Malaysia's Trade in April 2010

KUALA LUMPUR, June 4 (Bernama) -- Malaysia recorded a trade surplus of RM9.22 billion in April, making it the 150th consecutive month of trade surplus since Nov 1997, the International Trade and Industry Ministry said Friday.

The surplus is lower than the RM14.35 billion recorded in March, 2010.

However, total exports in April 2010 rose 26.6 per cent, year-on-year, to RM52.03 billion while imports surged 27 per cent to RM42.8 billion.

Total trade expanded 26.7 per cent to RM94.83 billion compared with April 2009, said the ministry in a preliminary release.

On a month-on-month basis, exports and imports shed 12.4 per cent and 5.1 per cent, respectively, which resulted in total trade decreasing 9.3 per cent.

Total trade between January and April 2010 increased 31 per cent to RM373.32 billion.

During the same period, exports rose 29.7 per cent to RM210.74 billion while imports rose 32.8 per cent to RM162.58 billion, resulting in a trade surplus of RM48.15 billion.

MITI said April's higher exports of RM10.92 billion, from a year ago, was largely contributed by higher exports of electrical and electronic (E&) products which rose 21.6 per cent or RM3.67 billion.

It was followed by crude petroleum (93 per cent or RM1.35 billion), chemicals and chemical products (26.6 per cent or RM698.1 million), refined petroleum products (50.4 per cent or RM644.9 million) and liquefied natural gas (33.2 per cent or RM643.5 million).

Singapore, China, United States, Japan and Hong Kong were the top five export destinations, accounting for 51.4 per cent of Malaysia's total exports.

Exports to Asean expanded 29.6 per cent to RM13.58 billion, from a year ago, accounting for 26.1 per cent of Malaysia's total exports in April 2010.

Meanwhile, April's higher imports were mainly due to increased imports of intermediate goods, said the ministry.

Major import products which contributed to the significant increase in imports were E&E products valued at RM15.89 billion (37.1 per cent of total imports), chemicals and chemical products at RM4.05 billion (9.5 per cent), machinery, appliances and parts at RM3.54 billion (8.3 per cent) and manufactures of metal at RM2.41 billion (5.6 per cent).

The ministry also said 54.6 per cent of Malaysia's imports originated from China, Japan, Singapore, the United States and Thailand.


Saturday June 5, 2010
April exports up 26% on higher demand for E&E products
By DANNY YAP
danny@thestar.com.my


PETALING JAYA: Trade figures, released yesterday by the International Trade and Industry Ministry showed total exports in April rose 26.6% year-on-year to RM52.03bil, while imports surged by 27% to RM42.8bil.

Moreover, trade in April this year expanded by 26.7% to RM94.83bil, compared with April last year.

Trade surplus was valued at RM9.22bil, making it the 150th consecutive month of trade surplus since November 1997.

On a month-on-month basis, exports and imports decreased by 12.4% and 5.1% respectively. Total trade was 9.3% lower.

The increase in exports in April of RM10.92bil from a year ago was largely attributed to higher exports of electrical and electronic products (E&E), which increased by 21.6% or RM3.67bil, crude petroleum (93% or RM1.35bil) , chemicals and chemical products (26.2% or RM698.1mil), refined petroleum products (50.4% or RM644.9mil) and liquefied natural gas (33.2% or RM643,5mil).

Singapore, China, the United States, Japan and Hong Kong were the top five export destinations, accounting for 51.4% of Malaysia’s total exports.

Total imports in April increased by 27% to RM42.8bil from April 2009 due mainly to higher imports of intermediate goods.

Total trade during the period January to April increased by 31% to RM373.32bil.

During the same period, exports increased by 29.7% to RM210.74bil, while imports rose 32.8% to RM162.58bil, resulting in a trade surplus of RM48.15bil.

RAM Holdings Bhd group chief economist Dr Yeah Kim Leng said the export and import figures fell slightly below RAM’s expectation.

Yeah said for April the increase in exports of 26.6% year-on-year was on the lower end of RAM’s expectation, which was range bound between 25% to 30%, while the increase in imports for April of 27% year-on-year was also within the lower range of RAM’s expectation bewteen 25% to 35%.

Yeah said it was difficult to gauge Malaysia’s trade performance over one month.

“Going forward, RAM expects Malaysia’s trade performance to improve further over the next four to six months,” he said.

