KUALA LUMPUR (April 19): Malaysia’s trade performance has declined for March 2023, with trade falling by 1.6% to RM232.72 billion, exports declining by 1.4% to RM129.71 billion and imports decreasing by 1.8% to RM103.01 billion, according to the Malaysia External Trade Development Corp (Matrade).
Malaysia’s trade surplus, however, increased to RM26.69 billion as compared to March 2022, it said in a statement on Wednesday (April 19).
Matrade said it was the 35th straight month since May 2022 that Malaysia had recorded a trade surplus.
Compared to February 2023, double-digit growth was recorded for trade at 13.5%, exports at 15.5%, imports at 11.1% and trade surplus at 36.4%.
Trading and exporting with Asean countries has also declined, underpinned by higher imports.
Exports of manufactured goods slip year-on-year
Matrade added that exports of manufactured goods slipped 0.4% year-on-year (y-o-y) to RM108.96 billion, constituting 84% of the total exports for March 2023, due to lower exports of electrical and electronic (E&E) products, rubber products, and wood products.
This was offset by higher exports of petroleum products, optical and scientific equipment as well as machinery, equipment and parts.
Matrade saw E&E product exports, which accounted for 39% of all exports, fall 4.4% to RM50.54 billion from March 2022.
In contrast, exports of petroleum products increased by 32.1% to RM12.32 billion with a 9.5% share from total exports.
Exports for mining goods fell by 3.5% y-o-y to RM10.4 billion due to lower exports of petroleum condensate and other petroleum oil. However, liquefied natural gas (LNG) exports rose.
Meanwhile, agriculture goods fell by 10.8% to RM9.43 billion on the back of lower exports of palm oil and palm oil-based agriculture products.
On a month-on-month (m-o-m) basis, double-digit growth was registered for exports of manufactured (14.2%), mining (13%) and agriculture goods (31.8%), it said.
Trade with Asean, China shrinks
For March 2023, trade with Asean declined 1.4% y-o-y to RM64.84 billion, representing 27.9% of Malaysia’s total trade. Exports dropped 3.4% to RM37.98 billion on lower exports of E&E products.
Matrade noted the increase in exports of petroleum products, machinery, equipment and parts as well as transport equipment.
“Imports from Asean expanded by 1.6% to RM26.86 billion,” it added.
In addition, exports to Singapore grew by 3.1% to RM20.74 billion, and exports to Indonesia expanded by 17.9% to RM4.88 billion on account of robust exports of petroleum products.
Meanwhile, trade with China in March 2023 shrank 3% y-o-y to RM37.84 billion, representing 16.3% of Malaysia's total trade.
Exports to China also contracted by 6.2% to RM16.68 billion due to lower exports of E&E products, offset by an increase in exports of metalliferous ores and metal scrap, chemicals and chemical products as well as LNG.
Matrade said that compared to February 2023, trade rose by 11.9%, exports increased by 16.2% and imports grew by 8.7%.
Imports of capital goods, consumption goods rise
Total imports for March 2023 have contracted by 1.8% to RM103.01 billion, with three categories of imports by end use accounting for 70.7% of total imports.
Matrade said intermediate goods decreased by 8.7% y-o-y to RM53.81 billion following lower imports of primary fuel and lubricants.
Meanwhile, capital goods grew by 3.5% to RM9.77 billion on the back of higher imports of industrial transport equipment.
Consumption goods have also increased by 6.2% to RM9.26 billion as a result of higher imports of semi-durables.