Malaysia: Exports collapse and trade surplus tumbles in October
December 5, 2014
Exports recorded a 6.0% annual contraction in October (September: +3.9% year-on-year). The result marked the biggest drop since February 2013 and was more severe than what the market had expected. According to the Department of Statistics, the decline was mainly driven by a drop in exports of petroleum products, electronics and electric products, rubber, and palm oil. In contrast, exports of LNG and crude petroleum tallied increases. Meanwhile, imports accelerated from a 3.0% increase in September to a 5.9% expansion in October.
The trade surplus tumbled from a USD 2.9 billion surplus in September to a USD 362 million surplus in October (October 2013: USD 2.7 billion). The figure marked the smallest surplus in a year and a half. The 12-month moving sum of the trade balance decreased from a USD 27.8 billion surplus in September to a USD 25.4 billion surplus in October.
Author: Carl Kelly, Economist