Trade Performance for September 2021 and The Period of January- September 2021
Trade, Exports and Trade Surplus Posted an All-Time Record High
Malaysia’s trade continued its stellar performance in September 2021, with a new high for trade, exports and trade surplus monthly value. Trade expanded by 25.5% to RM195.54 billion compared to September 2020, the eighth consecutive month of double-digit growth since February 2021. Exports maintained above RM100 billion for the fourth time this year, grew by 24.7% to RM110.83 billion. This was the 13th consecutive month of year-on-year (y-o-y) expansion since September 2020. Imports increased by 26.5% to RM84.7 billion and trade surplus rose by 19.1% to RM26.13 billion.
The export growth was contributed mainly by robust external demand for petroleum products, manufactures of metal, palm oil and palm oil-based agriculture products as well as electrical and electronic (E&E) products. Exports of manufactures of metal, palm oil and palm oil-based agriculture products as well as E&E products registered the highest monthly value thus far. Meanwhile, exports to ASEAN, China, the United States (US) and Japan recorded double-digit growth. Exports to China registered the highest monthly value ever.
On a month-on-month (m-o-m) basis, trade, exports, imports and trade surplus recorded double-digit growth of 15.2%, 16%, 14.2% and 22.2%, respectively.
Trade for the third quarter (Q3) of 2021 grew by 18.1% to RM546.21 billion, compared to Q3 2020. Exports increased by 15.8% to RM303.74 billion, the highest quarterly value. Imports expanded by 21% to RM242.47 billion resulting in a trade surplus of RM61.28 billion, decreased marginally by 1.1%.
Compared to the second quarter (Q2) of 2021, exports and trade surplus were up by 0.1% and 8.7% while trade and imports declined by 0.8% and 1.8%, respectively.
For the first nine months of 2021, trade expanded by 23.2% to RM1.602 trillion from the same period last year. Exports grew by 24.9% to RM889.32 billion, the fastest growth recorded since 1998. Imports rose by 21.1% to RM712.99 billion and trade surplus surged by 43.1% to RM176.33 billion.
Export Performance of Major Sectors
Exports of Manufactured and Agriculture Goods Recorded the Highest Value
Exports of manufactured goods in September 2021 reached its highest monthly value at RM94.86 billion or 85.6% of total exports, grew by 21.6% y-o-y. Petroleum products, manufactures of metal, E&E products, chemicals and chemical products, palm oil-based manufactured products, other manufactures especially solid-state storage devices (SSD) as well as iron and steel products respectively registered more than RM1 billion expansion in exports.
Exports of agriculture goods (8.7% share) recorded the highest monthly value of RM9.67 billion, grew by 47.7% compared to September 2020. This was the seventh consecutive month of double-digit growth since March 2021. The growth was contributed mainly by higher exports of palm oil and palm oil-based agriculture products which registered a record high export value.
Exports of mining goods (5.4% share) surged by 48.1% y-o-y to RM5.93 billion, the sixth straight month of double-digit growth since April 2021. The increase was underpinned by higher exports of liquefied natural gas (LNG).
Major exports in September 2021:
• E&E products, valued at RM41.05 billion and accounted for 37% of total exports, increased by 5.6% from September 2020;
• Petroleum products, RM9.34 billion, 8.4% of total exports, surged by 148%;
• Palm oil and palm oil-based agriculture products, RM7.76 billion, 7% of total exports, increased by 57.6%;
• Manufactures of metal, RM6.76 billion, 6.1% of total exports, surged by 115.1%; and
• Chemicals and chemical products, RM6.04 billion, 5.5% of total exports, increased by 38.7%
Compared to August 2021, exports of manufactured and agriculture goods increased by 17.4% and 31.7%, respectively while exports of mining goods declined by 15.9%.
For the period of January to September 2021, almost all products recorded export expansion. Exports of manufactured goods grew by 25.2% to RM767.87 billion compared to the same period of 2020, attributed to higher exports of E&E products, rubber products, petroleum products, manufactures of metal as well as chemicals and chemical products. Exports of agriculture goods expanded by 34.1% to RM67.8 billion buoyed by higher exports of palm oil and palm oil-based agriculture products and natural rubber. Exports of mining goods increased by 11.2% to RM50.29 billion boosted by higher exports of LNG as well as metalliferous ores and metal scrap.
