Malaysia's exports grew faster-than-expected in August amid spike in deliveries to US

Thursday 21 Nov 2024

KUALA LUMPUR (Sept 19): Malaysia’s exports surged ahead of expectations in August thanks to demand for electronics and a sharp rise in shipments to US and other major trading partners, official data on Thursday showed.

Exports rose 12.1% to RM129.16 billion in August compared to RM115.18 billion in the same month last year, the Ministry of Investment, Trade and Industry (Miti) said in a statement. That compares to the median 11.8% growth predicted in a Bloomberg survey and July’s 12.3% year-on-year increase.

“Miti and its agencies will remain vigilant against any potential challenges or global disruptions to ensure that Malaysia could sustain its economic momentum,” the ministry said.

Shipments of electric and electronic goods, which account for more than one-third of gross exports, rose 1.6% in August from a year earlier. Exports of chemical products rose 13.7% while that of palm oil were up 18.9% year-on-year.

However, outbound deliveries of petroleum products contracted 11.2% and liquefied natural gas shrank 15.9%.

In terms of markets, exports to China — Malaysia’s biggest trading partner — expanded 12.4% in August while shipments surged 45.4% to the US and 75% to Taiwan. Exports to Japan however declined 5.6%.

Gross imports, meanwhile, totalled RM123.49 billion versus RM97.85 billion in August 2023, an expansion of 26.2% year-on-year.

Inbound deliveries of intermediate goods, such as automotive parts and electronic components, climbed 40.4% year-on-year. Capital goods grew 39.6% while consumption goods were up 21.2%.

The resulting trade surplus was down 67.3% to RM5.67 billion in August but nevertheless marked the 52nd consecutive month of surplus since May 2020.

On a month-on-month basis, exports slipped 1.5% while imports were down 1.0% and trade surplus narrowed 11.5%.

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