Perbadanan Pembangunan Perdagangan Luar Malaysia

Exports Breached RM1 trillion Mark in the First Nine Months

As compared to August 2023, Malaysia’s exports in September 2023 increased by 8.2% to RM124.47 billion. Imports expanded by 2.1% to RM99.95 billion, resulting in a total  trade of RM224.43 billion which rose by 5.4%. Trade surplus registered a double-digit  growth of 42.7% to RM24.52 billion, making it the 41st consecutive month of trade  surplus since May 2020.  

Compared to September 2022, exports was lower by 13.7% and imports edged down  by 11.1% amid slower global demand, uncertainties in commodity prices and high base effect last year. Subsequently, total trade was lower by 12.6%. The performance was  similar to Malaysia’s major trading partners notably the Republic of Korea (ROK), China,  Taiwan and Indonesia which recorded negative trade growth for September 2023 and  drop in their global imports. Trade surplus in September 2023 contracted by 23%, year on-year (y-o-y). 

Trade for the third quarter (Q3) of 2023 increased by 1.6% to RM653.57 billion  compared to second quarter (Q2) of 2023. Exports grew by 2.2% to RM356.31 billion,  imports expanded by 0.8% to RM297.26 billion and trade surplus rose by 9.6% to  RM59.06 billion, respectively. 

However, trade, exports, imports and trade surplus declined by 15.7%, 15.2%, 16.3%  and 9.1%, respectively compared to the Q3 of 2022.  

For the period of January to September 2023, trade contracted by 8.6% to RM1.942  trillion compared to the same period of last year. Exports surpassed RM1 trillion mark to RM1.060 trillion, declining by 8.4%. Imports edged down by 8.9% to RM882.24 billion  and trade surplus was lower by 5.7% to RM177.32 billion.

Export Performance of Major Sectors

Higher Exports of Manufactured and Agriculture Goods, M-o-M 

In September 2023, exports of manufactured goods which represented 86.5% or  RM107.7 billion of total exports dipped by 11.8% y-o-y as a result of lower demand for  petroleum products, electrical and electronic (E&E) products as well as chemicals and  chemical products. However, exports of processed food as well as paper and pulp  products registered expansion. 

Exports of agriculture goods (6.5% share) decreased by 23.1% to RM8.04 billion  compared to September 2022 following lower exports of palm oil and palm oil-based  agriculture products that was affected significantly by weaker export prices of palm oil. 

Exports of mining goods (6.4% share) eased by 28% y-o-y to RM7.98 billion attributed  to lesser exports of liquefied natural gas (LNG) and crude petroleum. 

Major exports in September 2023:  

• E&E products, valued at RM54.4 billion and accounted for 43.7% of total exports,  decreased by 5.3% compared to September 2022;  
• Petroleum products, RM10.76 billion, 8.6% of total exports, ↓37.9%;  • Palm oil and palm oil-based agriculture products, RM6.09 billion, 4.9% of total  exports, ↓26.5%; 
• Chemicals and chemical products, RM6.07 billion, 4.9% of total exports, ↓12.4%;  and
• Machinery, equipment and parts, RM5.05 billion, 4.1% of total exports, ↓4.6%. 

On a month-on-month (m-o-m) basis, exports of manufactured and agriculture goods  edged up by 9.6% and 5.8%, respectively while exports of mining goods dropped by  5.5%. 

For the period of January to September 2023, exports of manufactured goods fell by  6.7% to RM908.23 billion compared to the same period of 2022 on account of  decreased exports of petroleum products, palm oil-based manufactured products and  manufactures of metal. However, strong exports of paper and pulp products as well as  processed food cushioned the impact of the decline. 

Exports of mining goods shrank by 11.6% to RM76.23 billion owing to lower shipments  of LNG, crude petroleum as well as petroleum condensates and other petroleum oil. 

Exports of agriculture goods reduced by 25.5% to RM68.84 billion, underpinned by  lesser exports of palm oil and palm oil-based agriculture products following the  decrease in export prices of palm oil. 

Trade Performance with Major Markets

Double-Digit Export Growth to Viet Nam Supported by E&E Products 

In September 2023, trade with ASEAN took up 27.1% or RM60.91 billion of Malaysia’s  total trade, contracted by 10.2% y-o-y. Exports edged down by 10.9% to RM35.63 billion  as lower exports was mainly seen for petroleum products. The contraction however was  softened by higher exports of LNG as well as machinery, equipment and parts. Imports  from ASEAN was lower by 9.3% to RM25.28 billion. 

