Trade Performance for August 2022 and The Period of January-August 2022
Exports Breached RM1 Trillion Mark in Eight Months
.Malaysia’s trade remained sturdy in August 2022 with double-digit growth recorded for trade, exports and imports. This was the highest monthly value for the month of August. Trade surged by 56.7% to RM265.74 billion compared to August 2021, the 19th consecutive month of double-digit growth. Exports increased by 48.2% to RM141.33 billion, the 13th successive month of double-digit growth. Imports leaped by 67.6% to RM124.41 billion and trade surplus contracted by 19.9% to RM16.92 billion.
The export expansion was attributed to higher shipments of electrical and electronic (E&E) products, petroleum products, palm oil and palm oil-based agriculture products, liquefied natural gas (LNG) as well as optical and scientific equipment. Exports of petroleum products, LNG as well as optical and scientific equipment registered the highest monthly value. Meanwhile, exports to major trading partners notably ASEAN, China, the United States (US), the European Union (EU) and Japan recorded double-digit growth. Highest monthly export value was registered to Japan.
On a month-on-month (m-o-m) basis, trade, exports, imports and trade surplus grew by 5.2%, 5.4%, 5.0% and 8.6%, respectively.
For January to August 2022, trade expanded by 33.1% to RM1.873 trillion from the same period last year. Exports surpassed RM1 trillion, the shortest period to reach this milestone, expanding by 30.3% to RM1.014 trillion. Imports climbed by 36.7% to RM858.83 billion and trade surplus was up by 3.7% to RM155.57 billion. Trade, exports, imports and trade surplus registered the highest value for the period.
Export Performance of Major Sectors
Manufactured Goods - 13th Consecutive Month of Double-Digit Expansion
Exports of manufactured goods in August 2022, which represented 84.5% of total exports rose by 47.7% year-on-year (y-o-y) to RM119.48 billion. This was the 13th consecutive month of double-digit expansion. The growth was backed by higher exports of E&E products, petroleum products, optical and scientific equipment as well as machinery, equipment and parts, each recorded more than RM1 billion increase in exports.
Exports of mining goods (7.6% share) soared by 59.1% y-o-y to RM10.77 billion, the 17th successive month of double-digit growth underpinned by growing exports of LNG and crude petroleum.
Exports of agriculture goods (7.4% share) increased by 42.6% to RM10.47 billion compared to August 2021, the 18th consecutive month of double-digit growth. The expansion was aided by strong exports of palm oil and palm oil-based agriculture products.
Major exports in August 2022:
• E&E products, valued at RM50.89 billion and accounted for 36.0% of total exports, increased by 48.5% from August 2021;
• Petroleum products, RM20.25 billion, 14.3% of total exports, surged by 180.3%;
• Palm oil and palm oil-based agriculture products, RM8.19 billion, 5.8% of total exports, increased by 47.9%;
• Chemicals and chemical products, RM6.69 billion, 4.7% of total exports, increased by 15.3%; and
• LNG, RM6.28 billion, 4.4% of total exports, surged by 72.9%.
Compared to July 2022, exports of manufactured goods expanded by 6.4% while mining and agriculture goods decreased by 0.4%, respectively.
For the first eight months of 2022, exports of manufactured goods grew by 26.7% to RM853.29 billion compared to the same period of 2021, on account of robust exports of E&E products, petroleum products, palm oil-based manufactured products, manufactures of metal, machinery, equipment and parts, chemicals and chemical products as well as optical and scientific equipment.
Exports of agriculture goods was up by 41.0% to RM81.97 billion compared to the same period last year, driven by higher exports of palm oil and palm oil-based agriculture products.
Exports of mining goods surged by 69.4% to RM74.61 billion compared to the same period of 2021, owing to strong exports of LNG, crude petroleum, metalliferous ores and metal scrap as well as petroleum condensates and other petroleum oil.
