Malaysia's current account balance records RM4.4bil surplus in Q2

KUALA LUMPUR: Malaysia’s current account balance recorded a surplus of RM4.4 billion in the second quarter of 2022 (Q2) versus RM3.0 billion in the previous quarter, primarily driven by net exports of goods account, the Department of Statistics Malaysia (DoSM) said.

It said the higher surplus was supported by lower deficits in services and primary income accounts.

"Meanwhile, the financial account posted a net inflow of RM0.2 billion compared to RM30.4 billion in the preceding quarter, mainly owing to a net inflow in direct investments and other investments.

At the end of the second quarter of 2022, the international reserves stood at RM480.0 billion (Q1 2022: RM485.8 billion), the department said in a statement.

DoSM said foreign direct investments posted a lower net inflow of RM17.3 billion from RM24.4 billion in the preceding quarter, while direct investment abroad registered a higher net outflow of RM14.7 billion as compared to RM3.6 billion in the previous quarter.

The goods account logged net exports of RM34.0 billion in Q2 compared to RM40.5 billion in Q1 this year.

Exports of goods increased by 10.0 per cent quarter-on-quarter to RM295.8 billion from RM268.9 billion in the previous quarter, with the major exports being electrical and electronics, petroleum and palm oil, notably to Singapore, China and the United States.

Similarly, imports of goods also showed double-digit growth of 14.6 per cent quarter-on-quarter, amounting to RM261.8 billion (Q1 2022: RM228.4 billion), with most imports being Intermediate goods, followed by capital and consumption goods imported mainly from China, Singapore and Taiwan.

The services account registered a RM12.3 billion deficit in Q2 against RM15.0 billion deficit in Q1, largely propelled by the lower deficit in travel of RM0.5 billion (Q1 2022: deficit of RM4.0 billion).

The primary income account also recorded a lower deficit of RM14.7 billion in Q2 versus RM20.1 billion in the previous quarter, mainly attributed to higher receipts of RM25.3 billion, an increase of 64.6 per cent from the preceding quarter primarily in direct investment.

"Meanwhile, this account also registered higher payments of RM40.0 billion compared to RM35.5 billion in the previous quarter, particularly in direct investment,” DoSM said.

The capital account registered a deficit of RM90.5 million against RM86.3 million in the previous quarter owing to a net outflow of acquisitions and disposals of non-produced non-financial assets at RM32.4 million (Q1 2022: net outflow RM11.3 million).

"Meanwhile, portfolio investment registered a higher net outflow of RM14.7 billion (Q1 2022: net outflow RM10.1 billion),” it added. - Bernama

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