News Room - Business/Economics

Posted on 13 Feb 2009

Malaysia's trade surplus widens

It grew 24% to RM11.67b in December on higher trade value

 

Malaysia recorded a trade surplus of RM11.67bil in December, a 24% increase from the same month in 2007, thanks to higher trade value.

 

However, the total trade in December was valued at RM80.51bil, a fall of 18.6% from December 2007.

 

International Trade and Industry Deputy Minister Datuk Liew Viu Keong said Malaysia’s total trade in 2008 was valued at RM1.185 trillion, an increase of 6.8% from 2007, surpassing the RM1 trillion mark for the third consecutive year.

 

“Total exports last year rose by 9.6% to RM663.51bil, while imports increased by 3.3% to RM521.5bil, resulting in a total trade surplus of RM142.01bil for the whole year,” he told a media conference yesterday.

Left to right: Malaysia External Trade Development Corpration [MATRADE] Chairman, Tan Sri Halim Mohammad, Deputy Minister of International Trade and Industry, Datuk Liew Vui Keong and MATRADE CEO, Datuk Noharuddin Nordin during the media conference on Malaysia's Trade Perfomance 2008. Starpic by azman Ghani

 

He said the performance was precipitated by a 16% export growth in the first nine months and the decline of 18.3% in the last quarter last year.

 

“Malaysia’s exports contracted 14.9% to RM46.09bil in December last year compared with the same month in 2007. It was the weakest recorded for the year due to the contagion effect from the global financial crisis,” he said.

 

On a month-on-month basis, exports declined by 11% from November, while imports were lower by 14.5%.

 

On a year-on-year basis, liquefied natural gas (LNG), machinery, appliances and parts, transport equipment, non-metallic mineral products and jewellery registered increase in exports in December.

 

The major exported products in December included electrical and electronic (E&E) products (36.9%), LNG (11.2%), palm oil (7.7%), chemicals and chemical products (5.2%), crude petroleum (3.9%), machinery, appliances and parts (3.7%), refined petroleum products (3.6%), wood products (2.8%), manufactures of metal (2.6%) and optical and scientific equipment (2.2%).

 

Exports to Japan recorded a 53.9% growth to RM8.34bil in December due to the higher exports of LNG, while exports to the US totalled RM5.5bil compared with RM7.88bil in December 2007 mainly due to the decline in exports of E&E products.

 

Meanwhile, exports to China amounted to RM3.68bil compared with RM5.24bil in December 2007, attributed mainly to lower exports of E&E products, palm oil, crude rubber, refined petroleum products, rubber products and crude petroleum.

 

Total imports in December fell 23.1% to RM34.42bil from the same month in 2007.

 

Liew said industries were looking for positive outcomes from the various economic stimulus packages introduced in major economies after the first three months of 2009.

 

“Industries are taking various measures to reduce operational and production costs, improve efficiency and productivity while intensifying promotional activities to seek new export opportunities in niche areas,” he said.

 

He urged Malaysian businesses to allocate their resources carefully and continue to invest in promotion and marketing initiatives to sustain visibility as well as the confidence of their clientele.