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Malaysia: June exports up 7.6% on-year but below forecast
KUALA LUMPUR: Exports expanded by 7.6% year-on-year (y-o-y) to RM78.66bil in June, extending its growth for four consecutive months, driven by electrical and electronic (E&E) products, while China continuing to be a strong market.
However, the increase in exports was below a Bloomberg survey of 11.5%. RAM Ratings expected Malaysia’s export growth to pick up to 8.7% in June from the 3.4% increase in May.
The Minister of International Trade and Industry (MITI) said on Friday that month-on-month, exports contracted 4.2%.
“Exports of manufactured goods in June 2018 increased by 12.7% year-on-year or RM7.55bil to RM67.19bil, accounting for 85.4% of Malaysia’s total exports.
“The expansion was driven mainly by higher exports of electrical and electronic (E&E) products, petroleum products, manufactures of metal as well as chemicals and chemical products,” it said.
E&E products valued at RM29.89bil — accounting for 38% of total exports – increased by 6.9% from June 2017.
In June 2018, exports to China remained strong and recorded growth for the third consecutive month since April 2018, rising by 16.9% to RM11.44bil.
“This was due to higher exports of chemicals and chemical products, manufactures of metal, iquified natural gas (LNG) as well as optical and scientific equipment. Imports from China were up by 18.8% to RM15.39bil,” it said.
Commenting on June 2018 exports, it said exports of mining goods which constituted 7.7% of Malaysia’s total exports, declined by 10.9% to RM6.03bil.
However, lower exports were recorded for LNG which fell by 31.2% to RM2.74bil, due to lower export volume.
Exports of crude petroleum as well as metalliferous ores and metal scrap recorded increases in June 2018, by 25.3% and 34.1%, respectively.
Exports of agriculture goods which accounted for 6.2% of total exports also contracted, by 18.7% to RM4.86bil mainly due to lower exports of palm oil and palm oil-based agriculture products, particularly palm oil, which decreased by 29.2% to RM2.62bil.
“This was due to the decline in both export volume and average unit value (AUV),” it said.
MITI said imports rose by 14.9% to RM72.61bil, which was slightly lower than the Bloomberg survey of a 15.3% increase.
Trade surplus was RM6.04bil, which was was the 248th consecutive month of trade surplus since November 1997.
“On a month-on-month (m-o-m) basis, total trade, exports, imports and trade surplus contracted by 3.1%, 4.2%, 1.9% and 25.5%, respectively,” it said.
Malaysia’s total trade in June 2018 grew by 11% from June 2017 to reach RM151.27bil.
The increase was mainly due to higher trade with China, Asean, Hong Kong, Taiwan, South Korea, the European Union (EU), Saudi Arabia and United Arab Emirates (UAE).
MITI said as for imports, in June 2018, there was an increase of 14.9% y-o-y to RM72.61bil.
The three main categories of imports by end use which accounted for 75.4% of total imports were intermediate goods, valued at RM39.39 billion or 54.2% of total imports, increased by 3.1%.
Capital goods, valued at RM9.44bil or 13% of total imports, expanded by 14.1%, led by increase in imports of capital goods (except transport equipment), particularly machinery & mechanical appliances.
Consumption goods, valued at RM5.9bil or 8.1% of total imports, rose by 4.9%, driven by higher imports of durables goods, mainly precious or semi-precious stones, precious metals.
Source: https://www.thestar.com.my/business/business-news/2018/08/03/june-exports-up-7pt6pct-on-year-but-below-forecast/#SMmEQs4hpa7KRaUs.99