Perbadanan Pembangunan Perdagangan Luar Malaysia

Highest Trade, Exports, Imports and Trade Surplus for September

Malaysia’s trade continued its upward trajectory in September 2022, registering double-digit growth for trade, exports, imports and trade surplus. This was the highest monthly value for the month of September. Trade rose by 31.4% to RM256.91 billion compared to September 2021, the 20th consecutive month of double-digit growth. Exports increased by 30.1% to RM144.31 billion, the 14th successive month of double-digit growth. Imports expanded by 33.0% to RM112.60 billion. Trade surplus achieved a new record high, expanding by 20.9% to RM31.71 billion.

The export growth was contributed mainly by robust external demand for electrical and electronic (E&E) products, petroleum products, liquefied natural gas (LNG), crude petroleum, optical and scientific equipment as well as machinery, equipment and parts. Exports of E&E products, optical and scientific equipment as well as LNG registered the highest monthly value thus far. Meanwhile, exports to major trading partners notably ASEAN, the United States (US), the European Union (EU) and Japan recorded double-digit growth. Exports to Japan registered the highest monthly value ever.

On a month-on-month (m-o-m) basis, exports and trade surplus rose by 2.2% and 86.1% while trade and imports contracted by 3.2% and 9.4%, respectively.

Trade for the third quarter (Q3) of 2022 edged up by 42.0% to RM774.98 billion, compared to Q3 2021. Exports increased by 38.3% to RM419.65 billion and imports expanded by 46.5% to RM355.32 billion. This was the highest quarterly value for trade, exports and imports. Trade surplus grew by 5.6% to RM64.33 billion.

Compared to the second quarter (Q2) of 2022, trade, exports, imports and trade surplus rose by 6.1%, 6.5%, 5.7% and 10.8%, respectively.

In the first nine months of 2022, trade climbed by 32.9% to RM2.130 trillion from the same period last year. Exports grew by 30.3% to RM1.159 trillion and imports expanded by 36.2% to RM971.26 billion. Trade surplus edged up by 6.3% to RM187.40 billion. Trade, exports, imports and trade surplus registered the highest value for the period.

Export Performance of Major Sectors

Exports of Manufactured and Mining Goods Recorded the Highest Value

Exports of manufactured goods in September 2022 reached its highest monthly value at RM122.23 billion or 84.7% of total exports, grew by 28.7% year-on-year (y-o-y). This was the 14th consecutive month of double-digit growth. 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 (7.7% share) surged by 89.0% y-o-y to RM11.10 billion, the highest monthly value and was the 18th straight month of double-digit expansion. The increase was mainly due to higher exports of LNG and crude petroleum.

Exports of agriculture goods (7.2% share) expanded by 8.0% to RM10.44 billion compared to September 2021 contributed mainly by higher exports of palm oil and palm oil-based agriculture products.

Major exports in September 2022:

• E&E products, valued at RM57.41 billion and accounted for 39.8% of total exports, increased by 39.8% from September 2021;

• Petroleum products, RM17.32 billion, 12.0% of total exports, surged by 83.3%;

• Palm oil and palm oil-based agriculture products, RM8.25 billion, 5.7% of total exports, increased by 6.4%;

• Chemicals and chemical products, RM6.93 billion, 4.8% of total exports, increased by 14.5%; and

• LNG, RM6.53 billion, 4.5% of total exports, surged by 142.0%.

Compared to August 2022, exports of manufactured and mining goods rose by 2.3% and 3.4%, respectively while exports of agriculture goods declined marginally by 0.1%.

For the period of January to September 2022, all products recorded export expansion except rubber products. Exports of manufactured goods increased by 27.0% to RM975.51 billion compared to the same period of 2021, attributed to higher exports of E&E products, petroleum products, machinery, equipment and parts, palm oil-based manufactured products as well as chemicals and chemical products.

Exports of agriculture goods expanded by 36.3% to RM92.40 billion buoyed by higher exports of palm oil and palm oil-based agriculture products.

