Malaysia External Trade Development Corporation

Trade, Exports and Imports Reached Highest Monthly Value

Malaysia’s trade continued its stellar performance in March 2022, registering an all-time record high for trade, exports and imports. Trade expanded by 27.3% to RM236.57 billion compared to March 2021, the 14th consecutive month of double-digit growth. Exports grew by 25.4% to RM131.64 billion, the eighth successive month of double digit year-on-year (y-o-y) expansion. Imports increased by 29.9% to RM104.93 billion and trade surplus rose by 10.3% to RM26.70 billion.

The export growth was contributed mainly by robust external demand for electrical and electronic (E&E) products and commodity-based products, namely palm oil and palm oil-based products, petroleum products, liquefied natural gas (LNG) as well as crude petroleum. E&E products soared to a record high in March 2022 due to stronger exports of electronic integrated circuits underpinned by growing digitalisation trends.

Exports to major markets notably ASEAN, China, the United States (US), the European Union (EU) and Japan recorded double-digit growth. Highest export monthly value was registered to ASEAN, EU and Japan.

On a month-on-month (m-o-m) basis, trade, exports, imports and trade surplus recorded double-digit growth of 28.1%, 28.7%, 27.3% and 34.8%, respectively.

Trade for the first quarter (Q1) of 2022 grew by 23.6% to RM624.86 billion, compared to Q1 2021. Exports increased by 22.2% to RM344.97 billion and imports expanded by 25.2% to RM279.89 billion. Trade surplus rose by 10.9% to RM65.08 billion. Trade, exports, imports and trade surplus registered the highest value for the period.

Compared to the fourth quarter (Q4) of 2021, trade and imports were up by 0.02% and 2.1% while exports and trade surplus declined by 1.6% and 14.6%, respectively.

Export Performance of Major Sectors

Exports of Manufactured and Mining Goods Recorded the Highest Value

Exports of manufactured goods in March 2022 reached its highest monthly value at RM109.46 billion or 83.2% of total exports, grew by 19.1% y-o-y. The growth was attributed to higher exports of E&E products, petroleum products as well as palm oil based manufactured products, each recorded over RM1 billion increase in exports. These products collectively contributed 60.2% to exports of manufactured goods.

Exports of mining goods (8.2% share) surged by 105.8% y-o-y to RM10.77 billion, the highest monthly value. The increase was driven by higher exports of LNG and crude petroleum.

Exports of agriculture goods (8.1% share) soared by 41.8% to RM10.61 billion compared to March 2021. This was the 13th consecutive month of double-digit growth. The expansion was contributed mainly by higher exports of palm oil and palm oil-based agriculture products.

Major exports in March 2022:

• E&E products, valued at RM52.84 billion and accounted for 40.1% of total exports, increased by 32.8% from March 2021;

• Petroleum products, RM9.33 billion, 7.1% of total exports, surged by 96.5%;

• Palm oil and palm oil-based agriculture products, RM8.52 billion, 6.5% of total exports, surged by 55.9%;

• Chemicals and chemical products, RM6.90 billion, 5.2% of total exports, increased by 9.1%; and

• Manufactures of metal, RM5.51 billion, 4.2% of total exports, increased by 3.5%.

Compared to February 2022, exports of manufactured, mining and agriculture goods rose by 25.6%, 57.8% and 34.9%, respectively.

For the period of January to March 2022, exports of manufactured goods expanded by 17.8% to RM291.66 billion compared to the same period of 2021. The export expansion was supported by higher exports of E&E products, petroleum products as well as chemicals and chemical products. Exports of agriculture goods accelerated by 49.8% to RM27.22 billion buoyed by stronger exports of palm oil and palm oil-based agriculture products. Exports of mining goods surged by 58.9% to RM24.41 billion boosted by higher shipments of LNG and crude petroleum.

