KUALA LUMPUR: Malaysia's trade grew by 3.3 per cent to RM211.79 billion year-on-year (YoY) in February, however stronger imports growth saw the trade surplus narrow to RM10.87 billion.
The Ministry of Investment, Trade and Industry (Miti) said exports reduced slightly by 0.8 per cent to RM111.33 billion while imports rose by 8.4 per cent to RM100.46 billion.
"Trade surplus was valued at RM10.87 billion, marking the 46th consecutive month of surplus since May 2020," it said in a statement.
The country's trade performance continued its upward trajectory for the first two months of 2024, registering 8.3 per cent growth to RM446.43 billion YoY. Exports increased by 3.9 per cent to RM233.74 billion, contributed by a 3.4 per cent increase in manufactured goods to RM196.75 billion YoY driven by higher exports of iron and steel products, machinery, equipment and parts as well as petroleum products.
Imports, on the other hand, climbed 13.6 per cent to RM212.69 billion, providing a trade surplus of RM21.04 billion. Compared to January 2024, trade surplus expanded by 6.9 per cent for February 2024.
On global trade, Miti said it is expected to recover in 2024 supported by stronger private and public spending, as well as increased labour force participation, improved supply chains and cheaper energy and commodity prices.
The World Trade Organization (WTO) has forecast 3.3 per cent growth in merchandise trade in 2024, while the International Monetary Fund (IMF) has forecast global trade to grow by 3.3 per cent.
The IMF is also expecting global Gross Domestic Product (GDP) to grow by 3.1 per cent.
"These figures will be contributed by better growth prospects for the world's two largest conomies, the US and China, Malaysia's two top trading partners by country," it said.
Moving forward, MITI and its agency, the Malaysia External Trade Development Corporation (Matrade) are cautiously optimistic and remain vigilant of global risks, while proactively looking out for export opportunities to both existing and new markets, as outlined by the National Trade Blueprint.
Further, guided by the New Industrial Master Plan 2030, MITI is also attracting more high-quality investments which would, in turn, increase Malaysia's future manufacturing and services exports' value.
"MITI is also actively encouraging Malaysian exporters to take advantage of benefits under the 16 Free Trade Agreements (FTAs) that have been signed and implemented, including two major FTAs namely, the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)," it added.