KUALA LUMPUR: Malaysia’s trade surplus hits a three-month high, after widening to RM11.5 billion in January from RM10.7 billion in December last year as exports growth outperformed those of imports.
International Trade and Industry Ministry today announced that January exports had expanded 3.1 per cent to RM85.41 billion, while imports grew by one per cent to RM73.89 billion.
This was 19.2 per cent higher than the January 2018’s surplus, the ministry said in a statement.
Malaysia’s total trade in January expanded 2.1 per cent to RM159.3 billion from a year ago, it added.
MIDF Research said the January exports were a good start for the year as it had only recorded a meagre growth of 0.8 per cent in 2018.
The firm expects domestic exports to continue its upward trend moving forward, with the possible recovery in mining and agriculture goods.
“Amid higher base effects and continuous signs of easing key global indicators, we foresee exports growth to moderate further at 3.6 per cent this year (2018: 6.7 per cent),” MIDF Research said.
The ministry said January's export expansion was mainly fuelled by expansion in the manufactured goods and mining sectors, which grew 2.9 per cent and 23.5 per cent, respectively.
“Trade within Asean in January declined by 2.2 per cent to RM41.97 billion compared to January 2018, while exports grew by 3.4 per cent to RM24.98 billion with imports lower by 9.6 per cent to RM16.99 billion.
“Trade with China rose by 14.1 per cent to RM28.92 billion, while exports increased by 9.1 per cent to RM11.02 billion and imports surged by 17.5 per cent to RM17.9 billion,” it added.
The trade with the EU slipped by 1.5 per cent to RM15.29 billion, from a year ago. Exports to the EU grew by 4.3 per cent to RM8.73 billion in January, while imports contracted by 8.2 per cent to RM6.56 billion.
The main exports from Malaysia to the EU were manufactured goods, primarily electronic and electrical (E&E) products, palm oil, transport equipment, textiles, apparels and footwear.
Trade between Malaysia and the US increased 2.7 per cent to RM13.29 billion, from a year ago. Exports was 9.4 per cent higher at RM7.95 billion but imports decreased 5.9 per cent to RM5.33 billion.
Malaysia's trade with Japan slipped by 1.8 per cent to RM11.51 billion, from a year before. Exports fell five per cent to RM6.67 billion, while imports increased 2.9 per cent to RM4.85 billion.
In January, other markets that showed significant growth in exports were Taiwan and the UAE.
Malaysia’s exports to Taiwan jumped 22.3 per cent to RM2.84 billion, from a year ago, mainly driven by higher exports of E&E products.
Exports to the UAE, too, leapt by 32 per cent to RM896.9 million, on higher exports of jewellery.
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