Malaysia External Trade Development Corporation

Highest Value for January - Trade, Exports, Imports and Trade Surplus

Malaysia’s trade in January 2022 continued to be resilient with trade, exports, imports and trade surplus registered highest monthly value for January. Trade expanded by 24.8% to RM203.05 billion compared to January 2021. Exports rose by 23.5% to RM110.73 billion, the 6th successive month of double-digit expansion since August 2021. Imports increased by 26.4% to RM92.32 billion and trade surplus grew by 10.9% to RM18.4 billion.

Export expansion was underpinned by higher global demand primarily for exports of electrical and electronic (E&E) products as well as palm oil and palm oil-based agriculture products. Meanwhile, exports to major trading partners notably ASEAN, China, the United States (US), the European Union (EU) and Japan recorded double-digit growth.

Compared to December 2021, trade, exports, imports and trade surplus declined by 6.3%, 10.6%, 0.6% and 40.6%, due to high base effect and seasonal factors following new year holidays.

Export Performance of Major Sectors

All Major Sectors Recorded Double-Digit Export Growth

In January 2022, all major sectors recorded double-digit y-o-y expansion, supported by significant export growth for almost all key products.

Exports of manufactured goods which made up 85.5% of total exports grew by 19.3% to RM94.67 billion, the sixth straight month of double-digit growth since August 2021. E&E products, manufactures of metal, petroleum products, chemicals and chemical products, palm oil-based manufactured products as well as machinery, equipment and parts each posted over RM1 billion increase in exports.

Exports of agriculture goods (7.9% share) surged by 75.6% to RM8.77 billion, the 11th consecutive month of double-digit growth since March 2021. The growth was boosted by strong exports of palm oil and palm oil-based agriculture products.

Exports of mining goods (6.2% share) edged up by 38.4% to RM6.82 billion, the 10th successive month of double-digit growth since April 2021. This was on the back of higher exports of liquefied natural gas (LNG).

Major exports in January 2022:

• E&E products, valued at RM44.77 billion and constituted 40.4% of total exports, grew by 22.1% from January 2021;

• E&E products, valued at RM44.77 billion and constituted 40.4% of total exports, grew by 22.1% from January 2021;

• Palm oil and palm oil-based agriculture products, RM6.90 billion, 6.2% of total exports, soared by 107.1%;

• Petroleum products, RM6.35 billion, 5.7% of total exports, expanded by 39.2%;

• Chemicals and chemical products, RM6.19 billion, 5.6% of total exports, increased by 31.6%; and

• Manufactures of metal, RM5.71 billion, 5.2% of total exports, surged by 53.9%.

On a month-on-month (m-o-m) basis, exports of manufactured, agriculture and mining goods declined by 10.1%, 20.8% and 2.7%, respectively.

Trade Performance with Major Markets

ASEAN – Trade Continued to be Robust

In January 2022, trade with ASEAN which took up 25.7% of Malaysia’s total trade leaped by 21.4% y-o-y to RM52.23 billion. Exports expanded by 19.5% to RM30.76 billion following robust exports of petroleum products and E&E products. Imports from ASEAN climbed by 24.2% to RM21.48 billion.

Breakdown of exports to ASEAN countries:

• Singapore RM15.03 billion, increased by 16.3%;

• Singapore RM15.03 billion, increased by 16.3%;

• Thailand RM5.20 billion, ↑21.0%;

• Viet Nam RM4.24 billion, ↑19.4%;

• Indonesia RM3.53 billion, ↑31.7%;

• Philippines RM1.81 billion, ↑15.3%;

• Brunei RM404.3 million, ↑18.6%;

• Myanmar RM335.2 million, ↑44.6%;

• Cambodia RM210.9 million, ↑46.1%; and

• Lao PDR RM3.6 million, ↓10.7%.

