KUALA LUMPUR – Malaysia’s current account balance recorded a surplus of RM12.3 billion in the first quarter (Q1) of 2021, down from RM18.6 billion the previous quarter, said the Statistics Department today.
Chief Statistician Datuk Seri Mohd Uzir Mahidin, in a statement, said a favourable performance in goods was seen in Q1 since most countries had eased on Covid-19 curbs, allowing for smooth sailing in economic activities with adherence to the standard operating procedures.
“As such, exports of goods increased to RM225.5 billion from RM217.2 billion in Q4 last year.”
The main exports are electrical and electronic items, rubber, and chemicals-based products, principally to China, Singapore and the United States.
Concurrently, imports surged by RM14.3 billion on a quarter-on-quarter basis to RM188.9 billion due to an increase in intermediate and capital goods, mainly from China, Singapore and Japan.
Uzir said the current account surplus in Q1 is also supported by a lower deficit in primary income at RM5.7 billion compared with RM7.2 billion in Q4 2020, mainly contributed by Malaysian companies abroad earning a higher income of RM17.3 billion, or a 19.1% increase from the preceding quarter.
“Most of the sectors are in the financial, mining and manufacturing industries, which are primarily located in Singapore, Indonesia and the US. Nevertheless, services logged a higher deficit of RM15.0 billion compared with Q4 2020 due to travel, construction and other business services.”
In Q1, the financial account turned around to a net inflow of RM16.0 billion from a net outflow of RM10.2 billion the previous quarter, led by a higher inflow in other investments at RM13.9 billion, contributed mainly by interbank borrowing from abroad.
Uzir pointed out that as at end-Q1, the foreign direct investment position stood at RM713.4 billion, while the direct investment abroad position was RM539.8 billion.
Malaysia’s international investment position registered a higher net asset position of RM106.4 billion compared with RM67.5 billion in the previous three months, while international reserves stood at RM450.8 billion compared with RM432.3 billion the preceding year. – Bernama, May 11, 2021
