KUALA LUMPUR (Aug 19): Malaysia’s exports accelerated to its fastest pace in nearly two years, thanks to demand for commodities and electronics as well as higher shipments to advanced economies.

Exports in July 2024 surged to RM131.15 billion, a 12.3% increase when compared to the same month of 2023, the Investment, Trade and Industry Ministry (Miti) said in a statement. That compares to the median 9% gain predicted in a Bloomberg survey and June’s 1.7% year-on-year rise.

“Global economic conditions seem to have improved month by month, attributed to increased global demand,” the ministry said. “Miti and its agencies will continue to remain vigilant to global external shocks which could impact Malaysia’s growth trajectory.”

Shipments of electrical and electronic products, which account for more than one-third of gross exports, rose 2.6% year-on-year in July. Exports of petroleum products climbed 15.6% while that of palm were 36.3% higher.

In terms of markets, exports to China — Malaysia’s biggest trading partner — contracted 11.4% in July. However, deliveries surged 30.9% to the US and 14.2% to the European Union. Exports to Taiwan surged 55% in July.

Gross imports in July were up 25.4% to RM124.73 billion. Inbound deliveries of intermediate goods, such as automotive parts and electronic components, increased 41.2% in July. Capital goods imports grew by 44.4% while consumption goods expanded by 25.5%.

Trade surplus shrank 62.9% on a year-on-year basis to RM6.42 billion in July, the 51st consecutive month of surplus since May 2020.

On a month-on-month basis, exports were up 7.6% while imports were 11.6% higher. Trade surplus, however, narrowed 55.1%.