MALAYSIA’S TRADE FOR MAY 2024 HITS TWENTY-MONTH RECORD HIGH^#

Double-Digit Growth Results in the Highest Trade Value Since October 2022, Signalling Firm Trade Recovery for 2024

Malaysia’s trade remained resilient and buoyant in May 2024, recording a double-digit year-on-year (y-o-y) growth of 10.3% to RM246.31 billion. This was the highest value recorded since October 2022 and the fifth consecutive month of y-o-y expansion. Exports increased for the second consecutive month, expanding by 7.3% to RM128.22 billion. Meanwhile, imports grew by 13.8% to RM118.09 billion, resulting in a trade surplus of RM10.14 billion and the 49^th consecutive month of surplus since May 2020.

The growth in exports was contributed mainly by strong exports of electrical and electronic (E&E) products, palm oil and palm oil-based agriculture products, manufactures of metal, optical and scientific equipment as well as iron and steel products. Exports of E&E products sustained positive growth for the second consecutive month. Signs of economic recovery in the nation’s key export markets were seen where exports to major trading partners namely ASEAN, the People’s Republic of China (China), the United States (US), the European Union (EU) and Japan recorded increases. Exports to ASEAN and the US grew significantly with double-digit expansion. Similarly, exports to Free Trade Agreement (FTA) partners increased by 4.5% y-o-y to RM87.64 billion. Among the FTA partners that registered export expansion were Mexico and Canada, driven by higher exports of E&E products.

Trade, exports and imports during the first five months of 2024 recorded the highest periodic values. Trade grew by 8.7% to RM1.158 trillion compared to the corresponding period in 2023. Exports increased by 4.5% to RM605.25 billion and imports were higher by 13.7% to RM553.24 billion. Trade surplus of RM52.01 billion were posted for the period. 

Meanwhile, compared to April 2024, trade performance in May 2024 was seen resilient with trade, exports, imports and trade surplus recorded double-digit growth of 11.1%, 11.8%, 10.4% and 30.9%, respectively. 

World Bank in its June 2024 Global Economic Prospects Report, projected global Gross Domestic Product (GDP) growth to increase by 2.6% in 2024 (forecast in January 2024: 2.4%) amid stronger than expected economic performance in the US. It also estimated Malaysia’s GDP growth to edge up by 4.3% in 2024.

Moving forward, Malaysia’s manufacturing sector is poised for positive growth in 2024, supported by industrial reforms spearheaded by MITI and a promising uptick in global semiconductor demand projections. Recently, the World Semiconductors Trade Statistics (WSTS) forecast that the global semiconductor market will see a robust growth of 16% in 2024 on the back of stronger performance in computing end-markets. Malaysia was ranked the 10^th largest global exporter of E&E products and the 6^th largest exporter of semiconductors in 2023. 

Export Performance of Major Sectors     

Exports of Manufactured and Agriculture Goods Sustained Growth

In May 2024, exports of manufactured goods which made up 86.2% of total exports posted the third consecutive month of y-o-y expansion, expanding by 8.3% to RM110.55 billion. The increase was buoyed by strong exports of E&E products, manufactures of metal as well as optical and scientific equipment. Exports of E&E products sustained positive growth for the second consecutive month.

Exports of agriculture goods (7.1% share) in May 2024 maintained double-digit y-o-y growth for the second time in a row, increased by 22.1% to RM9.07 billion. This was bolstered by rising exports of palm oil and palm oil-based agriculture products on higher volume and export prices. 

Meanwhile, exports of mining goods (6% share) declined by 17.2% y-o-y to RM7.68 billion attributed to lower shipments of liquefied natural gas (LNG) due to lower volume and price. 

Major exports in May 2024:  

• E&E products, valued at RM50.14 billion and accounted for 39.1% of total exports, increased by 7.6% compared to May 2023;
• Petroleum products, RM11.25 billion, 8.8% of total exports, ↓18.6%;
• Palm oil and palm oil-based agriculture products, RM6.8 billion, 5.3% of total exports, ↑25.7%;
• Chemicals and chemical products, RM6.31 billion, 4.9% of total exports, ↑0.8%; and
• Manufactures of metal, RM6.02 billion, 4.7% of total exports, ↑27.6%.

On a month-on-month (m-o-m) basis, exports of manufactured and agriculture goods were up by 13.6% and 10.8%, respectively but exports of mining goods slipped by 6.6%.

During the first five months of 2024, exports of manufactured goods continued registering growth by posting a 4.5% expansion to RM514.14 billion compared to the same period in 2023, aided by higher exports of machinery, equipment and parts, iron and steel products as well as manufactures of metal. Exports of mining goods increased by 2.9% to RM46.86 billion backed by robust exports of crude petroleum while agriculture goods grew by 4.8% to RM40.06 billion on rising exports of palm oil and palm oil-based agriculture products.

