Trade Performance July 2024
MALAYSIA EXTERNAL TRADE STATISTICS
TRADE AND EXPORTS POSTED STRONG DOUBLE-DIGIT GROWTH #
January-July Trade Reached RM1.652 trillion, Record Highest for the Period. July 2024’s 18.3% Trade Growth was Fastest in 21 Months, Signalling Strong Recovery for 2024
Malaysia's trade remained robust in July 2024, growing by 18.3% year-on-year (y-o-y), the fastest rate in 21 months. In terms of value, it reached RM255.88 billion, marking the highest trade value since October 2022. Exports continued its upward trajectory for the fourth consecutive month, expanding by 12.3% to RM131.15 billion while imports increased by 25.4% to RM124.73 billion. The trade surplus amounted to RM6.42 billion,
marking the 51st consecutive month of surplus since May 2020.
Export growth was primarily driven by increased demand for palm oil and palm oil-based agriculture products, machinery, equipment and parts, petroleum products as well as electrical and electronic (E&E) products. In terms of markets, exports to major trading partners namely ASEAN, the United States (US), the European Union (EU) and Taiwan recorded double-digit growth.
Compared to June 2024, trade, exports and imports grew by 7.6%, 4.1% and 11.6%, respectively.
In the first seven months of 2024, trade expanded by 9.8% to RM1.652 trillion compared to the same period in 2023, marking the highest periodic trade value ever. Exports increased by 5.1% to RM862.23 billion and imports by 15.5% to RM789.71 billion. Trade surplus of RM72.52 billion was registered for the period.
Malaysia recorded robust Gross Domestic Product (GDP) growth of 5.9% in the second quarter of 2024. The strong expansion for the second consecutive quarter this year paves the way for the country to achieve Bank Negara Malaysia’s (BNM) GDP forecast of 4.0% to 5.0% for 2024. This will enhance investor confidence and unlock further trade opportunities.
The World Trade Organisation (WTO) has forecast that the volume of world merchandise (goods) trade would grow 2.6% in 2024, a substantial rise from negative growth of 1.2% recorded in 2023. Global economic conditions seem to have improved month by month, attributed to increased global demand, although the WTO has cautioned that geopolitical tensions and political uncertainty may limit the scale of the global trade recovery. MITI and its agencies will continue to remain vigilant to global external shocks which could impact Malaysia’s growth trajectory.
Export Performance of Major Sectors
Strong Double-Digit Export Growth Registered for All Major Sectors
In July 2024, exports of manufactured goods which comprised 85.5% of total exports grew by 10.6% to RM112.08 billion, marking the fifth consecutive month of y-o-y expansion. The growth was supported by increased exports of machinery, equipment, and parts, petroleum products, E&E products as well as manufactures of metal.
Exports of agriculture goods (7.7% share) rose 32.8% to RM10.07 billion, the fourth successive month of y-o-y growth. This was bolstered by higher demand for palm oil and palm oil-based agriculture products, supported by increased export volumes and prices.
Exports of mining goods (6.1% share) sustained double-digit growth for the second consecutive month, expanding by 10.2% y-o-y to RM8.04 billion. The increase was driven by strong exports of liquefied natural gas (LNG), contributed by higher export volumes.
Major exports in July 2024:
• E&E products, valued at RM51.78 billion and accounted for 39.5% of total exports, increased by 2.6% compared to July 2023;
• Petroleum products, RM11.14 billion, 8.5% of total exports, ↑15.6%;
• Palm oil and palm oil-based agriculture products, RM7.65 billion, 5.8% of total exports, ↑36.3%;
• Chemicals and chemical products, RM6.36 billion, 4.8% of total exports, ↑9.1%; and
• Machinery, equipment and parts, RM5.91 billion, 4.5% of total exports, ↑39.5%.
On a month-on-month (m-o-m) basis, exports of manufactured, agriculture and mining goods rose 2.2%, 32.1% and 1.1%, respectively.
During the first seven months of 2024, exports of manufactured goods expanded by 4.8% to RM735.76 billion compared to the corresponding period in 2023, owing to solid exports of machinery, equipment and parts, iron and steel products as well as manufactures of metal. Exports of mining goods edged up by 4.3% to RM62.85 billion aided by strong exports of crude petroleum and LNG. Meanwhile, exports of agriculture goods rose 7.9% to RM57.75 billion on the back of increased exports of palm oil and palm oil-based agriculture products as well as natural rubber.