Exports to most ASEAN countries recorded significant increases notably to Singapore which grew by RM2.11 billion, due to higher exports of petroleum products. Exports to Thailand and Viet Nam registered an increase of RM902.2 million and RM689.4 million, respectively attributed to higher exports of E&E products, Indonesia (↑RM850.2 million, petroleum products) as well as the Philippines (↑RM240.5 million, palm oil and palm oil-based agriculture products).Exports to most ASEAN countries recorded significant increases notably to Singapore which grew by RM2.11 billion, due to higher exports of petroleum products. Exports to Thailand and Viet Nam registered an increase of RM902.2 million and RM689.4 million, respectively attributed to higher exports of E&E products, Indonesia (↑RM850.2 million, petroleum products) as well as the Philippines (↑RM240.5 million, palm oil and palm oil-based agriculture products).

On a m-o-m basis, trade, exports and imports declined by 8.3%, 8.6% and 7.9%, respectively.

China - 14th Successive Month of Double-Digit Trade Growth

In January 2022, trade with China which absorbed 19.7% of Malaysia’s total trade edged up by 33.7% y-o-y to RM39.99 billion, the 14th consecutive month of double-digit growth. Exports to China rose by 28.7% to RM16.88 billion, the fifth consecutive month of double-digit expansion since September 2021. This was driven by strong exports of E&E products and LNG. Imports from China increased by 37.6% to RM23.12 billion.

Compared to December 2021, imports grew by 4.8%, while trade and exports slipped by 5% and 15.9%, respectively.

The US – Export Growth was Boosted by E&E Products

.Trade with the US in January 2022 which accounted for 9.1% of Malaysia’s total trade grew by 16.2% y-o-y to RM18.51 billion. Exports rose by 17.7% to RM12.14 billion, the sixth successive month of double-digit growth since August 2021. The expansion was underpinned mainly by growing exports of E&E products. Imports from the US was up by 13.3% to RM6.37 billion.

Compared to December 2021, trade, exports and imports declined by 12.4%, 15.3% and 6.2%, respectively.

EU- Exports Continued its Upward Momentum

Trade with the EU which comprised 8.1% of Malaysia’s total trade in January 2022 expanded by 24.5% y-o-y to RM16.46 billion, registering the 12th consecutive month of double-digit growth. Exports increased by 14.6% to RM9.19 billion on account of higher exports of E&E products, palm oil and palm oil-based products as well as iron and steel products. Imports from the EU climbed by 40% to RM7.27 billion.

Breakdown of exports to the top 10 EU markets which accounted for 91.5% of Malaysia’s total exports to the EU were:

• Netherlands RM2.96 billion, increased by 44.2%;

• Netherlands RM2.96 billion, increased by 44.2%;

• Germany RM2.38 billion, ↓0.6%;

• Italy RM701.2 million, ↑86.0%;

• Belgium RM577.2 million, ↑34.1%;

• France RM441.1 million, ↓46.2%;

• Spain RM356.4 million, ↓8.0%;

• Poland RM322.8 million, ↓3.9%;

• Hungary RM269.0 million, ↑57.2%;

• Czech Republic RM245.1 million, ↑18.2%; and

• Slovenia RM163.9 million, ↑19.1%.

Exports to EU major markets that recorded robust expansion were the Netherlands which increased by RM908.0 million due to higher demand for E&E products, Italy (↑RM324.2 million, palm oil and palm oil-based agriculture products) and Belgium (↑RM146.8 million, palm oil-based manufactured products).Exports to EU major markets that recorded robust expansion were the Netherlands which increased by RM908.0 million due to higher demand for E&E products, Italy (↑RM324.2 million, palm oil and palm oil-based agriculture products) and Belgium (↑RM146.8 million, palm oil-based manufactured products).

On a month-on-month basis, imports increased by 12.1%, while trade and exports contracted by 0.8% and 9.1%, respectively.