Trade Performance with Major Markets

ASEAN – Exports Achieved Highest Monthly Value

In March 2022, trade with ASEAN accounted for 27.8% of Malaysia’s total trade, expanding by 37.6% y-o-y to RM65.78 billion. Exports reached the highest monthly value at RM39.33 billion, growing by 37.7% due to higher exports of E&E products and petroleum products. Imports from ASEAN rose by 37.5% to RM26.45 billion.

Breakdown of exports to ASEAN countries:

• Singapore RM20.13 billion, increased by 34%;

• Thailand RM5.8 billion, ↑32.5%;

• Viet Nam RM5.14 billion, ↑21.2%;

• Indonesia RM4.14 billion, ↑50.7%;

• Philippines RM2.69 billion, ↑64%;

• Brunei RM688.7 million, ↑181.2%;

• Myanmar RM475 million, ↑224.1%;

• Cambodia RM195.9 million, ↑26.7%; and

• Lao PDR RM82 million, ↑1,405.6%.

Exports to all markets in ASEAN recorded expansion particularly Singapore which grew by RM5.11 billion, due to higher exports of E&E products, Thailand (↑RM1.42 billion, crude petroleum), Indonesia (↑RM1.39 billion, petroleum products), the Philippines (↑RM1.05 billion, petroleum condensates & other petroleum oil) and Viet Nam (↑RM899.1 million, E&E products).

Compared to February 2022, trade, exports and imports edged up by 28.9%, 34.1% and 22.0%, respectively.

In the first three months of 2022, trade with ASEAN increased by 28.4% to RM169.16 billion compared to the same period of 2021. Exports to this region grew by 26.3% to RM99.47 billion owing to higher exports of E&E products, petroleum products, chemicals and chemical products, machinery, equipment and parts as well as palm oil and palm oil-based agriculture products. Imports from ASEAN rose by 31.4% to RM69.69 billion.

China - Trade Posted 16 Months of Double-Digit Growth

In March 2022, trade with China which made up 16.5% of Malaysia’s total trade increased by 15.2% y-o-y to RM39.02 billion, the 16th consecutive month of double-digit expansion. Exports to China climbed by 10.7% to RM17.79 billion supported by higher exports of E&E products as well as palm oil and palm oil-based agriculture products. Imports from China expanded by 19.3% to RM21.23 billion.

Compared to February 2022, trade, exports and imports rose by 21.3%, 16.5% and 25.6%, respectively.

Trade with China during the first three months of 2022 edged up by 20.4% to RM111.36 billion compared to the same period of 2021. Exports climbed by 19.2% to RM50.07 billion on account of higher exports of E&E products and LNG. Imports from China increased by 21.3% to RM61.29 billion.

The US – Trade, Exports & Imports Registered Double-Digit Growth

Trade with the US in March 2022 comprised 8.9% of Malaysia’s total trade or RM20.97 billion. Trade recorded the seventh successive month of double-digit expansion, rising by 14.8% y-o-y. Exports expanded by 10.3% to RM13.58 billion on the back of higher exports of E&E products as well as iron and steel products. Imports from the US increased by 24.3% to RM7.39 billion.

On a m-o-m basis, trade, exports and imports rose by 21.9%, 30.7% and 8.4%, respectively.

For the period of January to March 2022, trade with the US expanded by 15.1% to RM56.66 billion compared to the same period of 2021. Exports grew by 10.7% to RM36.09 billion on higher exports of E&E products as well as iron and steel products. Imports from the US edged up by 23.8% to RM20.57 billion.

The EU – Exports Recorded Highest Value

Breakdown of exports to the top 10 EU markets which accounted for 92% of Malaysia’s total exports to the EU were:

• Netherlands RM3.72 billion, increased by 26.1%;

• Germany RM2.85 billion, ↑10%;

• Italy RM1.13 billion, ↑62%;

• Belgium RM981.3 million, ↑60.6%;

• France RM496.4 million, ↓18%;

• Spain RM413.9 million, ↓12.2%;

• Czech Republic RM345.6 million, ↑17%;

• Poland RM310.5 million, ↓0.6%;

• Slovenia RM251.3 million, ↓0.6%; and

• Sweden RM209.1 million, ↑0.8%.

