Malaysia: Exports contraction moderates in October
November 7, 2015
Exports fell 18.5% in annual terms in September, following the 19.5% contraction tallied in August. Although the contraction was less severe than analyst had expected, the result marks 12 consecutive months of contraction, as global demand for key Malaysian exports dwindles. Meanwhile, imports declined 17.9% in September, which was a less severe contraction than the 27.4% fall recorded in the previous month. The Department of Statistics noted that exports in crude petroleum products, as well as liquefied natural gas, declined over the previous month.
The trade balance narrowed from a USD 2.5 billion surplus in August to a USD 2.2 billion surplus in September. The 12-month moving sum of the trade balance fell from USD 23.6 billion to USD 23.0 billion in September. The 12-month figure has been falling steadily since the middle of last year and indicates that declining oil and gas exports have not been completely offset by manufacturing exports.
Author: Robert Hill, Economist