Malaysia: Merchandise exports drop again in August, undershooting market expectations
Merchandise exports fell 2.9% in annual and USD terms in August, a steeper contraction than July’s 0.6% drop. Moreover, in ringgit terms, exports also decreased 2.9%, contrasting July’s 3.1% expansion as well as market expectations of an increase. August’s drop was largely driven by a drop in shipments of manufactured and mining products.
Meanwhile, merchandise imports declined 6.4% on an annual basis and in USD terms in August (July: -12.0% yoy). As a result, the merchandise trade balance improved, recording a USD 3.2 billion surplus in August (August 2019: USD 2.6 billion surplus). Lastly, the trend pointed up mildly, with the 12-month trailing merchandise trade balance recording a USD 35.3 billion surplus in August, compared to the USD 34.8 billion surplus in July.