July exports hit record high of RM86.1 billion

> Imports also at alltime peak, trade surplus widens to RM8.3 billion

PETALING JAYA: Malaysia’s exports expanded 9.4% year on year to a record high of RM86.1 billion in July, driven by stronger growth in the electrical and electronics (E&E) and crude petroleum segments, according to the Department of Statistics.

Imports, too, were up 10.3% to an alltime high of RM77.8 billion, attributable to consumption goods and capital goods as intermediate goods fell.

Re-exports in July were valued at RM18.7 billion and accounted for 21.7% of total exports. Domestic exports expanded 1.1% to RM67.5 billion.

Total trade stood at RM164.0 billion in July, 9.8% higher than the same month a year ago, and the trade surplus widened 1.7% to RM8.3 billion.

Among the major groups that recorded export increases were E&E (+23.6%), crude petroleum (+90.1%), natural rubber (+3.3%), and timber and timber-based products (+0.4%).

Declines were registered for liquefied natural gas (-38.4%), palm oil and palm oil-based products (-13.6%), and refined petroleum products (-12.3%).

Geographically, export growth was contributed by expansion in shipments to China (+RM3.5 billion), Hong Kong (+RM2.9 billion), Taiwan (+RM640.2 million), India (+RM499.9 million) and the US (+RM483.7 million).

On a month-on-month basis, exports and imports increased 9.6% and 7.2%, respectively.

For the period of January-July 2018, Malaysia’s total trade surpassed RM1 trillion and came in at RM1.1 trillion, an increase of 6.1% compared with the same period last year. Exports and imports grew 7.3% and 4.8%, respectively.

MIDF Research anticipates Malaysia’s exports to remain buoyant in the upcoming month on the back of the tax holiday period and stable retail fuel prices, but concerns over global trade tensions remain.

For 2018, it expects Malaysia’s exports to grow 9.3%, underpinned by sanguine signs of key global indicators and gradual recovery in commodity prices. “We predict global trade activities in Q3 to remain on an upbeat momentum albeit at a moderating pace, in tandem with easing global manufacturing PMI (Purchasing Managers’ Index).”