KUALA LUMPUR (Feb 20): Malaysia’s exports decelerated and grew much slower than expected in January while imports surged, resulting in sharp contraction in trade surplus, official data on Thursday showed.

Exports rose 0.3% to RM122.8 billion in January from the same month a year earlier, the Department of Statistics Malaysia said in a statement. That compares to the median increase of 5% predicted in a Bloomberg survey of economists and the 17% year-on-year surge a month earlier.

Shipments of electrical and electronics products, which account for more than 40% of the total exports, grew 15% in January from a year earlier.

Growth of the key segment helped to offset a 34% plunge in exports of petroleum products and a 13% drop in liquefied natural gas. However, outbound deliveries of palm oil gained 8.7% in January.

In terms of markets, exports to Malaysia’s largest trading partner China shrank 4% and Japan was down 11%. Shipments however increased 28% to the US and 26% to Taiwan.

Gross imports expanded to RM119.16 billion in January 2025, a 6.2% increase compared to January 2024.

Inbound capital goods climbed nearly 46% while that of intermediate goods — such as computer components and vehicle parts used in the final assembly — was up 3.3%. Consumption goods imports slipped 2.6%.

Trade surplus totalled RM3.63 billion, narrowing 64% on a year-on-year basis and 81% when compared to December 2024.

On a month-on-month basis, exports fell 11% while imports were down 0.2%.

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