Trade Performance for Year 2022 and December 2022
TRADE PERFORMANCE FOR 2022
Exports Surpassed Twelfth Malaysia Plan Target for 2025
Malaysia’s trade in year 2022 recorded a new milestone, surpassing RM2 trillion for the second consecutive year and registered the fastest growth since 1994. Trade grew with double-digit expansion of 27.8% to RM2.848 trillion compared to 2021.
Exports rose by 25% to RM1.552 trillion, exceeding the Twelfth Plan projection for 2025, three years ahead of the target. Imports recorded another milestone by surpassing RM1 trillion mark for the first time, rising by 31.3% to RM1.297 trillion. Trade surplus increased by 0.6% to RM255.1 billion, representing 25th consecutive year of trade surplus since 1998. Trade, exports, imports and trade surplus posted the largest value ever recorded.
The expansion in exports was driven by robust exports of E&E products, petroleum products, LNG, palm oil and palm oil-based agriculture products, crude petroleum as well as machinery, equipment and parts, each posted more than RM10 billion increase with double-digit growth. All these products recorded the highest export value ever except for crude petroleum. Meanwhile, exports to major trading partners notably ASEAN, China, the US, the EU and Japan registered a new record high.
Trade Performance with Major Markets
ASEAN – All Markets Recorded Strong Double-Digit Export Growth
Trade with Malaysia’s important and strategic trading partner, ASEAN, rose by 34% to RM772 billion from the previous year. Trade with ASEAN accounted for 27.1% of Malaysia’s total trade in 2022.
Exports to ASEAN constituted 29.
2% of Malaysia’s total exports, posting the highest value at RM452.9 billion, an increase of 31.8% from a year ago. This was contributed by higher exports of E&E products, petroleum products, crude petroleum as well as machinery, equipment and parts.
Breakdown of exports to ASEAN countries:
• Singapore RM232.57 billion, increased by 33.7%;
• Thailand RM65.84 billion, ↑26.2%;
• Indonesia RM56.05 billion, ↑43.1%;
• Viet Nam RM53.66 billion, ↑17.6%;
• Philippines RM28.21 billion, ↑24.6%;
• Brunei RM7.4 billion, ↑42%;
• Myanmar RM5.91 billion, ↑118.1%;
• Cambodia RM2.31 billion, ↑22%; and
• Lao PDR RM946.5 million, ↑735.6%.
Exports to all ASEAN countries recorded expansion. Singapore, Thailand and Indonesia were the top three export destinations in 2022, accounting for 78.3% of Malaysia’s total exports to ASEAN. Exports to almost all ASEAN countries registered new record high.
Exports to Singapore, the largest market in ASEAN with a share of 51.4% of total exports to the region, grew by RM58.59 billion on strong exports of E&E products. Exports to Thailand (14.5% share) rose by RM13.68 billion following higher exports of crude petroleum while exports to Indonesia (12.4% share) expanded by RM16.87 billion on account of higher exports of petroleum products.
Imports from ASEAN edged up by 37.1% to RM319.1 billion, with main imports comprising E&E products, petroleum products as well as chemicals and chemical products.
China – Exports Surpassed RM200 Billion for the First Time
In 2022, China remained as Malaysia's largest trading partner for 14 consecutive years with 17.1% share of Malaysia’s total trade, expanding by 15.6% to RM487.13 billion compared to 2021.
.Exports surpassed RM200 billion mark for the first time, expanding by 9.4% to RM210.62 billion and was the highest value ever recorded. The expansion was driven by strong exports of E&E products, LNG as well as palm oil and palm oil-based agriculture products.
China was also Malaysia’s largest import source, accounting for 21.3% of total imports, climbed by 20.7% to RM276.5 billion. Main imports were E&E products, machinery, equipment and parts as well as chemicals and chemical products.
The US – Manufactured Goods Bolstered Export Growth
Trade with Malaysia’s third largest trading partner, the US, grew by 23.3% to RM267.59 billion from the preceding year and constituting 9.4% of Malaysia’s total trade in 2022.