Trade Performance with Major Markets   

ASEAN – Exports Maintained Resilience with Double-Digit Expansion

In May 2024, trade with ASEAN which comprised 27.8% of Malaysia’s total trade expanded by 7.6% y-o-y to RM68.44 billion. Exports registered the second successive month of double-digit expansion, rising by 10.4% to RM40.14 billion as a result of higher exports of E&E products, petroleum products as well as iron and steel products. Imports from ASEAN expanded by 3.9% to RM28.3 billion.

Breakdown of exports to ASEAN countries: 

Exports to major markets in ASEAN that recorded growth were Singapore which grew by RM2.69 billion y-o-y contributed by increased exports of E&E products, Viet Nam (↑RM719.6 million) and Indonesia (↑RM109.6 million), led by increased exports of petroleum products, respectively.

On a m-o-m basis, trade, exports and imports expanded by 12.5%, 16.8% and 7%, respectively. 

During the first five months of 2024, trade with ASEAN increased by 7.5% to RM314.95 billion as opposed to the same period in 2023. Exports to this region rose 4.9% to RM181.43 billion following higher demand for petroleum products, machinery, equipment and parts as well as iron and steel products. Imports from ASEAN expanded by 11.2% to RM133.51 billion. 

China – Exports Sustained Growth for Two Consecutive Months

In May 2024, trade with China which made up 17% of Malaysia’s total trade registered a double-digit y-o-y expansion of 13.2% to RM41.94 billion, the third consecutive month of positive growth. Exports grew for two straight months, increased by 1.6% to RM15.73 billion supported by higher demand for paper and pulp products, petroleum products as well as palm oil and palm oil-based agriculture products. Imports from China rose 21.5% to RM26.2 billion.  

Compared to April 2024, trade, exports and imports increased by 8.1%, 11.5% and 6.2%, respectively.

Trade with China in January to May 2024 rose 7.4% to RM192.99 billion compared to the corresponding period in 2023. Nonetheless, exports contracted by 1.3% to RM74.33 billion waned by lower exports of E&E products. Amid the contraction, export expansion was recorded for paper and pulp products, manufactures of metal and petroleum products. Imports from China expanded by 13.6% to RM118.66 billion.

The US – E&E Products Drove Export Growth

Trade with the US in May 2024 which represented 11% of Malaysia’s total trade surged by 30.5% y-o-y to RM27.02 billion. Exports sustained y-o-y expansion for the fifth successive month, grew by 17.4% to RM16.09 billion on solid exports of E&E products.

Imports from the US increased by 56.4% to RM10.93 billion. Compared to April 2024, trade, exports and imports posted a double-digit expansion of

During the first five months of 2024, trade with the US increased by 18.1% to RM115.86 billion compared to the same period in 2023. Exports remained robust, recording a double-digit expansion of 11.6% to RM71.37 billion backed by higher exports of E&E products, machinery, equipment and parts as well as optical and scientific equipment. Imports from the US climbed 30% to RM44.49 billion.

The EU – Trade, Exports and Imports Remained Buoyant

In May 2024, trade with the EU which composed 7.6% of Malaysia’s total trade retained its double-digit growth for the second month in a row, expanding by 10.1% y-o-y to RM18.72 billion. Exports grew by 7.2% to RM9.81 billion, attributed to increased exports of palm oil and palm oil-based products, optical and scientific equipment as well as chemicals and chemical products. Imports from the EU were higher by 13.4% to RM8.91 billion.

Within the EU, the top 10 markets which accounted for 92.4% of Malaysia’s total exports to the region were:

Exports to the EU major markets that recorded growth were the Netherlands, which grew by RM314.9 million y-o-y, due to strong exports of palm oil-based manufactured products, Germany (↑RM105 million), Italy (↑RM193.2 million) and Spain (↑RM26.2 million), driven by robust exports of palm oil and palm oil-based agriculture products.

On a m-o-m basis, trade, exports and imports grew by 5.8%, 9.4% and 2.2%, respectively.

During the period of January to May 2024, trade with the EU rose 4.8% to RM88.73 billion compared to the corresponding period in 2023. Exports edged up by 1.9% to RM47.36 billion as a result of solid exports of E&E products. Imports from the EU expanded by 8.4% to RM41.37 billion.

Japan – Exports Rebounded after Two Consecutive Months of Contraction

In May 2024, trade with Japan which constituted 5.5% of Malaysia’s total trade edged up by 0.9% to RM13.56 billion compared to May last year. Exports recovered by 2.4% to RM7.34 billion after two consecutive months of contraction due to growing exports of optical and scientific equipment, processed food and petroleum products. Imports from Japan shrank by 0.8% to RM6.22 billion.

Compared to April 2024, trade, exports and imports expanded by 14.4%, 27.7% and 1.9%, respectively.

