PETALING JAYA: Malaysia’s exports expanded 47.3% year-on-year to RM92.3 billion in May 2021, driven by electrical and electronic products (+RM8.1 billion); rubber products (+RM3.6 billion); petroleum products (+RM3.0 billion); and palm oil and palm oil-based agriculture products (+RM2.2 billion).
Other segments that posted strong growth were manufactures of metal (+RM2.1 billion); chemical and chemical products (+RM1.6 billion); crude petroleum (+RM1.1 billion); machinery, equipment and parts (+RM985.7 million); and liquefied natural gas (+RM929.1 million).
According to the Statistics Department, the expansion in exports is a consequence of higher exports to Singapore (+RM4.1 billion), the US (+RM3.3 billion), India (+RM3.0 billion), Japan (+RM2.1 billion), China (+RM2.1 billion), and the European Union (+RM1.9 billion).
Imports in May 2021 surged 50.3% year-on-year to RM78.6 billion, outpacing export growth for the first time since April 2020. Increases in imports were noted for electrical and electronic products (+RM4.9 billion); petroleum products (+RM4.3 billion), chemical and chemical products (+RM2.7 billion); machinery, equipment and parts (+RM1.8 billion); iron and steel products (+RM1.6 billion); manufacture of metal (+RM1.5 billion); rubber products (+RM1.2) and transport equipment (+RM1.1 billion).
Higher imports were mainly from China (+RM7.6 billion), Singapore (+RM2.6 billion), Taiwan (+RM1.9 billion), Korea (+RM1.7 billion), Japan (+RM1.7 billion) and Indonesia (+RM1.6 billion).
On the same note, expansion in imports by end-use was sustained by higher demand primarily for intermediate goods. Imports of intermediate goods (59.7% of the total imports) totalled RM46.9 billion, which increased by RM16.1 billion or 52.4%. Consumption goods (9.1% of total imports) registered an increase of 37.8% from RM5.2 billion in the preceding year to RM7.1 billion. Imports of capital goods, which amounted to RM8.9 billion, increased by 34.0% compared with May 2020, and made up 11.4% of total imports.
About 200 out of 257 commodity groups for exports showed increases. As for imports, 226 of 259 groups posted positive growth.
Malaysia’s total trade in May 2021 expanded by 48.7%, reaching RM170.9 billion, compared with May 2020. The trade surplus surged 32.3% to RM13.7 billion.
However, in line with the uncertainty in domestic economic activity, the month-on-month performance of exports, imports, total trade and trade surplus showed declines of 12.6%, 7.8%, 10.4% and 32.5% respectively.
Following weaker-than-expected export growth in May, UOB Research expects the pace of trade recovery in June-July to be hindered by the current lockdown measures given that only essential export sectors are allowed to operate, at 60% capacity.
“Barring any delays in vaccine supply, the acceleration of the national vaccination programme and plans to raise the operating capacity under the four-phase National Recovery Plan (NRP) are set to bring the trade recovery back on track by end-Q3’21. However, this is subject to achieving the target thresholds to move to the next phase of the NRP,” said UOB.
It added that the technology up-cycle and acceleration in digital transformation will continue to drive demand for Malaysia’s E&E products, while ongoing Covid-19 containment and precautionary measures support external demand for Malaysia’s rubber and medical-related products. The country’s diversified export base and robust trade linkages have also helped to sustain the gains in trade amid lingering uncertainties surrounding the pandemic and geopolitical tensions.
UOB is maintaining its 2021 full-year export growth forecast at 22% for now.
Source: The Sun Daily
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