Trade Performance for January 2023
Highest Trade, Exports and Imports for January
Malaysia’s trade performance maintained its upward momentum in January 2023 with trade, exports and imports registering the highest monthly value for the month of January. Trade expanded by 1.9% year-on-year (y-o-y) to RM207.51 billion. Exports rose by 1.6% to RM112.84 billion and imports was higher by 2.3% to RM94.67 billion. Trade surplus amounted to RM18.16 billion, a decrease of 2.1%. This marked the 33rd consecutive month of trade surplus since May 2020.
The export expansion was bolstered by strong exports of petroleum products, liquefied natural gas (LNG) as well as electrical and electronic (E&E) products. Exports to major trading partners notably ASEAN and Japan recorded double-digit growth.
Compared to December 2022, trade, exports, imports and trade surplus contracted by 11.8%, 14.4%, 8.6% and 35.5%, respectively, due to shorter working days and long festive holidays.
Export Performance of Major Sectors
Exports of E&E Products Remained Robust
In January 2023, exports of manufactured goods which accounted for 84.2% of total exports decreased marginally by 0.1% y-o-y to RM94.97 billion. This was due to lower exports of manufactures of metal, rubber products as well as iron and steel products.
However, expansion in exports was seen for petroleum products, E&E products, optical and scientific equipment as well as beverages and tobacco. Collectively, exports of petroleum products and E&E products accounted for 52.2% of Malaysia’s total exports and rose by RM7.66 billion.
Exports of mining goods (9.1% share) soared by 50.1% y-o-y to RM10.23 billion, the 22nd successive month of double-digit growth which was led by higher exports of LNG.
Exports of agriculture goods (6.2% share) declined by 19.8% to RM7.01 billion compared to January 2022 due to lower exports of palm oil and palm oil-based agriculture products.
Major exports in January 2023:
• E&E products, valued at RM46.96 billion and accounted for 41.6% of total exports, increased by 4.7% from January 2022;
• Petroleum products, RM11.92 billion, 10.6% of total exports, surged by 87.5%;
• LNG, RM6.68 billion, 5.9% of total exports, surged by 62.3%;
• Chemicals and chemical products, RM5.78 billion, 5.1% of total exports, decreased by 6.6%; and
• Palm oil and palm oil-based agriculture products, RM5.29 billion, 4.7% of total exports, decreased by 23.2%.
On a month-on-month (m-o-m) basis, exports of mining goods edged up by 5.8% while exports of manufactured and agriculture goods declined by 14% and 36.4%, respectively.
Trade Performance with Major Markets
ASEAN – Exports Recorded 18th Consecutive Month of Double-Digit Growth
In January 2023, trade with ASEAN contributed 26.6% to Malaysia’s total trade, rising by 5.6% y-o-y to RM55.26 billion. Exports grew by 10.7% to RM34.1 billion, the 18th consecutive month of double-digit growth. This was underpinned by higher exports of petroleum products and E&E products. Imports from ASEAN declined by 1.8% to RM21.16 billion.
Breakdown of exports to ASEAN countries:
• Singapore RM17.92 billion, increased by 19%;
• Thailand RM5.63 billion, ↑8.3%;
• Viet Nam RM3.90 billion, ↓7.9%;
• Indonesia RM3.47 billion, ↓1.8%;
• Philippines RM1.84 billion, ↑1.6%;
• Brunei RM588.6 million, ↑45.6%;
• Myanmar RM505.3 million, ↑50.1%;
• Cambodia RM238.5 million, ↑13.1%; and
• Lao PDR RM7.8 million, ↑112.9%.
Exports to ASEAN major markets that recorded increases were Singapore which grew by RM2.86 billion, on account of robust exports of E&E products and Thailand (↑RM431.4 million, petroleum products).
Compared to December 2022, trade, exports and imports dropped by 11.6%, 10.3% and 13.6%, respectively.
China – Exports of E&E Products Remained Resilient
In January 2023, trade with China which made up 17.8% of Malaysia’s total trade contracted by 7.9% y-o-y to RM37.01 billion. Exports to China was valued at RM14.98 billion, declined by 11.9% on lower exports of iron and steel products as well as petroleum products. However, higher exports was recorded for chemicals and chemical products as well as E&E products. Imports from China slipped by 4.9% to RM22.03 billion.