During the period of January to May 2024, trade growth with Japan remained positive with a 0.4% increase to RM67.24 billion compared to the first five months of 2023. Exports improved by 0.3% to RM36.94 billion boosted by robust exports of crude petroleum, processed food as well as optical and scientific equipment. Imports from Japan inched up by 0.5% to RM30.3 billion.

Trade with FTA Partners   

In May 2024, trade with FTA partners which accounted for 65.4% of Malaysia’s total trade was higher by 5.5% y-o-y to RM161.2 billion. Exports to FTA partners rose 4.5% to RM87.64 billion while imports climbed 6.6% to RM73.56 billion. 

Export expansion were recorded to India which increased by 26.4% y-o-y to RM5.07 billion contributed by strong shipments of palm oil and palm oil-based agriculture products, Mexico (↑17.6% to RM1.58 billion) and Canada (↑124.4% to RM812 million), on account of robust exports of E&E products. Exports to Turkiye soared by 46% to RM2.05 billion, owing to higher exports of iron and steel products and exports to Chile surged by 99% to RM89.3 million, underpinned by higher demand for chemicals and chemical products.

On a m-o-m basis, trade, exports and imports were up by 8.9%, 12.4% and 5%, respectively.

During the period of January to May 2024, trade with FTA partners grew by 5.7% to RM765.29 billion, exports edged up by 1.9% to RM413.81 billion and imports increased by 10.6% to RM351.48 billion compared to the corresponding period in 2023.

Import Performance 

Total imports in May 2024 rose 13.8% y-o-y to RM118.09 billion. The three main categories of imports by end use, which accounted for 78.1% of total imports were: 

• Intermediate goods, valued at RM68.13 billion or 57.7% of total imports, increased by 24.1% y-o-y, following higher imports of parts and accessories of non-transport capital goods;

• Capital goods, valued at RM13.9 billion or 11.8% of total imports, surged by 40.5%, due to higher imports of non-transport capital goods; and

• Consumption goods, valued at RM10.17 billion or 8.6% of total imports, grew by 14.7%, as a result of higher imports of durables.

Compared to April 2024, imports in May 2024 grew by 10.4%. Imports of intermediate, capital and consumption goods rose 15.1%, 26.3% and 4.3%, respectively.

During the first five months of 2024, imports expanded by 13.7% to RM553.24 billion compared to the same period last year. Imports of intermediate goods increased by 19.8% to RM300.89 billion, capital goods (↑37.4% to RM64.98 billion) and consumption goods (↑15.5% to RM48.06 billion).

Notes:

• It should be noted that, conceptually, the export and import figures in the external trade statistics are different from that in the goods account of the balance of payments compilation. The compilation of international merchandise trade statistics is usually based on customs records, which essentially reflect the physical movement of goods across borders and follow international guidelines on concepts and definitions i.e. International Merchandise Trade Statistics: Concepts and Definitions 2010 (IMTS 2010) which is different from the principles of the System of National Accounts (SNA) and the Balance of Payments Compilation. Goods are defined in the SNA as “physical objects for which a demand exists, over which ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets”.

• “This is a preliminary release, full details would be published in the “MONTHLY EXTERNAL TRADE STATISTICS” report by the Department of Statistics, Malaysia, to be disseminated on Friday, 28^th June 2024 and can be downloaded through statistic at the Department of Statistics, Malaysia’s portal (https://newss.statistics.gov.my/newss-portalx/ep/epLogin.seam).

• This media release can be accessed through the portal of Malaysian External Trade Statistics, Ministry of International Trade and Industry (http://www.miti.gov.my) and Malaysia External Trade Development Corporation (http://www.matrade.gov.my).

• The May 2024 data is provisional and subject to revisions in later issue.

• With effect from reference month April 2018, selection of codes for exports and imports of palm oil and palm oil-based products has been reviewed and revised for better representation of the product and this has resulted in some changes to the data

• FTA partners comprise of 22 countries: China, Singapore, Japan, Thailand, Republic of Korea, Indonesia, India, Australia, Viet Nam, Philippines, New Zealand, Türkiye, Pakistan, Myanmar, Cambodia, Brunei, Chile, Lao PDR, Hong Kong SAR, Canada, Mexico and Peru.

• With effect from reference month of February 2020, the United Kingdom is no longer a Member State of the European Union (EU).

• Commencing from reference month of June 2022, Harmonised Commodity description and Coding system 2022 (HS2022) also known as Customs Duties Order (PDK) 2022 was used for the processing of external trade statistics (merchandise). This coding classification replaced the HS2017 which were in use from April 2017 to May 2022. However, for Standard International Trade Classification (SITC) Rev.4 is still in use with appropriate update.

• The WTO refers to world merchandise trade volume while the IMF refers to world trade volume (goods and services).

• Total figure may not add up exactly due to rounding.