Malaysia’s exports in November 2016 recorded a strong year-on-year growth of 7.8%, reaching RM72.83 billion, the highest monthly exports recorded in the first eleven months of the year. The achievement was supported by robust demand from major markets mainly from ASEAN, China, the European Union (EU), the United States of America (USA), Hong Kong and India. Imports in November 2016 grew by 11.2% to RM63.8 billion. Total trade rose 9.3% to RM136.63 billion while trade surplus stood at RM9.03 billion, making it the 229th consecutive month of trade surplus since November 1997.
Malaysia’s total trade for the first eleven months of 2016 increased by 0.5% to RM1.342 trillion compared with RM1.335 trillion in the corresponding period in 2015. During the period, exports were higher by 0.2% to RM710.38 billion while imports increased by 1% to RM631.83 billion with trade surplus of RM78.55 billion.
On a month-on-month basis, exports, imports and total trade posted a growth of 5.2%, 7.3% and 6.2%, respectively.
Export Performance of Major Sectors
Overall, exports of both manufactured and agricultural goods increased in the first eleven months of 2016. Exports of mining goods, however, declined.
Export Composition
For the first eleven months of 2016, exports of manufactured goods increased by 2.6% to RM584.54 billion. Higher exports exceeding RM1 billion were registered for electrical and electronic (E&E) products, chemicals and chemical products, optical and scientific equipment, machinery, equipment and parts, processed food as well as transport equipment. Manufactured exports contributed 82.3% to total exports as compared to 80.4% during the same period last year.
Exports of agricultural goods rose by 3.5% to RM63.84 billion mainly on higher exports of palm oil and palm-based agriculture products. Exports of palm oil increased by 2.4% to RM37.77 billion, attributed to higher Average Unit Value (AUV).
Exports of mining goods declined by 22.2% to RM57.09 billion due to lower exports of liquefied natural gas (LNG) and crude petroleum, due to lower AUV.
Major exports in January-November 2016 were:
- E&E products, valued at RM260.68 billion and constituting 36.7% of total exports, increased by 3% from the corresponding period in 2015;
- Chemicals and chemical products, RM53.38 billion, 7.5% of total exports, increased by 5.8%;
- Palm oil and palm-based agriculture products, RM43.86 billion, 6.2% of total exports, increased by 4.6%; Machinery, equipment and parts, RM34.67 billion, 4.9% of total exports, increased by 5.9%; and Petroleum products, RM48.78 billion, 6.9% of total exports, decreased by 4.2%.
In November 2016, exports of manufactured goods grew by 7.9% to RM58.32 billion compared to November 2015. It accounted for 80.1% share of Malaysia’s total exports. E&E products expanded by 13.2% or RM3.06 billion, the fastest growth recorded thus far in 2016. Increases in exports were also recorded for chemicals and chemical products, transport equipment, processed food, iron and steel products, optical and scientific equipment, machinery, equipment and parts, as well as apparel and clothing accessories.
Exports of agricultural goods increased by 22.4% to RM6.9 billion, led by higher exports of palm oil and palm-based agriculture products. Exports of palm oil registered a double digit growth of 25.6% to RM4.07 billion, compared with RM3.24 billion in November last year.
Exports of mining goods were down by 6.9% to RM7.01 billion, due to the decline in exports of LNG and crude petroleum. Exports of LNG and crude petroleum contracted by 21.3% and 6.1%, respectively due to lower AUV.
On a month-on-month basis, all sectors registered increases. Manufactured goods increased by 2.5% or RM1.41 billion, mining goods (↑34.8% or RM1.81 billion) and agricultural goods (↑5.1% or RM337.8 million).
Performance of Major Markets
Exports to ASEAN Remained Strong at 4.8% growth In January-November 2016, exports to ASEAN rose by 4.8% or RM9.5 billion to reach a value of RM209.15 billion. The increase was led by higher exports of E&E products, petroleum products, manufactures of metal, processed food, machinery, equipment and parts as well as transport equipment. Meanwhile, imports from ASEAN fell by 6.1% to RM155.63 billion while trade with ASEAN decreased by 0.2% to RM364.78 billion compared with the same period of 2015. Among major ASEAN markets, increase in exports was recorded for Viet Nam, Singapore, Myanmar, the Philippines, Cambodia and Laos. Exports to Viet Nam expanded by RM5.91 billion, contributed mainly by petroleum products, Singapore (↑RM4.75 billion, E&E products) and Myanmar (↑RM831.6 million, petroleum products).
Breakdown of exports to ASEAN countries in the first eleven months of 2016 is as
follows:
Singapore RM 103.5 billion, increased by 4.8%
Thailand RM 39.89 billion, ↓1.6%
Indonesia RM 25.03 billion, ↓5.8%
Viet Nam RM 21.63 billion, ↑37.6%
Philippines RM 12.45 billion, ↑3.5%
Myanmar RM 3.54 billion, ↑30.7%
Brunei RM 1.93 billion, ↓22.4%
Cambodia RM 1.11 billion, ↑36.7%
Lao PDR RM 70.5 million, ↑46.7%
In November 2016, exports to ASEAN expanded by 9.8% year-on-year, improving from the 2.6% decline in October. Exports to ASEAN was valued at RM20.88 billion, accounting for 28.7% of Malaysia’s total exports. The increase in exports was contributed mainly by manufactured goods, which grew significantly by 9.5% to RM18.6 billion. Higher exports recorded for all manufacturing sub-sectors except for jewellery and non-metallic mineral products. Imports from ASEAN fell by 3% to RM15.33 billion while trade grew by 4% to RM36.21 billion.
On a month-on-month basis, exports to ASEAN increased by 4.5%.