Compared to December 2022, trade, exports and imports reduced by 11.7%, 16.6% and 8.1%, respectively.
44The US – Trade Maintained Positive Expansion
Trade with the United States (US) in January 2023, which accounted for 9% of Malaysia’s total trade rose by 1.2% y-o-y to RM18.72 billion. Exports amounted to RM12.05 billion, a marginal decrease of 0.6% due to lower exports of iron and steel products as well as wood and rubber products. However, the contraction was cushioned by higher exports of E&E products, petroleum products as well as palm oil and palm oil-based agriculture products. Imports from the US edged up by 4.7% to RM6.67 billion.
On a m-o-m basis, trade, exports and imports shrank by 16.8%, 22% and 5.3%, respectively.
The EU – Trade Remained Buoyant
In January 2023, trade with the European Union (EU) which represented 8.2% of Malaysia’s total trade grew by 3.5% y-o-y to RM17.09 billion. Exports rose by 1.4% to RM9.35 billion, aided by robust exports of petroleum products, manufactures of metal as well as machinery, equipment and parts. Imports from the EU expanded by 6.1% to RM7.74 billion.
Breakdown of exports to the top 10 EU markets which accounted for 92.5% of Malaysia’s total exports to the EU were:
• Netherlands RM2.87 billion, decreased by 3.1%;
• Germany RM2.29 billion, ↓4.1%;
• Belgium RM934.9 million, ↑62%;
• France RM608.7 million, ↑40.8%;
• Spain RM546.4 million, ↑54.6%;
• Italy RM468.6 million, ↓33.2%;
• Czech Republic RM382.8 million, ↑56.1%;
• Poland RM244.6 million, ↓24.2%;
• Hungary RM181.6 million, ↓35.2%; and
• Sweden RM124.7 million, ↓16.2%.
Exports to the EU major markets that recorded growth were Belgium, which increased by RM357.7 million and France (↑RM176.3 million) due to higher exports of petroleum products, while exports to Spain rose by RM192.9 million attributed to strong exports of palm oil-based manufactured products.
Compared to December 2022, trade, exports and imports decreased by 16%, 22.9% and 5.8%, respectively.
Japan – Double-Digit Export Growth Supported by LNG
In January 2023, trade with Japan which comprised 6.8% of Malaysia’s total trade rose by 8.8% y-o-y to RM14.09 billion. Exports increased by 13.2% to RM8.19 billion, the 23rd successive month of double-digit expansion contributed by higher exports of LNG. Imports from Japan expanded by 3.2% to RM5.9 billion.
On a m-o-m basis, exports increased by 3.6% while trade and imports contracted by 3.8% and 12.5%, respectively.
Trade with FTA Partners
In January 2023, trade with Free Trade Agreement (FTA) partners which took up 68.2% of Malaysia’s total trade increased by 0.9% y-o-y to RM141.46 billion. Exports to FTA partners rose by 3.9% to RM80.03 billion and imports slipped by 2.6% to RM61.44 billion.
Increases in exports were recorded to Australia, which grew by 27.8% to RM3.63 billion and New Zealand (↑176% to RM821 million), supported by strong exports of petroleum products. Meanwhile, exports to Hong Kong SAR expanded by 4% to RM7.13 billion due to strong exports of iron and steel products, the Republic of Korea (ROK) (↑4.1% to RM4.01 billion, LNG), Mexico (↑61.5% to RM1.81 billion, E&E products) and Peru (↑103.5% to RM101.9 million, chemicals and chemical products).
Compared to December 2022, trade, exports and imports declined by 10.6%, 11.1% and 10.1%, respectively.
Import Performance
In January 2023, the three main categories of imports by end use, which accounted for 70.3% of total imports were:
• Intermediate goods, valued at RM48.56 billion or 51.3% of total imports, decreased by 3.9%, following lower imports of parts and accessories for non-transport capital goods;
• Capital goods, valued at RM9.7 billion or 10.2% of total imports, declined by 1.7%, due to lower imports of non-transport capital goods; and
• Consumption goods, valued at RM8.25 billion or 8.7% of total imports, slipped by 4.7%, as a result of lower imports of durables.
