Malaysia External Trade Development Corporation

THURSDAY, 22 JUNE 2023, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) through a collaboration with Malaysian Timber Council (MTC) had successfully matched 88 Malaysian exporters of wood-based products with foreign buyers from 23 countries which resulted in RM147 million of export value from 773 business meetings held.

The business meetings were held in conjunction with Malaysian Wood Expo (MWE) 2023 organised by MTC on 19 June 2023 at Malaysia International Trade and Exhibition Centre (MITEC). Foreign buyers flew in from Bahrain, Canada, Chile, China, France, Hungary, India, Ireland, Japan, Jordan, Maldives, Mexico, Nepal, Pakistan, Poland, Qatar, South Korea, Sri Lanka, Thailand, Turkiye, UAE, UK and USA. The products sourced by these foreign buyers were plywood, medium density fibreboard (MDF), veneer, wooden doors, wooden floorings, and furniture products.

Puan Sharimahton Mat Saleh, MATRADE’s Deputy Chief Executive of Export Acceleration said, “We are honoured to join forces with MTC as the collaboration highlights the strength of strategic partnership in accelerating and boosting exports for Malaysian wood industry players.” She added, “All Malaysian exporters are urged to leverage MATRADE’s export initiatives to stay resilient amidst global challenges”.

MTC Chairman Tuan Haji Zainal Abidin Haji Abdullah said, “We are steadfast in our commitment to nurture the growth of the Malaysian timber industry. Both MATRADE and MTC will continue to provide valuable platforms and initiatives for Malaysian companies to expand their export opportunities and strengthen their global presence.”

In 2022, the exports of Malaysian timber and timber products grew by 10.6% to RM25.21 billion which was the highest earnings recorded by the timber industry in recent years. The major timber-based products exported from Malaysia were wooden furniture, plywood, sawn timber, fibreboard and Builders’ Joinery & Carpentry (BJC). Among the top export destinations include the United States, Japan, and India.

Malaysian companies who are keen to take part in MATRADE programmes are encouraged to contact MATRADE via email at This email address is being protected from spambots. You need JavaScript enabled to view it., visit MATRADE’s social media channels or go to www.matrade.gov.my for more details.

For more information about the Malaysian Timber Council's programs, initiatives, and support services, visit www.mtc.com.my or email at This email address is being protected from spambots. You need JavaScript enabled to view it..

37th Consecutive Month of Trade Surplus with Double-Digit Expansion

Malaysia registered the 37th consecutive month of trade surplus in May 2023, registering double-digit growth of 21.4% to RM15.42 billion. Total trade slipped by 2% to RM223.8 billion, in tandem with slower global demand and lower commodity prices. Exports showed signs of recovery, posting a marginal contraction of 0.7% to RM119.61 billion compared to double-digit decline recorded last month. Imports decreased by 3.3% to RM104.19 billion. The performance was similar to other regional countries namely China, Taiwan and the Republic of Korea (ROK) which recorded negative trade growth for May 2023.

Despite the decline, exports to major trading partners notably China, the United States (US) and Japan recorded expansion. Meanwhile, higher exports was seen for petroleum products, electrical and electronic (E&E) products, machinery, equipment and parts as well as processed food.

Compared to April 2023, trade, exports, imports and trade surplus recorded double-digit expansion of 13.2%, 13.7%, 12.6% and 22.1%, respectively.

22In the first five months of 2023, total trade surpassed RM1 trillion to reach RM1.066 trillion, a decrease of 1.7% compared to the corresponding period of 2022. Exports was down by 2.3% to RM579.39 billion and imports declined by 1% to RM486.96 billion. Trade surplus edged down by 8.7% to RM92.43 billion.

Export Performance of Major Sectors

Exports of Manufactured and Mining Goods Rebounded after Two Months of Contraction 

In May 2023, exports of manufactured goods which constituted 85.4% or RM102.18 billion of total exports rebounded by 1.8% year-on-year (y-o-y) after registering two consecutive months of export contraction. This was on account of increased exports of petroleum products, E&E products, machinery, equipment and parts, processed food as well as optical and scientific equipment.

Exports of mining goods (7.7% share) rose by 5.9% y-o-y to RM9.26 billion buoyed by strong exports of liquefied natural gas (LNG).

Exports of agriculture goods (6.2% share) totalled RM7.44 billion, shrank by 30.9% compared to May 2022 owing mainly to lower export value of palm oil and palm oil-based agriculture products.

