MALAYSIA EXTERNAL TRADE STATISTICS`

THE HIGHEST EVER FIRST HALF TRADE VALUE #

Highest Trade Value in the First Half of 2024 Driven by Strong Trade, Exports and Imports in June

Malaysia’s trade maintained its upward trajectory, growing consistently since January 2024 and recording an 8.7% year-on-year (y-o-y) expansion in June 2024 to RM237.81 billion. Exports registered the third consecutive month of growth, increased by 1.7% to RM126.05 billion while imports rose 17.8% to RM111.76 billion. Trade surplus amounted to RM14.29 billion, the 50th consecutive month of surplus registered since May 2020.

Export growth was contributed mainly by higher demand for machinery, equipment and parts, liquefied natural gas (LNG) as well as palm oil based manufactured products. In term of markets, export expansion was posted to major trading partners notably ASEAN, the United States (US) and Taiwan. Exports to the US and Taiwan grew significantly with double-digit expansion.

For the first half (1H) of 2024, trade increased by 8.4% to RM1.396 trillion compared to the corresponding period in 2023. Exports rose 3.9% to RM731.11 billion and imports by 13.8% to RM664.99 billion. Trade surplus of RM66.12 billion was posted for the period. Trade recorded the highest periodic values thus far.

In terms of manufactured goods, exports of machinery, equipment and parts surged by 22.3% in 1H 2024 to RM33.23 billion primarily for machines and apparatus for the manufacture of semiconductor and parts. This is in line with the projection by Semiconductor Equipment and Materials International (SEMI) that global OEM sales of Embargo until 1200 hours, Thursday, 18th July 2024 Embargo until 1200 hours, Thursday, 18th July 2024 2 semiconductor manufacturing equipment to grow by 3.4% in 2024. Malaysia was ranked the 10th largest global exporter of E&E products and the 6th largest exporter of semiconductors in 2023.

Exports of palm oil and palm oil-based products rebounded in 1H 2024 with a growth of 4.1% from negative growth recorded in 1H 2023. Palm oil exports are projected to remain strong in the second half (2H) of 2024, supported by higher demand particularly from India and the People’s Republic of China (China).

Further details of Malaysia’s Trade Performance for June 2024 and January-June 2024 are available in the Appendix below, which should be read together with the Notes accompanying this report.

 

MINISTRY OF INVESTMENT, TRADE & INDUSTRY

18 JULY 2024

 

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Export Performance of Major Sectors     

Manufactured Goods Recorded the Fourth Successive Month of Export Growth

In June 2024, exports of manufactured goods which represented 87.1% of total exports expanded by 1% to RM109.74 billion, the fourth successive month of y-o-y expansion. This was contributed by higher exports of machinery, equipment and parts, palm oilbased manufactured products, rubber products as well as optical and scientific equipment. 

Exports of mining goods (6.3% share) improved with a double-digit growth of 15.1% yo-y to RM7.95 billion attributed to higher exports of LNG due to increased volume as well as crude petroleum following higher prices. 

Meanwhile, exports of agriculture goods (6.1% share) expanded by 1.7% to RM7.63 billion, the third consecutive month of y-o-y increase. The growth was backed by strong exports of palm oil and palm oil-based agriculture products attributed to higher volume and export prices.

Major exports in June 2024:  

• E&E products, valued at RM53.24 billion and accounted for 42.2% of total exports, decreased by 1.6% compared to June 2023;
• Petroleum products, RM11.67 billion, 9.3% of total exports, ↓7.3%;
• Chemicals and chemical products, RM5.76 billion, 4.6% of total exports, ↑3.2%;
• Machinery, equipment and parts, RM5.7 billion, 4.5% of total exports, ↑25.1%; and
• Palm oil and palm oil-based agriculture products, RM5.56 billion, 4.4% of total exports, ↑0.7%.

On a month-on-month (m-o-m) basis, exports of mining goods rose 3.6% while exports of manufactured and agriculture goods contracted by 0.6% and 15.8%, respectively.

For 1H 2024, exports of manufactured goods edged up by 3.9% to RM623.71 billion compared to the same period in 2023, led by higher exports of machinery, equipment and parts, iron and steel products as well as optical and scientific equipment. Meanwhile, exports of mining goods grew by 3.5% to RM54.8 billion attributed to strong exports of crude petroleum and LNG while agriculture goods rose 3.8% to RM47.68 billion due to increased exports of palm oil and palm oil-based agriculture products as well as natural rubber.

