KUALA LUMPUR – Malaysia’s current account balance continued to record a surplus of RM4.3 billion or 1.0% of the gross domestic product (GDP) in the first quarter of 2023 (Q1 2023), down from RM27.5 billion (5.9% of GDP) in the previous quarter.
Statistics Department chief statistician Datuk Seri Mohd Uzir Mahidin said the surplus this quarter was mainly supported by net exports of goods.
“The goods account recorded net exports of RM39.9 billion in Q1 2023, which shrank 30.9% quarter-on-quarter.
“Exports of goods amounted to RM261.5 billion, a decrease of 17.6% as against the final quarter of 2022,” he said in a statement today.
Uzir shared that the main exports were electrical and electronics and petroleum and chemical products, especially to Singapore, China, and the United States.
At the same time, imports of goods fell by 14.6% quarter-on-quarter to RM221.6 billion. Malaysia’s major imports were intermediate, capital, and consumption goods particularly from China, Singapore, and Taiwan.
“The services account posted a higher deficit of RM12.8 billion in Q1 2023, as travel witnessed a lower surplus and construction turned around from a surplus to record a deficit.
“Exports of services were valued at RM41.0 billion as compared to RM43.8 billion in the previous quarter,” he added.
Meanwhile, the financial account registered a net outflow of RM2.4 billion as compared to RM1.1 billion in the preceding quarter.
“This was mainly led by outflows in portfolio investment at RM33.3 billion and financial derivatives at RM0.9 billion.
“Other investment registered a lower net inflow of RM20.9 billion as compared to RM36.6 billion in the previous quarter, while direct investment turned around to record a net inflow of RM10.9 billion from a net outflow RM9.3 billion in the final quarter of last year,” explained Uzir.
Direct investment abroad (DIA) logged a net outflow of RM1.1 billion as compared to RM28.5 billion in Q4 2022.
The major contributors to the outflow were services particularly in electricity, followed by the manufacturing and agriculture sectors. The top three DIA destinations were Singapore, the US, and Vietnam.
“In the meantime, a lower net inflow of RM12.0 billion was recorded in foreign direct investment (FDI) as compared to RM19.2 billion in the preceding quarter.
Services was the largest sector in FDI predominantly in financial activities, followed by the mining & quarrying and manufacturing sectors.
“The main FDI sources were from Mauritius, Switzerland, and Hong Kong,” he said.
Pertaining to the accumulated investment, Uzir said: “As at the end of Q1 2023, the FDI position posted RM893.2 billion while DIA position was at RM617.0 billion.
“Malaysia’s international investment position registered net assets of RM84.5 billion, while Malaysia’s international reserves stood at RM509.8 billion,” he added. – Bernama, May 12, 2023