Major exports in May 2023:

• E&E products, valued at RM46.53 billion and accounted for 38.9% of total exports, increased by 1.3% compared to May 2022;

• Petroleum products, RM13.81 billion, 11.5% of total exports, increased by 10.5%;

• Chemicals and chemical products, RM6.26 billion, 5.2% of total exports, increased by 1.7%;

• Palm oil and palm oil-based agriculture products, RM5.41 billion, 4.5% of total exports, decreased by 39.2%; and

• LNG, RM5.24 billion, 4.4% of total exports, increased by 9.3%.

On a month-on-month (m-o-m) basis, exports of manufactured, mining and agriculture goods expanded by 12.5%, 43.7% and 3.2%, respectively.

For the period of January to May 2023, exports of manufactured goods fell by 1.5% to RM492.15 billion compared to the same period last year following lower demand of rubber products, manufactures of metal, palm oil-based manufactured products as well as chemicals and chemical products. However, robust exports of petroleum products, E&E products, optical and scientific equipment as well as paper and pulp products offset the impact of the decline.

Exports of mining goods rose by 7.2% to RM45.56 billion boosted by higher exports of LNG.

Exports of agriculture goods was valued at RM38.23 billion, dropped by 20.6% mainly due to lower y-o-y prices of palm oil and palm oil-based agriculture products.

Trade Performance with Major Markets

ASEAN – Exports of E&E Products Recovered in May

In May 2023, trade with ASEAN represented 28.4% or RM63.61 billion of Malaysia’s total trade, reduced by 5% y-o-y. Exports edged down by 1.6% to RM36.38 billion, attributed to lower demand of palm oil and palm oil-based agriculture products, iron and steel products and petroleum products. Despite the contraction, robust exports were registered for E&E products, machinery, equipment and parts as well as processed food. Imports from ASEAN declined by 9.1% to RM27.24 billion.

Breakdown of exports to ASEAN countries:•

• Singapore RM19.60 billion, increased by 6.8%;

• Thailand RM5.12 billion, ↓8.8%;

• Indonesia RM4.19 billion, ↓11.8%;

• Viet Nam RM4.09 billion, ↓0.7%;

• Philippines RM2.19 billion, ↓21.5%;

• Myanmar RM467.5 million, ↑16.7%;

• Brunei RM410.9 million, ↓27.2%;

• Cambodia RM303.3 million, ↑107.0%; and

• Lao PDR RM11.3 million, ↓95.7%.

Exports to ASEAN major market, Singapore grew by RM1.26 billion led by strong exports of E&E products. Meanwhile, exports to Myanmar increased by RM66.9 million supported by higher exports of petroleum products.

Compared to April 2023, trade, exports and imports registered double-digit expansion of 19.4%, 17.8% and 21.6%, respectively.

For the period of January to May 2023, trade with ASEAN fell by 1.2% to RM293.08 billion compared to corresponding period of 2022. Exports rose by 1% to RM172.99 billion backed by higher exports of petroleum products and E&E products. Imports from ASEAN dipped by 4.2% to RM120.08 billion.

China – Exports Improved after Five Consecutive Months of Decline

In May 2023, trade with China which contributed 16.6% or RM37.07 billion to Malaysia’s total trade declined marginally by 0.2% y-o-y. Exports to China improved by 1.5% to RM15.49 billion after registering five consecutive months of decline. The growth was driven by higher demand of metalliferous ores and metal scrap, LNG as well as chemicals and chemical products. Imports from China reduced by 1.4% to RM21.58 billion.

Compared to April 2023, trade, exports and imports edged up by 8.9%, 12.1% and 6.7%, respectively.

Trade with China during the period of January to May 2023 eased by 4.3% to RM179.76 billion compared to the same period of 2022. Exports contracted by 8.9% to RM75.31 billion attributed to lower exports of iron and steel products, E&E products and petroleum products. On the contrary, strong exports was recorded for LNG as well as metalliferous ores and metal scrap. Imports from China was down by 0.6% to RM104.45 billion.

The US – Exports Accelerated with Double-Digit Growth

Trade with the US in May 2023 which constituted of 9.3% of Malaysia’s total trade picked up by 4.4% y-o-y to RM20.9 billion. Exports rebounded sharply with double-digit growth of 14.9% to RM13.77 billion after posting a negative growth last month. This was driven mainly by robust exports of E&E products. Imports from the US weakened by 11.3% to RM7.13 billion.

