Trade Performance for February 2023 and The Period of January-February 2023
Trade in February Remained Buoyant with Double Digit Growth
Malaysia’s trade performance continued its upward trajectory in February 2023. Trade registered double-digit year-on-year (y-o-y) growth, increasing by 11% to RM204.99 billion compared to February 2022. Exports grew by 9.8% to RM112.28 billion and imports expanded by 12.4% to RM92.71 billion. Trade surplus was recorded for 34 consecutive months since May 2020, valued at RM19.56 billion. Trade, exports and imports registered the highest monthly value for February.
The export growth was supported by strong exports of petroleum products, electrical and electronic (E&E) products as well as liquefied natural gas (LNG). Meanwhile, exports to major trading partners notably ASEAN and the United States (US) recorded double-digit growth.
Compared to January 2023, trade surplus grew by 7.9%, while trade, exports and imports slipped by 1.1%, 0.3% and 1.9%, respectively due to shorter working days.
For the period of January to February 2023, trade rose by 6.1% to RM412.17 billion compared to the same period of 2022. Exports expanded by 5.4% to RM224.93 billion and imports climbed by 7% to RM187.24 billion. Meanwhile, trade surplus edged down marginally by 1.8% to RM37.69 billion. Trade, exports and imports registered the highest value for the period.
Export Performance of Major Sectors
Petroleum Products, E&E Products and LNG Supported Export Growth
In February 2023, exports of manufactured goods which accounted for 85% of total exports rebounded by 9.5% y-o-y to RM95.4 billion. The increase was boosted by robust exports of petroleum products and E&E products.
Exports of mining goods (8.2% share) climbed by 34.8% y-o-y to RM9.2 billion, the 23rd consecutive month of double-digit growth, led by higher exports of LNG.
Exports of agriculture goods (6.4% share) totalled RM7.16 billion, declined by 9% compared to February 2022 due to lower exports of palm oil and palm oil-based agriculture products.
Major exports in February 2023:
;• E&E products, valued at RM44.27 billion and accounted for 39.4% of total exports, increased by 11.7% from February 2022;
• Petroleum products, RM12.26 billion, 10.9% of total exports, surged by 67.5%;
• Chemicals and chemical products, RM6.16 billion, 5.5% of total exports, decreased by 7.2%;
• LNG, RM5.42 billion, 4.8% of total exports, increased by 32.9%; and
• Palm oil and palm oil-based agriculture products, RM5.38 billion, 4.8% of total exports, decreased by 13.8%.
On a month-on-month (m-o-m) basis, exports of manufactured and agriculture goods improved by 0.6% and 2.1%, respectively while exports of mining goods fell by 10.1%.
For the period of January to February 2023, exports of manufactured goods rose by 4.4% to RM190.21 billion compared to the corresponding period last year. This was attributed to higher exports of petroleum products and E&E products.
Exports of agriculture goods was valued at RM14.16 billion, decreased by 14.7% due to lower exports of palm oil and palm oil-based agriculture products.
Exports of mining goods grew by 42.4% to RM19.43 billion boosted by higher exports of LNG and crude petroleum.
Trade Performance with Major Markets
ASEAN – Exports Recorded 19th Consecutive Month of Double-Digit Growth
In February 2023, trade with ASEAN took up 27.4% of Malaysia’s total trade, rising by 10% y-o-y to RM56.14 billion. Exports grew by 14.8% to RM33.69 billion, the 19th straight month of double-digit expansion, underpinned by higher exports of petroleum products and E&E products. Imports from ASEAN expanded by 3.5% to RM22.45 billion.
Breakdown of exports to ASEAN countries:
• Singapore RM18.48 billion, increased by 27.7%;
• Singapore RM18.48 billion, increased by 27.7%;
• Thailand RM5.06 billion, ↑6.5%;
• Indonesia RM3.85 billion, ↑13.3%;
• Viet Nam RM3.06 billion, ↓32.3%;
• Philippines RM2.08 billion, ↑32.5%;
• Brunei RM539.6 million, ↑208.3%;
• Myanmar RM391.1 million, ↑30.9%;
• Cambodia RM223.9 million, ↑47.5%; and
• Lao PDR RM7.4 million, ↑31.9%.
Exports to all ASEAN markets recorded growth except Viet Nam. Exports to major markets that recorded increases were Singapore which grew by RM4.01 billion, on account of robust exports of E&E products, Thailand (↑RM308.5 million, crude petroleum) and Indonesia (↑RM450.7 million, E&E products).
Compared to January 2023, trade and imports expanded by 1.6% and 6.1%, respectively while exports dropped by 1.2%.
For the period of January to February 2023, trade with ASEAN climbed by 7.8% to RM111.4 billion compared to the same period of 2022. Exports to this region increased by 12.7% to RM67.79 billion driven by strong exports of petroleum products, E&E products and crude petroleum. Imports from ASEAN edged up by 0.8% to RM43.61 billion.
China – Increased Demand for LNG and E&E Products
In February 2023, trade with China which comprised 16.5% of Malaysia’s total trade climbed by 5.1% y-o-y to RM33.82 billion. Exports to China was valued at RM14.36 billion, slipped by 6% on the back of lower exports of iron and steel products, petroleum products as well as chemicals and chemical products. However, increased exports were recorded for LNG and E&E products. Imports from China grew by 15.2% to RM19.46 billion.
Compared to January 2023, trade, exports and imports fell by 8.6%, 4.1% and 11.6%, respectively.
Trade with China during the period of January to February 2023 decreased by 2.1% to RM70.82 billion compared to the corresponding period of 2022. Exports shrank by 9.1% to RM29.33 billion on lower exports of iron and steel products, petroleum products as well as palm oil and palm oil-based agriculture products. However, increased exports were seen for E&E products, metalliferous ores and metal scrap as well as LNG. Imports from China edged up by 3.6% to RM41.49 billion.
