Business

Nation posts slimmest current account surplus in over two decades

A sharply reduced goods surplus and continued deficits in services and income accounts left Malaysia with its narrowest current account surplus in at least 26 years.

Updated 1 year ago · Published on 15 Aug 2025 12:42PM

Nation posts slimmest current account surplus in over two decades
Malaysia’s goods account surplus narrowed significantly to RM17.0 billion, while the services account posted a slightly reduced deficit of RM3.3 billion - August 15, 2025

MALAYSIA recorded a marginal current account surplus of RM0.3 billion in the second quarter of 2025, the smallest in more than two decades, according to data released by the Department of Statistics Malaysia on Friday.

Department of Statistics Malaysia (DOSM) Chief Statistician Datuk Seri Mohd Uzir Mahidin said today the goods account surplus narrowed significantly to RM17.0 billion, while the services account posted a slightly reduced deficit of RM3.3 billion.

The secondary income account — comprising transfers and payments between residents and non-residents — saw its deficit widen considerably to RM4.6 billion, attributed largely to a decline in receipts into the country.

The financial account, however, reported a markedly smaller net outflow of RM2.2 billion, compared to RM20.3 billion in the previous quarter. This shift was primarily driven by interbank activities involving foreign financial institutions.

Foreign direct investment (FDI) also moderated sharply, with a net inflow of RM1.6 billion in the second quarter, down from RM15.6 billion in the first.

“Sustained equity injections and inflows in debt instruments were partially offset by higher income repatriation to parent companies abroad,” the department noted.

Meanwhile, direct investment abroad recorded a reversal, with a net inflow of RM0.6 billion in contrast to a net outflow of RM3.5 billion in the previous quarter.

The improvement was largely due to equity liquidations and adjustments in debt instruments, particularly within the manufacturing and services sectors.- August 15, 2025

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