Malaysian exports in August up 18.4% on annual basis, 12th straight month of on-year expansion

PETALING JAYA: Malaysia’s export performance saw a 12th straight month of year-on-year (y-o-y) expansion, growing 18.4% to RM95.6 billion in August this year, supported by domestic exports and re-exports.

According to the Statistics Department, domestic exports stood at RM79.1 billion, contributing 82.7% to total exports, which translates into an 18.7% expansion, while re-exports were valued at RM16.5 billion, a growth of 16.7% y-o-y.

Imports for the month totalled RM74.2 billion, translating into a growth of 12.5% and, consequently, Malaysia’s trade surplus surged by 44.7% on-year to RM21.4 billion.

“However, as a consequence of the slowdown in domestic economic activity, the month-on-month performance of total trade, exports and imports showed declines of 6.1%, 1.8% and 11.2%, respectively. In contrast, the trade surplus increased by 55.5%” said Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin.

About 159 out of 255 commodity groups for exports showed increases compared with the previous year. As for imports, 155 of 257 groups posted positive growth.

The rise in exports was attributable mainly to higher shipments to Singapore (+RM2.4 billion), Japan (+RM1.8 billion), the US (+RM1.2 billion), Indonesia (+RM1.1 billion), Hong Kong (+RM1.0 billion), Australia (+RM825.8 million) and China (+RM814.8 million).

In terims of goods, the increase in exports was driven by petroleum products (+RM2.6 billion); electrical & electronic products (+RM2.2 billion); chemical & chemical products (+RM2.2 billion); manufacture of metal (+RM1.9 billion); liquefied natural gas (+RM1.9 billion); palm oil & palm oil-based agriculture products (+RM1.4 billion) and palm oil-based manufactured products (+RM1.1 billion).

UOB Research commented that a sustained improvement in global demand and a persistent, albeit moderate, increase in imports of intermediate goods imply continued export orders ahead.

“Strong demand from the West for year-end festivities is expected to create seasonal volume rushes over the next few months,” it said in a report today following the release of the latest trade data.

The research house highlighted that Malaysia is on track to fully inoculate its adult population by end-October and enter an endemic stage that will bring more manufacturing capacity back online to meet export orders.

“Thus, we maintain our 2021 full-year export growth forecast at 22.0% (2020: -1.1%),” it said.