Exports of mining goods surged by 71.7% to RM85.69 billion boosted by higher exports of LNG and crude petroleum.

Trade Performance with Major Markets

ASEAN – Robust Growth for Trade, Exports and Imports

In September 2022, trade with ASEAN accounted for 26.4% of Malaysia’s total trade, expanding by 33.6% y-o-y to RM67.85 billion. Exports grew by 31.5% to RM39.97 billion due to higher exports of E&E products and petroleum products. Imports from ASEAN climbed by 36.8% to RM27.89 billion.

Breakdown of exports to ASEAN countries:

• Singapore RM21.00 billion, increased by 29.1%;

• Indonesia RM5.83 billion, ↑53.3%;

• Viet Nam RM4.76 billion, ↑65.8%;

• Thailand RM4.49 billion, ↑4.6%;

• Philippines RM2.35 billion, ↑21.1%;

• Brunei RM985.1 million, ↑21.1%;

• Myanmar RM314.2 million, ↑35.2%;

• Cambodia RM124.3 million, ↓23.6%; and

• Lao PDR RM107.1 million, ↑2,916.2%.

Exports to ASEAN major markets that recorded increases were Singapore which increased by RM4.74 billion, due to higher exports of E&E products, Indonesia (↑RM2.03 billion, petroleum products) and Viet Nam (↑RM1.89 billion, E&E products).

On a m-o-m basis, trade, exports and imports contracted by 4.2%, 4.8% and 3.3%, respectively.

In the first nine months of 2022, trade with ASEAN grew by 42.2% to RM582.54 billion compared to the same period of 2021. Exports to this region rose by 37.3% to RM337.35 billion owing to higher exports of E&E products, petroleum products, machinery, equipment and parts as well as crude petroleum. Imports from ASEAN edged up by 49.6% to RM245.20 billion.

China – Export Growth Driven by E&E Products

In September 2022, trade with China which made up 17.1% of Malaysia’s total trade climbed by 14.0% y-o-y to RM43.91 billion, the 22nd consecutive month of double-digit growth. Exports to China recorded a growth of 8% to RM20.09 billion due to higher exports of E&E products. Imports from China was up by 19.5% to RM23.82 billion.

Compared to August 2022, trade and exports expanded by 0.3% and 8.8%, respectively while imports slipped by 6.0%.

Trade with China during the first nine months of 2022 rose by 18.5% to RM360.56 billion compared to the same period of 2021. Exports edged up by 13.4% to RM155.45 billion on account of higher exports of E&E products, LNG as well as metalliferous ores and metal scrap. Imports from China increased by 22.7% to RM205.11 billion.

The US – Highest Trade Value Registered

Trade with the US in September 2022 comprised 10.4% of Malaysia’s total trade, expanding by 42.5% y-o-y to RM26.73 billion and was the highest monthly value thus far. Exports grew by 32.5% to RM16.31 billion on the back of robust exports of E&E products. Imports from the US surged by 61.4% to RM10.42 billion.

On a m-o-m basis, trade, exports and imports rose by 9.0%, 8.9% and 9.0%, respectively.

For the period of January to September 2022, trade with the US edged up by 27.2% to RM198.74 billion compared to the same period of 2021. Exports climbed by 21.1% to RM123.83 billion on higher exports of E&E products, iron and steel products, optical and scientific equipment as well as petroleum products. Imports from the US rose by 38.9% to RM74.91 billion.

The EU – Exports Registered 12 Successive Months of Double-Digit Growth

Trade with the EU which represented 7.1% of Malaysia’s total trade in September 2022 grew by 16.7% y-o-y to RM18.20 billion. Exports increased by 19.0% to RM10.58 billion, the 12th successive month of double-digit growth boosted by higher exports of E&E products. Imports from the EU expanded by 13.6% to RM7.62 billion.