RHB economist Peck Boon Soon also said Malaysia’s trade figures for April fell below RHB’s expectations.

“For exports, we expected an increase of 30% and imports an increase of 32%,” he said.

Going forward, Peck said there were worrying global economic trends could dampen demand.

“The Euro debt crisis is still on-going and demand from China, especially retailing end is slowing down and may potentially have an adverse effect on exports level worldwide, including Malaysia,” he said.
By K.P. Lee


UPDATE: Malaysia April Exports +26.6% On-Year, Miss Target
Of DOW JONES NEWSWIRES

KUALA LUMPUR (Dow Jones)--Malaysia's exports fell in April from a month earlier due to seasonal factors--and expanded more slowly than expected in annual terms--but economists say they still expect export and economic growth to be on target for the full year.

Data from the Ministry of International Trade and Industry showed Friday that the trade-driven economy's exports grew 26.6% from a year earlier to MYR52.03 billion ($15.92 billion). That was less than the median forecast of 36.0% growth in a Dow Jones Newswires poll of 15 economists.

CIMB Chief Economist Lee Heng Guie said the data were not cause for concern, as the timing of shipments could have played a part after March exports grew well ahead of expectations.

"We are keeping our forecast of 17.5% export growth for this year," Lee said. "The pace of growth appears to be slowing but all export sectors are still showing growth. At this pace, we think second-quarter export growth of 20%-22% on year is attainable, and pretty much within expectations."

Exports fell by 12.4% in April from a month earlier, the ministry said. Exports in March had surged 36.4% on-year, beating economists' expectations.

David Cohen, director of Asian economic forecasting for Action Economics, said export growth will likely be sustained through May.

"I wouldn't get too upset with the April numbers; it's the usual month-to-month volatility. If there's any spillover from the European financial turmoil, it will be seen in June's numbers first," he said.

Economists generally expect Malaysia's exports to grow in the mid-teens this year, supported by last year's low base as well as stronger demand for commodities and electrical products as the global economy recovers.

International Trade and Industry Minister Mustapa Mohamed told Dow Jones Newswires last month that export growth for the full year would likely be in double digits--faster than the government's forecast of 7%--driven by stronger demand from Asia's emerging economies.

The ministry attributed the rise in April exports to a 21.6% increase in shipments of electrical and electronic products, which account for almost 40% of Malaysian exports. The export value of crude petroleum nearly doubled from a year earlier, while sales of chemicals and chemical products rose 26.2% on-year.

Imports rose 27.0% on-year to MYR42.80 billion due to higher shipments of intermediate goods, the ministry said, below the poll's median forecast of 30.5% expansion. From a month earlier, imports fell 5.1%.

Malaysia chalked up a trade surplus of MYR9.22 billion for April, lower than March's MYR14.35 billion.

A "month-on-month pullback has historically been observed in April after a seasonal surge in March, which translates to a slightly slower expansion year-on-year," Citigroup economist Kit Wei-Zheng had said ahead of the trade data announcement.

Slower export growth for Malaysia in April(BT)
MALAYSIA’S exports grew at a slower-than-expected 26.6 per cent in April, an indication that the economy in the second quarter may not better the achievements in the first quarter.

The Ministry of International Trade and Industry (Miti) said exports totalled RM52.03 billion while imports were up 27.0 per cent to RM42.80 billion.

Total trade in April expanded 26.7 per cent to RM94.83 billion compared with April 2009.

Compared to March, exports and imports fell 12.4 per cent and 5.1 per cent respectively.

Miti said the increase in exports was largely due to higher exports of electrical and electronic (E&E) products which increased by 21.6 per cent, crude petroleum (93 per cent), chemicals and chemical products (26.2 per cent), refined petroleum products (50.4 per cent), and liquefied natural gas (LNG) (33.2 per cent).

Standard Chartered Bank economist Alvin Liew said although most sectors enjoyed double-digit growth, many contracted quite significantly on a non-seasonally adjusted basis.

He said the slower export growth (compared to imports) made the difference for the Malaysia trade surplus in April, recording just RM9.2 billion, the first time the trade surplus fell below 10 billion since November 2009.

“The April export data still points to a decent start to second quarter economic performance … and the second quarter economic expansion is unlikely to outperform the first quarter.”

According to Miti, Singapore, China, the US, Japan and Hong Kong were the top five export destinations, accounting for half of Malaysia’s total exports.

