August exports expand at slightly faster pace than expected

KUALA LUMPUR: Malaysia's exports rose 21.5% to RM82.2bil in August, which was above economists' expectations of 20% growth, with electrical and electronic (E&E) products underpinning the growth and China remaining among the top markets.

The Statistics Department said on Friday exports rose by RM14.6bil (+21.5%) to RM82.2bil. Value of re-exports recorded RM11.2bil and accounted for 13.6% of total exports. Domestic exports grew by RM12.9bil (+22.1%) to RM71.1bil.

When compared to a year ago, Malaysia's exports increased to Singapore (+RM2.1bil, +20.5%), China (+RM2.0bil, +21.2%), European Union (+RM1.5bil, +21.6%) and Taiwan (+RM1bil, +64.8%).

It said E&E products accounted for 37.8% of total exports) and increased RM5.2bil (+20.1%) to RM31.0bil.

Liquefied natural gas (LNG) (4.8% of total exports), increased RM2bil or 101.8% to RM4bil due to the strong increase in both export volume (+57.4%) and average unit value (+28.2%).

Refined petroleum products, which accounted for 5.2% of total exports, rose RM1.1bil or 35.5% to RM4.3bil due to the increase in both average unit value (+19.6%) and export volume (+13.3%).

“On a month-on-month basis, exports rose RM3.6bil (+4.6%) from RM78.6bil. In seasonally adjusted terms, exports declined 1.7%,” it said.

Imports

The department said imports expanded by 22.6% or RM13.3bil to RM72.4bil from RM59.0bil due to higher imports of intermediate goods, capital goods and consumption goods.

Intermediate goods,  which constituted 59.7% of total imports, expanded RM8.8bil (+25.5%) to RM43.2bil. The growth was mainly due to parts & accessories of capital goods (except transport equipment) (+RM6bil, +48.1%) and industrial supplies, processed (+RM1.3bil, +9.2%).

Capital Goods represented 12.6% of total imports grew RM1bil or 12.7% to RM9.1bil due to the increase in capital goods (except transport equipment) (+RM1.4bil, +18.7%). However, imports of transport equipment, industrial decreased RM330.4 million (-40.2%).

Imports of consumption goods which accounted for 8.6% of total imports rose RM943.3mil (+17.8%) to RM6.2bil mainly due to food & beverages, processed, mainly for household consumption (+RM353.6mil, +26.4%), non-durables (+RM256.8mil, +19.6%) and semi-durables (+RM217.5mil, +19.8%).

On a month-on-month basis, imports rose RM1.8bil or 2.5% from RM70.6bil. The increase was due to intermediate goods and consumption goods.

On a seasonally adjusted terms, imports increased RM3.5bil (+5.2%) to RM71.4bil

Trade 

Total trade rose by 22% or RM27.9bil to RM154.6bil. It increased by RM5.4bil or 3.6% for July.

Malaysia recorded a trade surplus of RM9.9bil in August 2017, an increase of RM1.2bil (+14.4%) from RM8.6bil a year ago. When compared to the previous month, it expanded by RM1.8bil or 22.8%.