Malaysia: Exports drop sharply in February
March 4, 2019
Exports fell a steep 9.9% year-on-year in February in USD terms, down from January’s 0.6% drop. The result came on the back of a marked contraction in foreign demand for palm oil and palm oil-based products as well as refined petroleum products. On the other hand, electrical and electronic products exports grew robustly. In ringgit terms, exports fell 5.3% year-on-year.
Imports, meanwhile, dropped 13.8% year-on-year in February in USD terms, down from the 2.7% contraction in January. This reflected a broad-based deterioration, with inbound shipments of the three major categories dropping. The most noticeable fall was recorded in capital goods imports followed by consumption goods imports. Imports of intermediate goods recorded a small drop. In ringgit terms, imports fell 9.4% year-on-year.
Consequently, the trade surplus narrowed from USD 2.8 billion in January to USD 2.7 billion in February, but the sum is up from the USD 2.3 billion surplus logged in February 2018. The 12-month moving sum of the trade surplus, meanwhile, widened to USD 30.6 billion from USD 30.3 billion.
Author: Jan Lammersen, Economist