MALAYSIA'S TRADE GREW 9.3% FOR JANUARY TO OCTOBER 2024, TRADE REMAINS RESILIENT WITH SURPLUS OF ALMOST RM103 BILLION#

Exports Rebounded in October, 54th Straight Month of Surplus

Malaysia’s trade remained resilient and posted the highest periodic value ever, expanding by 9.3% to RM2.383 trillion during the first 10 months of 2024 compared to the same period in 2023. Exports rose 4.8% to RM1.243 trillion and imports increased by 14.6% to RM1.140 trillion, resulting in a trade surplus of RM102.77 billion.

For the month of October 2024, trade marked its 10th consecutive month of year-on year (y-o-y) growth, rising 2.1% to RM244.26 billion. Exports rebounded by 1.6% to RM128.12 billion, while imports expanded at a more moderate pace of 2.6% to RM116.14 billion, resulting in a trade surplus of RM11.98 billion. This was the 54th straight month of surplus recorded since May 2020.

Export growth in October 2024 was largely supported by strong demand for manufactured goods, which represented 85.4% of total exports. These increased by 1.9% to RM109.46 billion on higher exports of electrical and electronic (E&E) products, rubber products, processed food as well as machinery, equipment and parts. In terms of markets, Malaysia registered growth in exports to the United States (US), the European Union (EU) and Taiwan.

Compared to September 2024, trade, exports and imports in October 2024 were higher by 4.2%, 3.7% and 4.8%, respectively. Embargo until 1200 hours, Tuesday, 19th November 2024 According to the recently published Economic Outlook 2025, Malaysia’s trade is projected to grow by 9.4% in 2024, with exports and imports increasing by 5.6% and 13.8%, respectively. Additionally, Malaysia's Gross Domestic Products (GDP) growth in the third quarter of 2024 remained robust, expanding by 5.3%, marking the third consecutive quarter of strong growth. This positions the country well on track to meet the Ministry of Finance’s (MOF) GDP growth forecast of between 4.8% to 5.3% in 2024.

However, as an open trading nation, Malaysia remains susceptible to global vulnerabilities that could impact its economic growth, including the escalation of geopolitical tensions, supply chain disruptions, volatility in financial market conditions and varying growth prospects across its trading partners. As such, MITI and MATRADE will remain vigilant to ensure that risks to trade growth are closely monitored and mitigated, particularly through intensified market promotional activities and the opening of new markets for Malaysian exports.

Export Performance of Major Sector  

Exports of Manufactured Goods Rebounded

In October 2024, exports of manufactured goods which represented 85.4% of Malaysia’s total exports rebounded from a negative growth last month, increased by 1.9% y-o-y to RM109.46 billion on higher exports of E&E products, rubber products, processed food as well as machinery, equipment and parts.

Exports of agriculture goods (7.6% share) posted the seventh consecutive month of yo-y expansion, grew by 8.9% to RM9.72 billion. This was due to strong exports for palm oil and palm oil-based agriculture products following increased export volumes and prices.

Meanwhile, exports of mining goods (6% share) decreased by 12.1% y-o-y to RM7.73 billion owing to slower exports of crude petroleum resulted from reduced export volumes and prices. Nevertheless, exports of liquefied natural gas (LNG) recorded expansion led by higher export volumes and prices.

Major exports in October 2024:  

• E&E products, valued at RM52.94 billion and accounted for 41.3% of total exports, increased by 7.6% compared to October 2023;
• Petroleum products, RM9.56 billion, 7.5% of total exports, ↓31%;
• Palm oil and palm oil-based agriculture products, RM7.38 billion, 5.8% of total exports, ↑11.9%;
• Chemicals and chemical products, RM6.06 billion, 4.7% of total exports, ↓6.4%; and
• Machinery, equipment and parts, RM5.71 billion, 4.5% of total exports, ↑10.7%.

On a month-on-month (m-o-m) basis, exports of manufactured, agriculture and mining goods rose 2.3%, 8.2% and 12.5%, respectively.