Trade with China Grew 2.7%
Malaysia’s trade with China for the first eleven months of 2016 registered a growth of 2.7% to RM216.27 billion. Exports were valued at RM88.33 billion, declined by 5.2% while imports increased by 8.9% to RM127.94 billion. Lower exports were recorded for petroleum products, E&E products, LNG, palm oil and palm-basedagriculture products as well as manufactures of metal. However, exports of chemicals and chemical products, optical and scientific equipment, processed food as well as transport equipment registered increases.
In November 2016, exports to China registered a double digit growth of 12% to RM10.93 billion compared to November 2015. The increase was due to higher exports of E&E products, palm oil and palm-based agriculture products, chemicals and chemical products, metalliferous ores as well as manufactures of metal. Imports amounted to RM13.69 billion, an increase of 19%. Trade with China was valued at RM24.62 billion, registering a growth of 15.8% or RM3.36 billion. This accounted for 18% of Malaysia’s total trade.
On a month-on-month basis, exports to China rose by 15%.
Exports to the USA Higher by 9.7%
In the first eleven months of 2016, trade with the USA rose by 5.5% to RM123.54 billion. Exports expanded by 9.7% or RM6.44 billion to RM73.06 billion while imports increased marginally by 0.1% to RM50.48 billion. Expansion in exports were recorded for E&E products, optical and scientific equipment, transport equipment and petroleum products.
In November 2016, exports to the USA rebounded by 9.9% to RM6.67 billion contributed mainly by higher exports of E&E products, petroleum products, machinery, equipment and parts, palm oil and palm-based agriculture products as well as optical and scientific equipment. Imports were higher by 3.7% to RM4.8 billion and trade increased by 7.2% to RM11.46 billion.
Exports to the EU Grew by 0.7%
In January-November 2016, exports to the EU increased by 0.7% to RM72.34 billion with higher exports of machinery, equipment and parts, optical and scientific equipment, chemicals and chemical products, transport equipment as well asapparels. Imports were lower by 1.7% to RM62.69 billion and total trade declined by 0.4% to RM135.03 billion, compared to the corresponding period of 2015.
In November 2016, trade with the EU amounted to RM13.16 billion, a growth of 8%. Exports to the EU recorded a double digit growth of 12.3% to RM7.25 billion, after two consecutive months of decline. Products that registered increases in exports to the EU were E&E products, palm oil and palm-based agriculture products, petroleum products as well as optical and scientific equipment. Imports expanded by 3.2% to RM5.91 billion. On a month-on-month basis, exports to the EU up by 0.5%.
Exports to Japan Grew 23.7% Month-on-Month
For the first eleven months of 2016, trade with Japan was valued at RM109.06 billion as compared with RM115.24 billion in the same period of 2015. Exports to Japan decreased by 13.5% to RM57.29 billion due to lower exports of LNG, by 33.6% or RM8.95 billion. Higher exports, however, were registered for manufactures of metal, machinery, equipment and parts, processed food, chemicals and chemical products, textiles, as well as iron and steel products. Imports expanded by 5.6% to RM51.76 billion.
Trade with Japan in November 2016 amounted to RM11.22 billion, an increase of 9.1% from November 2015. Exports to Japan declined by 1.4% to RM6.05 billion attributed to lower exports of LNG and crude petroleum. Imports from Japan rose by 24.6% to RM5.17 billion.
On a month-on-month basis, exports to Japan expanded by 23.7% due to higher exports of LNG and E&E products.
Trade with FTA Partners
During January to November of 2016, trade with Free Trade Agreement (FTA) partners was valued at RM844.82 billion or 62.9% of Malaysia’s trade. Exports amounted to RM442.09 billion while imports totalled RM402.73 billion. Increases in exports were recorded to VietNam, Singapore, Turkey, Myanmar, Pakistan, the Philippines, Cambodia, India and Laos.
During the period, exports to Turkey surged by 79.9% or RM2.74 billion to RM6.17 billion, driven mainly by higher exports of manufactures of metal. Exports to Pakistan rose by 13.9% to RM4.33 billion, contributed mainly by higher exports of palm oil and palm-based agriculture products. Exports to India grew by 0.6% to RM29.24 billion, attributed to higher exports of E&E products.
In November 2016, trade with FTA partners increased by 7.5% to RM87.44 billion, accounting for 64% of Malaysia’s total trade. Exports to FTA partners amounted to RM46.86 billion, an increase of 7% while imports from FTA partners increased by 8% to RM40.58 billion.
Growth in Other Markets
For the first eleven months of 2016, markets that recorded significant growth in exports of more than RM500 million were Mexico, increased by RM1.48 billion, attributed mainly to E&E products, Bangladesh (↑RM1.22 billion, palm oil and palmbased agriculture products), Hong Kong (↑RM574 million, chemicals and chemical products), United Arab Emirates (↑RM548.2 million, E&E products) and Nigeria (↑RM505.2 million, petroleum products).
Imports
During January to November 2016, imports were valued at RM631.83 billion, increased by 1% from the same period last year. The three main categories of imports by end use were:
Intermediate goods, valued at RM360.57 billion or 57.1% share of total imports, decreased by 1.1%, due mainly to lower imports of petroleum products;Capital goods (RM91.24 billion, 14.4% share, up 4.2%), due mainly to higher imports of floating structures; and Consumption goods (RM60.59 billion, 9.6% share, up 7.9%), with higher imports of food products.
In November 2016, imports were higher by 11.2% to RM63.8 billion. Imports of intermediate goods amounted to RM35.47 billion, an expansion of 11.3%, capital goods (RM9.17 billion, ↑13.1%) and consumption goods (RM6.14 billion, ↑5.4%).
