Exports from Malaysia in July beat predictions, rising by 3.5% year-over-year to MYR63.23 billion (US$14.67 billion), as the manufacturing industry experienced growth and demand for electric and electronic goods expanded, according to the Ministry of International Trade and Industry (MITI).
The expansion of exports to China, the United States, Vietnam, Indonesia, Thailand, Japan, and the European Union supported the higher growth in the month reviewed, said a recent news report from Malaysian state news agency Bernama.
Overall, MITI said major manufacturing subsectors experienced growth on a year-on-year basis. The mining and major commodity subsectors, however, posted reduced exports due to significantly lower prices relative to last year.
Major exports in July were electric and electrical products worth MYR23.1 billion constituting 36.5% of total exports, chemicals and chemical products (MYR4.35 billion), palm oil (MYR4.06 billion), and liquefied natural gas (MYR3.09 billion).
Economists surveyed had forecast a median 3.2% rise in July exports from a year earlier.
On the other hand, imports in July increased by 5.9% to MYR60.85 billion.
For the month, total trade with free trade agreement (FTA) partners amounted to MYR77.57 billion, up by 4.6% with exports totaling MYR40.03 billion and imports amounting to MYR37.54 billion.
Malaysia continued to register a trade surplus valued at MYR2.38 billion in July 2015, making it the 213th consecutive month of trade surplus since November 1997.
“The moderation in trade surplus reflected mainly the higher imports required for production and investment purposes which will contribute towards exports going forward,” said MITI in its Malaysia External Trade Statistics report.
In the first seven months of the year, total trade moderated to MYR819.06 billion. Exports contracted by 2.2% to MYR231.57 billion, while imports declined by 1.4% to MYR387.49 billion against the corresponding period in 2014.
Meanwhile, the trade surplus added up to MYR44.07 billion. “Similar moderation in trade performance was also registered by other countries in Asia,” said MITI.
Total trade with FTA partners was valued at RM515.13 billion, accounting for 62.9% of Malaysia’s trade during the first seven months of 2015.
On a year-on-year basis, Malaysia’s total trade with the Association of Southeast Asian Nations (ASEAN) remained firm at MYR32.86 billion, with higher imports from ASEAN of 2.6% to MYR15.51 billion.
Exports to ASEAN amounted to RM17.35 billion, accounting for 27.4% of Malaysia’s total exports.
Photo: naim fadil
