Malaysia’s terms of trade remains positive: DOSM

KUALA LUMPUR – Malaysia’s terms of trade in January remained positive from December as well as year-on-year, said the Department of Statistics Malaysia (DOSM).

It said export and import unit value indices in January 2021 recorded the highest positive growth within the past 12 months, increasing by 1.6% and 0.7% month-on-month basis, respectively.

Chief statistician Datuk Seri Mohd Uzir Mahidin said the export unit value index continued to sustain the positive trend in five consecutive months, while the import unit value index showed a similar trend starting December 2020.

This was reported in the DOSM’s External Trade Indices (2010=100), January 2021, which presents the unit value and volume index by sections for both exports and imports of goods.

“The export unit value index posted a positive growth at 1.6% in January 2021, contributed by the growth in the index of mineral fuels (8.5%), animal and vegetable oils and fats (6.4%) and chemicals (0.8%).

“Nevertheless, the export volume index declined 7.9% compared with the previous month which was attributed to the weak performance of the index of animal and vegetable oils and fats (-49.7%), mineral fuels (-19.3%) and manufactured goods (-8.4%).

“The seasonally adjusted export volume index registered a drop of 7.3% from 154.0 points to 142.8 points,” Mohd Uzir said.

Compared to the previous year, he said the export unit value index dropped 1.9%, while the export volume index rose 8.7%.

Mohd Uzir commented that the import unit value index grew 0.7% in January 2021 compared with the previous month.

“The growth was contributed by the better performance of the index of mineral fuels (7.7%), chemicals (0.5%) and manufactured goods (0.4%).

“On the other hand, the import volume index contracted by 3.3% which was attributed to the weak performance of the index of miscellaneous manufactured articles (-10.2%), chemicals (-7.1%) and machinery and transport equipment (-3.9%).

“The seasonally adjusted import volume index in January 2021 declined 2% from 146.1 points to 143.1 point,” he noted

On a year-on-year basis, he said the import unit value index declined 3.2% while the import volume index expanded 4.6%.

The DOSM also reported that Malaysia’s terms of trade grew 0.9% month-on-month from 100.2 points to 101.1 points in January 2021.

On a year-on-year basis, Malaysia’s terms of trade also remained positive at 1.3% from 99.8 points in January of the previous year, it added. – Bernama, March 4, 2021