On a m-o-m basis, trade, exports and imports grew by 17.4%, 22.3% and 8.9%, respectively.

For the period of January to May 2023, trade with the US edged down marginally by 0.5% to RM98.35 billion compared to the same period of 2022. Exports improved by 2.5% to RM63.98 billion boosted by increased shipments of E&E products and petroleum products. Imports from the US shrank by 5.6% to RM34.37 billion.

The EU – Exports of E&E Products Improved Despite Lower Overall Exports

In May 2023, trade with the European Union (EU) absorbed 7.7% of Malaysia’s total trade, decreased by 1.2% y-o-y to RM17.2 billion. Exports amounted to RM9.15 billion, weakened by 6.1% on lower exports of palm oil and palm oil-based products as well as iron and steel products. Nevertheless, growth in exports was recorded for E&E products, petroleum products and processed food. Imports from the EU climbed by 5.1% to RM8.05 billion.

Breakdown of exports to the top 10 EU markets which accounted for 91.8% of Malaysia’s total exports to the EU were:

• Netherlands RM2.71 billion, decreased by 18.2%;

• Germany RM2.54 billion, ↑15.8%;

• Belgium RM747.7 million, ↑20.4%;

• France RM609.4 million, ↑4.9%;

• Spain RM569.3 million, ↓5.1%;

• Italy RM477.0 million, ↓27.9%;

• Poland RM257.2 million, ↓2.6%;

• Hungary RM179.5 million, ↓21.4%;

• Sweden RM163.4 million, ↓31.3%; and

• Czech Republic RM153.1 million, ↓42.9%.

Exports to the EU major markets that recorded growth were Germany, which increased by RM346.4 million due to strong exports of E&E products, Belgium (↑RM126.7 million, iron and steel products) and France (↑RM28.5 million, optical and scientific equipment).

Compared to April 2023, trade, exports and imports rose by 10.2%, 13.5% and 6.6%, respectively.

For the first five months of 2023, trade with the EU declined by 1.1% to RM84.87 billion compared to the same period of 2022. Exports reached RM46.5 billion, a contraction of 9.4% as a result of lower exports of E&E products, palm oil and palm oil-based agriculture products as well as rubber products. Conversely, higher exports was seen for petroleum products, optical and scientific equipment as well as other vegetable oil. Imports from the EU rose by 11.3% to RM38.37 billion.

Japan – Exports Rebounded Mainly on LNG

In May 2023, trade with Japan which comprised 6% or RM13.45 billion of Malaysia’s total trade rose by 0.2% y-o-y. Exports rebounded from a negative growth last month, expanding by 2.1% to RM7.17 billion. This was supported by robust exports of crude petroleum and LNG. Imports from Japan declined by 1.9% to RM6.28 billion.

On a m-o-m basis, trade, exports and imports recorded double-digit growth of 19.6%, 19.5% and 19.8%, respectively.

For the period of January to May 2023, trade with Japan slipped by 4.7% to RM67 billion compared to the same period of 2022. Exports amounted to RM36.84 billion, a decline of 1.5% due to lower shipments of manufactures of metal, palm oil-based manufactured products as well as wood products. The decrease however was softened by strong exports of LNG and crude petroleum. Imports from Japan eased by 8.2% to RM30.16 billion.

Trade with FTA Partners

In May 2023, trade with Free Trade Agreement (FTA) partners which contributed 68.3% or RM152.9 billion to Malaysia’s total trade edged down by 1.9% y-o-y. Exports to FTA partners picked up by 0.3% to RM83.89 billion and imports decreased by 4.5% to RM69 billion.

Increases in exports were recorded to Australia which rose by 28.7% to RM4.89 billion, the ROK, (↑10.3% to RM4.65 billion) and New Zealand (↑5.5% to RM794.7 million) boosted by robust exports of petroleum products. Exports to Mexico increased by 6.8% to RM1.35 billion bolstered by strong exports of iron and steel products while exports to Peru (↑60.5% to RM58.4 million, machinery, equipment and parts).

Compared to April 2023, trade, exports and imports improved by 14.1%, 12.2% and 16.5%, respectively.

Trade with FTA partners during the first five months of 2023 edged down by 1.7% to RM723.85 billion compared to the corresponding period of 2022. Exports contracted marginally by 0.6% to RM406.02 billion while imports eased by 3% to RM317.82 billion.

