Exports of manufactured goods in August 2018 increased 1.8 per cent y-o-y to RM68.5 billion, accounting for 83.7 per cent of total exports. — Reuters photo
KUALA LUMPUR: Malaysia’s trade for the first eight months of 2018 expanded by six per cent to RM1.23 trillion compared to the same period in 2017, said the Ministry of International Trade and Industry (MITI).
In a statement yesterday, MITI said exports were 6.3 per cent higher at RM650.56 billion, while imports grew at a slower pace of 5.6 per cent to RM580.11 billion.
The trade surplus for this period surged 11.9 per cent to RM70.45 billion compared with the previous corresponding period.
On a monthly basis, total trade in August 2018 rose 5.1 per cent from a year earlier to reach RM162.01 billion on the back of higher trade with China, Hong Kong, Taiwan, Saudi Arabia, South Korea, Asean, US and the European Union.
Exports in August 2018 remained above the RM80 billion mark at RM81.81 billion, a marginal contraction of 0.3 per cent year-on-year (y-o-y), while imports recorded a new high of RM80.2 billion, expanding by 11.2 per cent y-o-y.
“This resulted in an 83.7 per cent contraction in trade surplus to RM1.61 billion,” MITI said, adding that the trade surplus marked the 250th consecutive month of trade surplus since November 1997.
On a month-on-month basis, imports expanded three per cent while total trade, exports and trade surplus contracted 1.2 per cent, five per cent and 80.7 per cent, respectively.
As for the performance of the major sectors, exports of manufactured goods in August 2018 increased 1.8 per cent y-o-y to RM68.5 billion, accounting for 83.7 per cent of total exports.
The expansion was driven mainly by higher exports of electrical and electronic (E&E) products, chemicals and chemical products, iron and steel products, as well as optical and scientific equipment.
Exports of mining goods, which constituted 9.1 per cent of total exports, rose 5.1 per cent to RM7.47 billion mainly because of higher exports for crude petroleum, which increased by 90.1 per cent or RM1.81 billion, due to a higher Average Unit Value (AUV).
Exports of agriculture goods, which accounted for 6.5 per cent of total exports, experienced a 20.8 per cent contraction to RM5.3 billion.
“This was due to lower exports of palm oil and palm oil-based agriculture products, particularly palm oil, which decreased 26.8 per cent or RM1.02 billion. This was on account of lower export volume and AUV for palm oil,” the ministry said.
MITI said trade with Asean constituted 26.8 per cent of Malaysia’s total trade and rose 1.7 per cent y-o-y to RM43.42 billion, with exports totalling RM23.16 billion, an increase of 0.6 per cent, due to higher exports of E&E products, crude petroleum, iron and steel products, and manufactures metal.
The country’s trade with China expanded 13.7 per cent y-o-y to RM28.7 billion ,with exports recording a 4.5 per cent growth to RM11.83 billion compared to the year before, while imports jumped 21.1 per cent to RM16.87 billion.
Malaysia’s trade with the European Union (EU) in August 2018 stood at RM15.69 billion or 9.7 per cent of the total trade, an increment of four per cent y-o-y.
Exports to EU decreased 8.9 per cent to RM7.64 billion, stemming from lower exports of E&E products, palm oil and palm oil-based agriculture products, as well as textiles, apparel and footwear while imports rose 20.1 per cent to RM8.05 billion.
Among the top 10 EU markets, exports to five countries registered growth, namely the Czech Republic (69.2 per cent), France (9.9 per cent), Italy (7.4 per cent), Poland (19.1 per cent) and Belgium (0.4 per cent). — Bernama