Malaysia’s export sector has been in a positive growth mode, expanding in both the first half of this year and in June, according to the Ministry of International Trade and Industry (MITI).
For the period January-June, exports rose by 1.2%, or MYR4.56 billion (US$1.14 billion), to log a total value of MYR372.9 billion compared to the same period of the preceding year. Imports increased by 1.4% to MYR331.11 billion.
This engendered a trade surplus for the period of MYR41.79 billion from MYR41.69 billion registered in the first half of 2015.
Trade in the first semester grew by 1.3% to MYR704 billion, up from MYR694.98 billion recorded in the same period a year ago. The expansion was supported mainly by trade with the U.S., Association of Southeast Asian Nations (ASEAN), China, European Union, Bangladesh, Turkey, and Mexico.
The improved performance was partly contributed by higher trade in June as exports in the month rebounded, expanding 3.4% to MYR66.45 billion from a negative growth rate recorded in May 2016, as trade increased by 5.7% year-on-year to MYR127.38 billion. Imports rose by 8.3% to MYR60.93 billion.
June’s trade surplus amounted to MYR5.52 billion, making it the 224th consecutive month of trade surplus recorded since November 1997, said MITI.
Total exports in the second quarter of 2016, meanwhile, added up to MYR187.74 billion, an expansion of 1.4% from the same quarter last year. Imports increased by 3.1% to MYR169.88 billion. Total trade in the period reached MYR357.62 billion, 2.2% higher from the MYR349.83 booked last year.
On a quarter-on-quarter basis, exports, imports, and total trade increased by 1.4%, 5.4%, and 3.2%, respectively, said the ministry.
Overall, higher exports were recorded for both manufactured and agricultural goods in the first half of 2016. Exports of mining goods decreased, however.
Exports of manufactured goods for the January-June 2016 period grew by 5.6% to MYR309.17 billion compared to the first six months of 2015.
Electrical and electronics products; manufactures of metal, machinery, equipment and parts; optical and scientific equipment; chemicals and chemical products; and processed food were the leading commodities shipped out in the period.
Manufactured exports accounted for 82.9% of Malaysia’s total exports, a rise from the 79.5% recorded during the same period in 2015.
Exports of agricultural goods increased by 1.5% to MYR31.55 billion, but exports of mining goods contracted by 29.2% to MYR29.82 billion.
The decline in exports of mining goods was due to lower exports of liquefied natural gas and crude petroleum, both in terms of average unit value and volume.
Meanwhile, trade with ASEAN showed strong performance in the first half of the year as exports grew by 6% to reach a value of MYR110.04 billion, accounting for 29.5% of Malaysia’s total exports.
Trade with the U.S. expanded by 12.1% to MYR67.45 billion while trade with China expanded by 2% to MYR108.85 billion.
The ministry said total trade with free trade agreement partners was valued at MYR439.56 billion, accounting for 62.4% of Malaysia’s trade.
In June 2016, exports of manufactured goods expanded by 6.7% to MYR55.52 billion. Higher exports were recorded for E&E products, petroleum products, chemicals and chemical products, optical and scientific equipment, processed food as well as machinery, equipment and parts.
Exports of agricultural goods decreased by 13% to MYR5.54 billion, with lower exports of palm oil, mainly due to lower export volume. Exports of mining goods declined by 11.8% to MYR4.83 billion.
Photo: Gp song
