KUALA LUMPUR (June 20): Malaysia’s exports fell in May for the first time this year amid sharp decline in shipments of petroleum products and lower deliveries to China and Japan, official data on Friday showed.
The decline overshadowed continued surge of exports to the US amid a 90-day pause on a sweeping set of steep tariffs. All in all, exports slipped 1.1% year-on-year and 5.2% month-on-month to RM126.62 billion, the Ministry of Investment, Trade and Industry (Miti) said in a statement.
Malaysia stands to benefit “significantly” from expansion in global semiconductor sales despite uncertainties in global economic conditions, Miti said. “While the sector’s outlook remains positive, proactive policy responses will be crucial to sustain this growth momentum,” the ministry added.
Shipments of electrical and electronics (E&E) products — which made up over 42.4% of total exports — rose 7% year-on-year in May followed by a 16.4% increase in exports of machinery, equipment, and parts. However, exports of petroleum products fell nearly 30%.
In terms of markets, deliveries to Malaysia’s largest trading partner China fell 4.3% in May when compared with the same month last year, due to lower exports of liquefied natural gas, metal and paper products.
Exports to the US were up 16%, the eighth consecutive month of double-digit growth, driven by electronics and processed food as well as machinery, equipment and parts.
Meanwhile, gross imports climbed 6.6% year-on-year to RM125.86 billion, lifted by higher inbound shipments of E&E products and machinery-related goods.
Capital goods imports surged 63.7%, mainly due to increased purchases of non-transport capital goods. Imports of intermediate goods — components and materials used in the final assembly of products such as cars and computers — fell 4.4% due to primary fuels and lubricants.
Imports of consumption goods dipped 1.1% from softer demand for primary food and beverages for household consumption.
On a month-on-month basis, total imports were down 2%.
The decline in exports, coupled with the rise in imports, sharply narrowed the trade surplus in May to RM766.3 million in May. Trade surplus was down 92.3% on a year-on-year basis and shrank 85.2% month-on-month.