MALAYSIA'S NINE-MONTH TRADE GREW 10.2% YEAR-ON-YEAR, EXCEEDED RM2-TRILLION MARK#

Trade Remains Buoyant, Contributed Mainly by Exports of Palm Oil-Based Agriculture Products

Malaysia’s trade for January to September 2024 rose 10.2% to RM2.139 trillion, exceeding the RM2 trillion mark within nine months, compared to ten months in 2023. In line with the World Trade Organization’s (WTO) projection that Asia's exports would increase by 7.4% in 2024, Malaysia’s nine-month exports expanded by 5.2% to RM1.115 trillion. Imports rose 16.1% to RM1.024 trillion, resulting in a trade surplus of RM91.21 billion.

In September 2024, Malaysia's trade performance continued its strong momentum, solidifying its upward trend, registering the ninth consecutive month of year-on-year (y-o-y) expansion. Trade increased by 4.7% to RM234.84 billion compared to September 2023 supported mainly by stronger performance of the agriculture sector.

Malaysia registered RM124.01 billion of exports, and RM110.83 billion of imports, marking a trade surplus for the 53rd consecutive month. Growth in exports were seen for optical and scientific equipment, palm oil and palm oilbased agriculture products as well as machinery, equipment and parts. In terms of markets, significant export growth was registered to the United States (US), the European Union (EU) and Taiwan. In addition, exports to Taiwan reached an all-time high, driven by exports of electrical and electronic (E&E) products particularly semiconductor devices and integrated circuits (ICs).

Supported by a robust 5.1% growth in the first half (1H) of 2024, the World Bank has revised Malaysia’s Gross Domestic Product (GDP) growth forecast to 4.9% in 2024 (cf. 4.3% in Apr 2024). Meanwhile, the WTO also revised upward the growth of world merchandise trade volume to 2.7% in 2024 (cf. 2.6% in Apr 2024), attributed to lower inflation and a more favorable interest rate environment, factors that generally encourage business spending, as well as enhancing real household income and consumer spending. This brighter outlook is reflected in Malaysia’s improved macroeconomic indicators, including trade, placing the country on track for sustained and resilient economic growth in the coming years.

Export Performance of Major Sectors     

Exports of Agriculture Goods Remained Strong

In September 2024, exports of manufactured goods which absorbed 86.2% of total exports contracted marginally by 0.5% to RM106.95 billion due to lower exports of petroleum products, E&E products as well as iron and steel products. Nonetheless, higher exports were recorded for optical and scientific equipment, machinery, equipment and parts as well as rubber products.

Exports of agriculture goods (7.3% share) marked the sixth consecutive month of y-o-y expansion, rose 10.9% to RM9 billion. This was driven by robust demand for palm oil and palm oil-based agriculture products following higher export volumes and prices.

Meanwhile, exports of mining goods (5.9% share) decreased by 7.8% y-o-y to RM7.33 billion underpinned by lower exports of crude petroleum on reduced export volumes and prices. Nevertheless, exports of liquefied natural gas (LNG) recorded expansion attributed to increased export volumes and prices.

Major exports in September 2024:  

• E&E products, valued at RM53.57 billion and accounted for 43.2% of total exports, decreased by 1.2% compared to September 2023;
• Petroleum products, RM8.18 billion, 6.6% of total exports, ↓24%;
• Palm oil and palm oil-based agriculture products, RM6.86 billion, 5.5% of total exports, ↑11.1%;
• Chemicals and chemical products, RM6.22 billion, 5% of total exports, ↑2.6%; and
• Optical and scientific equipment, RM5.78 billion, 4.7% of total exports, ↑18.2%.

On a month-on-month (m-o-m) basis, exports of mining goods expanded by 1.9%, while exports of manufactured and agriculture goods contracted by 4.5% and 1.5%, respectively.

