Malaysia: Merchandise exports rise at a slower pace in July
September 3, 2021
Merchandise exports jumped 6.5% year-on-year in USD terms in July (June: +32.1% yoy)—the slowest growth since November 2020. Similarly, exports in ringgit terms expanded 5.0%, following June’s 27.2% increase. July’s slowdown was chiefly driven by softer growth in shipments for rubber products as well as in petroleum products. Meanwhile, electrical and electronic goods exports tumbled in July, as tight curbs amid soaring Covid-19 infections, continued to weigh on production of semiconductors.
Meanwhile, merchandise imports expanded a healthy 25.8% year-on-year in USD terms in July (June: +37.2% yoy) and grew 24.1% in ringgit terms (June: +32.1% yoy). As a result, the merchandise trade balance deteriorated from the previous month, recording a USD 3.3 billion surplus in July (June 2021: USD 5.4 billion surplus; July 2020: USD 5.9 billion surplus). Lastly, the trend deteriorated, with the 12-month trailing merchandise trade balance recording a USD 54.8 billion surplus in July, compared to the USD 57.5 billion surplus in June.
Author: Alexandros Petropoulos,