Trade Performance April 2024
MALAYSIA’S EXPORTS RECORDED A SIGNIFICANT REBOUND IN APRIL 2024
April Trade Up 12.1%, Exports Rebounded 9.1% Year-on-Year, Signalling Stronger Recovery in Global Trade for 2024
Malaysia’s trade continued its strong performance and maintained an upward trajectory in April 2024, recording double-digit growth of 12.1% to RM221.74 billion compared to April 2023. This was the fourth consecutive month of year-on-year (y-o-y) expansion.
In line with the global trade recovery, exports in April 2024 rebounded by 9.1% y-o-y to RM114.72 billion after two consecutive months of contraction. The growth was contributed mainly by higher exports of machinery, equipment and parts, chemicals and chemical products, crude petroleum, palm oil and palm oil-based agriculture products as well as iron and steel products. In terms of markets, exports to ASEAN, the United States (US) and the European Union (EU) recorded double-digit growth while exports to the People’s Republic of China (China) rebounded from negative growth recorded in the previous month. This reflects the growing economic recovery in Malaysia’s key export markets.
Imports in April 2024 grew by 15.6% y-o-y to RM107.02 billion, contributed by strong imports of intermediate goods used mainly for the manufacturing of products for exports. For the 48th consecutive month since May 2020, Malaysia experienced a trade surplus of RM7.7 billion.
The first four months of 2024 recorded the highest values ever for the period for trade, exports and imports. Trade grew by 8.3% to RM912.27 billion compared to the corresponding period in 2023. Exports increased by 3.8% to RM477.05 billion and imports were higher by 13.7% to RM435.22 billion, resulting in a trade surplus of RM41.83 billion.
Meanwhile, compared to March 2024, trade, exports, imports and trade surplus in April 2024 were lower by 9.3%, 10.8%, 7.6% and 39.4%, respectively. The contraction was attributed to lower trade with major trading partners namely Taiwan ROC, ASEAN, India, Japan and the United Arab Emirates (UAE). In terms of products, lower trade was recorded for electrical and electronic (E&E) products, petroleum products and liquefied natural gas (LNG).
Malaysia’s exports to Free Trade Agreement (FTA) partners in April 2024 increased by 4.4% y-o-y to RM78.03 billion. Among the FTA partners that registered export expansion were Hong Kong SAR, Mexico and Canada, led by robust exports of E&E products.
The positive trend of Malaysia’s trade, exports and imports for January to April 2024 is in line with the expected recovery of the global trade. According to the World Trade Organisation (WTO), global goods trade is expected to grow by 2.6% this year following a contraction in 2023. The Organisation for Economic Co-operation and Development (OECD) and International Monetary Fund (IMF) have also forecast a sharp 2024 rebound in flow of products after the slump in 2023.
The IMF in its World Economic Outlook April 2024 has revised upward global Gross Domestic Product (GDP) to 3.2% in 2024 (forecast in January 2024: 3.1%) amid stronger than expected performance in the US. Malaysia’s GDP growth is estimated to expand by 4.4% in 2024 (forecast in January 2024: 4.3%).
In addition, the International Institute for Management Development (IMD) World Competitiveness Ranking 2023 ranked Malaysia as the 27th most competitive country in economic governance (2022: 32nd). This improved performance in our global competitive ranking will ultimately stimulate Malaysia's trade, subsequently creating more job opportunities that will support the expansion of Malaysia's economy.
The RM329.5 billion of approved investments in 2023, highest on record, also includes manufacturing projects valued at RM152 billion. Once implemented, these manufacturing projects, particularly those in higher value sectors, are also expected to boost trade. Such ‘patient and enduring’ capital is also expected to create jobs and spur more opportunities for small medium enterprises (SMEs), particularly those that feed into bigger exporters and multinationals’ supply chains. Out of 2,386 manufacturing projects approved from 2021 to 2023, 1,802 (75.5%) have been implemented, while 551 (23.1%) are in the planning stage (e.g., identifying locations, negotiating with developer).
Further details of Malaysia’s Trade Performance for April 2024 and January-April 2024 are available in the Appendix below, which should be read together with the Notes accompanying this report.
Export Performance of Major Sectors
Exports of Manufactured and Mining Goods Sustained Growth
In April 2024, exports of manufactured goods which constituted 84.8% of total exports registered the second consecutive month of y-o-y expansion, rising 7.1% to RM97.32 billion. The increase was driven by strong exports of machinery, equipment and parts, chemicals and chemical products as well as iron and steel products.
Exports of mining goods (7.2% share) posted the third consecutive month of y-o-y growth in April 2024 with a double-digit expansion of 27.5% to RM8.22 billion. This was due to higher shipments of crude petroleum and LNG.
Meanwhile, exports of agriculture goods (7.2% share) in April 2024 rebounded by 13.8% y-o-y to RM8.2 billion after two consecutive months of contraction. The growth was contributed mainly by increased shipments of palm oil and palm oil-based agriculture products on higher volume and export prices.