Trade Performance with Major Markets
ASEAN – Fastest Export Growth Registered
In August 2022, trade with ASEAN leaped by 61.0% y-o-y to RM70.87 billion, constituting 26.7% of Malaysia’s total trade. Exports surged by 60.4% to RM42.02 billion, the fastest growth registered. The expansion was buoyed by higher exports of petroleum products and E&E products. Imports from ASEAN soared by 61.9% to RM28.85 billion.
Breakdown of exports to ASEAN countries:
• Singapore RM20.84 billion, increased by 54.5%;
• Indonesia RM6.69 billion, ↑110.2%;
• Thailand RM5.86 billion, ↑59.2%;
• Viet Nam RM3.52 billion, ↑9.7%;
• Philippines RM2.65 billion, ↑33.0%;
• Myanmar RM1.39 billion, ↑821.9%;
• Brunei RM593.5 million, ↑82.1%;
• Cambodia RM419.3 million, ↑167.0%; and
• Lao PDR RM50.9 million, ↑1,529.7%.
Exports to all ASEAN markets recorded increases notably to Singapore, which grew by RM7.36 billion, due to higher exports of E&E products, Indonesia (↑RM3.51 billion, petroleum products), Thailand (↑RM2.18 billion, E&E products) and Viet Nam (↑RM310.5 million, E&E products).
On a m-o-m basis, trade, exports and imports decreased by 3.3%,1.2% and 6.2%, respectively.
For January to August 2022, trade with ASEAN rose by 43.5% to RM514.73 billion compared to the same period of 2021. Exports to this region increased by 38.1% to RM297.41 billion led by higher exports of E&E products, petroleum products, crude petroleum as well as machinery, equipment and parts. Imports from ASEAN grew by 51.5% to RM217.32 billion.
China – E&E Products Bolstered Export Expansion
In August 2022, trade with China which made up 16.5% of Malaysia’s total trade expanded by 36.2% y-o-y to RM43.85 billion, the 21st consecutive month of double-digit growth. Exports to China grew by 21.3% to RM18.46 billion bolstered by robust exports of E&E products. Imports from China climbed by 49.5% to RM25.39 billion.
Compared to July 2022, trade, exports and imports were up by 8.1%, 16.3% and 2.8%, respectively.
Trade with China during the first eight months of 2022 rose by 19.2% to RM316.72 billion compared to the same period of 2021. Exports increased by 14.2% to RM135.36 billion following higher exports of E&E products, LNG as well as metalliferous ores and metal scrap. Imports from China expanded by 23.2% to RM181.36 billion.
The US – Trade Recorded Significant Growth
Trade with the US in August 2022 which contributed 9.2% to Malaysia’s total trade grew by 46.6% y-o-y to RM24.56 billion. Trade recorded double digit growth for 12 straight months. Exports climbed by 38.2% to RM14.98 billion contributed by strong exports of E&E products. Imports from the US surged by 61.9% to RM9.58 billion.
On a m-o-m basis, trade, exports and imports rose by 7.7%, 12.7% and 0.7%, respectively.
For January to August 2022, trade with the US was up by 25.2% to RM172.04 billion compared to the same period of 2021. Exports rose by 19.6% to RM107.53 billion led by higher exports of E&E products. Imports from the US increased by 35.9% to RM64.51 billion.
The EU – 11th Consecutive Month of Double-Digit Export Growth
Trade with the EU in August 2022 expanded by 23.0% y-o-y to RM17.39 billion, representing 6.5% of Malaysia’s total trade. Exports grew by 30.7% to RM10.04 billion, the 11th successive month of double-digit growth supported by higher exports of E&E products. Imports from the EU climbed by 13.8% to RM7.34 billion.
Breakdown of exports to the top 10 EU markets which accounted for 91.1% of Malaysia’s total exports to the EU were:
• Netherlands RM3.05 billion, increased by 24.0%;
• Germany RM2.52 billion, ↑20.6%;
• France RM797.2 million, ↑140.6%;
• Belgium RM777.1 million, ↑61.4%;
• Italy RM626.3 million, ↑31.4%;
• Poland RM357.3 million, ↑105.4%;
• Spain RM355.4 million, ↓4.3%;
• Czech Republic RM327.4 million, ↑24.1%;
• Hungary RM195.0 million, ↑38.4%; and
• Sweden RM138.9 million, ↑13.1%.
