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Malaysia: August exports fall 0.8% to RM81.36b, below forecast
KUALA LUMPUR: Malaysia’s trade performance disappointed in August as exports slipped by 0.8% on-year (y-o-y) to RM81.36bil compared a Bloomberg survey of a 2.7% increase due to weaker exports of mining products.
The Ministry of International Trade and Industry (MITI) announced on Friday lower exports were recorded to Hong Kong, Australia, Taiwan, China, New Zealand, South Korea and Asean. However, exports rose to Bangladesh, India, the US and the European Union (EU).
“Imports amounted to RM70.43bil, a contraction of 12.5% from August 2018, ” compared with a survey of an 8% decline, ” it said.
August’s total trade fell by 6.6% on-year to RM151.79bil. The trade surplus surged by 655.2% to RM10.92bil on-year and it was the 262nd consecutive months of trade surplus since November 1997.
“On a month-on-month (m-o-m) basis, total trade, exports, imports and trade surplus registered a decline of 6.1%, 7.5%, 4.4% and 23.5%, respectively, ” it said.
Compared to July 2019, trade, exports and imports dipped by 7.1%, 13.9% and 1.2%, respectively.
MITI said exports of manufactured goods in August 2019, which accounted for 84.4% of total exports, grew by 0.1% to RM68.64bil.
The expansion was contributed mainly by higher exports of manufactures of metal, transport equipment, iron and steel products, petroleum products, processed food as well as machinery, equipment and parts.
Exports of mining goods (7.4% share) fell by 20.7% to RM6.01bil due to lower exports of crude petroleum registering lower volume and average unit value (AUV).
However, exports of agriculture goods rose by 13% to RM5.98bil (7.4% share), buoyed by higher exports of palm oil and palm oil-based agriculture products. Exports of palm oil rose by f 31.4% to RM3.65bil following higher volume.
Major exports in August 2019:
* Electrical and electronic (E&E) products, valued at RM29.67bil and constituted 36.5% of total exports, decreased by 7.4% from August 2018;
* Petroleum products, RM5.43bil, 6.7% of total exports, increased by 7%;
* Chemicals and chemical products, RM4.77bil, 5.9% of total exports, decreased by 4.5%;
*Palm oil & palm oil-based agriculture products, RM4.08bil, 5% of total exports, increased by 23.3%; and
* Manufactures of metal, RM3.96bil, 4.9% of total exports, increased by 19.2%.
Trade with China
MITI said trade with China which represented 17.4% of Malaysia’s total trade or RM26.47bil, fell by 7.9% y-o-y.
Exports fell by 2.8% to RM11.49bil on lower exports of E&E products, crude petroleum, metalliferous ores and metal scrap as well as chemicals and chemical products.
However, exports of palm oil and palm oil-based agriculture products recorded an increase of 102.8%.
Other products that recorded increases were manufactures of metal as well as iron and steel products.
Imports from China declined by 11.5% to RM14.97bil.
Compared to July 2019, trade, exports and imports dipped by 7.1%, 13.9% and 1.2%, respectively.
Source: https://www.thestar.com.my/business/business-news/2019/10/04/august-exports-fall-08-to-rm8136b-below-forecast#gBg5xuC0f565mOK3.99