Breakdown of exports to ASEAN countries:  

• Singapore RM18.48 billion, decreased by 12%, y-o-y; • Viet Nam RM5.33 billion, ↑12.1%; 
• Thailand RM4.71 billion, ↑4.8%;
• Indonesia RM3.98 billion, ↓31.7%;
• Philippines RM2.09 billion, ↓11.1%; 
• Brunei RM623.5 million, ↓37%; 
• Myanmar RM268.6 million, ↓14.5%; 
• Cambodia RM121.5 million, ↓2.3%; and 
• Lao PDR RM16.8 million, ↓84.3%. 

Exports to ASEAN major markets that recorded expansion were Viet Nam which grew  by RM576 million buoyed by higher exports of E&E products, and Thailand which  increased by RM213.8 million backed by strong exports of crude petroleum. 

However, trade and exports edged up by 2.7% and 6.8%, respectively while imports  was lower by 2.7%, compared to August 2023. 

For the period of January to September 2023, trade with ASEAN decreased by 7.8% to  RM536.11 billion compared to the corresponding period of 2022. Exports contracted by  6.9% to RM314.24 billion resulting from lower shipments of petroleum products,  chemicals and chemical products as well as palm oil and palm oil-based agriculture  products. Nonetheless, higher exports were recorded for non-metallic mineral products,  beverages and tobacco as well as processed food. Imports from ASEAN dropped by  9.2% to RM221.87 billion. 

China - Exports Recorded Double-Digit Growth, M-o-M 

In September 2023, trade with China which composed 17.1% or RM38.27 billion of  Malaysia’s total trade fell at a slower pace of 12.8% y-o-y compared to 18.7%  contraction recorded last month. Exports to China slipped by 17.3% to RM16.62 billion  attributed to decreased exports of LNG, palm oil and palm oil-based agriculture  products, E&E products as well as optical and scientific equipment. Despite the  contraction, export expansion was registered for paper and pulp products, processed  food and manufactures of metal. Imports from China reduced by 9% to RM21.65 billion. 

Compared to August 2023, trade, exports and imports climbed by 7.3%, 12.9% and  3.4%, respectively.

For the period of January to September 2023, trade with China contracted by 9.2% to  RM326.77 billion compared to the same period of 2022. Exports edged down by 9.8%  to RM140.22 billion due to decreased exports of E&E products, iron and steel products,  as well as palm oil and palm oil-based agriculture products. Conversely, increased  exports was seen for paper and pulp products, metalliferous ores and metal scrap as  well as transport equipment. Imports from China was lower by 8.7% to RM186.55 billion. 

The US – Trade, Exports and Imports Recorded M-o-M Expansion 

Trade with the United States (US) in September 2023 which accounted for 10% of  Malaysia’s total trade declined by 15.9% y-o-y to RM22.46 billion. Exports decreased  by 9.3% to RM14.79 billion following lower demand for E&E products, machinery,  equipment and parts as well as palm oil-based manufactured products. On the contrary,  expansion in exports was recorded for chemicals and chemical products, non-metallic  mineral products as well as optical and scientific equipment. Imports from the US dipped by 26.4% to RM7.67 billion. 

On a m-o-m basis, trade, exports and imports increased by 8.6%, 9.5% and 7.1%,  respectively. 

During the first nine months of 2023, trade with the US contracted by 8.1% to RM182.74  billion compared to the same period of 2022. Exports dropped by 3.6% to RM119.45  billion on account of reduced exports of wood products, rubber products as well as iron  and steel products. Nevertheless, expansion in exports was registered mainly for E&E  products. Imports from the US fell by 15.5% to RM63.29 billion. 

The EU – Exports of E&E Products Remained Robust 

In September 2023, trade with the European Union (EU) comprised 7.8% of Malaysia’s  total trade, shrank by 3.4% y-o-y to RM17.57 billion. Exports slipped by 8.3% to  RM9.71 billion owing to lower shipments of petroleum products, palm oil and palm oil based products as well as iron and steel products. Nonetheless, the drop was softened by export growth of E&E products, processed food as well as manufactures of metal.  Imports from the EU expanded by 3.4% to RM7.87 billion. 

