Trade Performance for July 2022 and The Period of January- July 2022
Highest Trade, Exports and Imports for July
Malaysia’s trade continued its upward trajectory in July 2022, chalking up double-digit growth for trade, exports and imports. This was the highest monthly value for the month of July. Trade rose by 39.8% to RM252.65 billion compared to July 2021, the 18th consecutive month of double-digit growth. Exports increased by 38.0% to RM134.07 billion, the 12th successive month of double-digit growth. Imports expanded by 41.9% to RM118.58 billion and trade surplus grew by 14.3% to RM15.49 billion.
The export growth was driven by higher demand for electrical and electronic (E&E) products, petroleum products as well as liquefied natural gas (LNG). Exports to major trading partners notably ASEAN, the United States (US), the European Union (EU) and Japan recorded double-digit growth. Highest monthly export value was registered to ASEAN.
On a month-on-month (m-o-m) basis, trade, exports, imports and trade surplus slipped by 6.5%, 8.2%, 4.5% and 29.1%, respectively.
For January to July 2022, trade was up by 29.9% to RM1.608 trillion from the same period last year. Exports increased by 27.8% to RM873.07 billion and imports grew by232.5% to RM734.51 billion. Trade surplus climbed by 7.4% to RM138.56 billion. Trade, exports, imports and trade surplus registered the highest value for the period.
Export Performance of Major Sectors
Manufactured Goods - 12th Straight Month of Double-Digit Export Growth
Exports of manufactured goods in July 2022 which represented 83.7% of total exports rose by 35.4% year-on-year (y-o-y) to RM112.26 billion, the 12th straight month of double-digit expansion. The growth was attributed to higher exports of E&E products, petroleum products, machinery, equipment and parts, manufactures of metal, optical and scientific equipment as well as chemicals and chemical products, each recorded more than RM1 billion increase in exports.
Exports of mining goods (8.1% share) soared by 100.4% y-o-y to RM10.81 billion, the 16th successive month of double-digit growth underpinned by growing exports of LNG and crude petroleum.
Exports of agriculture goods (7.8% share) increased by 24.1% to RM10.52 billion compared to July 2021, the 17th consecutive month of double-digit growth. The expansion was boosted by strong exports of palm oil and palm oil-based agriculture products.
Major exports in July 2022:
• E&E products, valued at RM46.99 billion and accounted for 35.0% of total exports, increased by 35.2% from July 2021;
• Petroleum products, RM18.81 billion, 14.0% of total exports, surged by 80.3%;
• Palm oil and palm oil-based agriculture products, RM8.47 billion, 6.3% of total exports, increased by 26.2%;
• Chemicals and chemical products, RM6.42 billion, 4.8% of total exports, increased by 19.1%; and
• LNG, RM6.06 billion, 4.5% of total exports, surged by 82.0%.
Compared to June 2022, exports of mining goods rose by 2.5% while manufactured and agriculture goods decreased by 8.0% and 18.2%, respectively.
For the first seven months of 2022, exports of manufactured goods grew by 23.9% to RM733.81 billion compared to the same period of 2021, backed by robust exports of E&E products, petroleum products, manufactures of metal, palm oil-based manufactured products, chemicals and chemical products, machinery, equipment and parts as well as optical and scientific products. Exports of agriculture goods climbed by 40.8% to RM71.51 billion driven by higher exports of palm oil and palm oil-based agriculture products. Exports of mining goods surged by 71.3% to RM63.84 billion 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 - Highest Export Value Ever Registered
In July 2022, trade with ASEAN surged by 63.0% y-o-y to RM73.31 billion, constituting 29.0% of Malaysia’s total trade. Exports rose by 55.6% to RM42.53 billion, the highest monthly value recorded thus far. This was attributed to higher exports of E&E products, petroleum products and machinery, equipment and parts. Imports from ASEAN leaped by 74.4% to RM30.78 billion.