Import Performance

Total imports in May 2023 decreased by 3.3% y-o-y to RM104.19 billion. The three main categories of imports by end use, which accounted for 71.2% of total imports were:

• Intermediate goods, valued at RM55.34 billion or 53.1% of total imports, decreased by 12.3% y-o-y, following lower imports of parts and accessories for non-transport capital goods;

• Capital goods, valued at RM9.95 billion or 9.6% of total imports, increased by 13.7%, due to higher imports of non-transport capital goods; and

• Consumption goods, valued at RM8.87 billion or 8.5% of total imports, grew by 4.5%, as a result of strong imports of processed food and beverages mainly for household consumption.

During the period of January to May 2023, imports slipped by 1% to RM486.96 billion compared to the same period of 2022. Imports of intermediate goods contracted by 10.1% to RM251.56 billion compared to the same period last year, capital goods (↑5% to RM47.35 billion) and consumption goods (↑1.1% to RM41.59 billion).

 

 

 

 

 

21 JUNE 2023, KUALA LUMPUR: The Malaysia External Trade Development Corporation (MATRADE) and the National Aerospace Industry Corporation Malaysia (NAICO) are proud to announce Malaysia's participation at the 54^th International Paris Airshow (IPAS) 2023. This prestigious event, organised by the Salon International de l'Aéronautique et de l'Espace (SIAE), a subsidiary of GIFAS - the French Aerospace Industries Association, is currently taking place from 19-25 June 2023 at the Le Bourget Parc des Expositions.

The IPAS 2023 is a biennial trade show for the aerospace industry, attracting major players such as Airbus, Boeing, Embraer, and Bombardier. Under the leadership of the Ministry of Investment, Trade and Industry (MITI), MATRADE and NAICO, the Malaysia Pavilion provides a dynamic platform for Malaysian aerospace companies to expand their global presence and explore strategic opportunities for technological development, all while promoting Malaysia as the Southeast Asian aerospace industry hub and fostering partnerships with foreign companies to strengthen Malaysian companies' capabilities. This year, the national pavilion is showcasing 14 Malaysian exhibitors, including companies, state investment promotion agencies, and the Malaysia Aerospace Industry Association (MAIA).

Participation in IPAS 2023 holds significant importance for Malaysia as it presents an opportunity to highlight the growth and transformation of the country's aerospace industry in the post-pandemic era. The Malaysian delegation aims to demonstrate Malaysia's commitment to sustainability, innovation, advanced manufacturing technologies, and supporting the stability of the global supply chain.

According to YBhg. Datuk Mohd Mustafa Abdul Aziz, Chief Executive Officer of MATRADE, "The Malaysian aerospace sector plays a vital role in driving Malaysia's advancement in innovation and technology as well as high-value exports. It is a key focus area outlined in the 12th Malaysia Plan and the Malaysian Aerospace Blueprint 2030. With a well-established industry and strong capabilities in aircraft assembly and maintenance, Malaysia boasts one of the largest aerospace sectors in Southeast Asia, supported by a skilled workforce and MATRADE is always committed to generate more opportunities for Malaysian aerospace companies to capitalise on the demand of the global aerospace market."

Joining forces with MITI, MATRADE and NAICO, the Malaysian Investment Development Authority (MIDA), Invest Selangor Berhad, Iskandar Regional Development Authority (IRDA), Negeri Sembilan Corporation (NS Corp), and Pahang State Secretary Incorporated are promoting Malaysia as the Southeast Asian aerospace industry hub.

MATRADE is dedicated to forging strategic partnerships with global counterparts, focusing on areas such as Malaysian product and service sourcing, outsourcing of Original Equipment Manufacturing (OEM), R&D for commercialisation, capacity-building activities, and other high-impact collaborations with mutual benefits in mind. Discussions with various government agencies, leading corporations such as Airbus and Boeing, consultancies, and trade associations to be arranged during the exhibition to further promote the Malaysian aerospace sector.

In terms of trade performance, the aerospace industry in Malaysia recorded a total trade of RM24.04 billion in 2022, with exports increasing by 9.1% to RM6.32 billion compared to RM5.79 billion in 2021. Malaysia's top exports for the aerospace sector include parts for planes or helicopters, aircraft and aircraft parts among others. France, the United States of America, the United Kingdom, China, and Singapore were Malaysia's major export destinations last year. Notably, Malaysia experienced a remarkable increase of 99.1% in exports to France, reaching RM1.78 billion.

