Kuala Lumpur– Malaysia’s trade surplus expanded in June, but both exports and imports saw a decline compared to the previous year. This can be attributed to lower shipments of palm oil, palm-based agriculture products, and reduced imports of intermediate goods.
Trade Surplus Growth
In May, Malaysia recorded a trade surplus of 25.81 billion ringgit ($5.68 billion), showing considerable growth from the MYR15.42 billion surplus in the previous month.
The Ministry of Investment, Trade, and Industry reported that in comparison to May 2023, exports and trade surplus increased by 3.7% and 64.4%, respectively. However, trade and imports experienced a downturn of 0.5% and 5.4%.
Export and Import Decline
In June, Malaysia witnessed a significant decrease in exports and imports, with exports declining by 14.1% to MYR123.98 billion, while imports were 18.9% lower at MYR98.16 billion.
According to a poll conducted by The Wall Street Journal, it was forecasted that exports would drop 15.4% and imports would fall 26.6%, resulting in a trade surplus of MYR18.8 billion.
For the first half of 2023, Malaysia’s exports stood at MYR703.27 billion, reflecting a 4.5% decrease, while imports declined by 4.7% to MYR584.75 billion. Consequently, the trade surplus contracted by 3.6% to MYR118.52 billion.
Key Trading Partners
In June, Malaysia’s exports to China decreased by 8.0% compared to the previous year, amounting to MYR16.78 billion. Similarly, exports to the United States also experienced a decline of 19% and amounted to MYR13.64 billion.
Here are the figures for Malaysia’s trade with its five largest export and import trading partners in June:
Exports Value (MYR Millions) % Change YoY
Total: 123,975 -14
- Singapore: 21,063 -0.9
- China: 16,778 -8.0
- USA: 13,638 -19
- Hong Kong: 8,060 -11
- Japan: 6,867 -21
Imports Value (MYR Millions) % Change YoY
Total: 98,163 -19
- China: 19,297 -24
- Singapore: 11,845 -17
- Taiwan: 6,863 -29
- USA: 6,573 -27
- Japan: 6,529 -6.7
In conclusion, Malaysia’s trade surplus expanded in June, but both exports and imports suffered a decline in comparison to the previous year. The reduced shipments of palm oil, palm-based agriculture products, and lesser imports of intermediate goods contributed to this trend.