Major exports in April 2024:
- E&E products, valued at RM44.46 billion and accounted for 38.8% of total exports, increased by 0.6% compared to April 2023;
- Petroleum products, RM9.37 billion, 8.2% of total exports, ↓18.6%; • Palm oil and palm oil-based agriculture products, RM6.19 billion, 5.4% of total exports, ↑13.7%;
- Chemicals and chemical products, RM5.89 billion, 5.1% of total exports, ↑22.3%; and
- Manufactures of metal, RM5.07 billion, 4.4% of total exports, ↑9.5%.
On a month-on-month (m-o-m) basis, exports of agriculture goods expanded by 5.5% while exports of manufactured and mining goods contracted by 11.2% and 21.4%, respectively.
In the first four months of 2024, exports of manufactured goods continued its expansion by posting a 3.5% growth to RM403.61 billion compared to the corresponding period in 2023, following robust exports of machinery, equipment and parts, iron and steel products as well as manufactures of metal. Exports of mining goods rose 8% to RM39.18 billion attributed to higher exports of crude petroleum and LNG while agriculture goods rebounded by 0.7% to RM31 billion backed by higher exports of natural rubber.
Trade Performance with Major Markets
ASEAN – Trade, Exports and Imports Posted Double-Digit Expansion
In April 2024, trade with ASEAN which represented 27.4% of Malaysia’s total trade recorded a double-digit growth of 14.1% y-o-y to RM60.77 billion. Exports recovered after two months of y-o-y contraction, increased by a double-digit growth of 11.1% to RM34.3 billion. This was bolstered by growing exports of crude petroleum, machinery, equipment and parts as well as chemicals and chemical products. Imports from ASEAN rose 18.2% to RM26.47 billion.
Breakdown of exports to ASEAN countries:
- Singapore RM18.24 billion, increased by 9%, y-o-y;
- Thailand RM4.83 billion, ↑13.6%;
- Viet Nam RM4.16 billion, ↑15.8%;
- Indonesia RM3.54 billion, ↓13.4%;
- Philippines RM2.53 billion, ↑48.2%;
- Brunei RM408.1 million, ↑149.9%;
- Myanmar RM311.9 million, ↑68.8%;
- Cambodia RM276.7 million, ↑83.8%; and
- Lao PDR RM5.2 million, ↓56.5%.
Exports to major markets in ASEAN that recorded increases were Singapore which grew by RM1.51 billion due to higher exports of E&E products, Thailand (↑RM578.3 million, crude petroleum) and Viet Nam (↑RM566.2 million, petroleum products).
Compared to March 2024, trade, exports and imports reduced by 6.8%, 8.8% and 4%, respectively.
For the period of January to April 2024, trade with ASEAN grew by 7.4% to RM246.46 billion compared to the same period in 2023. Exports to this region edged up by 3.4% to RM141.22 billion backed by strong demand for machinery, equipment and parts, petroleum products as well as crude petroleum. Imports from ASEAN were up by 13.3% to RM105.24 billion.
China – Exports Recovered from Negative Growth since August 2023
In April 2024, trade with China which contributed 17.5% to Malaysia’s total trade maintaining its positive growth for the second month in a row by 13.9% y-o-y to RM38.78 billion. Exports improved by 2.1% to RM14.1 billion, marking its first positive growth since August 2023 underpinned by higher exports of paper and pulp products, chemicals and chemical products as well as manufactures of metal. Imports from China grew by 22% to RM24.68 billion.
Compared to March 2024, imports rose 9.1% but trade and exports were down by 0.4% and 13.7%, respectively.
Trade with China in January to April 2024 expanded by 5.9% to RM151.06 billion compared to the same period in 2023. However, exports eased by 2% to RM58.6 billion weighed down by reduced exports of E&E products. Despite the decrease, higher exports were seen for paper and pulp products, manufactures of metal and petroleum products. Imports from China climbed 11.6% to RM92.46 billion.
The US – Trade, Exports and Imports Remained Resilient
Trade with the US in April 2024 which constituted 9.9% of Malaysia’s total trade expanded by 23.1% y-o-y to RM21.92 billion. Exports accelerated by double-digit growth of 17.3% to RM13.2 billion on account of higher exports of optical and scientific equipment, machinery, equipment and parts as well as iron and steel products. Imports from the US rose 33.1% to RM8.72 billion.
On a m-o-m basis, imports increased by 2% while trade and exports reduced by 7% and 12.1%, respectively.
For the period of January to April 2024, trade with the US increased by 14.7% to RM88.84 billion compared to the same period in 2023. Exports remained resilient, posting a double-digit expansion of 10.1% to RM55.28 billion contributed mainly by higher exports of machinery, equipment and parts, E&E products as well as optical and scientific equipment. Imports from the US grew by 23.3% to RM33.57 billion.