Breakdown of exports to ASEAN countries:
• Singapore RM22.17 billion, increased by 57.1%;
• Thailand RM6.14 billion, ↑39.4%;
• Indonesia RM5.05 billion, ↑67.0%;
• Viet Nam RM4.34 billion, ↑23.0%;
• Philippines RM2.96 billion, ↑74.8%;
• Brunei RM979.5 million, ↑249.7%;
• Myanmar RM725.8 million, ↑390.1%;
• Cambodia RM150.0 million, ↑9.0%; and
• Lao PDR RM8.9 million, ↑13.5%.
Exports to all ASEAN markets recorded increases notably to Singapore which grew by RM8.06 billion, due to higher exports of E&E products, Thailand (↑RM1.73 billion, LNG), Indonesia (↑RM2.02 billion, petroleum products) and the Philippines (↑RM1.27 billion, petroleum products).
Compared to June 2022, exports increased by 2.3% while trade and imports declined by 0.9% and 5.0%, respectively.
In the first seven months of 2022, trade with ASEAN was up by 41.0% to RM443.89 billion compared to the same period of 2021. Exports to this region increased by 35.1% to RM255.40 billion led by higher exports of E&E products, petroleum products as well as machinery, equipment and parts. Imports from ASEAN surged by 50.0% to RM188.49 billion.
China – Trade Posted 20 Months of Double-Digit Growth
In July 2022, trade with China which made up 16.1% of Malaysia’s total trade rose by 19.3% y-o-y to RM40.58 billion, the 20th successive month of double-digit growth. Exports to China registered a growth of 9.8% to RM15.88 billion following robust exports of E&E products. Imports from China increased by 26.4% to RM24.70 billion.
Compared to June 2022, trade, exports and imports contracted by 8.8%, 13.4% and 5.6%, respectively.
Trade with China during the first seven months of 2022 expanded by 16.9% to RM272.87 billion compared to the same period of 2021. Exports grew by 13.2% to RM116.90 billion boosted by higher exports of E&E products, LNG as well as metalliferous ores and metal scrap. Imports from China climbed by 19.8% to RM155.97 billion.
The US – E&E Products Bolstered Export Expansion
Trade with the US in July 2022 which contributed 9.0% to Malaysia’s total trade grew by 29.7% y-o-y to RM22.82 billion. Exports was up by 20.5% to RM13.30 billion underpinned by strong exports of E&E products. Imports from the US rose by 45.3% to RM9.52 billion.
On a m-o-m basis, imports rose by 5.4% while trade and exports decreased by 11.8% and 21.0%, respectively.
For January to July 2022, trade with the US increased by 22.2% to RM147.50 billion compared to the same period of 2021. Exports expanded by 17.0% to RM92.55 billion assisted by higher exports of E&E products. Imports from the US grew by 32.2% to RM54.95 billion.
The EU – Exports Registered 10th Consecutive Month of Double-Digit Growth
Trade with the EU in July 2022 climbed by 14.0% y-o-y to RM17.04 billion, representing 6.7% of Malaysia’s total trade. Exports increased by 21.2% to RM9.57 billion, the 10th consecutive month of double-digit growth contributed by higher exports of E&E products, petroleum products as well as manufactures of metal. Imports from the EU edged up by 6.0% to RM7.47 billion.
Breakdown of exports to the top 10 EU markets which accounted for 92.1% of Malaysia’s total exports to the EU were:
• Netherlands RM2.87 billion, increased by 5.4%;
• Germany RM2.32 billion, ↑13.3%;
• France RM938.1 million, ↑199.3%;
• Italy RM667.6 million, ↑8.5%;
• Belgium RM555.6 million, ↑22.1%;
• Spain RM521.2 million, ↑51.7%;
• Poland RM361.3 million, ↑99.2%;
• Czech Republic RM266.5 million, ↑18.3%;
• Hungary RM165.4 million, ↓31.5%; and
• Sweden RM157.0 million, ↑3.0%.
