Trade in December 2010

Malaysia's total trade jumps to RM1.17tril
By Azlan Abu Bakar
alan@nstp.com.my
2011/02/03


MALAYSIA'S trade rebounded in 2010 to register impressive 18.3 per cent growth, backed by the global economic recovery that had boosted demand for both manufactured goods and commodities.

Total trade dropped 16.5 per cent in the previous year.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said total trade last year had breached the RM1 trillion mark to reach RM1.17 trillion, almost matching the pre-crisis level of RM1.183 trillion recorded in 2008.

He said exports had expanded by 15.6 per cent to RM639.43 billion, while imports had grown by 21.7 per cent to RM529.19 billion for a trade surplus of RM110.23 billion.

"The growth in exports was supported by the ministry and its agencies through extensive promotion and outreach programmes which were aimed at encouraging the private sector to take advantage of the opportunities presented by the recovery of the global economy," he added.

Mustapa said the programmes and activities introduced included capacity building programmes, certification and compliance to standards, adoption of best practices, export promotion and utilisation of preferential schemes.

He said the utilisation of preferential schemes under free trade agreements (FTA) also contributed to the growth in Malaysia's exports.

Releasing the trade data yesterday, Mustapa said the country's total exports in December alone had increased by 4.6 per cent to RM57.16 billion compared with December 2009 figures.

"This was the highest export value ever recorded for the month of December," he said.

Imports for the month expanded by 11.5 per cent to RM47.48 billion, resulting in total trade of RM104.64 billion, an increase of 7.6 per cent from the corresponding month in 2009.

This resulted in a trade surplus of RM9.69 billion, making it the 158th consecutive month of trade surplus since November 1997.

"Compared with November 2010, exports in December 2010 increased by 8.5 per cent, while imports expanded by 8.6 per cent and total trade was 8.6 per cent higher," he said.

Total trade in the fourth quarter last year was RM304.15 billion, an increase of 3 per cent compared with the third quarter of 2010.

Exports expanded by 3.8 per cent to RM164.84 billion, while imports grew by 2.1 per cent to RM139.30 billion.

Mustapa said moving forward, focusing on the 10th Malaysia Plan (10MP) and National Key Economic Areas, trade promotion programmes for 2011 will be intensified to generate greater export growth.

Under the 10MP, exports are projected to grow at 10.6 per cent per year and gross exports to nearly double to RM2.19 trillion in 2015.