% and 4.3%, respectively while, trade balance recorded a contraction of 13.8%.

From the perspective of the commodity group, 179 out of 259 export groups and 197 out of 259 import groups showed an increase as compared to the same month of the previous year.

Mohd Uzir explained that the higher exports was attributable from the increase mainly to Indonesia (+RM2.1 billion) followed by Vietnam (+RM2.1 billion), the US (+RM1.4 billion), Taiwan (+RM1.3 billion) and Australia (+RM1.3 billion). Moreover, higher imports was mainly contributed by Singapore (+RM5.5 billion) followed by China (+RM3.7 billion), the US (+RM2 billion), Taiwan (+RM1.2 billion) and Brazil (+RM1.1 billion).

On exports, he said the rise was in line with the increase in petroleum products (+RM2.9 billion); machinery, equipment & parts (+RM1.4 billion); and iron and steel products (+RM1.4 billion). Furthermore, the increase in imports was logged for electrical & electronic products (+RM4.4 billion); petroleum products (+RM2.6 billion) and machinery, equipment & parts (+RM1.7 billion).

Mohd Uzir said, “The rise in imports by end use was in line with higher demand for capital goods, consumption goods and intermediate goods. Imports of capital goods with a value of RM13.7 billion, rose by 41.8% as compared to January 2023, representing 12.2% of total imports. Consumption goods (9.2% of total imports), grew by 25.4% from RM8.2 billion in the previous year to RM10.3 billion. Intermediate goods (52.3% of total imports), valued at RM58.8 billion, registered an increase of 21.4% or RM10.3 billion.”