KUALA LUMPUR (Nov 11): Malaysia's current account surplus increased to RM14.1 billion in the third quarter of 2022 (3Q2022) — the highest in three quarters — mainly due to the larger goods surplus, driven by stronger exports amid high commodity prices, said Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin at the 3Q2022 GDP announcement on Friday (Nov 11).
In 2Q2022, Malaysia's current account recorded a surplus of RM4.4 billion.
“The current account registered a higher surplus of RM14.1 billion, or 3.1% of GDP. In addition, the services deficit narrowed due to higher travel and transport receipts following improvement in inbound tourist arrivals,” said Mohd Uzir.
He added in the financial account, net foreign direct investment (FDI) recorded a continued inflow of RM12.3 billion during the quarter.
“These investments were channelled primarily into the manufacturing sector and financial services sub-sector,” he said.
Malaysia’s total net FDI inflows for the first nine months of this year amounting to RM54 billion is much higher compared with RM29.7 billion recorded during the same period last year, exceeding the levels recorded prior to the pandemic.
MIDF said in a research note on Friday that Malaysia’s current account surplus will rise further, driven by steady exports revenue derived from elevated global commodity prices, firm regional demand and steady recovery in services trade primarily tourism activities.
“We foresee services trade to improve further especially driven by the reopening of Japan’s borders in Oct-22 and possibly China in 2QCY2023,” the research outfit added.