The US – E&E Products Bolstered Export Expansion
Trade with the US in February 2023 which absorbed 9.2% of Malaysia’s total trade rose by 9.8% y-o-y to RM18.89 billion. Exports registered a double-digit expansion of 18.7% to RM12.33 billion, assisted by strong exports of E&E products. Imports from the US edged down by 3.9% to RM6.55 billion.
On a m-o-m basis, trade and exports grew by 1% and 2.5%, respectively while imports declined by 1.7%.
For the period of January to February 2023, trade with the US increased by 5.3% to RM37.59 billion compared to the same period of 2022. Exports expanded by 8.3% to RM24.37 billion led by robust exports of E&E products. Imports from the US was up by 0.2% to RM13.22 billion.
The EU – Trade Growth Sustained
In February 2023, trade with the European Union (EU) contributed 7.7% to Malaysia’s total trade, expanding by 4.5% y-o-y to RM15.69 billion. Exports amounted to RM8.95 billion, slipped by 2.2% following lower exports of chemicals and chemical products, rubber products and E&E products. However, export expansion were recorded for petroleum products, optical and scientific equipment as well as manufactures of metal. Imports from the EU climbed by 14.9% to RM6.74 billion.
Breakdown of exports to the top 10 EU markets which accounted for 90.6% of Malaysia’s total exports to the EU were:
• Netherlands RM2.55 billion, decreased by 12.4%;
• Netherlands RM2.55 billion, decreased by 12.4%;
• Germany RM2.48 billion, ↓4.9%;
• Belgium RM654.4 million, ↑36.9%;
• Italy RM621.6 million, ↓16.0%;
• France RM594.0 million, ↑54.2%;
• Spain RM365.4 million, ↓29.4%;
• Czech Republic RM309.1 million, ↑27.1%;
• Poland RM231.8 million, ↓10.2%;
• Malta RM171.2 million, ↑2,849.3%; and
• Hungary RM136.8 million, ↓18.1%.
Exports to the EU major markets that recorded growth were Belgium, which increased by RM176.5 million due to strong exports of palm oil and palm oil-based agriculture products and France, rose by RM208.9 million buoyed by higher exports of petroleum products.
Compared to January 2023, trade, exports and imports edged down by 7.5%, 4.3% and 11.4%, respectively.
For the first two months of 2023, trade with the EU was up by 3.5% to RM32.65 billion compared to the corresponding period of 2022. Exports stood at RM18.3 billion, a marginal decrease of 0.4% compared to the same period last year due to lower exports of rubber products, E&E products as well as palm oil and palm oil-based agriculture products. However, export expansion were recorded for petroleum products, manufactures of metal as well as machinery, equipment and parts. Imports from the EU rose by 9% to RM14.34 billion.
Japan – Export Growth Supported by LNG
In February 2023, trade with Japan which comprised 6.4% of Malaysia’s total trade edged up by 4% y-o-y to RM13.2 billion. Exports grew by 8.3% to RM7.2 billion, supported by higher exports of crude petroleum and LNG. Imports from Japan slipped by 0.8% to RM6.01 billion.
On a m-o-m basis, exports and trade declined by 12.1% and 6.3%, respectively while imports was up by 1.7%.
For the period of January to February 2023, trade with Japan increased by 6.4% to RM27.29 billion compared to the same period of 2022. Exports rose by 10.8% to RM15.39 billion driven by robust exports of LNG. Imports from Japan expanded by 1.2% to RM11.91 billion.
Trade with FTA Partners
In February 2023, trade with Free Trade Agreement (FTA) partners which represented 67.5% of Malaysia’s total trade climbed by 9.3% y-o-y to RM138.43 billion. Exports to FTA partners edged up by 10.3% to RM77.92 billion and imports grew by 8.2% to RM60.51 billion.
Increases in exports were recorded to Australia, which grew by 20% to RM3.31 billion, Mexico (↑53.4% to RM1.48 billion) and New Zealand (↑79.6% to RM589.6 million) backed by robust exports of petroleum products. Meanwhile, exports to Hong Kong SAR expanded by 25.1% to RM7.06 billion following strong exports of E&E products, the Republic of Korea (ROK) (↑26.5% to RM4.82 billion, LNG), Turkiye (↑21.4% to RM1.51 billion, iron and steel products) and Peru (↑11.8% to RM49 million, processed food).
Compared to January 2023, trade, exports and imports slipped by 2.1%, 2.6% and 1.5%, respectively.
Trade with FTA partners during the first two months of 2023 rose by 4.9% to RM279.87 billion compared to the corresponding period of 2022. Exports edged up by 6.9% to RM157.94 billion and imports increased by 2.4% to RM121.93 billion.
Import Performance
Total imports in February 2023 grew by 12.4% y-o-y to RM92.71 billion. The three main categories of imports by end use, which accounted for 68.9% of total imports were:
• Intermediate goods, valued at RM48.98 billion or 52.8% of total imports, increased by 3.3% y-o-y, following higher imports of primary fuel and lubricants;
• Capital goods, valued at RM7.89 billion or 8.5% of total imports, declined by 0.3%, due to lower imports of non-transport capital goods; and
• Consumption goods, valued at RM7.06 billion or 7.6% of total imports, grew by 1.2%, as a result of higher imports of primary food and beverages mainly for household consumption.
During the period of January to February 2023, imports of intermediate goods contracted by 0.5% to RM97.42 billion compared to the same period last year, capital goods (↓1.2% to RM17.57 billion) and consumption goods (↓2.1% to RM15.3 billion).