The EU – Trade, Exports and Imports Rebounded with Double-Digit Expansion
In April 2024, trade with the EU absorbed 8% of Malaysia’s total trade, rebounded with a double-digit expansion of 13.3% y-o-y to RM17.69 billion. Exports improved by 11.3% to RM8.97 billion after registering two consecutive months of y-o-y contraction, attributed to increased exports of palm oil and palm oil-based agriculture products, petroleum products as well as machinery, equipment and parts. Imports from the EU climbed 15.4% to RM8.72 billion.
Within the EU, the top 10 markets which accounted for 93.2% of Malaysia’s total exports to the region were:
- Netherlands RM2.91 billion, increased by 2.8%, y-o-y; • Germany RM2.46 billion, ↑21.2%;
- Spain RM634.6 million, ↑33.0%;
- Belgium RM626.7 million, ↓5.0%;
- France RM441.4 million, ↓1.7%;
- Italy RM433.5 million, ↑20.8%;
- Poland RM293.3 million, ↑43.6%;
- Hungary RM263.9 million, ↑57.2%;
- Czech Republic RM173.3 million, ↓6.3%; and
- Sweden RM127.6 million, ↑28.5%.
Exports to the EU major markets that recorded growth were the Netherlands, which increased by RM78.9 million due to strong exports of petroleum products, Germany (↑RM431.1 million, E&E products) and Spain (↑RM157.5 million, palm oil-based manufactured products).
Compared to March 2024, imports grew by 4.6% while trade and exports slipped by 2.7% and 8.9%, respectively.
For the first four months of 2024, trade with the EU edged up by 3.5% to RM70 billion compared to the corresponding period in 2023. Exports recovered by 0.6% to RM37.55 billion as a result of solid exports of E&E products which was attributable to greater demand for semiconductor devices and integrated circuits (ICs) as well as parts and accessories for office machines. Imports from the EU was higher by 7% to RM32.45 billion.
Japan – Trade grew in April
In April 2024, trade with Japan made up 5.4% of Malaysia’s total trade, rose 5.5% to RM11.86 billion compared to April last year. Exports shrank by 4.3% to RM5.75 billion following slower exports of E&E products, crude petroleum as well as chemicals and chemical products. Amid the contraction, export expansion was recorded for LNG, palm oil and palm oil-based agriculture products as well as wood products. Imports from Japan expanded by 16.7% to RM6.12 billion.
On a m-o-m basis, imports grew by 0.7% while trade and exports declined by 14.6% and 26.6%, respectively.
For the period of January to April 2024, trade with Japan improved by 0.3% to RM53.69 billion compared to the same period in 2023. Exports fell 0.2% to RM29.59 billion waned by lower exports of E&E products, chemicals and chemical products as well as palm oil and palm oil-based agriculture products. Nevertheless, the drop was cushioned by higher exports of crude petroleum, processed food and LNG. Imports from Japan rebounded by 0.9% to RM24.1 billion.
Trade with FTA Partners
In April 2024, trade with FTA partners which accounted for 66.8% of Malaysia’s total trade grew by 10.6% y-o-y to RM148.13 billion. Exports to FTA partners improved by 4.4% to RM78.03 billion while imports climbed 18.4% to RM70.1 billion.
Export expansion were recorded to Hong Kong SAR which increased by 9% to RM7.47 billion, Mexico (↑9.4% to RM1.68 billion) and Canada (↑81.2% to RM526.7 million), led by robust exports of E&E products.
Meanwhile, exports to India rose 10.5% to RM3.93 billion boosted by robust exports of palm oil and palm oil-based agriculture products. Exports to Chile increased by 22% to RM39 million on strong exports of wood products and exports to Türkiye was higher by 28.7% to RM2 billion, supported by greater exports of iron and steel products.
Compared to March 2024, trade, exports and imports decreased by 7.2%, 11.7% and 1.7%, respectively.
In the first four months of 2024, trade with FTA partners climbed 5.8% to RM604.16 billion, exports increased by 1.3% to RM326.19 billion and imports expanded by 11.7% to RM277.96 billion compared to the corresponding period in 2023.
Import Performance
Total imports in April 2024 rose 15.6% y-o-y to RM107.02 billion. The three main categories of imports by end use, which accounted for 74.8% of total imports were:
- Intermediate goods, valued at RM59.21 billion or 55.3% of total imports, increased by 30.5% y-o-y, following higher imports of parts and accessories of non-transport capital goods;
- Capital goods, valued at RM11.12 billion or 10.4% of total imports, rose 9.7%, due to higher imports of non-transport capital goods; and
- Consumption goods, valued at RM9.75 billion or 9.1% of total imports, grew by 19.5%, as a result of higher imports of processed food and beverages mainly for household consumption.
Compared to March 2024, imports in April 2024 fell 7.6%. Imports of intermediate and capital goods declined by 0.2% and 31.3% respectively, while imports of consumption goods edged up by 3.9%.
During the period of January to April 2024, imports climbed 13.7% to RM435.22 billion compared to the same period last year. Imports of intermediate goods was up by 18.6% to RM232.78 billion, capital goods (↑36.9% to RM51.2 billion) and consumption goods (↑15.8% to RM37.89 billion).
