Malaysia's exports dip in May on lower shipments to China

The main contributors to the increase in the September exports were electrical and electronics (E&E) products, which contributed 37.2% to total exports.

KUALA LUMPUR: Malaysia's exports were weaker than expected in May 2016 as crude pertroleum exports fell in volume and value and following a decline in shipments to its biggest trading partner, China.

The Statistics Department said on Friday exports fell  RM533.6mil (-0.9%) to RM59.9bil from a year ago and the decline was in contrast with economists' forecast of a 2% increase.

It said the lower exports were mainly to China (-RM983.3mil), Angola (-RM708.5mil), Singapore (-RM362.0 million), Japan (-RM336.3mil) and Taiwan (-RM240.9mil).

“On a month-on-month basis, exports declined RM1.4bil (-2.3%) from RM61.3bil. In seasonally adjusted terms, exports dropped 1.6%,” it said.

The department said on a year-on-year basis, the decline in exports due to lower exports of crude petroleum, which accounts for 2.3% of total exports, which fell RM918.2mil (-40.3%) to RM1.4bil due to the decline in both export volume (-23.3%) and average unit value (-22.2%);

However, Malaysia recorded an increase in exports of electrical and electronic (E&E) products, which contributed 36.3% to total exports. E&E exports rose RM677.0mil or 3.2% to RM21.8bil.

Palm oil and palm-based products, which accounted 9.0% of total exports, expanded RM66.7mil (+1.3%) to RM5.4bil.

As for imports, the department recored a 3.1% increase or by RM1.7bil to RM56.7bil. On a year-on-year basis, imports increased due to the rise in imports from China (+RM1.2bil), European Union (+RM1.1bil), USA (+RM745.2mil), Taiwan (+RM509.8mil) and Japan (+RM262.1mil).

It said on a month-on-month basis, imports rose RM4.4bil (+8.4%) from RM52.3bil. In seasonally adjusted terms, imports expanded 6.7%.

Total trade in May 2016 was RM116.6bil, up RM1.2bil or 1.0% on-year. Thus was a 2.6% increase or RM2.9bil on-month.

The trade surplus of RM3.3bil was registered in May 2016 versus RM5.5bil in May 2015. However, compared to the previous month, it fell 64.0% (-RM5.8bil) from RM9.1bil.