Malaysia Maintained Trade Surplus for the 43rd Consecutive Month

In November 2023, Malaysia’s trade decreased at a moderate rate of 2.4% year-on- year (y-o-y) to RM231.79 billion. Exports reached RM122.10 billion, a contraction of 5.9% y-o-y while imports grew by 1.7% to RM109.69 billion. Trade surplus was valued at RM12.41 billion, making it the 43rd consecutive month of trade surplus since May 2020. Malaysia's performance was in tandem with its key trading partners notably Taiwan, ROC and Indonesia which posted negative trade growth in November 2023 and a drop in global imports.

Compared to October 2023, trade, exports, imports and trade surplus fell by 3.1%, 3.2%, 3.1% and 3.8%, respectively.

For the period of January to November 2023, trade declined by 7.5% to RM2.413 trillion compared to the same period last year. Exports decreased by 7.8% to RM1.308 trillion, imports was lower by 7.1% to RM1.105 trillion and trade surplus edged down by 11.3% to RM202.49 billion, respectively.

Export Performance of Major Sectors

Exports of Mining Goods Increased 

In November 2023, exports of manufactured goods which accounted for 83.8% or RM102.38 billion of total exports contracted by 6.7% y-o-y as lower shipments was recorded for electrical and electronic (E&E) products, chemicals and chemical products as well as transport equipment. Despite the decrease, export expansion was recorded for petroleum products, machinery, equipment and parts, manufactures of metal, processed food as well as iron and steel products.

Exports of mining goods recorded the highest monthly value thus far this year, expanding by 0.5% y-o-y to RM10.46 billion (8.6% share). This was the first positive growth after five consecutive months of decline driven by strong exports of crude petroleum as well as petroleum condensates and other petroleum oil.

Exports of agriculture goods (6.9% share) declined by 5.5% to RM8.39 billion compared to November 2022 mainly on lower exports of palm oil and palm oil-based agriculture products that was affected significantly by weaker export prices of palm oil.

Major exports in November 2023: 

• E&E products, valued at RM45.43 billion with a share of 37.2% of total exports, decreased by 13.8% compared to November 2022;
• Petroleum products, RM13.34 billion, 10.9% of total exports, ↑8.2%;
• Palm oil and palm oil-based agriculture products, RM6.07 billion, 5.0% of total exports, ↓10.9%;
• Chemicals and chemical products, RM6.01 billion, 4.9% of total exports, ↓15.7%;and
• Liquefied natural gas (LNG), RM5.63 billion, 4.6% of total exports, ↓14.8%.

On a month-on-month (m-o-m) basis, exports of mining goods recorded a double-digit increase of 19.7% while exports of manufactured and agriculture goods shrank by 4.8% and 5.7%, respectively.

For the period of January to November 2023, exports of manufactured goods slipped by 6.4% to RM1.118 trillion compared to the same period of 2022 owing to lower exports of petroleum products, E&E products, palm oil-based manufactured products as well as chemicals and chemical products. Nonetheless, exports of processed food as well as paper and pulp products posted strong expansion.

Exports of mining goods fell by 11.6% to RM95.38 billion due to lesser shipments of LNG and crude petroleum.

Exports of agriculture goods dropped by 21.6% to RM86.12 billion on lower exports of palm oil and palm oil-based agriculture products due to the decrease in export prices of palm oil.

Trade Performance with Major Markets 

ASEAN – Sustained Exports of Petroleum Products as well as Machinery, Equipment and Parts

In November 2023, trade with ASEAN registered a marginal contraction of 0.2% y-o-y, absorbed 27.3% or RM63.31 billion of Malaysia’s total trade. Exports eased by 5.8% to RM36.41 billion as a result of lesser exports of E&E products. Nevertheless, the contraction was cushioned by robust exports of crude petroleum, petroleum products as well as machinery, equipment and parts. Imports from ASEAN rose by 8.6% to RM26.89 billion.

