MALAYSIA’s total trade is expected to moderate to 5% growth this year from RM1.774 trillion last year, International Trade and Industry Minister Mustapa Mohamed said today.

Total trade for 2017 was the highest in 13 years, with exports of all key sectors recording double-digit growth. Exports for the year also grew significantly by 18.9%, the strongest growth since 2005, to reach a new high of RM935.39 billion.

“It’s not realistic to expect a similar performance in 2018 given the high base effect. Nonetheless, we believe growth will continue at a modest pace,” he said at a press conference here today.

He said Malaysia External Trade Development Corporation would continue to expand and diversify its export promotion activities in 2018 as the country need to deepen and expand its export base.

Total trade for the fourth quarter of 2017 (Q417) expanded by 13.3% to RM462.62 billion compared with the same quarter in 2016. Exports increased by 12.4% to RM245.14 billion, while imports rose by 14.4% to RM217.48 billion, said Mustapa.

This resulted in a trade surplus of RM27.66 billion. Compared with Q317, trade, exports and imports increased by 2.4%, 2.5% and 2.3%, respectively.

Malaysia’s total trade for December 2017 recorded 6.2% growth to RM151.41 billion compared with a year ago.  A higher trade surplus of RM7.25 billion was also registered in December, making it the 242nd consecutive month of trade surplus since November 1997.

Exports in December expanded by 4.7% year-on-year to RM79.33 billion

Among the major highlights of 2017 trade were double-digit year-on-year growth recorded for all months, with the exception for June and December, and all sectors also recorded strong expansion with double-digit growth.

There was a sharp rebound in the export growth of major commodities as world prices improved last year.

“Almost all major export markets recorded new highs. Exports to Asean were also higher with growth recorded for all markets except Laos,” Mustapa said.

Exports to Free Trade Agreement partners also increased, in particular to Asean, China, Japan, South Korea, Australia, Turkey, India, New Zealand, Pakistan and Chile.

“Last year, there was robust export growth to advanced countries, in particular, the US, EU, and notably the Netherlands and Germany, and greater demand was also recorded from emerging markets such as Mexico, Brazil and South Africa,” he said.

 Asean remained a key trading partner for Malaysia, taking up 27.5% of Malaysia’s total trade in 2017. Trade with Asean amounted to RM487.42 billion, an increase of 21%.

“Exports to Asean expanded by 18% to RM272.79 billion, contributing 29.2% to Malaysia’s total exports. The increase was mainly led by manufactured goods, which grew by 18% and accounted for 89% of total exports to Asean,” said Mustapa.

China continued to be Malaysia’s largest trading partner for nine consecutive years since 2009.

In 2017, total trade with China surged by 20.6% to RM290.65 billion, where exports increased 28% to RM126.15 billion and imports rose 15.5% to RM164.5 billion.

Meanwhile, trade with Japan jumped 14.7% to RM138.5 billion last year, as exports to expanded by 17.5% to RM74.89 billion, rebounding sharply from two consecutive years of negative growth.

Electrical and electronic (E&E) products remained as the largest export sector last year, at 36.7% of the nation’s total exports worth RM343 billion after expanding by 19.2% or RM55.19 billion.

E&E products, which saw over RM3 billion increase in exports, included electronic integrated circuits, computers and data processing equipment as well as parts and accessories for office machines.

Other manufactured products that contributed to last year’s exports growth were petroleum products, chemicals and chemical products, rubber products, iron and steel products, manufactures of metal, optical and scientific equipment and transport equipment.

Exports of mining goods surged 23.9% to RM80.6 billion and totalled 8.6% share of total exports in 2017.

Liquefied natural gas exports jumped 23.7% to RM40.46 billion on higher average unit value (AUV) and volume, while exports of crude petroleum soared 25.3% to RM27.97 billion supported by higher AUV.

Meanwhile, exports of agriculture goods grew by 10.9% to RM78.12 billion and accounted for 8.4% share of total exports. Palm oil and palm oil-based agriculture products, as well as natural rubber, were the main contributors to rise in exports.

Exports of palm oil and palm oil-based agriculture products increased by 11.5% to RM53.85 billion. This was contributed by higher palm oil exports which grew 11.3% on higher AUV. 

Natural rubber exports surged 30.8% to RM4.73 billion also on account of higher AUV. – Bernama, January 7, 2018.