Malaysia Trade Surplus Smallest in 21 Months

Malaysia reported a MYR 1.91 billion trade surplus in July of 2016, down from MYR 2.37 billion surplus a year earlier and missing market consensus of MYR 4.30 billion. It was the smallest trade surplus since October 2014 as exports fell more than imports.

Year-on-year, sales unexpectedly dropped by 5.3 percent to MYR 59.90 billion, following a 3.4 percent increase in June while market. It was the biggest decline since May 2015 while market estimated a 2.5 percent gain. Sales went down for: electrical & electronic products (-6.0 percent to MYR 21.7 billion, 36.3 percent share), LNG (-25.0 percent to MYR 773.0 million, 3.9 percent share), timber and timber-based products (-13.8 percent to MYR 1.6 billion, 2.6 percent share), natural rubber (-43.9 percent to MYR 271.4 million, 0.5 percent total exports) and palm oil and palm-based products (-1.4 percent to MYR 5.7 billion, 9.5 percent share). In contrast, outbound shipments rose for: refined petroleum products (+11.7 percent to MYR 3.4 billion, 5.6 percent share) and crude petroleum  (+8.7 percent to MYR 2.1 billion, 3.4 percent share).

Exports fell to China (-22.3 percent to MYR 7.3 billion) and Japan (-14.5 percent to MYR 5.0 billion). In contrast, sales grew to the US (+4.1 percent to MYR 6.30 billion), Singapore (+5.9  percent to MYR 9.20 billion) and Thailand (+11.1 percent to MYR 3.60 billion). 

Imports decreased by 4.8 percent to MYR 57.90 billion, as compared to a 8.3 percent growth in the preceding month and consensus of a 1.5 percent decline. Purchases of intermediate goods were down by 11.8 percent to MYR 32.1 billion, largely due to fuel & lubricant, processed, others(-75.7 percent); industrial supplies, processed (-4.4 percent), parts & accessories of capital goods (-2.5 percent) and food & beverages, processed, mainly for industries (-19.6 percent). Imports of consumption goods  were also down by 6.8 percent to MYR 4.9 billion, due to food & beverages processed, mainly for household (-17.3 percent) and semi-durables (-6.3 percent). In contrast, purchases of capital goods rose 46.6 percent to MYR 3.5 billion, due to a 51.0 percent rise in capital goods (except transport equipment).

In June 2016, trade surplus stood at MYR 5.52 billion.

Malaysia Trade Surplus Smallest in 21 Months

Statistics Malaysia l Rida Husna |
9/7/2016 6:48:53 AM