Breakdown of exports to ASEAN countries:

Exports to ASEAN major markets that recorded growth were Viet Nam which grew by RM1.55 billion supported by strong exports of E&E products and Indonesia, increased by RM209.4 million driven by higher exports of petroleum products.

Compared to October 2023, trade, exports and imports edged down by 1.6%, 0.3% and 3.3%, respectively.

For the period of January to November 2023, trade with ASEAN weakened by 6.3% to RM663.75 billion as opposed to the same period of 2022. Exports dipped by 6.7% to RM387.18 billion following lesser demand for petroleum products, E&E products, chemicals and chemical products as well as palm oil and palm oil-based agriculture products. However, higher exports was registered for non-metallic mineral products, processed food as well as beverages and tobacco. Imports from ASEAN declined by 5.8% to RM276.56 billion.

China – Exports Grew Compared to October 2023 

In November 2023, trade with China which constituted 17.7% of Malaysia’s total trade decreased by 5.0% y-o-y to RM40.95 billion. Exports to China eased by 8.4% to RM17.22 billion due to lower exports of E&E products, palm oil and palm oil-based agriculture products as well as chemicals and chemical products. Nonetheless, the contraction was softened by positive export growth of paper and pulp products, petroleum condensates and other petroleum oil as well as metalliferous ores and metal scrap. Imports from China fell by 2.4% to RM23.73 billion.

Compared to October 2023, exports was higher by 0.6%, while trade and imports shrank by 3.2% and 5.7%, respectively.

For the period of January to November 2023, trade with China decreased by 7.7% to RM410.01 billion over the same period of 2022. Exports was lower by 9.4% to RM174.55 billion following slower shipments of E&E products, palm oil and palm oil- based agriculture products as well as iron and steel products. Despite the decline, export expansion was recorded for paper and pulp products, metalliferous ores and metal scrap, transport equipment and processed food. Imports from China edged down by 6.5% to RM235.46 billion.

The US – Strong E&E Exports in the First 11 Months of 2023 

Trade with the United States (US) in November 2023 which contributed 9.6% to Malaysia’s total trade contracted marginally by 0.7% y-o-y to RM22.22 billion. Exports decreased by 8.5% to RM12.94 billion mainly on lower demand for E&E products. Despite the contraction, export growth was recorded for rubber products, machinery, equipment and parts as well as wood products. Imports from the US rose by 12.8% to RM9.28 billion.

On a m-o-m basis, trade and imports expanded by 0.4% and 18.4%, respectively while exports shrank by 9.4%.

For the first 11 months of 2023, trade with the US slipped by 7.4% to RM227.07 billion as opposed to the corresponding period of 2022. Exports fell by 3.3% to RM146.68 billion owing to lower exports of wood products, rubber products as well as iron and steel products. Meanwhile, solid exports was seen for E&E products, transport equipment as well as optical and scientific equipment. Imports from the US dropped by 13.9% to RM80.40 billion.

The EU – Trade, Exports and Imports Grew M-O-M 

Trade with the European Union (EU) which made up 7.9% of Malaysia's total trade in November 2023 contracted by 2.3% y-o-y to RM18.23 billion. Exports dipped by 6.9% to RM9.78 billion caused by reduced exports of transport equipment, petroleum products as well as palm oil and palm oil-based agriculture products. Conversely, double-digit export expansion was recorded for E&E products, palm oil-based manufactured products as well as manufactures of metal. Imports from the EU edged up by 3.5% to RM8.45 billion.

Within the EU, the top 10 markets which accounted for 93.5% of Malaysia’s total exports to the region were:

Exports to the EU major markets that recorded growth were Germany which increased by RM352.7 million owing to strong exports of E&E products, Italy (↑RM144.4 million) and Spain (↑RM51.1 million), backed by strong exports of palm oil-based manufactured products.

Compared to October 2023, trade, exports and imports grew by 0.8%, 0.1% and 1.7%, respectively.