Exports to the US posted an all-time record high, rising by 17.5% to RM167.16 billion. The expansion was supported mainly by strong exports of manufactured goods which increased by 18% to RM164.43 billion and accounted for 98.4% of Malaysia’s total exports to the country. The expansion was backed by higher exports of E&E products, petroleum products, iron and steel products as well as optical and scientific equipment.
Imports from the US expanded by 34.4% to RM100.42 billion comprising mainly E&E products, transport equipment as well as machinery, equipment and parts.
The EU – Exports Registered the Highest Value Thus Far
Trade with the EU in 2022 which represented 7.6% of Malaysia’s total trade, grew by 20.1% to RM216.53 billion from the previous year.
Exports to the EU was up by 21.8% to RM126.31 billion, the highest value recorded thus far due to strong exports of manufactured goods which accounted for 88.7% of Malaysia’s total exports to the region. Higher exports was seen for E&E products, petroleum products, manufactures of metal, iron and steel products as well as palm oil-based manufactured products.
Breakdown of exports to the top 10 EU markets which accounted for 91.8% of Malaysia’s total exports to the EU were:
• Netherlands RM42.08 billion, increased by 35%;
• Germany RM29.98 billion, ↑5.2%;
• Belgium RM9.00 billion, ↑40.5%;
• France RM8.84 billion, ↑71.4%;
• Italy RM8.43 billion, ↑17.7%;
• Spain RM5.74 billion, ↑22%;
• Poland RM3.77 billion, ↑22.5%;
• Czech Republic RM3.59 billion, ↑9%;
• Hungary RM2.49 billion, ↑10.5%; and
• Sweden RM2.06 billion, ↑6.5%.
.Exports to all top 10 EU markets recorded increases notably the Netherlands which increased by RM10.91 billion due to higher demand for E&E products, Germany (↑RM1.48 billion, E&E products) and Belgium (↑RM2.59 billion, iron and steel products).
Imports from the EU increased by 17.7% to RM90.22 billion. The main imports were E&E products, chemicals and chemical products as well as machinery, equipment and parts.
Japan – Exports Sustained Double-Digit Growth for 2 Straight Years
In 2022, Japan remained as Malaysia’s fourth largest trading partner for eight successive years since 2015. Trade with Japan which represented 6.4% of Malaysia’s total trade, rose by 21.2% to RM181.51 billion compared to last year.
Exports registered a double-digit growth for the second successive year, expanding by 29.6% to RM98.24 billion and was the highest export value recorded. The growth was underpinned mainly by robust exports of LNG, crude petroleum, palm oil and palm oil-based agriculture products as well as E&E products.
Imports from Japan increased by 12.6% to RM83.27 billion. Major imports were E&E products, machinery, equipment and parts as well as manufactures of metal.
FTA Markets – Exports Registered Highest Value
Trade with FTA partners in 2022 recorded a double-digit growth of 26.4% to RM1.916 trillion from a year ago, accounting for 67.3% of Malaysia’s total trade.
Exports to FTA partners recorded the highest value at RM1.069 trillion, increased by 25.7% and absorbed 68.9% of Malaysia’s total exports. Major export products were E&E products, petroleum products, chemicals and chemical products, LNG as well as palm oil and palm oil-based agriculture products which contributed 65.5% of Malaysia’s total exports to FTA markets. Exports to all FTA partners recorded increases except Canada, Peru and Chile.
Export expansion were recorded to Hong Kong SAR, by 24.6% to RM95.6 billion and Mexico (↑44% to RM16.7 billion), attributed to solid exports of E&E products. Exports to Turkiye rose by 22.9% to RM17.39 billion and Pakistan (↑0.3% to RM6.02 billion), boosted by strong exports of palm oil and palm oil-based agriculture products.
