KUALA LUMPUR (Nov 4): Malaysia’s trade surplus in September 2016 declined by 21.6% or RM2.1 billion year-on-year (y-o-y) to RM7.6 billion, even as its total trade registered a decline of 1.6% or RM2.2 billion during the same period to RM128.5 billion. This was mainly due to a faster decline of Malaysia’s exports of about 3% to RM68 billion compared with the decline in imports of 0.1% to RM60.5 billion.

The decline in exports y-o-y was mainly due to the decline in the export of crude petroleum, liquefied natural gas (LNG), timber and timber-based products, and natural rubber, according to a statement by Department of Statistics Malaysia (DOSM).

It said crude petroleum exports fell by 26.8% or RM671 million to RM1.8 billion during the same period, due to decreases in both export volume and the average unit value. LNG decreased by 20% or RM669.6 million to RM2.7 billion despite its export volume increasing by 19.2% as it was offset by the decrease of 32.9% in its value.

Commodities that recorded an increase in exports were refined petroleum products that expanded by 24.1% or RM802.3 million to RM4.1 billion, followed by palm oil and palm based-products that increased by 6.3% or RM381.6 million to RM6.4 billion.

Meanwhile, electrical and electronic (E&E) products, which accounted for 38.5% of total exports grew marginally y-o-y to RM26.2 billion.

Y-o-y, imports decreased by 0.1% or RM31.8 million to RM60.5 billion, attributable to capital goods and consumption goods, as they fell 5.6% or RM493.5 million to RM8.4 billion and 4.8% or RM271.6 million to RM5.4 billion respectively.

Capital goods' decline was due to a decrease in capital goods except for transport equipment while consumption goods' decrease was contributed by food & beverages, processed mainly for household consumption and semi-durables.

Intermediate goods increased by 6.2% or RM2 billion to RM34.8 billion, contributed by an increase in industrial supplies, processed and fuel & lubricants.

In September 2016, China continued to be the major trading partner with Malaysia but exports to China fell by 1% to RM9 billion while imports from China increased by 3% to RM12.3 billion. Exports to Malaysia’s second major trading partner, Singapore, saw an increase of 6.3% to RM10.4 billion while imports from Singapore declined by 18.8% to RM6.3 billion.