MALAYSIA’S total trade in September 2020 expanded by 5.5% to RM155.88 bil compared to the same month from last year. The increases in trade were done with China, Hong Kong SAR and the United States (U.S.), the Netherlands and Taiwan.
Additionally, the country’s exports rebounded 13.6% to RM88.93 bil, which is the highest export value ever recorded for the month of September. However, imports decreased by 3.6% to RM66.96 bil.
Trade surplus in September 2020 surged by 149.3% year-on-year (yoy) to RM21.97 bil and was the highest trade surplus ever recorded for the month of September.
Total trade for the third quarter 2020 (3Q 2020) amounted to RM460.87 bil, declined marginally by 0.5% compared to 3Q 2019.
Exports increased by 4.4% to RM260.62 bil while imports contracted by 6.3% to RM200.25 bil. Trade surplus grew by 68.4% to RM60.36 bil.
For the first nine months of 2020, trade surplus recorded a double-digit growth of 14.8% to RM124.94 bil compared to the same period of 2019.
Exports during the period slipped 3.7% to RM709.56 bil while imports declined 6.9% to RM584.62 bil.
Exports of manufactured goods in September 2020, which made up 87.7% of total exports, picked up by 16.3% yoy to RM77.99 bil.
The expansion was due mainly to higher shipments of electrical and electronic (E&E) products, rubber products, other manufactures especially solid-state storage devices (SSD), iron and steel products as well as optical and scientific equipment.
Exports of agriculture goods (7.4% share) surged by 26.6% to RM6.55 bil compared to September 2019 buoyed mainly by higher exports of palm oil and palm oil-based agriculture products.
Exports of mining goods (4.5% share) declined by 27.4% yoy to RM4.02 bil on account of lower exports of liquefied natural gas (LNG).
Trade performance with major ASEAN markets
Malaysia’s trade with ASEAN in September 2020 which contributed RM38.79 bil or 24.9% to the country’s total trade, increased by 0.5% compared to September 2019.
Exports rebounded by 6.7% to RM23.1 bil backed mainly by higher exports of E&E products which increased by 47.8% or RM3.2 bil while Imports from ASEAN declined by 7.4% to RM15.69 bil.
Exports to markets in ASEAN that recorded expansion include Singapore, which increased by RM1.47 bil due to higher exports of E&E products, Brunei(+RM159.5 mil, mainly crude petroleum), Vietnam (+RM148.5 mil, mainly E&E products) and the Philippines (+RM82 mil, mainly palm oil and palm oil-based agriculture products).
Highest trade performances
In September 2020, trade with China contributed 19.8% to Malaysia’s total trade, recording an expansion of 21.5% y-o-y to RM30.85 bil.
Exports to China sustained a double-digit growth for four consecutive months, surging by 41.9% to RM15.56 bil, mainly on higher exports of E&E products, iron and steel products as well as palm oil and palm oil-based agriculture products, while imports from China expanded by 6.1% to RM15.29 bil.
With U.S., trade in September 2020 rose by 12.3% y-o-y to RM15.74 bil, accounting for 10.1% of Malaysia’s total trade. Exports to the U.S. continued to expand for four consecutive months, with a double-digit growth of 22.1% to RM10.32 bil in September 2020.
Higher shipments were recorded for manufactured goods which made up 97.7% share of Malaysia exports to the US. Increases in exports were primarily for rubber products, E&E products, wood products, machinery, equipment and parts as well as other manufactures (SSD). Imports from the US decreased by 2.6% to RM5.42 bil.
As for the European Union (EU) side, total trade constituting 8.6% of Malaysia’s total trade in September 2020, rose by 11.1% yoy to RM13.45 bil.
Exports accelerated with a double-digit growth of 28.6% to RM8.63 bil, underpinned by higher exports of E&E products, rubber products, palm oil and palm oil-based agriculture products as well as manufactures of metal. Imports from the EU declined by 10.7% to RM4.82 bil.
Among the top 10 EU markets which accounted for 91.4% of Malaysia’s total exports to the EU, exports to eight countries recorded increases namely, Germany (+17.8%), the Netherlands (+39.7%), Italy (+54.1%), Slovenia (+129.7%), Belgium (+2.4%), Spain (+27.2%), the Czech Republic (+93.9%) and Poland (+60.9%). – Oct 28, 2020