Exports to Australia expanded by 41.5% to RM48.8 billion and New Zealand (↑57.6% to RM6.98 billion), led by robust exports of petroleum products. Meanwhile, exports to the ROK rose by 43.3% to RM54.78 billion, driven by higher exports of LNG and India (↑21% to RM54.69 billion, crude petroleum).
Imports from FTA partners increased by 27.3% to RM847.06 billion comprising mainly E&E products, petroleum products as well as chemicals and chemical products.
Emerging Export Markets
In 2022, significant growth in exports were recorded to the emerging markets notably Egypt, Sri Lanka, Mozambique, Papua New Guinea, Togo, Djibouti and Afghanistan.
Exports to Egypt expanded by 25.8% to RM3.61 billion, Djibouti (↑118.9% to RM1.65 billion) and Afghanistan (↑76.1% to RM1.57 billion), following robust exports of palm oil and palm oil-based agriculture products. Meanwhile, exports to Sri Lanka climbed by 14.1% to RM3.45 billion, Mozambique (↑32.6% to RM2.65 billion), Papua New Guinea (↑59% to RM2.25 billion) and Togo (↑69.6% to RM2.32 billion), boosted by strong exports of petroleum products.
Export Performance of Major Sectors
In 2022, exports of manufactured, agriculture and mining goods recorded the highest value thus far with double-digit growth. Increases in exports were seen for all products except rubber products as well as crude fertilisers and crude minerals.
Exports of Manufactured Goods Dominated by E&E products
In 2022, exports of manufactured goods accelerated by 22.3% compared to 2021 to RM1.307 trillion, making up 84.2% of total Malaysia’s exports. E&E products held the biggest share of total exports at 38.2%, grew by 30.2% to RM593.49 billion. The increase was driven by robust demand for semiconductors due to acceleration of global technology upcycle and business digitalisation.
E&E products that recorded significant export growth in 2022 were:
• Electronic integrated circuits, increased by 32.7% to RM301.65 billion;
• Parts for electronic integrated circuits, increased by 119.9% to RM43.58 billion;
• Apparatus for transmission or reception of voice, images and other data, ↑47% to RM31.19 billion;
• Photosensitive semi-conductor devices, ↑29% to RM26.11 billion; and
• Computers, ↑32.6% to RM20.56 billion.
Expansion in exports of E&E products were seen to the US, Singapore, China and Hong Kong SAR.
Other manufactured products that registered significant export expansion in 2022 were:
• Petroleum products, increased by 69.4% to RM163 billion;
• Machinery, equipment and parts, ↑21.1% to RM60.45 billion;
• Chemicals and chemical products; ↑14% to RM80.61 billion;
• Optical and scientific equipment, ↑20.8% to RM56.69 billion;
• Palm oil-based manufactured products, ↑26.5% to RM41.36 billion; and
• Iron and steel products, ↑13.4% to RM33.35 billion.
Agriculture Goods – All Products Recorded Export Expansion
In 2022, exports of agriculture goods was valued at RM120.94 billion, expanded by 23.3% from the previous year and comprised 7.8% share of total exports. The growth was led by higher exports of palm oil and palm oil-based agriculture products which grew by 27.3% to RM96.53 billion. All agriculture products recorded expansion in exports.
Mining Goods – LNG and Crude Petroleum Drove Export Growth
In 2022, exports of mining goods which made up 7.5% share of total exports surged by 67.7% to RM117.01 billion compared to 2021. This was supported by strong exports of LNG which leaped by 78% to RM67.99 billion and crude petroleum (↑71.7% to RM31.55 billion).
Performance of Imports
Intermediate Goods Accounted for the Largest Share of Imports
In 2022, Malaysia’s total imports rose by 31.3% to RM1.297 trillion compared to 2021. The three main categories of imports by end use which accounted for 71.7% of total imports in 2022 were:
• Intermediate goods, valued at RM705.74 billion or 54.4% share of total imports, increased by 29.3%, due to strong imports of primary fuel and lubricants;
• Capital goods, amounted to RM120.32 billion or 9.3% of total imports, grew by 15.9%, on account of higher imports of non-transport capital goods; and
• Consumption goods, totalled RM104.13 billion or 8% of total imports, expanded by 24.1%, as a result of growing imports of processed food and beverages mainly for household consumption.