Trade Performance with Major Markets  

In June 2024, Malaysia’s major trading partners were ASEAN, China, the US, the European Union (EU) and Taiwan, representing 68.6% share of Malaysia’s total trade.

ASEAN – Sustained Export Growth Since April 2024

In June 2024, trade with ASEAN which took up 27.3% of Malaysia’s total trade expanded by 5.2% y-o-y to RM65.03 billion. Exports increased consistently since April 2024, climbing 2.1% to RM38.48 billion buoyed by higher exports of LNG, crude petroleum as well as machinery, equipment and parts. Imports from ASEAN was up by 10% to RM26.55 billion.

Breakdown of exports to ASEAN countries: 

•	Singapore		RM20.41 billion, decreased by 3%, y-o-y;
•	Thailand		RM5.62 billion, ↑28.7%;
•	Viet Nam		RM4.74 billion, ↑15.1%;
•	Indonesia		RM4.23 billion, ↓6.9%;
•	Philippines		RM2.18 billion, ↓9.0%;
•	Brunei		RM683.3 million, ↑20.9%;
•	Myanmar		RM374.1 million, ↑4.1%;
•	Cambodia		RM232.5 million, ↓15.0%; and
•	Lao PDR		RM8.0 million, ↓56.5%.

Exports to major markets in ASEAN that recorded growth were Thailand which increased by RM1.25 billion y-o-y on higher exports of crude petroleum and Viet Nam, grew by RM623.1 million on greater exports of E&E products.

On a m-o-m basis, trade, exports and imports decreased by 5%, 4.1% and 6.2%, respectively.

For 1H 2024, trade with ASEAN edged up by 7% to RM379.96 billion compared to the same period in 2023. Exports to this region climbed 4.3% to RM219.9 billion, bolstered by strong demand for petroleum products, machinery, equipment and parts as well as crude petroleum. Imports from ASEAN grew by 10.9% to RM160.06 billion. 

China – Trade Grew Double-Digit for Three Consecutive Months

In June 2024, trade with China which absorbed 17.3% of Malaysia’s total trade expanded by 14.6% y-o-y to RM41.1 billion, the third consecutive month of double-digit expansion. Nevertheless, exports shrank 2% to RM16.36 billion due to lower exports of electrical and electronic (E&E) products. The contraction however was offset by higher exports of LNG, paper and pulp products as well as palm oil-based manufactured products. Imports from China rose 29.1% to RM24.73 billion.  

Compared to May 2024, exports expanded by 4% while trade and imports declined by 2% and 5.6%, respectively.

Trade with China in 1H 2024 expanded by 8.9% to RM234.09 billion compared to the corresponding period in 2023. Exports fell by 1.1% to RM90.7 billion on account of lower exports of E&E products but was cushioned by higher exports of paper and pulp products, LNG and manufactures of metal. Imports from China expanded by 16.5% to RM143.39 billion.

The US – Third Successive Month of Double-Digit Export Growth 

Trade with the US in June 2024 which comprised 10.4% of Malaysia’s total trade increased by 22.3% y-o-y to RM24.67 billion. Exports retained double-digit growth for the third successive month, rising by 14% to RM15.55 billion. The expansion was contributed by robust demand for E&E products, machinery, equipment and parts as well as optical and scientific equipment. Imports from the US soared by 39.6% to RM9.12 billion.

Compared to May 2024, trade, exports and imports weakened by 8.7%, 3.4% and 16.5%, respectively.

For 1H 2024, trade with the US grew by 18.8% to RM140.53 billion compared to the same period in 2023. Exports recorded double-digit expansion of 12.1% to RM86.91 billion as a result of larger exports of E&E products, machinery, equipment and parts as well as optical and scientific equipment. Imports from the US climbed 31.6% to RM53.62 billion.

The EU – Trade Remained Resilient

In June 2024, trade with the EU constituted 7.3% of Malaysia’s total trade, expanded by 1% y-o-y to RM17.34 billion. However, exports dropped 8.2% to RM8.75 billion, underpinned by lower exports of E&E products, manufactures of metal as well as optical and scientific equipment. Nevertheless, the contraction was cushioned by exports of palm oil and palm oil-based products, rubber products as well as processed food. Imports from the EU were higher by 12.5% to RM8.59 billion.

