KUALA LUMPUR (June 20): Malaysia’s exports grew 7.3% in May from a year earlier, sharply above forecast, thanks to a surge in shipments of electronics and palm oil amid higher deliveries to the US, official data on Thursday showed.

Exports totalled RM128.22 billion in May, compared with RM119.51 billion in the same month of 2023, the Ministry of Investment, Trade and Industry said in a statement. That compares with the median estimate of a 2.3% increase in a Bloomberg survey of economists. In April, exports grew 9.1% year-on-year. 

“Moving forward, Malaysia’s manufacturing sector is poised for positive growth in 2024, supported by industrial reforms spearheaded by Miti and a promising uptick in global semiconductor demand projections,” MIti said.

Shipments of electrical and electronic products, which account for more than one-third of gross exports, climbed 7.6% while that of palm oil surged 25.7%. Outbound deliveries of petroleum products contracted 18.6% while liquefied natural gas was down 21.2%.

In terms of markets, exports to Malaysia’s biggest trading partner China inched up 1.6% while exports were up 17.4% to US and 54.2% to Taiwan.

Gross imports in May, meanwhile, expanded 13.8% to RM118.09 billion. Inbound deliveries of intermediate goods — such as automotive parts and electronic components — increased 24.1% year-on-year. Capital goods imports surged 40.5% while consumption goods were 14.7% higher.

Trade surplus narrowed 43.9% year-on-year to RM10.14 billion in May 2024, making it the 49th consecutive month of surplus since May 2020, from RM15.7 billion in May 2023.

On a month-on-month basis, exports were up 11.8%. Imports expanded 10.4%, while trade surplus widened 35.4%.