China remained as the largest import source since 2011, followed by Singapore, Taiwan, the US and Japan. These markets contributed 54.1% to Malaysia’s total imports. Meanwhile, imports from ASEAN was valued at RM319.1 billion or 24.6% share of Malaysia’s total imports and imports from the EU amounted to RM90.22 billion with a share of 7%.
TRADE PERFORMANCE FOR DECEMBER 2022
Highest Trade, Exports and Imports for December
Malaysia’s trade remained sturdy in December 2022 with trade, export and imports registering new record high for the month of December. Trade rose by 8.6% to RM236.02 billion compared to December 2021. Exports increased by 6% to RM131.89 billion and imports was higher by 12% to RM104.13 billion, resulting in a trade surplus of RM27.76 billion, a decrease of 11.8%.
The export expansion was underpinned by higher exports of petroleum products, E&E products and LNG. Meanwhile, exports to major trading partners notably ASEAN, the EU and Japan recorded double-digit growth.
Compared to November 2022, exports and trade surplus grew by 1.7% and 27.6%, while trade and imports contracted by 0.7% and 3.5% respectively.
Export Performance of Major Sectors
Petroleum Products and E&E Boosted Manufactured Exports
In December 2022, exports of manufactured goods which accounted for 83.7% of total exports grew by 4.6% year-on-year (y-o-y) to RM110.39 billion, underpinned by petroleum products and E&E products which respectively posted more than RM1 billion increase.
Exports of agriculture goods (8.4% share) declined marginally by 0.2% to RM11.04 billion compared to December 2021 on the back of lower exports of palm oil and palm oil-based agriculture products.
Exports of mining goods (7.4% share) increased by 31.6% y-o-y to RM9.74 billion, the 21st successive month of double-digit growth led by higher exports of LNG.
On a month-on-month (m-o-m) basis, exports of manufactured and agriculture goods climbed by 0.6% and 24.5% respectively while exports of mining goods contracted by 6.2%.
Performance of Imports
Imports Recorded Double-Digit Expansion Since February 2021
Imports in December 2022 recorded double-digit growth for 23 consecutive months, rising by 12% to RM104.13 billion compared to the same month last year. Imports of intermediate goods grew by 7.1% to RM54.8 billion, capital goods (↓2.2% to RM10 billion) and consumption goods (↑17.1% to RM9.34 billion).
TRADE PERFORMANCE FOR FOURTH QUARTER 2022
Highest Fourth Quarter Ever for Trade, Exports and Imports
Trade for the fourth quarter (Q4) of 2022 increased by 14.8% to RM718.71 billion, compared to Q4 2021. Exports rose by 11.8% to RM393.14 billion and imports expanded by 18.7% to RM325.56 billion. This was the highest value for trade, exports, and imports recorded for Q4 thus far. Meanwhile, trade surplus decreased by 12.6% to RM67.58 billion.
Compared to the third quarter (Q3) of 2022, trade surplus rose by 4.8% while trade, exports and imports slipped by 7.2%, 6.3% and 8.3% respectively.
TRADE OUTLOOK FOR 2023
Malaysia’s trade performance is expected to grow at a softer pace in year 2023. This is in tandem with the outlook by World Trade Organization (WTO) which anticipated global trade to grow by 1%.
In 2023, Malaysia’s trade is expected to grow by 1.3% while exports and imports are estimated to increase by 2.2% and 0.2% respectively as reported by Ministry of Finance (MOF) in its Economic Outlook 2023. This was due to global uncertainties arising from inflationary pressures, prolonged geopolitical tensions, exporters’ capacity in meeting environmental, social and governance (ESG) market demands, disruption in global supply chains and volatility in commodity prices. Nevertheless, continuous demand for manufactured good especially E&E products will support trade growth due to technological advancement.
