October exports up 0.2% to RM91.1b, exceed forecast

Chief Statistician Datuk Seri Dr.Mohd Uzir Mahidin said October exports of RM91.1bil were the second highest monthly export value recorded this year.

KUALA LUMPUR: Malaysia's exports in October rose by 0.2% to RM91.10bil, exceeding a Bloomberg survery of a 0.4% decline, underpinned by rubber exports, palm oil agricuture products and electrical and electronic (E&E) products.

In a statement issued on Friday, the Statistics Department said expansion in exports in October was contributed by higher exports to the US, China and the EU (+RM348mil).

Chief Statistician Datuk Seri Dr.Mohd Uzir Mahidin said October exports of RM91.1bil were the second highest monthly export value recorded this year.

Growth in exports was driven by domestic exports, up by 1.5% from RM72.3bil from the RM73.4bil a year ago. The re-export value of RM17.6bil, contributed to 19.3% of total exports, decreased by 4.9% on-year.

Malaysia recorded higher exports to the US (+RM2.3bil), China (+RM664.6mil), India (+RM471.3mil) and the European Union (+RM348mil).

Meanwhile the Minister of International Trade and Industry (MITI) said major exports in October 2020 were:

* E&E products, valued at RM38.63bil and constituted 42.4% of total exports, increased by 3% from October 2019;

* Palm oil and palm oil-based agriculture products, RM5.47bil, 6% of total exports, increased by 46.5%;

* Rubber products, RM5.22bil, 5.7% of total exports, surged by 127.3%;

* Petroleum products, RM4.33bil, 4.8% of total exports, decreased by 25.6%; and

* Chemicals and chemical products, RM4.16bil, 4.6% of total exports, declined by 16.1%.

On a month-on-month (m-o-m) basis, exports of manufactured and agriculture goods rose by 2.5% and 9.5%, respectively while mining goods decreased by 10.8%.

In contrast, imports posted a decrease of 6% on-year to RM68.9bil, which was the eighth consecutive month of decrease since March 2020. This was sharper than the Bloomberg survey of a 4.9% decline.

Total trade in October 2020 valued at RM160bil, shrank by 2.5% y-o-y. Malaysia’s trade surplus amounted to RM22.1bil remained steady in October, growing by 25.9% on-year.

Trade with China

Trade with China in October 2020 rose by 5.4% y-o-y to RM28.97bil, accounting for 18.1% of Malaysia’s total trade.

Exports to China increased by 4.9% to RM14.27bil mainly on higher exports of E&E products, iron and steel products, other manufactures (SSD), manufactures of metal as well as rubber products. Imports from China expanded by 5.9% to RM14.7bil.

Compared to September 2020, trade, exports and imports reduced by 6.1%, 8.3% and 3.9%, respectively.

Trade with US

In October 2020, trade with the US contributed 10.7% to Malaysia’s total trade, recording an expansion of 12.7% y-o-y to RM17.13bil.

Exports to the US recorded a double digit growth for five consecutive months, expanding by 25.6% to RM11.23bil in October.

Increases in exports were recorded especially for rubber products, E&E products, wood products, machinery, equipment and parts as well as palm oil and palm oil-based agriculture products. Imports from the US decreased by 5.7% to RM5.9bil.

Compared to September 2020, trade, exports and imports, all rose by 8.8%.

Total October imports

Total imports in October 2020 contracted by 6% y-o-y to RM68.93bil from RM73.29bil a year ago. The decline was sharper than the Bloomberg survey of a 4.9% fall.

The three main categories of imports by end use which accounted for 70.8% of total imports were:

* Intermediate goods, valued at RM35.27bil or 51.2% share of total imports, decreased by 6.1%, following lower imports of processed industrial supplies, particularly nickel and articles;

* Capital goods, valued at RM7.02bil or 10.2% of total imports, declined by 17.1%, due mainly to reduced imports of capital goods (except transport equipment), primarily electrical machinery, equipment and parts; and

* Consumption goods, valued at RM6.53bil or 9.5% of total imports, rose by 6.5%, as a result of higher imports of non-industrial transport equipment.

Trade surplus

Malaysia’s trade surplus in October widened to RM22.12bil, expanding by 25.9% on-year and was the highest trade surplus ever recorded for the month of October.