Trade Performance with Major Markets
In July 2024, Malaysia’s major trading partners were ASEAN, China, the US, the EU and Taiwan, accounting for 70.2% share of Malaysia’s total trade.
ASEAN – Fifth Successive Month of Trade Growth
In July 2024, trade with ASEAN which took up 27.8% of Malaysia’s total trade increased by 16.8% y-o-y to RM71.07 billion, the fifth successive month of growth. Exports increased consistently since April 2024, climbing 16% to RM40.12 billion. The expansion was attributed to higher exports of petroleum products, machinery, equipment and parts as well as manufactures of metal. Imports from ASEAN rose 17.8% to RM30.95 billion.
Breakdown of exports to ASEAN countries:
- Singapore RM21.06 billion, increased by 18.1%, y-o-y;
- Thailand RM5.56 billion, ↑10.0%;
- Viet Nam RM4.95 billion, ↑13.8%;
- Indonesia RM4.52 billion, ↑9.3%;
- Philippines RM2.86 billion, ↑39.5%;
- Brunei RM725.7 million, ↑9.0%;
- Cambodia RM287.1 million, ↑35.0%;
- Myanmar RM158.8 million, ↓42.3%; and
- Lao PDR RM6.0 million, ↓38.3%.
Exports to major markets in ASEAN that recorded double-digit growth were Singapore which increased by RM3.23 billion y-o-y, Thailand (↑RM504.8 million) and Viet Nam, (↑RM601.1 million) as a result of strong exports of petroleum products.
On a m-o-m basis, trade, exports and imports grew by 9.3%, 4.3% and 16.6%, respectively.
During the first seven months of 2024, trade with ASEAN increased by 8.4% to RM451.02 billion compared to the corresponding period in 2023. Exports to this region edged up by 5.9% to RM260.02 billion, driven by higher exports of petroleum products, machinery, equipment and parts as well as manufactures of metal. Imports from ASEAN climbed 12% to RM190.99 billion.
China – Fourth Consecutive Month of Double- Digit Trade Expansion
In July 2024, trade with China which contributed 16.3% to Malaysia’s total trade increased by 12.6% y-o-y to RM41.72 billion, the fourth consecutive month of double digit expansion. However, exports shrank 11.4% to RM14.77 billion on lower demand for E&E products. Despite the decline, higher exports were posted for palm oil and palm oil-based products as well as rubber products. Imports from China expanded by 32.3% to RM26.95 billion.
Compared to June 2024, trade and imports grew by 1.5% and 9%, respectively while exports contracted by 9.7%.
During the first seven months of 2024, trade with China rose 9.5% to RM275.8 billion compared to the same period in 2023. Exports reduced by 2.7% to RM105.47 billion due to lower exports of E&E products and metalliferous ores and metal scrap. On the contrary, expansion in exports were registered for paper and pulp products, LNG and manufactures of metal. Imports from China was higher by 18.7% to RM170.34 billion.
The US – Highest Export Value Ever Recorded
Trade with the US in July 2024 which made up 12.4% of Malaysia’s total trade surged by 49.4% y-o-y to RM31.76 billion. Exports maintained its double-digit y-o-y growth for the fourth consecutive month, expanding by 30.9% to RM17.79 billion and marking the highest export value thus far. This strong export performance was led by higher demand for E&E products, machinery, equipment and parts as well as palm oil and palm oil based agriculture products. Imports from the US soared by 82.2% to RM13.98 billion.
Compared to June 2024, trade, exports and imports recorded double-digit expansion of 28.8%, 14.4% and 53.2%, respectively.
During the first seven months of 2024, trade with the US increased by 23.4% to RM172.29 billion compared to the corresponding period in 2023. Exports posted a double-digit growth of 14.9% to RM104.7 billion fuelled by larger exports of E&E products, machinery, equipment and parts as well as optical and scientific equipment. Imports from the US climbed 39.6% to RM67.59 billion.
The EU – Trade, Exports and Imports Posted Double-Digit Growth
In July 2024, trade with the EU which absorbed 7.7% of Malaysia’s total trade expanded by 17.5% y-o-y to RM19.81 billion. Exports increased by 14.2% to RM10.28 billion, following higher exports of palm oil and palm oil-based products, manufactures of metal as well as manufactures of plastics. Imports from the EU grew by 21.3% to RM9.53 billion.