During the first 10 months of 2024, exports of manufactured goods were up by 4.8% to RM1.064 trillion compared to the corresponding period in 2023, underpinned by robust exports of machinery, equipment and parts, E&E products as well as processed food. Exports of agriculture goods expanded by 9.4% to RM85.57 billion on higher shipments of palm oil and palm oil-based agriculture products as well as natural rubber. Meanwhile, exports of mining goods edged down by 1.1% to RM84.65 billion, following lower demand for metalliferous ores and metal scrap as well as crude petroleum. 

Trade Performance with Major Markets  

In October 2024, Malaysia’s trade with major trading partners namely ASEAN, China, the US, the EU and Taiwan, accounted for 68.3% share of Malaysia’s total trade in the month.

ASEAN – Trade, Exports and Imports Grew During the first 10 Months of 2024

Trade with ASEAN in October 2024 which absorbed 25.3% of Malaysia’s total trade edged down by 4.1% y-o-y to RM61.73 billion. Exports shrank 3.1% to RM35.42 billion attributed to reduced exports of petroleum products, crude petroleum as well as chemicals and chemical products. Nonetheless, higher exports were recorded for E&E products, machinery, equipment and parts as well as processed food. Imports from ASEAN decreased by 5.3% to RM26.32 billion.

Breakdown of exports to ASEAN countries: 

Major markets in ASEAN which recorded export expansion were Singapore, grew by RM998.3 million y-o-y and Thailand, increased by RM16.3 million due to larger exports of E&E products. Meanwhile, exports to Indonesia were up by RM618.3 million contributed by robust exports of petroleum products.

On a m-o-m basis, trade and exports grew by 1.4% and 4.2%, respectively while imports shrank 2.2%.

During the first 10 months of 2024, trade with ASEAN rose 6.2% to RM637.94 billion compared to the corresponding period in 2023. Exports to this region increased by 4.1% to RM365.39 billion aided by larger exports of petroleum products, machinery, equipment and parts as well as manufactures of metal. Imports from ASEAN were up by 9.2% to RM272.55 billion. 

China – Trade Expanded During the first 10 Months of 2024

In October 2024, trade with China which took up 16.8% of Malaysia’s total trade slipped by 3.2% y-o-y to RM40.99 billion. Exports dropped by 6.5% to RM16.05 billion due to reduced exports of E&E products. Amid the contraction, strong exports were recorded for machinery, equipment and parts, rubber products as well as optical and scientific equipment. Imports from China declined by 1% to RM24.93 billion.  

Compared to September 2024, trade and imports increased by 9.6% and 17.2%, respectively while exports fell marginally by 0.5%.

During the first 10 months of 2024, trade with China expanded by 7.6% to RM396.14 billion compared to the same period in 2023. Exports declined by 2.4% to RM153.16 billion as a result of weaker demand for E&E products as well as metalliferous ores and metal scrap. However, this drop was cushioned by robust exports of paper and pulp products as well as LNG. Imports from China climbed 15% to RM242.98 billion.

The US – Trade, Exports and Imports Posted Double-Digit Growth

In October 2024, trade with the US which constituted 12.2% of Malaysia’s total trade, expanded by 35.1% y-o-y to RM29.85 billion. Exports recorded the 10^th consecutive month of growth, rose 32.5% to RM18.93 billion fuelled by higher shipments of E&E products. Imports from the US surged by 39.8% to RM10.91 billion.

Compared to September 2024, trade and exports climbed 10.3% and 17.4%, respectively while imports edged down by 0.1%. 

During the first 10 months of 2024, trade with the US was up by 29.1% to RM264.28 billion compared to the corresponding period in 2023. Exports registered double-digit growth of 19.2% to RM159.41 billion driven by strong exports of E&E products, machinery, equipment and parts as well as optical and scientific equipment. Imports from the US soared by 47.6% to RM104.87 billion.

The EU – Fourth Successive Month of Export Expansion

In October 2024, trade with the EU which contributed 7.9% to Malaysia’s total trade increased by 6.3% y-o-y to RM19.23 billion, the seventh consecutive month of growth. Exports recorded the fourth successive month of expansion, grew by 7.7% to RM10.52 billion due to higher exports of palm oil and palm oil-based products, processed food and rubber products. Imports from the EU climbed 4.8% to RM8.71 billion.