"Looking ahead, Malaysia aspires to become the leading aerospace nation in Southeast Asia, fully integrated into the global market. We project annual revenue of RM55.2 billion and the creation of over 32,000 high-income jobs as stipulated in the Malaysian Aerospace Blueprint 2030," stated YBhg. Datuk Mohd Mustafa Abdul Aziz.

TUESDAY, 13 JUNE 2023: KUALA LUMPUR - Malaysia External Trade Development Corporation (MATRADE) and multi-award-winning data technology market leader Fusionex have officially unveiled a revolutionary MATRADE Digital Trade Platform (MDTP), an AI-powered trade platform that aims to maximise Malaysia’s export potential and assist local SMEs expand their businesses globally.

MDTP serves as a centralised global trade gateway that offers a suite of technologies, tools and services to simplify international trade processes, digitalised local businesses, and connect Malaysian exporters with international buyers and partners.

Chief Executive Officer of MATRADE, Datuk Mohd Mustafa Abdul Aziz said the trade platform enables its member to showcase their offerings, facilitate virtual and hybrid events as well as accelerate business transaction with global buyers and partners. This aligns with MATRADE’s mission to promote Malaysian enterprises to the world. MDTP is the catalyst for the digitalisation adaptation of Malaysia's MSMEs and the delivery of MATRADE services in strengthening the business ecosystem towards the sustainability of the country's exports

“Today, marks the outcome of the strategic collaboration with our technology partner, Fusionex Group in launching MDTP – a platform that will further enhance MATRADE’s deliverable to our stakeholders,” he added.   

By partnering with Fusionex to launch MDTP, MATRADE leverages over 30 years of robust expertise in global trade. MDTP connects and interfaces with a smart trade facilitation hub that simplifies complex trade procedures, reduces costs and expedites the movement of goods.

MDTP has already welcomed numerous Malaysian businesses, ranging from large corporations to SMEs, as well as international buyers from China, Japan, Korea, the US, the UK, Germany, Saudi Arabia, India, Dubai, Indonesia, the Philippines, Singapore, Myanmar, Thailand, Vietnam, Cambodia, Laos and Brunei.

The businesses from these countries span diverse sectors, including franchising, oil and gas, palm oil, commodities, materials, food and beverages, pharmaceuticals, toiletries and cosmetics, information and communication technology, and more. Such variety enables Malaysian and foreign enterprises to find suitable business matches on the platform

MDTP has also formed strategic partnerships with key ASEAN markets, associations, state governments, international marketplaces and leading financial, insurance and logistics partners to empower MDTP members to explore global trade opportunities.

At present, MDTP has more than 1,200 members enrolled onto the digital platform, and this figure is anticipated to surge, driving the platform’s growth.

Datuk Mohd Mustafa said the agency will continuously embrace the public private partnership (PPP) in driving Malaysian exports to remain relevant and competitive in the global arena.

“I am glad to witness the positive progress of this project that marks MATRADE’s realisation of digitalisation initiatives in export promotions. I believe that MDTP will act as the catalyst for exporters’ development and promotional activities including cross-border eCommerce that will benefit the Malaysian business community, particularly the Micro, Small and Medium Enterprises (MSMEs),” he said.

Datuk Mohd Mustafa emphasised that MATRADE would also be looking for more ways to enable Malaysian businesses to be global players through digitalisation, hence would strengthen the country's trade.

Powered by Fusionex, MDTP utilised cutting-edge AI and advanced analytics to monitor, measure, and manage export revenue, trend analysis, marketing campaigns and sales activities. This empowers participating companies to make informed strategic decisions. The AI-driven business matchmaking algorithms eliminate guesswork, allowing MDTP members to identify and secure meetings with credible entities that align with their business requirements.

MATRADE and Fusionex have established a series of handholding programs to help Malaysian SMEs kick start their global trade activities. This programme includes business assessment, training and certification, financial assistance, cross-border eCommerce platform, and virtual engagement activities. Together, both parties aim to guide local businesses throughout their export journey, ensuring they are fully prepared and equipped to make an appearance on the global stage.

Fusionex Group CEO, Dato' Seri Ivan Teh expressed the group unwavering commitment to supporting MATRADE in realizing digital transformation in trade and propelling the efforts towards globalisation through MDTP. 

"We are honoured to join forces with MATRADE as this collaboration highlights the strength of strategic partnerships in accelerating and boosting international trade for Malaysian businesses. By establishing a digital gateway that connects Malaysia to the rest of the world, MDTP will help advance the country’s economy and achieve our goal of becoming a digitally-driven, high-income nation,” he added.