MALAYSIA'S trade expanded by 9.3% in the first ten months of 2024, reaching a record RM2.383 trillion ($506 billion), supported by robust export growth and a consistent trade surplus, the Ministry of Investment, Trade and Industry (MITI) said.
Exports rose 4.8% year-on-year to RM1.243 trillion from January to October, while imports climbed 14.6% to RM1.140 trillion. The trade surplus stood at RM102.77 billion, MITI said in a statement.
For October, trade increased 2.1% year-on-year to RM244.26 billion, marking the tenth straight month of growth. Exports rebounded 1.6% to RM128.12 billion, driven by strong demand for manufactured goods such as electrical and electronic (E&E) products, rubber products, processed food, and machinery. Imports grew 2.6% to RM116.14 billion, resulting in a monthly surplus of RM11.98 billion, the 54th consecutive surplus since May 2020.
Exports to US and EU Surge, China Declines
Exports to the United States surged 32.5% year-on-year in October to RM18.93 billion, marking the tenth straight month of growth, bolstered by strong demand for E&E products. Trade with the European Union rose 6.3% to RM19.23 billion, with exports expanding 7.7% to RM10.52 billion on higher shipments of palm oil-based products, processed food, and rubber products.
In contrast, trade with China declined by 3.2% to RM40.99 billion, with exports falling 6.5% due to weaker demand for E&E products. Despite the decline, machinery and optical equipment exports to China showed resilience.
Compared to September, trade, exports, and imports rose by 4.2%, 3.7%, and 4.8%, respectively, underscoring a steady month-on-month improvement.
Sectoral Performance
Manufactured goods, which accounted for 85.4% of total exports in October, rose 1.9% year-on-year to RM109.46 billion, led by higher shipments of E&E products, rubber products, processed food, and machinery.
Exports of agricultural goods grew for the seventh consecutive month, climbing 8.9% to RM9.72 billion, driven by higher shipments of palm oil and palm oil-based products. Mining goods, however, contracted 12.1% to RM7.73 billion due to weaker exports of crude petroleum, although liquefied natural gas (LNG) exports increased on higher volumes and prices.
Outlook for 2024
Malaysia's trade is forecast to grow by 9.4% for the full year, according to the recently released Economic Outlook 2025. Exports are expected to increase by 5.6%, while imports are projected to rise by 13.8%.
Economic growth remained strong in the third quarter, with the country’s GDP expanding by 5.3%, aligning with the Ministry of Finance’s 2024 GDP forecast of between 4.8% and 5.3%.
Despite the positive outlook, MITI cautioned that global economic risks, including geopolitical tensions, supply chain disruptions, and financial market volatility, could impact trade growth. The ministry vowed to intensify efforts to mitigate risks by promoting Malaysian exports and expanding into new markets. - November 19, 2024