Within the EU, the top 10 markets which accounted for 90.9% of Malaysia’s total exports to the region were:

•	Netherlands	RM2.50 billion, decreased by 15.8%, y-o-y;
•	Germany	RM2.44 billion, ↓15.3%;
•	Spain	RM588.7 million, ↑20.2%;
•	Italy	RM587.7 million, ↑35.1%;
•	Belgium	RM566.0 million, ↓13.1%;
•	France	RM381.9 million, ↓7.1%;
•	Poland	RM299.7 million, ↓2.2%;
•	Hungary	RM259.2 million, ↑28.9%;
•	Czech Republic	RM184.0 million, ↓8.6%; and
•	Sweden	RM151.0 million, ↑18.9%.

Exports to the EU major markets that recorded growth were Spain, which grew by RM98.9 million y-o-y due to increased exports of palm oil-based manufactured products and Italy, expanded by RM152.5 million driven by rising demand for palm oil and palm oil-based agriculture products.

On a m-o-m basis, trade, exports and imports shrank 7.3%, 10.5% and 3.7%, respectively.

For 1H 2024, trade with the EU increased by 4.1% to RM106.05 billion compared to the corresponding period in 2023. Exports edged up by 0.1% to RM56.08 billion aided by higher exports of palm oil and palm oil-based products, processed food as well as E&E products. Imports from the EU rose 9% to RM49.97 billion.

Taiwan – The Highest Export Value Ever Recorded 

In June 2024, trade with Taiwan which made up 6.3% of Malaysia’s total trade soared by 39.1% to RM15.05 billion compared to June 2023. Exports leaped by 54.5% to RM6.11 billion, the highest value recorded thus far. The expansion was due to growing exports of E&E products as well as optical and scientific equipment. Imports from Taiwan surged by 30.2% to RM8.94 billion.

Compared to May 2024, trade, exports and imports expanded by 8.8%, 14.3% and 5.3%, respectively.

For 1H 2024, trade with Taiwan expanded by 30.7% to RM82.88 billion compared to the first six months of 2023. Exports grew significantly by 44.3% to RM30.85 billion supported by higher exports of E&E products as well as optical and scientific equipment. Imports from Taiwan were up by 23.8% to RM52.03 billion.

Trade with FTA Partners   

In June 2024, trade with FTA partners which accounted for 66% of Malaysia’s total trade increased by 5.8% y-o-y to RM157.02 billion. On the other hand, exports to FTA partners decreased marginally by 0.3% to RM87.12 billion while imports expanded by14.7% to RM69.9 billion. Despite lower overall exports to FTA partners, increases in exports were recorded to India which grew by 10.9% y-o-y to RM4.13 billion and Peru (↑24.9% to RM47 million), attributed to increased shipments of machinery, equipment and parts. Meanwhile, exports to Mexico expanded by 15.1% to RM2.11 billion, on account of higher exports of petroleum products, Turkiye (↑4.6% to RM1.48 billion, textiles, apparels and footwear), Canada (↑64% to RM550.2 million, E&E products) and Pakistan (↑26.8% to RM454.9 million, palm oil and palm oil-based agriculture products).

On a m-o-m basis, trade, exports and imports were down by 2.5%, 0.4% and 5%, respectively.

For 1H 2024, trade with FTA partners grew by 5.7% to RM922.14 billion, exports rose 1.4% to RM500.77 billion and imports increased by 11.3% to RM421.37 billion compared to the corresponding period in 2023.

Import Performance 

Total imports in June 2024 rose 17.8% y-o-y to RM111.76 billion. The three main categories of imports by end use, which accounted for 73.4% of total imports were: 

• Intermediate goods, valued at RM60.84 billion or 54.4% of total imports, surged by 37.2% y-o-y, following higher imports of parts and accessories of nontransport capital goods;

• Capital goods, valued at RM11.99 billion or 10.7% of total imports, increased by 23.5%, due to higher imports of non-transport capital goods; and
• Consumption goods, valued at RM9.25 billion or 8.3% of total imports, grew by 13.5%, as a result of higher imports of processed food and beverages mainly for household consumption.

Compared to May 2024, imports in June 2024 contracted by 5.4%. Imports of intermediate, capital and consumption goods decreased by 10.7%, 13.6% and 9.2%, respectively.

For 1H 2024, imports expanded by 13.8% to RM664.99 billion compared to the same period last year. Imports of intermediate goods increased by 21.2% to RM361.73 billion, capital goods (↑35% to RM76.95 billion) and consumption goods (↑15.2% to RM57.32 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, 26^th July 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 June 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.