During the first nine months of 2024, exports of manufactured goods climbed 5.2% to RM954.66 billion compared to the corresponding period in 2023, attributed to higher exports of machinery, equipment and parts, optical and scientific equipment as well as manufactures of metal. Exports of mining goods edged up by 0.7% to RM77.38 billion, buoyed by higher shipments of crude petroleum and LNG. Meanwhile, exports of agriculture goods rose 9.5% to RM75.86 billion, driven by strong exports of palm oil and palm oil-based agriculture products as well as natural rubber.

Trade Performance with Major Markets  

In September 2024, Malaysia’s trade with major trading partners namely ASEAN, China, the US, the EU and Taiwan, represented 67.6% share of Malaysia’s total trade in the month.

ASEAN – the Seventh Consecutive Month of Trade Growth

Trade with ASEAN in September 2024 which constituted 25.9% of Malaysia’s total trade increased by 0.03% y-o-y to RM60.92 billion, the seventh consecutive month of growth. Exports fell 4.6% to RM33.98 billion owing to lower demand for E&E products, optical and scientific equipment as well as crude petroleum. Amid the contraction, export expansions were recorded for petroleum products, machinery, equipment and parts as well as palm oil and palm oil-based agriculture products. Imports from ASEAN increased by 6.6% to RM26.94 billion.

Breakdown of exports to ASEAN countries: 

Exports to major markets in ASEAN that recorded growth were Thailand which rose RM180.3 million y-o-y underpinned by higher exports of crude petroleum, and to Indonesia which increased by RM287.3 million contributed by strong exports of petroleum products.

On a m-o-m basis, trade, exports and imports shrank 5.3%, 5.6% and 4.9%, respectively.

During the first nine months of 2024, trade with ASEAN expanded by 7.4% to RM576.24 billion compared to the corresponding period in 2023. Exports to this region edged up by 4.9% to RM329.99 billion on higher exports of petroleum products, machinery, equipment and parts as well as manufactures of metal. Imports from ASEAN climbed 11% to RM246.25 billion. 

China – Exports of Palm Oil and Palm Oil-Based Agriculture Products Recorded Increase

In September 2024, trade with China which contributed 15.9% to Malaysia’s total trade was down by 2.2% y-o-y to RM37.41 billion. Exports shrank by 2.9% to RM16.13 billion following lower exports of metalliferous ores and metal scrap, manufactures of metal as well as chemicals and chemical products. Nevertheless, the contraction was cushioned by robust exports of palm oil and palm oil-based agriculture products, optical and scientific equipment as well as machinery, equipment and parts which collectively increased by 37.7%. Imports from China decreased by 1.7% to RM21.28 billion.  

Compared to August 2024, exports expanded by 4%, while trade and imports contracted by 10.8% and 19.5%, respectively.

During the first nine months of 2024, trade with China grew by 9% to RM355.15 billion compared to the same period in 2023. Exports dropped by 1.9% to RM137.11 billion dragged by slower demand for E&E products, metalliferous ores and metal scrap as well as chemicals and chemical products. Conversely, higher demand was recorded for paper and pulp products as well as LNG. Imports from China were up by 17.2% to RM218.05 billion.

The US – Ninth Successive Month of Export Expansion

In September 2024, trade with the US which made up 11.5% of Malaysia’s total trade, grew by 20.6% y-o-y to RM27.06 billion. Exports recorded the ninth successive month of expansion, rising 9.1% to RM16.13 billion, boosted by exports of E&E products, manufactures of metal and rubber products. Imports from the US soared by 42.8% to RM10.93 billion.

Compared to August 2024, trade, exports and imports declined by 22.9%, 17.9% and 29.2%, respectively. 

During the first nine months of 2024, trade with the US rose 28.3% to RM234.44 billion compared to the corresponding period in 2023. Exports maintained its double-digit growth, increased by 17.6% to RM140.48 billion buoyed by robust exports of E&E products, machinery, equipment and parts as well as optical and scientific equipment. Imports from the US grew by 48.6% to RM93.96 billion.