Breakdown of exports to the top 10 EU markets which accounted for 91.6% of Malaysia’s total exports to the EU were:

• Netherlands RM3.63 billion, increased by 20.0%;

• Germany RM2.51 billion, ↑8.9%;

• Belgium RM841.2 million, ↑72.3%;

• Italy RM631.7 million, ↓4.9%;

• France RM579.1 million, ↑85.6%;

• Spain RM485.3 million, ↑12.9%;

• Czech Republic RM340.5 million, ↑22.1%;

• Poland RM284.1 million, ↑15.3%;

• Hungary RM205.0 million, ↑2.7%; and

• Sweden RM192.5 million, ↑17.8%.

Exports to the EU major markets that recorded increases were the Netherlands which grew by RM603.9 million due to higher demand for E&E products, Germany (↑RM205.0 million, E&E products) and Belgium (↑RM353.0 million, iron and steel products).

Compared to August 2022, trade, exports and imports rose by 4.7%, 5.4% and 3.7%, respectively.

In the first nine months of 2022, trade with the EU was up by 22.1% to RM160.10 billion compared to the same period of 2021. Exports climbed by 24.5% to RM93.99 billion, following higher exports of E&E products, manufactures of metal and petroleum products. Imports from the EU increased by 19.0% to RM66.11 billion.

Japan – Highest Export Value Ever Recorded

In September 2022, trade with Japan which accounted for 6.7% of Malaysia’s total trade rose by 49.5% y-o-y to RM17.11 billion. Exports surged by 74.6% to RM9.93 billion, the highest monthly value and was the 19th straight month of double-digit expansion. The growth was supported by higher exports of LNG, E&E products and petroleum products. Imports from Japan increased by 24.6% to RM7.18 billion.

On a m-o-m basis, trade and exports grew by 1.1% and 8.9%, respectively while imports declined by 8.0%.For the period of January to September 2022, trade with Japan was up by 23.4% to RM135.11 billion compared to the same period of 2021.

Exports expanded by 31.8% to RM72.89 billion underpinned by higher exports of LNG, crude petroleum, palm oil and palm oil-based agriculture products as well as petroleum products. Imports from Japan increased by 14.9% to RM62.22 billion.

Trade with FTA Partners

In September 2022, trade with Free Trade Agreement (FTA) partners which represented 65.9% of Malaysia’s total trade rose by 28.9% y-o-y to RM169.25 billion. Exports to FTA partners grew by 29.4% to RM97.42 billion and imports expanded by 28.1% to RM71.82 billion.

Increases in exports were recorded to Hong Kong SAR, by 30.4% to RM10.18 billion, India, (↑5.7% to RM4.54 billion) and the Republic of Korea (↑41.9% to RM4.97 billion) due to growing exports of E&E products.

Exports to Australia rose by 120.1% to RM5.39 billion and New Zealand, (↑48.4% to RM618.4 million) led by higher exports of petroleum products while exports to Chile (↑215.5% to RM140.3 million, chemicals and chemical products).Compared to August 2022, exports grew by 1.9% while trade and imports declined by 1.5% and 5.7%, respectively.

Trade with FTA partners during the first nine months of 2022 which constituted 66.2% of Malaysia’s total trade rose by 31.9% to RM1.410 trillion compared to the same period of 2021. Exports was higher by 30.9% to RM778.77 billion and imports increased by 33.2% to RM631.73 billion.

Import Performance

Total imports in September 2022 grew by 33.0% y-o-y to RM112.60 billion. The three main categories of imports by end use which accounted for 70.3% of total imports were:

• Intermediate goods, valued at RM58.57 billion or 52.0% of total imports, increased by 35.1%, following higher imports of processed industrial supply;

• Capital goods, valued at RM11.80 billion or 10.5% of total imports, grew by 30.5%, due to higher imports of capital goods (except transport equipment); and

• Consumption goods, valued at RM8.83 billion or 7.8% of total imports, rose by 28.2%, as a result of higher imports of processed food and beverages mainly for household consumption.

For the period of January to September 2022, imports expanded by 36.2% to RM971.26 billion from the same period of 2021. Imports of intermediate goods grew by 35.5% to RM530.89 billion, capital goods (↑17.5% to RM89.08 billion) and consumption goods (↑25.4% to RM76.75 billion).