Exports to the European Union (EU) rose 28.3 per cent while exports to the US saw a 6.0 per cent increase year-on-year, apart from exports to Japan which jumped 38.4 per cent.

Malaysian Exports Growth Slows In April


RTTNews) - Malaysia's exports increased at a slower pace in April, a report by the Department of Statistics Malaysia showed on Friday.

Exports increased 26.6% year-on-year to MYR 52.03 billion in April, slower than 36.4% in the previous month. Economists had expected an increase of 38%. This increase was mainly driven by higher exports of electrical and electronic products, crude petroleum, chemicals and chemical products, refined petroleum products and liquefied natural gas.

Similarly, imports surged 27% annually in April to MYR 42.80 billion, following a 45.3% gain in the previous month. This was mainly due to higher imports of intermediate goods. Economists were looking for an increase of 29.9%. Month-on-month, exports and imports decreased by 12.4% and 5.1%, respectively in April.

Thus, the trade balance showed a surplus of MYR 9.22 billion in April, registering its 150th consecutive month of trade surplus since November 1997. However, the trade surplus was smaller than the MYR 14.32 billion recorded in the previous month.

For the January to April period, exports increased by 29.7% over a year earlier to MYR 210.74 billion while imports climbed 32.8% to MYR 162.58 billion. During the period, the trade surplus stood at MYR 48.15 billion.

The strong recovery in Asian demand, along with last year's low base, has helped Malaysia in delivering such amazing export performance in recent months, DBS Bank said in a note today ahead of the release of the data.

Going forward, such strong export growth would start to moderate in the second half of the year, the bank said, as policy tightening is expected to take its toll on domestic demand in the region. Further, the weakness stemming from the European debt crisis may start to impact export performance from the third quarter onwards.

Malaysia's economy grew at the fastest pace in a decade in the first quarter, prompting the central bank to hike its key interest rate for the second time this year. Gross domestic product grew 10.1% annually in the first three months of the year, faster than the 4.5% growth in the previous quarter.


Malaysia’s April Exports Rise for Fifth Month on Electronics
By Shamim Adam and Michael Munoz

June 4 (Bloomberg) -- Malaysia’s exports rose for a fifth month in April as producers shipped more electronics and commodities to customers in China, the U.S. and Europe.

Asia’s rebound is outpacing the rest of the world as companies from Nissan Motor Co. to Malaysian Pacific Industries Bhd. increase overseas shipments. Still, the recovery may slow as Europe’s debt crisis hurts consumer and business confidence in advanced economies, and a weaker euro makes Asian exports more expensive.

“The anticipated slowdown in the Eurozone would have a direct impact on Malaysia, but given the resilience seen in commodity exports for the past few months, we would maintain our optimistic view on Malaysia’s exports growth potential,” Selena Ling, head of treasury research at Oversea-Chinese Banking Corp. in Singapore, said in a report before the trade data.

The Malaysian ringgit is Asia’s biggest gainer against the U.S. dollar and the euro this year. It has climbed 4.5 percent against the dollar and gained 23.5 percent against the common European currency.

Growth Accelerates

The appreciation of the ringgit isn’t likely to affect exporters, International Trade and Industry Minister Mustapa Mohamed said May 14.

“So long as the currency reflects the underlying fundamentals, it’s not of concern to us,” central bank Governor Zeti Akhtar Aziz said this week. “As our macroeconomic fundamentals remain strong and resilient, the strength of the currency reflects those conditions.”

Rising exports and manufacturing helped Southeast Asia’s third-largest economy expand at the fastest pace in a decade last quarter, allowing the central bank to raise interest rates ahead of most of its Asian neighbors this year. Zeti raised the benchmark overnight policy rate to 2.5 percent from 2.25 percent on May 13, after a report showed gross domestic product expanded 10.1 percent in the three months ended March 31.

“Strong export growth would start to moderate in the second half of the year as policy tightening is expected to take its toll on domestic demand in the region,” Irvin Seah, an economist at DBS Group Holdings Ltd. in Singapore, said before today’s report. “Moreover, weakness arising from the sovereign debt crisis in European could also start to weigh in on export performance from the third quarter onwards.”

Malaysia’s imports rose 27 percent in April from a year earlier. The trade surplus narrowed to 9.22 billion ringgit from 14.33 billion ringgit in March.

--Editors: Stephanie Phang, Alan Soughley

To contact the reporter on this story: Shamim Adam in Singapore at sadam2@bloomberg.ne