June exports up 3.4% on-year, surprises survey

KUALA LUMPUR: Malaysia's exports delivered a strong set of numbers, up RM2.2bil or 3.4% to RM66.45bil – surprising economists' expectations of a 3.7% decline – underpinned by a strong growth in electrical and electronics.

The Statistics Department said on Friday that E&E products increased RM1.1bil or 4.9% from RM23.1bil.

It added that refined petroleum products rose RM1.1bil or 34.9% from RM3.2bil due to the increase in export volume (+90.1%) as average unit value fell 29.0%. Timber and timber-based products recorded an of RM133.7mil or 8.1% from RM1.6bil.

On a month-on-month basis seasonally adjusted terms, exports increased RM6.5bil (up 10.6%) to RM67.9bil.

On a month-on-month basis, the higher exports were mainly to Singapore (+RM1.3bil), USA (+RM657.6mil), Japan (+RM646.7mil), China (+RM605.1mil),Vietnam (+RM489.5mil) and Australia (+RM478.0mil).

The department said imports increased 8.3% to RM4.7bil to RM60.93bil from a year ago, also surprising economists' expectations of  0.4% decline on-year.

On a month-on-month basis, imports increased due to the rise in imports from China (+RM1.3bil), Singapore (+RM1.3bil), Japan (+RM840.1mil) and Vietnam (+RM432.3mil).

Total trade in June 2016 was RM127.4bil, an increase of RM10.8bil or 9.2% from May. A growth of RM6.8bil or 5.7% was also recorded from a year ago.

There was a trade surplus of RM5.5bil, up RM2.2bil or 68.1% from the previous month. However, compared to the previous year, it declined RM2.5bil or 30.8%.