During the first 11 months of 2023, trade with the EU dropped by 3.0% to RM190.00 billion compared to the corresponding period of 2022. Exports weakened by 8.9% to RM103.85 billion on lower exports of palm oil and palm oil-based agriculture products, rubber products and petroleum products while higher shipments was seen for E&E products, other vegetable oil, processed food as well as optical and scientific equipment. Imports from the EU climbed by 5.1% to RM86.15 billion.

Japan – Trade and Exports Increased M-O-M 

In November 2023, trade with Japan which represented 5.8% or RM13.49 billion of Malaysia’s total trade, eased by 15.5% y-o-y. Exports dipped by 18.3% to RM7.29 billion due to lower shipments of LNG, E&E products as well as iron and steel products. Despite the contraction, double-digit export growth was recorded for crude petroleum, processed food, manufactures of metal, optical and scientific equipment, textiles, apparels and footwear, petroleum products as well as other vegetable oil. Imports from Japan declined by 11.9% to RM6.20 billion.

On a m-o-m basis, trade and exports increased by 5.1% and 10.6%, respectively while imports dropped by 0.8%.

In January to November 2023, trade with Japan was lower by 14.3% to RM143.30 billion compared to the same period of 2022. Exports edged down by 13.9% to RM78.15 billion as a result of reduced demand for LNG, petroleum products as well as E&E products. Nevertheless, double-digit export growth was seen for crude petroleum as well as optical and scientific equipment. Imports from Japan contracted by 14.7% to RM65.15 billion.

Trade with FTA Partners 

In November 2023, trade with Free Trade Agreement (FTA) partners which took up 67.5% or RM156.51 billion of Malaysia’s total trade decreased by 3.8% y-o-y. Exports to FTA partners contracted by 7.2% to RM85.75 billion and imports rose by 0.7% to RM70.76 billion.

Despite the contraction, markets that recorded export growth were the Republic of Korea (ROK) which expanded by 6.8% to RM4.96 billion and Pakistan, (↑5.1% to RM542.6 million), bolstered by strong exports of petroleum products.

Export growth was also registered to Canada, rose by 2.8% to RM346.7 million aided by higher exports of wood products and Chile (↑67.9% to RM60.1 million, processed food). Meanwhile, exports to Mexico expanded by 18.8% to RM1.23 billion, Australia (↑6.5% to RM4.52 billion) and Türkiye (↑36.6% to RM1.54 billion) supported by greater exports of iron and steel products.

Compared to October 2023, trade, exports and imports were lower by 1.2%, 0.5% and 2.1%, respectively.

Trade with FTA partners during the first 11 months of 2023 shrank by 7.3% to RM1.628 trillion as opposed to the same period last year. Exports slipped by 6.9% to RM911.79 billion and imports fell by 7.8% to RM716.66 billion.

Import Performance 

Total imports in November 2023 edged up by 1.7% y-o-y to RM109.69 billion. The three main categories of imports by end use, which accounted for 73.7% of total imports were:

• Intermediate goods, valued at RM56.21 billion or 51.2% of total imports, declined by 5.2% y-o-y, following lower imports of parts and accessories for non-transport capital goods;

• Capital goods, valued at RM14.94 billion or 13.6% of total imports, increased by 53.3%, due to higher imports of non-transport capital goods; and

• Consumption goods, valued at RM9.72 billion or 8.9% of total imports, expanded by 2.2%, as a result of higher imports of durables.

Compared to October 2023, imports of intermediate, capital and consumption goods were higher by 0.8%, 17.7% and 3.8%, respectively.

During the period of January to November 2023, imports eased by 7.1% to RM1.105 trillion compared to the corresponding period of 2022. Imports of intermediate goods dipped by 13.9% to RM561.14 billion, capital goods (↑5.7% to RM116.64 billion) and consumption goods (↑0.1% to RM94.88 billion).