Japan – Double-Digit Export Expansion for 11th Consecutive Month

In January 2022, trade with Japan which represented 6.3% of Malaysia’s total trade leaped by 10.2% y-o-y to RM12.85 billion. Exports edged up by 10% to RM7.13 billion, the 11th successive month of double-digit expansion since March 2021. This was underpinned by strong exports of manufactures of metal, LNG as well as iron and steel products. Imports from Japan grew by 10.5% to RM5.72 billion.

On a m-o-m basis, exports was higher by 3.1%, while trade and imports reduced by 8.3% and 19.5%, respectively.

Trade with FTA Partners

In January 2022, trade with Free Trade Agreement (FTA) partners which constituted 67.7% of Malaysia’s total trade grew by 25.5% y-o-y to RM137.46 billion. Exports to FTA partners climbed by 23.9% to RM75.18 billion and imports rose by 27.6% to RM62.28 billion. Increase in exports were recorded to Hong Kong SAR, by 13.3% to RM6.86 billion owing to robust exports of E&E products. Higher exports were also recorded to India, by 77.8% to RM4.46 billion and Pakistan (↑43.1% to RM337.8 million) led by strong exports of palm oil and palm oil-based agriculture products. Meanwhile, exports to the Republic of Korea, expanded by 46.3% to RM3.84 billion due to growing exports of petroleum products, Australia (↑1.3% to RM2.84 billion, crude petroleum), Turkey (↑134.1% to RM1.64 billion, manufactures of metal) and Chile (↑52.9% to RM143.2 million, chemicals and chemical products).

Compared to December 2021, trade, exports and imports were lower by 7.1%, 9.9% and 3.6%, respectively.

Import Performance

Total imports in January 2022 grew by 26.4% y-o-y to RM92.32 billion. The three main categories of imports by end use which accounted for 74.9% of total imports were:

• Intermediate goods, valued at RM50.52 billion or 54.7% of total imports, increased by 28.3%, following higher imports of parts and accessories of capital goods (except transport equipment) particularly electrical machinery, equipment and parts;

• Capital goods, valued at RM9.97 billion or 10.8% of total imports, grew by 37.7%, due to strong imports of capital goods (except transport equipment), primarily parts for machinery and mechanical appliances; and Embargo until 1200 hours, Friday, 18th February 2022

• Consumption goods, valued at RM8.63 billion or 9.3% of total imports, rose by 32%, as a result of higher imports of processed food and beverages mainly for household consumption especially meat and offal.

FRIDAY, JANUARY 21, 2022, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) is committed to delivering its best to facilitate and provide advisory assistance to Malaysian companies in accessing the global market as well as augmenting Malaysia’s economic development. With the mission to boost exports, MATRADE outlines a total of 286 exporters development and export promotion programmes for 2022. These programmes were devised based on the strategic directions of the National Trade Blueprint (NTBp), with greater emphasis on digitalisation and sustainability.

According to MATRADE’s Chief Executive Officer, Mohd. Mustafa Abdul Aziz, Malaysian companies seeking to expand their business abroad ought to be prepared and are encouraged to engage with MATRADE for the various support and promotion programmes they can avail themselves to.

MATRADE has outlined export promotion programmes comprising iconic Trade Fairs, Exports Acceleration Missions (EAM) and International Sourcing Programmes (INSP) in conjunction with major international trade events. MATRADE also will continue to intensify the eBizMatch programme, an online pre-arranged business meeting platform between Malaysian companies and foreign buyers from all over the world. Strategic sectors notably Electrical and Electronics, Aerospace, Medical, Oil & Gas, Building Materials, Food & Beverages, Green Products & Services and other services including Information and Communications Technology, Maintenance, Repair and Overhaul, Logistics and Professional Services will be promoted.

The 18th edition of Malaysia International Halal Showcase (MIHAS) will take place in a hybrid format in September 2022, reaffirming its foothold to hold global congregation of Halal players worldwide which would further strengthen its stature as the world’s largest Halal trade fair.