Trade Performance with Major Markets
ASEAN – Robust Growth for Trade, Exports and Imports
In September 2021, trade with ASEAN accounted for 26% of Malaysia’s total trade, expanding by 31.1% y-o-y to RM50.77 billion. Exports grew by 31.4% to RM30.28 billion due to higher exports of petroleum products and E&E products. Imports from ASEAN rose by 30.6% to RM20.49 billion.
Breakdown of exports to ASEAN countries:
• Singapore RM16.15 billion, increased by 32.4%;
• Thailand RM4.30 billion, ↑7.3%;
• Indonesia RM3.80 billion, ↑84.1%;
• Viet Nam RM2.87 billion, ↑9.8%;
• Philippines RM1.95 billion, ↑29.4%;
• Brunei RM811.6 million, ↑143.5%;
• Myanmar RM232.4 million, ↑21.7%;
• Cambodia RM162.7 million, ↑30.1%; and
• Lao PDR RM3.5 million, ↓42.2%.
Exports to major markets in ASEAN that recorded expansion were Singapore which increased by RM3.96 billion, due to higher exports of E&E products, Thailand (↑RM291.6 million, LNG), Indonesia (↑RM1.73 billion, petroleum products), Viet Nam (↑RM255.8 million, metalliferous ores and metal scrap) and the Philippines (↑RM443 million, petroleum products).
Compared to August 2021, trade, exports and imports edged up by 14.8%, 14.7% and 15.1%, respectively.
In the first nine months of 2021, trade with ASEAN increased by 26.2% to RM410.19 billion compared to the same period of 2020. Exports to this region grew by 24.4% to RM246.26 billion owing to higher exports of E&E products, petroleum products, chemicals and chemical products, manufactures of metal as well as machinery, equipment and parts. Imports from ASEAN rose by 29% to RM163.94 billion.
China - Exports Registered a New High
In September 2021, trade with China which made up 19.7% of Malaysia’s total trade grew by 24.6% y-o-y to RM38.45 billion, the 10th consecutive month of double-digit expansion. Exports to China recorded a double-digit growth of 19% to RM18.52 billion, the highest monthly value thus far. This was due to higher exports of manufactures of metal, iron and steel products as well as LNG. Imports from China increased by 30.3% to RM19.93 billion.
Compared to August 2021, trade, exports and imports expanded by 19.5%, 22% and 17.3%, respectively.
Trade with China during the first nine months of 2021 rose by 27.4% to RM304.1 billion compared to the same period of 2020. Exports was up by 19% to RM137 billion on account of higher exports of E&E products, manufactures of metal, LNG as well as chemicals and chemical products. Imports from China increased by 35.1% to RM167.09 billion.
The US – Trade, Exports and Imports Rose with a Double-Digit Growth
Trade with the US in September 2021 comprised 9.6% of Malaysia’s total trade or RM18.76 billion, expanded by 19.2% y-o-y. Exports grew by 19.2% to RM12.31 billion on the back of higher exports of manufactures of metal and E&E products. Imports from the US rebounded by 19% to RM6.45 billion.
On a m-o-m basis, trade, exports and imports rose by 12%, 13.6% and 9.1%, respectively.
For the period of January to September 2021, trade with the US expanded by 20.4% to RM156.34 billion compared to the same period of 2020. Exports rose by 32.2% to RM102.25 billion on higher exports of rubber products, E&E products, manufactures of metal as well as machinery, equipment and parts. Imports from the US edged up by 3% to RM54.08 billion.
The EU – Trade Registered Eight Successive Months of Double-Digit Growth
Trade with the EU which represented 8% of Malaysia’s total trade in September 2021 grew by 16% y-o-y to RM15.6 billion. This was the eighth successive month of double-digit growth. Exports increased by 3% to RM8.89 billion boosted by higher exports of petroleum products, palm oil and palm oil-based products as well as other manufactures (SSD). Imports from the EU expanded by 39.4% to RM6.71 billion.