 

THURSDAY, 13 OCTOBER 2022, KUALA LUMPUR: Malaysia’s growing strength in the manufacturing sector especially in sustainable plastics and rubber materials, semi-finished products, machinery, and support services will be showcased at the forthcoming K 2022 trade fair in Düsseldorf, Germany from 19 to 26 October 2022.

Malaysia External Trade Development Corporation (MATRADE), Malaysia’s National Trade Promotion agency, will be coordinating the participation of 14 Malaysian exporters at the Malaysian Pavilion. This year marks MATRADE’s fifth participation in K-Fair which is the world's largest trade fair for the plastics and rubber industry. It is expected to attract over 200,000 visitors from more than 75 countries.

During the event, the Malaysian companies will be showcasing sustainable and innovative plastic materials as well as chemicals products related to the plastic and rubber sector such as bio-resins, eco-packaging products, recycled resins, plastics packaging, natural and synthetic rubber, rubber moulding, raw materials of rubber and plastics as well as design services. For example, some of the Malaysian manufactures collect and recycle Ocean Bound Plastics in Malaysia into commercially viable upcycled materials, semi-finished products, and consumer products.

According to S. Jai Shankar, the Director of Oil and Gas, Chemicals and Energy at MATRADE, Malaysia’s pavilion at K 2022 will showcase Malaysia’s growing strength in the areas of sustainability, innovation, circular economy, and green elements as there is a growing global demand for such products and services.

“As such, the exhibitors in this year’s pavilion were those who among others managed to integrate of green elements in their business activities, products, and services including securing sustainability-related certifications and incorporating green innovation in their product portfolio”, said S. Jai Shankar. He added that this is part of MATRADE’s effort to encourage and support Malaysian companies to embrace Environmental, Social, and Governance (ESG) in line with the Malaysian Government’s sustainable agenda.

Apart from facilitating participation in the trade fair, MATRADE’s office in Frankfurt will be collaborating with leading importers, buyers as well as associations and chambers to organise pre-arranged business matching sessions between Malaysian exporters and potential buyers.

“The business-matching engagements serve as an effective channel for Malaysian companies to connect directly with international businesses in exploring more trade opportunities within European Union (EU) and other regions,” he pointed out.

Malaysia’s total trade with the European Union (EU) grew by 26% to RM180.3 billion in 2021. Meanwhile, the trade of chemicals and chemical products between Malaysia and the EU registered an impressive growth of 27.7% to RM1.42 billion, compared to RM1.11 billion in 2020. Exports of chemicals and chemical products grew by 28.4% amounted to RM2.07 billion with the top five products exported were chemical materials & products, binders for foundry moulds or cores, chemical products & preparations of chemical or allied industries, organic chemicals, plastics in primary form and inorganic chemicals.

Malaysian exporters who are interested in penetrating the German market may contact MATRADE Frankfurt at Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya. to receive market updates, business contacts, and information on business opportunities. On MATRADE’s assistance in the chemical, plastic, and rubber industry, kindly contact Mr. Muhammad Hussein Bin Abdullah (Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya.) or Ms. Nurul Farhana Mustafa Kamal (Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya.).

FRIDAY, 14 OCTOBER 2022, BERLIN: Malaysia External Trade Development Corporation (MATRADE) through its office in Frankfurt participated in the BME Symposium organised by the Federal Association of Materials Management, Purchasing and Logistics e.V. (BME). The event, which took place in Berlin, started on 12 October 2022 until 14 October 2022.

During the participation, MATRADE Frankfurt promoted Malaysia’s sectoral strength, particularly in machinery, plastics, rubber, electrical & electronics, and many more. The participation provides MATRADE the opportunity to connect with sourcing communities from all over Germany and several other countries as well as to brand Malaysia in the aspects of sustainability and high innovation. MATRADE’s presence at BME Symposium was also to promote the Malaysia Pavilion at the world’s top plastics and rubber trade fair, KFair 2022 which will take place from the 19 until 26 October 2022 in Dusseldorf, Germany.

