KUALA LUMPUR (Oct 10): Malaysia will have a stronger current account surplus of RM53.9 billion or 5.1% of the country’s gross national income in 2014, higher than the RM39.9 billion seen last year, according to the Economic Report 2014/2015 released by the Ministry of Finance.

In the first half of 2014, the current account balance stood at RM35.8 billion or 7.1% of gross national income (GNI), compared to RM15 billion the same time last year.

But, the report said that the momentum in the country’s economic growth will ‘moderate’ in the second half of the year.

The goods and services account is expected to have a surplus of RM100.8 billion from RM91.5 billion in 2013 due to higher external demand for manufactured goods and commodities. It is also supported by higher tourist spending.

The services account is expected to record a lower deficit of RM12.6 billion this year, from RM16.7 billion in 2013.

The primary account is anticipated to see a smaller deficit at RM28.6 billion in 2014 compared to RM34.1 billion last year.

For the year, the secondary income account is expected to further widen to RM18.3 billion from RM17.5 billion last year.

For the first half of the year, the financial account turned around to record a net outflow of RM49.3 billion, a reversal from the surplus of RM5.6 billion in January to June in 2013.

Malaysia’s international reserves is ‘strong’ at RM422.3 billion or US$131.5 billion, supported by continued current account surplus amid net capital outflows.