Breakdown of exports to the top 10 EU markets which accounted for 92% of Malaysia’s total exports to the EU were:
• Netherlands RM3.02 billion, increased by 28.1%;
• Germany RM2.30 billion, ↓4.5%;
• Italy RM664.1 million, ↓7.5%;
• Belgium RM488.2 million, ↑21.1%;
• Spain RM429.9 million, ↑18%;
• France RM311.9 million, ↓40.1%;
• Czech Republic RM278.7 million, ↓3.1%;
• Poland RM246.3 million, ↑3.7%;
• Slovenia RM225.1 million, ↓46.6%; and
• Hungary RM199.5 million, ↑29%.
Exports to the EU major markets that grew were the Netherlands which increased by RM663.1 million due to higher demand for petroleum products, Belgium (↑RM85.2 million, chemicals and chemical products) and Spain (↑RM65.6 million, palm oil-based manufactured products).
On a month-on-month basis, trade, exports and imports expanded by 10.4%, 15.7% and 4%, respectively.
During the first nine months of 2021, trade with the EU was up by 24.1% to RM130.98 billion compared to the same period of 2020. Exports rose by 21.9% to RM75.4 billion, following higher exports of rubber products as well as palm oil and palm oil-based products. Imports from the EU increased by 27.2% to RM55.58 billion.
Japan – Double-Digit Export Expansion for Seven Consecutive Months
In September 2021, trade with Japan which accounted for 5.8% of Malaysia’s total trade rose by 11.7% y-o-y to RM11.39 billion. Exports expanded by 18.3% to RM5.68 billion,the seventh consecutive month of double-digit y-o-y expansion since March 2021. The growth was supported by higher exports of manufactures of metal, LNG and crude petroleum. Imports from Japan increased by 5.9% to RM5.72 billion.
Compared to August 2021, imports grew by 0.4% while trade and exports declined by 5.1% and 10%, respectively.
For the period of January to September 2021, trade with Japan rose by 20.8% to RM108.85 billion compared to the same period of 2020. Exports expanded by 19.6% to RM54.86 billion underpinned by higher exports of E&E products, manufactures of metal and rubber products. Imports from Japan increased by 22% to RM53.99 billion.
Trade with FTA Partners
In September 2021, trade with Free Trade Agreement (FTA) partners which represented 67.2% of Malaysia’s total trade rose by 26.8% y-o-y to RM131.35 billion. Exports to FTA partners grew by 27% to RM75.22 billion and imports expanded by 26.6% to RM56.13 billion.
Increases in exports were recorded to India, by 50.4% to RM4.29 billion due to higher exports of palm oil and palm oil-based agriculture products, Hong Kong SAR, (↑16.5% to RM7.81 billion, E&E products), the Republic of Korea, (↑23.7% to RM3.47 billion, manufactures of metal), Australia, (↑31.4% to RM2.63 billion, crude petroleum), Turkey (↑73.4% to RM1.34 billion, manufactures of metal), Pakistan (↑201.5% to RM743.8 million, petroleum products) and New Zealand (↑7% to RM416.6 million, palm oil and palm oil-based agriculture products).
Compared to August 2021, trade, exports and imports grew by 14.9%, 15.8% and 13.8%, respectively.
Trade with FTA partners during the first nine months of 2021 which constituted 66.7% of Malaysia’s total trade rose by 23.6% to RM1.069 trillion compared to the same period of 2020. Exports was higher by 22.7% to RM595.06 billion and imports increased by 24.6% to RM474.03 billion.
Import Performance
Total imports in September 2021 grew by 26.5% y-o-y to RM84.7 billion. The three main categories of imports by end use which accounted for 69.9% of total imports were:
• Intermediate goods, valued at RM43.2 billion or 51% of total imports, increased by 29.7%, following higher imports of parts and accessories of capital goods (except transport equipment) particularly electrical machinery, equipment and parts;
• Capital goods, valued at RM9.17 billion or 10.8% of total imports, grew by 20.3%, due to higher imports of capital goods (except transport equipment), primarily parts for machinery and mechanical appliances; and
• Consumption goods, valued at RM6.88 billion or 8.1% of total imports, rose by 3.7%, as a result of higher imports of processed food and beverages mainly for household consumption especially edible preparations.
During the period of January to September 2021, imports expanded by 21.1% to RM712.99 billion from the same period of 2020. Imports of intermediate goods grew by 23.6% to RM390.84 billion, capital goods (↑11.8% to RM75.89 billion) and consumption goods (↑12.3% to RM61.21 billion).