MATRADE supports Malaysian companies by providing facilitation and assistance to be the global champion through wide-ranging exporters development programmes. These comprise exporters training activities with prominence in areas such as market access, trade guidelines, financing and branding, encompassing digitalisation and sustainability initiatives.

This year, MATRADE continues to establish and leverage strategic collaboration with various ministries, agencies, embassies and trade industry associations in implementing exportrelated programmes to create more opportunities for the business communities. The agency also strengthens its customised programmes in assisting focus groups namely the Mid-Tier Companies Development Programme (MTCDP), GlobPreneur programme and Bumiputera, Women and Youth Exporters Development Programme (BWYEDP). Via eTrade programme, MATRADE empowers more SMEs to venture into eCommerce for exports.

Upholding its founding objective, MATRADE remains committed to providing support and assistance to Malaysian companies at the forefront of the global market. With a network of 46 overseas-based offices and five (5) regional offices in Malaysia, MATRADE collaborates with both public and private sectors to drive the country's export growth.

MATRADE’s global team provides market intelligence on doing business in the international market and link Malaysian products and services with foreign buyers. Through MyExport Services, companies registered with MATRADE can have real-time access to market alerts, product market studies as well as trade leads to keep abreast of the latest market trends.

Malaysian companies are encouraged to get in touch with MATRADE via MATRADE offices, social media channels or visit www.matrade.gov.my for more information on export promotion and exporters development programmes, or other MATRADE’s assistance such as Business Information Centre (BIC), Malaysia Export Exhibition Centre (MEEC) and other advisory services.

MONDAY, FEBRUARY 14, 2022, DUBAI: Malaysia External Trade Development Corporation (MATRADE) in collaboration with Ministry of Entrepreneur Development and Cooperatives (MEDAC) as well as SME Bank continue to assist Malaysian SMEs for post-pandemic business recovery, which involves the participation of 11 companies from multi-sectors in the Export Acceleration Mission (EAM) to Dubai, United Arab of Emirates (UAE).

Held in conjunction with the World Expo 2020 Dubai, the week-long mission aims to provide opportunities for the SMEs to expand their brands’ presence in the market and establish business partnerships with the UAE and its neighbouring countries; the Middle East and North Africa (MENA).

According to MATRADE’s Chief Executive Officer, Mr Mohd Mustafa Abdul Aziz, the strategic collaboration between MATRADE, MEDAC and SME Bank signifies the importance of synergy within the trade ecosystem in strengthening Malaysia’s trade competitiveness as recommended by the National Trade Blueprint (NTBp).

The Blueprint outlines a 5-year (2021-2025) development strategy and initiatives to enhance Malaysia’s trade competitiveness, specifically in the exports of merchandise. Launched in October 2021 by YAB Prime Minister, the Blueprint aims to position Malaysia as a dynamic and pre-eminent trading nation through sustainable export development and promotion.

This year, MATRADE continues to establish and leverage strategic collaborations with various ministries, agencies, foreign embassies and trade industry associations in implementing export-related programmes to create more opportunities for the business communities.

“MATRADE outlines a total of 286 export promotion and exporters development programmes this year for Malaysian companies to brace themselves in weathering the market demands as well as to expand their global footprints. Therefore, it is crucial that all parties to work together to ensure that the programmes produce high-impact outcomes and, ultimately lift export onto a growth trajectory,” Mohd Mustafa said.

MATRADE stays committed in providing support and assistance to Malaysian companies at the forefront of the global market. With a network of 46 overseas-based offices and five (5) regional offices in Malaysia, MATRADE collaborates with both public and private sectors to drive the country's export growth.

Malaysian companies are encouraged to get in touch with MATRADE via MATRADE offices, social media channels or visit www.matrade.gov.my for more information on export promotion and exporters development programmes, or other MATRADE’s assistance such as Business Information Centre (BIC), Malaysia Export Exhibition Centre (MEEC) and other advisory services.

