Malaysia’s trade surplus plummets 59% in November

Exports grew slower than expected last month as higher tariffs weighed on Malaysia’s trade with the US.

Malaysia’s exports to the US dipped 0.9% to RM20.13 billion in November, a second straight month of declines.

PETALING JAYA:

 Malaysia’s trade surplus dropped like a rock in November as exports grew at a slower pace than anticipated while imports jumped, according to the department of statistics Malaysia (DOSM) data.

The trade surplus slumped by 58.8% to RM6.1 billion from RM14.8 billion a year ago as exports only rose 7% to RM135 billion while imports surged 15.8% to RM128.9 billion.

Impacted by higher US tariffs, the country’s exports grew slower than expected in November with the 7% expansion below the 11.6% median estimate in a Bloomberg survey.

The US, one of Malaysia’s largest trading partners with 11% of total trade, imposed a 19% tariff on Malaysian goods effective August this year.

Exports to the US dipped 0.9% to RM20.13 billion in November, marking a second straight month of declines. Imports from the US also slipped by 6.1% to RM8.8 billion last month.

However, higher exports to China – Malaysia’s largest trading partner – helped offset the decline in US shipments while exports to Taiwan reached a record high.

Total exports to China rose 9.3% year-on-year to RM16.55 billion in November, while imports from the country surged 33.3% to RM34.74 billion.

Positive trade performance

Malaysia’s trade performance remained positive in November, posting double-digit growth on the back of higher exports and imports.

Total trade rose by RM26.5 billion, or 11.1% year-on-year (y-o-y), to RM263.8 billion, DoSM said in a statement today.

On a month-on-month basis, total trade fell 4.5% while the trade surplus tumbled by 70%.

For the January to November period, exports rose by 6.1% while imports grew by 5.6%. Total trade expanded by 5.8% and the trade balance rose by 10.7% during the period.

Chief statistician Uzir Mahidin said the rise in exports in November was supported by higher re-exports and domestic exports.

Re-exports surged 40.3% to RM29.8 billion in November, accounting for 22% of total exports. Domestic exports, which made up the remaining 78%, edged up 0.3% to RM105.2 billion.

By destination, the higher exports were driven mainly by increased shipments to China, Taiwan, Hong Kong, the European Union, Mexico, Singapore and Vietnam.

On a sectoral basis, exports of manufactured goods, which make up 85.9% of total exports, rose 7.9% y-o-y to RM115.89 billion, boosted by electrical and electronics products, optical and scientific equipment, palm oil-based and metal products.

Exports of agricultural products fell 6% to RM8.94 billion in November, on account of reduced exports of palm oil and palm oil-based agricultural products. - FMT