Within the EU, the top 10 markets which accounted for 91.8% of Malaysia’s total exports to the region were:          

Among the major export markets in the EU that recorded expansion were the Netherlands which increased by RM818.2 million y-o-y, on account of growing exports of palm oil and palm oil-based agriculture products, Germany which were up by RM152.7 million on solid exports of optical and scientific equipment, and France which expanded by RM114.8 million buoyed by higher exports of transport equipment.

On a m-o-m basis, trade, exports and imports increased by 7.6%, 6.2% and 9.4%, respectively.

During the first 10 months of 2024, trade with the EU climbed 6.1% to RM182.32 billion compared to the same period in 2023. Exports edged up by 3.3% to RM97.17 billion led by higher exports of palm oil and palm oil-based products, rubber products and processed food. Imports from the EU expanded by 9.5% to RM85.15 billion.

Taiwan – Exports Posted the 10^th Consecutive Month of Double-Digit Growth

In October 2024, trade with Taiwan which comprised 6.2% of Malaysia’s total trade surged by 36.3% y-o-y to RM15.09 billion compared to October 2023. Exports posted the 10^th consecutive month of double-digit growth, expanding by 49% to RM5.85 billion, buoyed by robust shipments of E&E products as well as optical and scientific equipment. Imports from Taiwan increased by 29.4% to RM9.24 billion.

Compared to September 2024, imports grew by 11.7%, while trade and exports were down by 2.4% and 18.6%, respectively.

During the first 10 months of 2024, trade with Taiwan rose 37.3% to RM144.22 billion compared to the same period in 2023. Exports soared by 51.6% to RM54.53 billion attributed to strong exports of E&E products as well as optical and scientific equipment.

Imports from Taiwan expanded by 29.9% to RM89.68 billion.

Trade with FTA Partners   

In October 2024, trade with Free Trade Agreement (FTA) partners which represented 63.6% of Malaysia’s total trade contracted marginally by 2% y-o-y to RM155.32 billion. Exports to FTA partners fell 3.3% to RM83.41 billion while imports edged down by 0.5% to RM71.91 billion.

Despite lower overall exports to FTA partners, increases in exports were recorded to India which grew by 23.4% y-o-y to RM4.86 billion and Pakistan, expanded by 17.2% to RM394.6 million, following higher exports of palm oil and palm oil-based agriculture products. 

Exports to New Zealand rose 16% y-o-y to RM538.1 million and exports to Chile were up by 87.2% to RM90.4 million, supported by higher exports of chemicals and chemical products. Meanwhile, exports to Turkiye surged by 65.9% to RM1.91 billion on strong exports of iron and steel products and exports to Canada grew by 25.9% to RM476.8 million following a rise in exports of E&E products.

On a m-o-m basis, trade, exports and imports were up by 3.1%, 2.7% and 3.5%, respectively.

During the first 10 months of 2024, trade with FTA partners increased by 5.3% to RM1.550 trillion, exports edged up by 1.2% to RM836.77 billion and imports expanded by 10.5% to RM713.62 billion, compared to the same period in 2023.

Import Performance 

Total imports in October 2024 expanded by 2.6% y-o-y to RM116.14 billion. The three main categories of imports by end use, which accounted for 72.8% of total imports were: 

• Intermediate goods, valued at RM62.58 billion or 53.9% of total imports, grew by 12.3% y-o-y, contributed by higher imports of parts and accessories of nontransport capital goods;
• Capital goods, valued at RM12.36 billion or 10.6% of total imports, dropped by 2.7%, as a result of reduced imports of industrial transport equipment; and
• Consumption goods, valued at RM9.64 billion or 8.3% of total imports, increased by 3%, driven by higher imports of semi-durables.

Compared to September 2024, imports expanded by 4.8%. Imports of intermediate and consumption goods grew by 6.6% and 9.5%, respectively while imports of capital goods declined by 27%. 

During the first 10 months of 2024, imports rose 14.6% to RM1.140 trillion compared to the corresponding period last year. Imports of intermediate goods increased by 23.8% to RM624.49 billion, imports of capital goods grew by 34% to RM136.26 billion and imports of consumption goods rose 14% to RM97.09 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 Thursday, 28^th November 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 October 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).

• Total figure may not add up exactly due to rounding.