MALAYSIA’S trade surplus rose 21.4% year-on-year (y-o-y) to RM15.42 billion in May, registering a 37th consecutive month of double-digit growth since May 2020.

The Investment, Trade and Industry Ministry (Miti) said “exports showed signs of recovery” in May, posting a marginal contraction of 0.7% y-o-y to RM119.61 billion against double-digit decline in the previous month. This was supported by higher exports in petroleum products, electrical and electronic (E&E) products, machinery, equipment and parts, as well as processed food.

“Exports to major trading partners, notably China, the United States and Japan (also) recorded expansion,” it said in a statement today.

However, Miti said imports decreased 3.3% y-o-y to RM104.19 billion in May, bringing the total trade to slip 2% y-o-y to RM223.8 billion in that month, in tandem with slower global demand and lower commodity prices.

Miti said Malaysia’s trade performance in May was similar to regional peers such as China, Taiwan and South Korea, which also recorded negative trade growth for the same month.

For the first five months of this year, Miti said total trade fell 1.7% y-o-y to RM1.066 trillion, with exports down 2.3% to RM579.39 billion and imports declining 1% y-o-y to RM486.96 billion.

Trade surplus slipped 8.7% y-o-y to RM92.43 billion.

On trade with Asean countries, Miti said the regional trade, which represented 28.4% or RM63.61 billion of Malaysia’s total trade, slid 5% y-o-y, with exports edging down 1.6% y-o-y to RM36.38 billion in May on lower demand of palm oil and palm oil-based agriculture products, iron and steel products and petroleum products.

Imports declined 9.1% y-o-y to RM27.24 billion.

From January to May, trade with Asean fell 1.2% y-o-y to RM293.08 billion, with exports rising 1% y-o-y to RM172.99 billion, backed by higher exports of petroleum products and E&E products. Imports shrank 4.2% y-o-y to RM120.08 billion.

On trade with China, which contributed 16.6%, or RM37.07 billion to Malaysia’s total trade, Miti said it declined marginally by 0.2% y-o-y in May, with exports improving 1.5% to RM15.49 billion. This was mainly driven by higher demand of metalliferous ores and metal scrap, liquefied natural gas, as well as chemicals and chemical products.

Imports from China declined 1.4% to RM21.58 billion last month.

For the first five months of the year, trade with China fell 4.3% y-o-y to RM179.76 billion, with exports contracting 8.9% y-o-y to RM75.31 billion, while imports eased 0.6% to RM104.45 billion.

Miti said trade with the US, which constituted 9.3% of Malaysia’s total trade, gained 4.4% y-o-y to RM20.9 billion last month, with exports rebounding 14.9% to RM13.77 billion, mainly driven by robust exports of E&E products. 

Imports from the US, however, declined 11.3% y-o-y to RM7.13 billion.

From January to May, trade with the US slid 0.5% y-o-y to RM98.35 billion, with exports improving 2.5% y-o-y to RM63.98 billion, boosted by increased shipments of E&E products and petroleum products. Imports from the US shrank 5.6% to RM34.37 billion in May. – Bernama, June 20, 2023.