According to MATRADE Frankfurt’s Trade Commissioner, “The success of sustainability practices within an organisation will depend even more in the upcoming years on the sourcing units, departments, and Chief Purchasing Officers. Responsible and sustainable procurement will undoubtedly change the game in terms of not just ensuring that the sustainability pledge is kept, but also in the sense of creating a 'meaningful' value proposition for companies.

"Understanding this, we shared with our German counterparts that Malaysia is ramping up its efforts to ensure our industries are aligned with this transformation towards sustainability. There are various policies to champion this such as the National Trade Blueprint 2021-2025,” she added.

Such branding of Malaysia is crucial in Germany as the country will be imposing the Supply Chain Due Diligence Act in January 2023. The Act will mandate that all German companies with more than 3,000 employees be responsible for their entire supply chain. This means they are obligated to ensure their suppliers from all over the world are adhering to human rights and environmental protection.

BME’s Head of BME International, Olaf Holzgrefe shared, “It is important for Malaysian companies to know what are the requirements from January 2023 to be prepared for the demands from your customers in Germany. Southeast Asia and especially Malaysia is an important country for the future development of the supply chain in the Asian market.

”During the first eight months of 2022, trade with Germany grew by 11.2% to RM39.48 billion compared to the same period in 2021. Exports to Germany increased to RM20.05 billion and imports were registered at RM19.43 billion.

MATRADE is Malaysia’s trade promotion agency and has over 46 global offices in major cities around the world. BME is a leading trade association and network partner for those responsible for purchasing, supply chains and logistics in Germany and Europe.

MONDAY, 3 OCTOBER 2022, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) has successfully led the participation of 10 Malaysian gaming and creative content companies at Tokyo Game Show (TGS) 2022, held from 15 – 18 September 2022 at Makuhari Messe, Chiba, Japan. TGS, the largest gaming exhibitions in Asia, is a not-to-be missed event for Malaysian companies to promote digital content and showcase their expertise in various segments of game industry including new technology, 2D/3D & computer graphic animation and assets, as well as Intellectual Property (IP).

Re-opened to public after 2 years of hiatus, more than 138 thousand visitors visited TGS during the 4 day-event. More than 600 exhibitors from Japan and international took part in the show. Throughout the event, MATRADE had arranged series of business meetings and networking sessions for Malaysian exhibitors that resulted in total export sales of RM124.67 million, primarily for new games and titles publishing as well as co-development.

In 2020, Malaysia’s total export of content and media products was RM6.65 billion, or 2.1% share of total ICT export. Overall, ICT contributed 22.6% to total Gross Domestic Product (GDP) in 2020.

“The Japanese industry players were impressed with Malaysian capabilities. The products and services that received serious inquiries were games co-development, assets and cinematics, localisation and outsourcing services, 2D/3D/CG animation for modelling and game publishing”, said Mr. Niqman Rafaee Mohd Sahar, Trade Commissioner of MATRADE Tokyo.

“Japan ranked third largest market globally for games industry after China and USA with a market size of US$22.1 billion. The pandemic had accelerated the digitalization agenda globally including in Japan. With the rise of 5G network services in Japan, demand for games especially mobile games is rising further. MATRADE’s participation in TGS is part of our strategies to boost Malaysia’s export of creative content as well as to position Malaysia, as the leading IP creator in Southeast Asia and the preferred outsourcing location for games and animation,” added Mr. Naim Abdul Rahman, Director of Electrical & Electronic, ICT, Machinery and Equipment Section, MATRADE.

Malaysian companies interested to know more about the Japan market are advised to contact MATRADE offices in Tokyo and Osaka via email at Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya. and Alamat emel ini dilindungi dari Spambot. Anda perlu hidupkan JavaScript untuk melihatnya. or visit MATRADE’s portal at https://www.matrade.gov.my/en/ or any of MATRADE’s social media platforms (Facebook, Twitter, Instagram & LinkedIn).