Malaysia’s trade performance gains ground bolstered by E&E demand

• Expansion in exports sustained by higher global demand primarily for E&E products
• E&E products constituted 34.8% of total exports, increased by 42% from April 2020

THE Ministry of International Trade and Industry (Miti) reported that Malaysia’s trade performance maintained its strong growth momentum in April 2021, which the agency said outperformed March with another record of new high for trade, exports and imports monthly value.

According to the ministry, the expansion in exports was sustained by higher global demand primarily for electrical and electronic (E&E) products, mainly semiconductors in tandem with increasing digitalisation and 5G technology development, rubber products as well as petroleum products.

E&E products, valued at RM36.8 billion and constituted 34.8% of total exports, increased by 42% from April 2020, Miti said in a statement.

The ministry said that trade grew by 43.2% to US$46.11 billion (RM190.76 billion) compared to April 2020.

[RM1 = US$0.241]

Exports maintained above RM100 billion for two consecutive months, reaching RM105.62 billion and surged by 63%, the agency said.

This was the fastest growth since February 1998 and the eighth consecutive month of year-on-year (y-o-y) expansion since September 2020, it added.

Imports increased by 24.4% to RM85.14 billion and trade surplus surged by 663.5% to RM20.48 billion. Trade, exports and imports recorded double digit growth for three consecutive months, Miti said.

It added that exports to all major markets namely Asean, China, the United States (US), the European Union (EU) and Japan registered positive growth.

On a month-on-month basis, trade, exports and imports grew by 2.7%, 0.6% and 5.4%, respectively. Trade surplus however decreased by 15.4%.

Trade for the first four months of 2021 grew by 21.4% to RM696.46 billion, compared to the same period of 2020. Exports increased by 27.8% to RM387.81 billion and imports rose by 14.3% to RM308.65 billion. Trade surplus surged by 137.5% to RM79.16 billion.

For the period of January to April 2021, exports of manufactured goods grew by 31.1% to RM337.05 billion compared to the same period of 2020, following higher exports of E&E products, rubber products, manufactures of metal, chemicals and chemical products, machinery, equipment and parts as well as optical and scientific equipment.

Exports of agriculture goods rose by 27% to RM26.02 billion owing to higher exports of palm oil and palm oil-based agriculture products.

Exports of mining goods totalled RM21.03 billion, edged down by 13.2% on account of lower exports of LNG and crude petroleum.

Meanwhile, exports to all Asean countries recorded growth notably to Singapore, which increased by RM5.52 billion due to higher exports of E&E products, Miti said.

Trade with the United States in April 2021 surged by 71.2% y-o-y to RM18.27 billion, accounting for 9.6% of Malaysia’s total trade. Exports recorded a resilient growth of 128.6% to RM12.15 billion, the largest growth in 22 years, it said.

The expansion was attributed to higher exports of manufactured goods particularly E&E products, rubber products, optical and scientific equipment as well as wood products. Imports from the US increased by 14.2% to RM6.12 billion.