TRADE RISES 5.1PC TO RM162B IN AUG

But exports fall for first time in 6 months on declining shipments of palm oil, slowing demand from US

MALAYSIA’S total trade rose 5.1 per cent year-on-year to RM162.01 billion in August, but exports tumbled on both annually and monthly basis to 0.3 and five per cent, respectively.

Analysts said exports fell for the first time in six months, hit by declining shipments of palm oil and slowing demand from the United States.

The 0.3 per cent fall in August was sharply below the 5.7 per cent rise forecast by a Reuters poll and down from July’s 9.4 per cent growth.

“The fall was partly due to fewer working days as a result of Hari Raya Aidiladha and Merdeka holidays, besides weaker sectoral performances,” said MIDF Research when reviewing the latest trade figures released by the International Trade and Industry Ministry yesterday.

It expects similar patterns for last month, saying export growth for the third quarter should be lower than the first two quarters of the year, in line with the easing global manufacturing purchasing managers’ index.

Protracted trade rows between the United States and China — the world’s top two economies — remained downside risks, added MIDF Research.

It revised its exports growth forecast for Malaysia to 7.3 per cent this year against 18.9 per cent last year.

The ministry said there was expanded trade with major partners, namely China, Hong Kong, Taiwan, Saudi Arabia, South Korea, Asean, the US and the European Union.

Exports in August remained above the RM80 billion mark at RM81.81 billion, compared with RM82.02 billion in the same month last year.

Malaysia’s imports hit a new high with RM80.2 billion, an increase of 11.2 per cent year-onyear. This resulted in a 83.7 per cent contraction in trade surplus to RM1.61 billion.

The ministry said the trade surplus marked the 250th consecutive month of surpluses since November 1997.

On a month-on-month basis, imports expanded by three per cent while total trade, exports and trade surplus contracted 1.2, 5.0 and 80.7 per cent, respectively.

For the first eight months of the year, total trade expanded by six per cent to RM1.231 trillion compared with the same period last year.

Exports rose by 6.3 per cent to RM650.56 billion while imports grew at a slower pace of 5.6 per cent to RM580.11 billion. Trade surplus rose 11.9 per cent to RM70.45 billion, compared with the same period last year.

The ministry said exports of manufactured goods, which accounted for 83.7 per cent of Malaysia’s total exports, increased 1.8 per cent year-on-year to RM68.5 billion in August.

“The expansion was driven mainly by higher exports of electrical and electronic products, chemicals and chemical products, iron and steel products, as well as optical and scientific equipment,” it said.

Exports of mining goods, which constituted 9.1 per cent of Malaysia’s total exports, rose by 5.5 per cent to RM7.47 billion.

The ministry said higher exports were recorded for crude petroleum, which increased by 64.9 per cent, or RM1.3 billion, due to higher average unit value and export volume.

Exports of agriculture goods, which accounted for 6.5 per cent of total exports, contracted by 20.8 per cent to RM5.3 billion.

“This was due to lower exports of palm oil and palm oil-based agriculture products, particularly palm oil, which decreased by 26.8 per cent, or RM1.02 billion,” it said.