KUALA LUMPUR (Sept 19): Malaysia’s exports growth decelerated in August, coming in at a slower-than-expected pace as gains in shipments of electronics were dampened by a decline in petroleum deliveries.
Exports in August climbed to RM131.6 billion, a 1.9% increase from the same month of 2024, according to the Ministry of Investment, Trade and Industry (Miti). The print underperformed the median forecast for a 3.0% expansion in a Bloomberg poll.
In July, exports had risen 6.8% year-on-year (y-o-y).
“Exporters are strongly encouraged to improve and diversify their product offerings, as well as strengthen supply chain efficiencies to mitigate the transitional effects of shifts in trade policies and uncertainties in the global trading landscape,” the ministry said.
Further, exporters are also encouraged to utilise the 18 free trade agreements that have been ratified by Malaysia with various countries and economies, Miti added.
Shipments of electrical and electronic products, which made up 42% of total exports, rose 10.1% in August when compared to the same month last year. Machinery, equipment and parts rose 14.5%.
Exports of petroleum products contracted 17.6%, though that of palm oil were up 9.7% y-o-y.
By destination, exports to Malaysia’s largest trading partner China climbed 10.4%, while shipments to Taiwan were 32.7% higher. However, deliveries were down 16.7% to the US while those to Japan declined 15.4%.
Gross imports, meanwhile, declined 5.9% y-o-y to RM115.47 billion, driven by a contraction in consumption and intermediate goods.
Inflow of consumption goods, in particular, fell 8.9% due to lower imports of processed food and beverages mainly for household use. Intermediate goods, or components and parts used in the final assembly, were down 16.8%.
Imports of capital goods — physical assets used in production — increased 11% due to demand for industrial transport equipment.
On a month-on-month (m-o-m) basis, imports fell 8%.
Malaysia’s trade surplus in August was RM16.13 billion, more than doubling y-o-y and representing an expansion of 10.4% on a m-o-m basis.