Trade surplus at ninemonth high in June
KUCHING: Malaysia’s exports rebounded in June 2020, growing by 8.8 per cent to RM82.87 billion compared to June 2019 while total trade expanded by 2.2 per cent to RM144.84 billion.
According to data from the Ministry of International Trade and Industry’s ( MITI), increases in trade were recorded primarily with China, the US, Hong Kong and Vietnam.
Imports decreased by 5.6 per cent to RM61.98 billion, resulting in a trade surplus of RM20.89 billion in June 2020, a growth of 98.7 per cent year- on-year (y- o-y) and the highest monthly trade surplus ever recorded.
On a month- on-month (m- om) basis, total trade, exports and imports recorded double digit growth of 26 per cent, 32.3 per cent and 18.6 per cent, respectively, while trade surplus surged by 101.1 per cent.
This better performance is in line with the gradual lifting of restrictions due to Covid19 pandemic in Malaysia and globally.
Total trade for the second quarter of 2020 (2Q20) was valued at RM392.96 billion, declining by 14.7 per cent compared to 2Q19.
Exports totalled RM210.3 billion, a decrease of 14.3 per cent while imports amounted to RM182.66 billion, contracting by 15.1 per cent.
A trade surplus of RM27.64 billion was recorded for the period, dropped by 9.1 per cent.
Compared to 1Q20, total trade, exports and imports declined by 10.8 per cent, 11.9 per cent and 9.4 per cent, respectively. Trade surplus shrank by 25.2 per cent.
For the first half of 2020 (1H20), total trade amounted to RM833.36 billion, contracted by seven per cent compared to the same period of 2019.
Lower trade was recorded with Thailand, Singapore, India, Japan and Germany. Meanwhile, higher trade was registered with the Republic of Korea ( ROK) and the US.
Exports during the period totalled RM448.99 billion, a decline of 6.8 per cent and imports was valued at RM384.38 billion, decreasing by 7.2 per cent.
A trade surplus of RM64.61 billion was recorded for the period, slipped by 4.1 per cent.
Exports of manufactured goods in June 2020 which made up 87.5 per cent of total exports picked up by 13.7 per cent y- o-y to RM72.48 billion.
The expansion was due mainly to higher demand of electrical and electronic ( E& E) products, rubber products, other manufactures especially solid- state storage devices (SSD), optical and scientific equipment, machinery, equipment and parts, wood products, iron and steel products as well as manufactures of metal. Exports of agriculture goods (7.6 per cent share) rose by 30 per cent compared to June 2019 to RM6.27 billion underpinned mainly by higher exports of palm oil and palm oil-based agriculture products.
Exports of mining goods (4.6 per cent share) dropped by 45.6 per cent y- o-y to RM3.79 billion weighed down by lower exports of crude petroleum and liquefied natural gas ( LNG). On total imports in June 2020, the three main categories of imports by end use which accounted for 76.6 per cent of total imports were intermediate goods, capital goods and consumption goods.
Intermediate goods, valued at RM34.09 billion or 55 per cent share of total imports, decreased by 10.8 per cent, following lower imports of processed industrial supplies, particularly copper and articles;
Capital goods, valued at
RM7.33 billion or 11.8 per cent of total imports, increased by 2.8 per cent, due mainly to higher imports of capital good (except transport equipment), particularly electrical machinery, equipment and parts; and
Consumption goods, valued at RM6.08 billion or 9.8 per cent of total imports, rose by nine per cent, as a result of higher imports of household consumption of food and beverages, particularly cereals.
In 1H20, imports amounted to RM384.38 billion, decreasing by 7.2 per cent from the same period of 2019.
Imports of intermediate goods totalled RM209.22 billion, a decrease of 8.6 per cent, capital goods ( RM46.41 billion, down 5.5 per cent) and consumption goods ( RM34.86 billion, down 2.6 per cent).