WEDNESDAY, 19 JANUARY 2022 KUALA LUMPUR: Electronic Business Linkage (“eBizLink”) Programme is a new initiative by the Government under ‘Program Strategik Memperkasa Rakyat dan Ekonomi’ (“PEMERKASA”) through MATRADE an agency of MITI, aimed to intensify promotion of Malaysia’s export digitally. Reinforced through the implementation of new initiative under the National Trade Blueprint (NTBp) to further facilitate export promotion and market access, eBizLink leverages on hybrid B2C and B2B platforms, focusing on online and offline (O2O) promotion with greater emphasis on digital marketing and Key Opinion Leader (KOL).

Officially launched in July 2021, eBizLink provides cost-effective and sustainable solutions for SMEs and MTCs to seize new business opportunities in global marketplace brought about by the COVID-19 pandemic. A total of 18 Global Campaigns have been executed in 2021 generating more than RM40 million export sales benefiting 350 Malaysian exporters. Food and beverages (F&B) sector contributed RM25 million or 60 per cent of total sales for eBizLink campaign, followed by personal care products and medical gloves. Other products and services sourced from Malaysia include fast-moving consumer goods (FMCG), health products and ecommerce services.

To date, nine (9) eBizLink programmes have been completed includes “JD618 Shopping Festival Digital Expo” in China, ASEAN Online Sales Day (“AOSD”) in Myanmar, Vietnam, Singapore, Indonesia and Thailand, “Choose Malaysia Promotion Programme” in Cambodia, “Malaysia Promotion Programmes” in-conjunction of CAEXPO 2021 in China, “Flavours of Malaysia” in Netherlands, “Asian Grocery & eMarket Place” in Australia, “Malaysia Festival” in Hong Kong, “Online Campaign with eCommerce Platform” in Pakistan and “Online Campaign with Health & Glow” in India. Another nine (9) programmes are still in on-going in North East Asia, South East Asia, Central Asia and North America.

According to YBrs. Puan Sharimahton Mat Saleh, Deputy CEO of MATRADE, “eBizLink initiative provides new alternatives for Malaysian exporters to promote their products and brands to potential international customers through O2O platforms. By leveraging on local market influencers and KOLs, the perception of Malaysian brands are enhanced by the vast coverage provided by the millions of followers on their social media. MATRADE global offices have engaged local KOLs to promote Malaysian products and brands through various online social media channels that reach wider audience at faster rate compared to traditional media”.

Among successful Global Campaigns by MATRADE trade offices leveraging on KOLs were Malaysia’s participation in CAEXPO (“China-ASEAN Expo”) in Nanning, China, MATRADE Guangzhou had collaborated with Overseas Prominent Brands (OPB). Local KOLs were engaged to promote the event through various social media channels in China. The campaign was held from 1 to 30 September 2021 and recorded export sales of RM4.78 million with main products sourced includes durian products, spices, bird nest and cream crackers. In Pakistan, RM8.69 million sales have been generated from eBizLink collaboration between MATRADE Mumbai and Ecommerce Private Limited, under their B2B portal “EcomBRI.com”. The campaign was held from 30 November until 3 December 2021 with personal care being the main products along with rubber gloves and F&B that been sourced by Pakistan trade buyers. Under the theme “Malaysia Ayatha: The Most Exclusive Live Showcase of Malaysian Brands” in Myanmar were promoted via Facebook through the Malaysia Ayatha page and media partner Duwun, which has over 8.6 million followers on Facebook. Over 100 Malaysian brands were promoted during the campaign from 3 until 26 December 2021 with RM12.16 million export sales generated.

For year 2022, more than 20 Global Campaigns have been scheduled in order to achieve eBizLink KPI target of 600 companies assisted and RM60 million export sales generated. Among key markets targeted are North America, South America, Europe, West Asia and South East Asia.