January exports up 17.9% to RM82.9b, trade surplus at RM9.7b

PETALING JAYA: Malaysia’s exports rose 17.9% to RM82.9 billion in January 2018 from RM70.3 billion a year ago, pushing the trade surplus for the month to RM9.7 billion, even as imports went up 11.6% to RM73.2 billion from RM65.5 billion.
MIDF Research, however, believes the highest ever January export value will be the exception rather than the rule for the year, with 2018 export growth expected to moderate to an average of 9.3% from 19% in 2017.
The forecast is underpinned by continuous buoyant momentum in global trade activities and further recovery in commodity prices.

The Statistic Department said today the country’s total trade in January 2018 rose 14.9% to RM156 billion on a year-on-year basis while the trade surplus increased RM5 billion or 104.8% to RM9.7 billion from RM4.7 billion a year ago.
China remains Malaysia’s biggest trade partner, making up 16.2% of total trade, followed by Singapore at 13.3% and the European Union (EU) with 9.9%. Malaysia’s biggest export market is Singapore, while the biggest import market is China.
Export value was driven by increases in the electrical and electronics (E&E) sector (which contributed 38.2% to total exports), palm oil and palm oil-based products (7.9%) and refined petroleum products (6.4%).
E&E exports were up 27.1% year on year, while the exports of palm oil, the major commodity in the palm oil and palm oil-based group of products, rose RM359.0 million or 10.1% due to an increase in export volume of 35.9% as average unit value decreased 19.0%.
Exports of natural rubber, which contributed 0.4% to total exports, registered a drop of RM102.3 million or 26.0% to RM291.4 million due to the decline in both average unit value (-20.5%) and export volume (-6.9%).
The higher import numbers were due to intake of consumption of goods, which rose RM563.1 million or 9.8% to RM6.3 billion. They made up 8.6% of total imports. Food & beverages, processed, mainly for household consumption were up by RM192.3 million or 13.2%, while non-durables were up RM145.4 million or 11.6%.
Import of intermediate goods, which made up 51.6% of total imports, and capital goods, which made up 12.7% of total imports, both declined.
On a month-on-month basis, the trade surplus expanded by RM2.5 billion or 33.9%, the department said.
Exports grew RM3.5 billion or 4.4% from RM79.3 billion, from increases in electrical and electronic goods, palm oil and palm oil-based products, timber and timber-based products and refined petroleum products. However liquefied natural gas, crude petroleum and natural rubber exports all fell month on month.
Imports increased RM1.1 billion or 1.5% from RM72.1 billion, as consumption goods recorded a slight increase while capital goods and intermediate goods posted declines.