KUALA LUMPUR: Malaysia posts another record-breaking trade numbers in June, with economists describing the performance as a clear indication of the country's robust and resilient economic fundamentals.
The country's total trade hit a new record high of RM270.39 billion in June, up 43.4 per cent a year ago, as both export and import numbers continued to trend higher, leading to the highest quarterly value for overall trade in the April-June period.
However, as imports grew slightly faster than exports, the country's trade surplus eased 0.8 per cent year-on-year (y-o-y) to RM21.9 billion.
On a month-on-month basis, the trade surplus in June was 72.7 per cent higher over the immediate preceding month of May.
"This is the 17th consecutive month of double-digit growth," Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said in a statement today.
Economists said the latest trade data was a clear indication that the country's economic fundamentals remained robust and resilient towards achieving the projected 5.5-6.5 per cent gross domestic product (GDP) growth this year,
This was despite some dire warning from the World Bank that the global economy was heading towards slower growth and recession for some countries, said Putra Business School associate professor Dr Ahmed Razman Abdul Latif said
"This is also a strong counter to allegation that Malaysia is going to face the same fate like Sri Lanka. The latest S&P rating also confirmed the high confidence level on Malaysia's future economic prospect," Ahmed Razman told the New Straits Times.
He said Malaysia must remain cautious and continue to diversify its economic sector, tapping into new economy such as digital economy and at the same time becoming more responsible in managing its expenditure and debt.
Elaborating on the trade performane, Azmin said exports recorded 11th consecutive month of double-digit expansion, expanding 38.8 per cent to RM146.16 billion in June, while imports rose 49.3 per cent to RM124.23 billion.
Malaysia's total trade for the second quarter (Q2) of 2022 grew 32.7 per cent to RM730.36 billion, compared to Q2 2021.
Exports climbed 30.0 per cent to RM394.24 billion and imports increased 36.1 per cent to RM336.13 billion.
Azmin said this was the highest quarterly value for trade, exports and imports.
"Trade surplus edged up by 3.2 per cent to RM58.11 billion. Compared to the first quarter 2022, trade, exports and imports rose by 16.9 percent, 14.3 per cent and 20.1 per cent, respectively while the trade surplus contracted by 10.6 per cent," he added.
The export growth in June was contributed by strong demand for electrical and electronic (E&E) products, petroleum products, liquefied natural gas (LNG) as well as palm oil and palm oil-based agriculture products.
In June 2022, exports of all three sectors recorded strong double-digit growth compared to the same month last year.
Exports of manufactured goods reached its highest monthly value at RM122.07 billion or 83.5 per cent of total exports, increased by 33.8 per cent year- on-year and was the 11th consecutive month of double-digit growth.
Exports to most major trading partners notably Asean, the United States (US), the European Union (EU) and Japan recorded double-digit growth.
Azmin said exports to major markets in Asean that recorded expansion were Singapore which rose by RM8.99 billion due to higher exports of E&E products, Thailand (RM1.12 billion, LNG), Indonesia (RM2.27 billion, petroleum products), Vietnam (RM623.7 million, crude petroleum) and the Philippines (RM572.4 million, petroleum products). "Highest monthly export value was registered to Asean, the US and the EU," he said.
On a monthly basis, trade, exports, imports and trade surplus expanded by 18.4 per cent, 21.3 per cent, 15.2 per cent and 72.7 per cent respectively.