Exports to the EU major markets that grew were the Netherlands which increased by RM769.1 million and Germany (↑RM259.5 million) due to higher demand for E&E products. Exports to Italy expanded by RM431.8 million led by stronger exports of manufactures of metal.

On a month-on-month basis, trade, exports and imports registered double-digit growth of 22%, 27.1% and 14.1%, respectively.

During the first three months of 2022, trade with the EU was up by 18.2% to RM49.86 billion compared to the same period of 2021. Exports rose by 17.2% to RM30.02 billion, following higher exports of E&E products as well as palm oil-based manufactured products. Imports from the EU increased by 19.8% to RM19.84 billion.

Japan – Exports Soared to a Record High

In March 2022, trade with Japan which accounted for 6.8% of Malaysia’s total trade rose by 16.7% y-o-y to RM16.1 billion. Exports soared to an all-time high at RM8.8 billion, up by 30.6%, registering 13 consecutive months of double-digit expansion. The growth was supported by higher exports of LNG, crude petroleum and manufactures of metal. Imports from Japan grew by 3.4% to RM7.3 billion.

Compared to February 2022, trade, exports and imports climbed by 26.8%, 32.5% and 20.6%, respectively.

For the period of January to March 2022, trade with Japan rose by 13.3% to RM41.75 billion compared to the same period of 2021. Exports expanded by 19.6% to RM22.68 billion underpinned by higher exports of LNG, manufactures of metal and crude petroleum. Imports from Japan increased by 6.5% to RM19.07 billion.

Trade with FTA Partners

In March 2022, trade with Free Trade Agreement (FTA) partners which represented 65.9% of Malaysia’s total trade registered double-digit growth of 25.8% y-o-y to RM156 billion. Exports to FTA partners grew by 27.9% to RM88.92 billion and imports rose by 23.1% to RM67.07 billion.

Increases in exports were recorded to the Republic of Korea, by 58.5% to RM4.94 billion due to higher exports of LNG, Australia, (↑44.9% to RM3.52 billion, petroleum products), India, (↑25.4% to RM4.5 billion, crude petroleum), Hong Kong SAR, (↑5.3% to RM7.15 billion, E&E products) and New Zealand (↑36.1% to RM405.1 million, chemicals and chemical products). Meanwhile, Turkey increased by 24.2% to RM1.78 billion and Pakistan (↑47.5% to RM634.2 million) supported by higher exports of palm oil and palm oil-based agriculture products.

Compared to February 2022, trade, exports and imports grew by 25.2%, 28.3% and 21.3%, respectively.

Trade with FTA partners during the first three months of 2022 which constituted 67% of Malaysia’s total trade rose by 23.5% to RM418.5 billion compared to the same period of 2021. Exports was up by 23.9% to RM233.7 billion and imports increased by 22.9% to RM184.79 billion.

Import Performance

Total imports in March 2022 increased by 29.9% y-o-y to RM104.93 billion. The three main categories of imports by end use which accounted for 73.5% of total imports were:

• Intermediate goods, valued at RM58.87 billion or 56.1% of total imports, increased by 34.9%, following higher imports of fuels and lubricants, primary, particularly mineral fuels and oils;

• Capital goods, valued at RM9.51 billion or 9.1% of total imports, grew by 14.3%, due to higher imports of capital goods (except transport equipment), primarily parts for machinery and mechanical appliances; and

• Consumption goods, valued at RM8.73 billion or 8.3% of total imports, rose by 22.4%, as a result of higher imports of processed food and beverages mainly for household consumption especially beverages.

During the period of January to March 2022, imports expanded by 25.2% to RM279.89 billion from the same period of 2021. Imports of intermediate goods grew by 29.2% to RM156.83 billion, capital goods (↑17.9% to RM27.29 billion) and consumption goods (↑24.5% to RM24.36 billion).