IN tandem with softer global demand and unfavourable external economic conditions stemming from the COVID-19 pandemic, Malaysia did reasonably well with its total exports for 2020 only contracted by 1.4% to RM981 bil from the preceding year.
On the contrary, imports declined by 6.3% or RM53.2 bil to RM796.2 bil which enabled the country’s total trade to reach RM1.8 tril or 3.6% lower year-on-year (yoy) while trade surplus widened by 26.9% to RM184.8 bil – the largest trade surplus ever recorded thus far, according to Department of Statistics (DOSM) chief statistician Datuk Seri Dr Mohd Uzir Mahidin.
“(For December 2020), Malaysia’s total exports recorded the highest monthly export value of RM95.7 bil, an increase of 10.8% compared to same month in 2019, outpacing import growth for eight consecutive months,” he pointed out in the External Trade Statistics (December 2020) report.
“After nine consecutive months of decline, imports rebounded to post a growth of 1.6% to RM75 bil.”
The expansion in exports was supported mainly by higher exports to Singapore (+RM2.2 bil), China (+RM1.9 bil), the US (+RM1.7 bil), India (+RM1.62 bil), Hong Kong (+RM1.60 bil) and the European Union (+RM988.1 mil).
Increases in imports were mainly derived from China (+RM2.1 bil), India (+RM772.9 mil), Hong Kong (+RM518.7 mil) and Taiwan (+RM466 mil).
The main products which contributed to the increase in exports were electrical and electronic products (+RM5.6 bil); rubber products (+RM3 bil), and palm oil and palm oil-based agriculture products (+RM2.6 bil).
Expansion in imports were noted for electrical and electronic products (+RM2.7 bil) and chemical & chemical products (+RM734.7 mil).
“Imports for end use recorded an increase for consumption goods which grew by 3.3% or RM223.9 mil to RM7 bil and comprised of 9.4% of total imports,” noted Mohd Uzir. “Nevertheless, imports for intermediate goods and capital goods posted a decrease.”
Imports of intermediate goods valued at RM39.8 bil or 53.1% share of total imports saw a decline or 5.0% (-RM2.1 bil) while imports of capital goods went down by 2.0% or RM169.5 mil to RM8.4 bil.
On a quarterly basis, exports for 4Q 2020 also grew by 5.1% to RM271.5 bil from RM258.2 bil in 4Q 2019. However, imports in 4Q 2020 shrank by 4.5% to RM211.6 bil from RM221.4 bil in 4Q 2019, resulting in a trade surplus of RM483 bil (+0.7%).
“Malaysia’s total trade in 4Q of 2020 rebounded by 0.7% to RM483 bil from a decline of 0.5% in 3Q 2020,” added Mohd Uzir – Jan 29, 2021