Exports to all EU major markets recorded expansion except Spain. Exports to the Netherlands increased by RM589.4 million on the back of higher demand for E&E products, Germany (↑RM431.1 million, E&E products) and France (↑RM465.9 million, petroleum products).
Compared to July 2022, trade and exports were up by 2.1% and 5.0%, respectively while imports declined by 1.6%.During the first eight months of 2022, trade with the EU grew by 22.9% to RM141.90 billion compared to the same period of 2021.
Exports increased by 25.2% to RM83.42 billion buoyed by higher exports of E&E products, manufactures of metal and petroleum products. Imports from the EU rose by 19.7% to RM58.48 billion.
Japan – Highest Export Value Ever Recorded
In August 2022, trade with Japan which comprised 6.4% of Malaysia’s total trade climbed by 39.5% y-o-y to RM16.98 billion. Exports edged up by 41.5% to RM9.12 billion, the highest monthly value and was the 18th straight month of double-digit expansion. The growth was boosted by higher exports of LNG. Imports from Japan was up by 37.2% to RM7.86 billion.
On a month-on-month basis, trade, exports and imports rose by 13.2%, 18.3% and 7.9%, respectively.
For January to August 2022, trade with Japan increased by 20.5% to RM118.06 billion compared to the same period of 2021. Exports edged up by 26.9% to RM62.96 billion on the back of strong exports of LNG, palm oil and palm oil-based products, crude petroleum as well as chemicals and chemical products. Imports from Japan increased by 13.8% to RM55.10 billion.
Trade with FTA Partners
In August 2022, trade with Free Trade Agreement (FTA) partners which accounted for 64.7% of Malaysia’s total trade climbed by 50.6% y-o-y to RM171.93 billion. Exports to FTA partners grew by 47.6% to RM95.62 billion and imports rose by 54.5% to RM76.30 billion.
Increases in exports were recorded to Hong Kong SAR, by 57.0% to RM9.44 billion as a result of growing exports of E&E products, India, (↑49.7% to RM4.72 billion, crude petroleum), Turkiye (↑33.2% to RM1.48 billion) and Chile, (↑13.5% to RM65.3 million) due to robust exports of palm oil and palm oil-based agriculture products.
Meanwhile, exports to the Republic of Korea rose by 97.2% to RM5.28 billion following strong exports of LNG, Australia, (↑38.3% to RM3.82 billion) and New Zealand, (↑31.2% to RM652.7 million) led by higher exports of petroleum products.
Compared to July 2022, trade and exports increased by 2.9% and 6.5%, respectively while imports declined by 1.4%,Trade with FTA partners during the first eight months of 2022 which absorbed 66.3% of Malaysia’s total trade, rose by 32.4% to RM1.241 trillion compared to the same period of 2021. Exports expanded by 31.1% to RM681.39 billion and imports was up by 34.0% to RM560.04 billion.
Import Performance
Total imports in August 2022 grew by 67.6% y-o-y to RM124.41 billion. The three main categories of imports by end use which accounted for 69.0% of total imports were:
• Intermediate goods, valued at RM66.43 billion or 53.4% of total imports, increased by 56.1%, following higher imports of processed industrial supplies;
• Capital goods, valued at RM10.30 billion or 8.3% of total imports, grew by 23.7%, due to higher imports of capital goods except transport equipment; and
• Consumption goods, valued at RM9.09 billion or 7.3% of total imports, rose by 43.1%, as a result of higher imports of processed food and beverages mainly for household consumption.
During the period of January to August 2022, imports grew by 36.7% to RM858.83 billion from the same period of 2021. Imports of intermediate goods edged up by 35.5% to RM472.31 billion, capital goods (↑15.9% to RM77.42 billion) and consumption goods (↑25.1% to RM67.98 billion).