The EU –Trade, Exports and Imports Remained Resilient

In September 2024, trade with the EU which represented 7.6% of Malaysia’s total trade rose 1.6% y-o-y to RM17.88 billion. Exports expanded by 2.1% to RM9.91 billion, contributed by higher exports of palm oil-based manufactured products, petroleum products and rubber products. Imports from the EU climbed 1.1% to RM7.97 billion.

Within the EU, the top 10 markets which accounted for 93% of Malaysia’s total exports to the region were:

Among the major export markets in the EU that recorded expansion were Germany which grew by RM275.1 million owing to strong exports of E&E products and France, which expanded by RM219.1 million backed by higher exports of petroleum products.

On a m-o-m basis, trade, exports and imports dipped by 7.6%, 4.6% and 11.1%, respectively.

During the first nine months of 2024, trade with the EU increased by 6.1% to RM163.09 billion compared to the same period in 2023. Exports edged up by 2.8% to RM86.66 billion aided by robust exports of palm oil and palm oil-based products, rubber products, and processed food. Imports from the EU climbed 10% to RM76.44 billion.

Taiwan –New Record High for Exports

In September 2024, trade with Taiwan which took up 6.6% of Malaysia’s total trade leaped by 41.3% to RM15.46 billion compared to September 2023. Exports soared to a new record high, increased by 74% to RM7.18 billion. This was also the ninth doubledigit expansion recorded, led by strong exports of E&E products, optical and scientific equipment as well as machinery, equipment and parts. Imports from Taiwan expanded by 21.5% to RM8.28 billion.

Compared to August 2024, trade and exports rose 0.3% and 34.6%, respectively while imports were down by 17.9%. 

During the first nine months of 2024, trade with Taiwan grew by 37.5% to RM129.13 billion compared to the same period in 2023. Exports remained robust, surged by 51.9% to RM48.69 billion on increased exports of E&E products, optical and scientific equipment as well as machinery, equipment and parts. Imports from Taiwan increased by 30% to RM80.44 billion.

Trade with FTA Partners   

In September 2024, trade with FTA partners which absorbed 64.4% of Malaysia’s total trade slipped marginally by 0.2% y-o-y to RM151.17 billion. Exports to FTA partners decreased by 4% to RM81.67 billion while imports expanded by 4.8% to RM69.5 billion.

Despite lower overall exports to FTA partners, increases in exports were recorded to Hong Kong SAR which grew by 3.6% y-o-y to RM9.29 billion on account of robust shipments of chemicals and chemical products, Turkiye, (↑16.8% to RM1.41 billion, iron and steel products), Australia (↑3.8% to RM4.13 billion, crude petroleum) and Canada (↑3.5% to RM407.8 million, processed food).

On a m-o-m basis, trade, exports and imports declined by 4.1%, 2.2% and 6.2%, respectively.

During the first nine months of 2024, trade with FTA partners rose 6.2% to RM1.396 trillion, exports edged up by 1.8% to RM753.81 billion and imports climbed 12% to RM641.74 billion, compared to the same period in 2023.

Import Performance 

Total imports in September 2024 expanded by 10.9% y-o-y to RM110.83 billion. The three main categories of imports by end use, which accounted for 76.2% of total imports were: 

• Intermediate goods, valued at RM58.72 billion or 53% of total imports, increased by 18.1% y-o-y, as a result of strong imports of parts and accessories of non-transport capital goods;

• Capital goods, valued at RM16.93 billion or 15.3% of total imports, soared by 56.3%, following higher imports of non-transport capital goods; and

• Consumption goods, valued at RM8.8 billion or 7.9% of total imports, edged up by 0.2%, due to higher imports of non-durables.

Imports in September 2024 declined by 10.3% compared to August 2024. Imports of capital goods grew by 13.5% while imports of intermediate and consumption goods declined by 18.9% and 14.9%, respectively.

During the first nine months of 2024, imports rose 16.1% to RM1.204 trillion compared to the corresponding period last year. Imports of intermediate goods increased by 25.2% to RM561.95 billion, capital goods (↑39.2% to RM123.9 billion) and consumption goods (↑15.3% to RM87.44 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 Monday, 28^th October 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 September 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 oilbased 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).