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

• Netherlands RM3.26 billion, decreased by 10.0%, y-o-y; • Germany RM2.80 billion, ↑11.6%; 
• Belgium RM770.0 million, ↓8.5%; 
• Italy RM571.2 million, ↓9.6%; 
• France RM359.0 million, ↓38.0%; 
• Poland RM290.3 million, ↑2.2%; 
• Spain RM250.3 million, ↓48.4%; 
• Hungary RM238.6 million, ↑16.4%;  
• Czech Republic RM199.4 million, ↓41.4%; and 
• Finland RM137.5 million, ↑27.8%. 

Exports to the EU markets that recorded growth were Germany which increased by  RM290.8 million, Hungary (↑RM33.6 million) and Finland (↑RM29.9 million), owing to strong exports of E&E products. Meanwhile, exports to Poland rose by RM6.3 million  following higher exports of machinery, equipment and parts. 

Compared to August 2023, trade and exports climbed by 0.5% and 1.4%, respectively  while imports contracted by 0.6%. 

During the first nine months of 2023, trade with the EU contracted by 3.8% to RM153.7  billion compared to the same period of 2022. Exports edged down by 10% to  RM84.3 billion underpinned by lower exports of palm oil and palm oil-based products  as well as rubber products while higher demand was seen for optical and scientific  equipment, processed food as well as other vegetable oil. Imports from the EU was up  by 5% to RM69.4 billion. 

Japan – Trade and Imports Grew, M-o-M 

In September 2023, trade with Japan which absorbed 5.8% or RM12.95 billion of  Malaysia’s total trade fell by 23.6% y-o-y. Exports decreased by 25.4% to RM7.35 billion  on lower shipments of LNG, E&E products as well as petroleum products while higher  demand was seen for crude petroleum, optical and scientific equipment as well as  textiles, apparels and footwear. Imports from Japan dipped by 21% to RM5.6 billion. 

On a m-o-m basis, trade and imports expanded by 2.7% and 8%, respectively while  exports eased by 1.1%. 

In January to September 2023, trade with Japan weakened by 13.4% to RM116.98 billion compared to the same period of 2022. Exports dropped by 12.1% to RM64.28  billion due to reduced exports of LNG as well as petroleum products. However, higher  demand was recorded for crude petroleum and optical and scientific equipment. Imports  from Japan fell by 15% to RM52.7 billion. 

Trade with FTA Partners  

In September 2023, trade with Free Trade Agreement (FTA) partners which contributed  67.5% or RM151.42 billion to Malaysia’s total trade slipped by 11.9% y-o-y. Exports to  FTA partners contracted by 14.5% to RM85.1 billion and imports shrank by 8.3% to  RM66.32 billion.  

In term of markets, increases in exports were recorded to Türkiye which grew by 0.01%  to RM1.21 billion driven by solid exports of E&E products. Meanwhile, exports to New  Zealand edged up by 15.5% to RM714.6 million led by higher exports of petroleum  products and exports to Pakistan (↑23.6% to RM479.7 million, palm oil and palm oil based agriculture products). 

Compared to August 2023, trade, exports and imports expanded by 5.5%, 7.3% and  3.2%, respectively.

Trade with FTA partners during the first nine months of 2023 contracted by 8.3% to  RM1.314 trillion compared to the same period of last year. Exports was lower by 7% to  RM739.86 billion and imports decreased by 9.9% to RM573.64 billion. 

Import Performance 

Total imports in September 2023 contracted by 11.1% y-o-y to RM99.95 billion. The  three main categories of imports by end use, which accounted for 69.2% of total imports  were:  

• Intermediate goods, valued at RM49.51 billion or 49.5% of total imports,  declined by 15.6% y-o-y, following lower imports of primary fuel and lubricants; 
• Capital goods, valued at RM10.91 billion or 10.9% of total imports, reduced by  5.8%, due to lower imports of industrial transport equipment; and 
• Consumption goods, valued at RM8.77 billion or 8.8% of total imports, dipped  by 0.6%, as a result of lower imports of non-durables. 

During the period of January to September 2023, imports weakened by 8.9% to  RM882.24 billion compared to the corresponding period of 2022. Imports of  intermediate goods dropped by 15.6% to RM448.98 billion compared to the same period  last year, capital goods (↑0.2% to RM89.07 billion) and consumption goods (↓1.2% to  RM75.79 billion).