Within the EU, the top 10 markets which accounted for 93.1% of Malaysia’s total exports to the region were:
- Germany RM2.90 billion, increased by 19.2%, y-o-y;
- Netherlands RM2.63 billion, ↓18.0%;
- Italy RM1.07 billion, ↑107.0%;
- Belgium RM656.0 million, ↑8.5%;
- Hungary RM574.4 million, ↑262.3%;
- France RM558.4 million, ↑30.8%;
- Poland RM354.7 million, ↑53.6%;
- Spain RM346.4 million, ↓2.5%;
- Sweden RM301.9 million, ↑220.6%; and
- Czech Republic RM175.8 million, ↓20.7%.
Exports to the EU major markets that recorded growth were Germany, increased by RM466.9 million y-o-y led by robust demand for E&E products, Italy (↑RM550.7 million, manufactures of metal) and Belgium (↑RM51.3 million, metalliferous ores and metal scrap).
On a m-o-m basis, trade, exports and imports recorded double-digit expansion of 14.2%, 17.5% and 10.8%, respectively.
During the first seven months of 2024, trade with the EU rose 6% to RM125.87 billion compared to the same period in 2023. Exports edged up by 2.1% to RM66.36 billion underpinned by robust demand for palm oil and palm oil-based products, processed food, rubber products as well as E&E products. Imports from the EU were higher by 10.9% to RM59.51 billion.
Taiwan – Significant Export Growth in July
In July 2024, trade with Taiwan which took up 6% of Malaysia’s total trade jumped by 63.4% to RM15.38 billion compared to July 2023. Exports grew significantly by 55% to RM5.32 billion, contributed by robust exports of E&E products, optical and scientific equipment as well as LNG. Imports from Taiwan surged by 68.2% to RM10.05 billion.
Compared to June 2024, trade and imports grew by 2.2% and 12.5%, respectively while exports declined by 12.9%.
During the first seven months of 2024, trade with Taiwan increased by 35% to RM98.25 billion compared to the first seven months of 2023. Exports surged by 45.8% to RM36.17 billion backed by strong exports of E&E products, optical and scientific equipment as well as LNG. Imports from Taiwan grew by 29.4% to RM62.08 billion.
Trade with FTA Partners
In July 2024, trade with FTA partners constituted 64.4% of Malaysia’s total trade rose 12.6% y-o-y to RM164.72 billion. Exports to FTA partners increased by 7.2% to RM87.9 billion while imports expanded by 19.7% to RM76.82 billion.
Markets that recorded export growth were the Republic of Korea (ROK) which grew by 7.8% y-o-y to RM4.84 billion on account of higher exports of LNG, Mexico (↑48.1% to RM2.13 billion, petroleum products) and Turkiye (↑21.1% to RM1.83 billion, palm oil and palm oil-based agriculture products).
Exports to India increased by 17.3% to RM4.72 billion and Canada (↑116.6% to RM741.6 million), on the back of higher shipments of E&E products. Meanwhile, exports to Australia expanded by 2.5% to RM3.99 billion, Chile (↑69.8% to RM90.8 million) and Peru (↑59.2% to RM67.5 million), underpinned by higher demand for chemicals and chemical products.
On a m-o-m basis, trade, exports and imports were up by 4.9%, 0.9% and 9.9%, respectively.
During the first seven months of 2024, trade with FTA partners expanded by 6.7% to RM1.087 trillion, exports grew by 2.2% to RM588.63 billion and imports rose 12.5% to RM498.17 billion compared to the same period in 2023.
Import Performance
Total imports in July 2024 rose 25.4% y-o-y to RM124.73 billion. The three main categories of imports by end use, which accounted for 76.3% of total imports were:
- Intermediate goods, valued at RM69.11 billion or 55.4% of total imports, surged by 41.2% y-o-y, due to higher imports of parts and accessories of non-transport capital goods;
- Capital goods, valued at RM15.11 billion or 12.1% of total imports, grew by 44.4%, following higher imports of non-transport capital goods; and
- Consumption goods, valued at RM10.97 billion or 8.8% of total imports, expanded by 25.5%, as a result of higher imports of processed food and beverages mainly for household consumption.
Compared to June 2024, imports in July 2024 grew by 11.6%. Imports of intermediate, capital and consumption goods were higher by 13.6%, 26% and 18.6%, respectively.
During the first seven months of 2024, imports increased by 15.5% to RM789.71 billion compared to the corresponding period last year. Imports of intermediate goods rose 24% to RM430.82 billion, capital goods (↑36.5% to RM92.06 billion) and consumption goods (↑16.8% to RM68.31 billion).