Exports to all EU major markets recorded expansion except Hungary. Exports to the Netherlands increased by RM147.3 million on the back of higher demand for E&E products, Germany (↑RM272.1 million, E&E products) and France (↑RM624.6 million, petroleum products)
.On a month-on-month basis, trade, exports and imports contracted by 21.4%, 23.3% and 18.9%, respectively.
During the first seven months of 2022, trade with the EU rose by 22.8% to RM124.53 billion compared to the same period of 2021. Exports increased by 24.5% to RM73.38 billion, buoyed by higher exports of E&E products, manufactures of metal and palm oil-based manufactured products. Imports from the EU expanded by 20.6% to RM51.15 billion.
Japan – Broad-based Products Powered Export Growth
In July 2022, trade with Japan which comprised 5.9% of Malaysia’s total trade grew by 29.6% y-o-y to RM15.00 billion. Exports climbed by 30.8% to RM7.71 billion, the 17th straight month of double-digit expansion. This was owing to higher exports of broad-based products namely LNG, E&E products, palm oil and palm oil-based products as well as wood products. Imports from Japan was up by 28.4% to RM7.29 billion.
Compared to June 2022, imports grew by 2.6% while trade and exports were down by 5.1% and 11.5%, respectively.
For January to July 2022, trade with Japan increased by 17.8% to RM101.08 billion compared to the same period of 2021. Exports edged up by 24.8% to RM53.84 billion underpinned by strong exports of LNG, crude petroleum as well as palm oil and palm oil-based products. Imports from Japan rose by 10.7% to RM47.24 billion.
Trade with FTA Partners
In July 2022, trade with Free Trade Agreement (FTA) partners which accounted for 66.2% of Malaysia’s total trade increased by 43.5% y-o-y to RM167.18 billion. Exports to FTA partners expanded by 39.2% to RM89.80 billion and imports was up by 48.9% to RM77.39 billion.
Increases in exports were recorded to Hong Kong SAR, by 41.4% to RM8.41 billion and the Republic of Korea, (↑30.7% to RM4.15 billion) as a result of growing exports of E&E products, Australia, (↑37.7% to RM3.90 billion, crude petroleum), India, (↑51.6% to RM4.80 billion) and Chile, (↑20.0% to RM69.7 million) driven by robust exports of palm oil and palm oil-based agriculture products. Meanwhile, exports to Turkiye expanded by 77.6% to RM1.55 billion due to strong exports of manufactures of metal, Pakistan, (↑8.9% to RM463.1 million) and New Zealand, (↑0.2% to RM326.9 million) led by higher exports of palm oil-based manufactured products.
Compared to June 2022, trade, exports and imports slipped by 6.0%, 6.4% and 5.6%, respectively.
Trade with FTA partners during the first seven months of 2022 which absorbed 66.5% of Malaysia’s total trade, grew by 29.9% to RM1.070 trillion compared to the same period of 2021. Exports increased by 28.8% to RM585.77 billion and imports rose by 31.2% to RM483.77 billion.
Import Performance
Total imports in July 2022 expanded by 41.9% y-o-y to RM118.58 billion. The three main categories of imports by end use which accounted for 68.6% of total imports were:
• Intermediate goods, valued at RM61.83 billion or 52.1% of total imports, increased by 32.2%, following higher imports of processed industrial supplies;
Capital goods, valued at RM10.97 billion or 9.3% of total imports, expanded by 29.6%, due to higher imports of industrial transport equipment; and
• Consumption goods, valued at RM8.52 billion or 7.2% of total imports, rose by 33.2%, as a result of higher imports of processed food and beverages mainly for household consumption.
During the period of January to July 2022, imports grew by 32.5% to RM734.51 billion from the same period of 2021. Imports of intermediate goods edged up by 32.7% to RM405.92 billion, capital goods (↑14.9% to RM67.16 billion) and consumption goods (↑22.7% to RM58.90 billion).
