Malaysia: Merchandise trade surplus widens in September
Latest reading: In September, the trade balance was USD +4.7 billion, following a USD +3.7 billion reading in the prior month. Over the last 12 months, the trade balance summed to USD +34.9 billion.
Exports growth rose sharply to 13.5% in year-on-year terms in September, exceeding market expectations and accelerating from 1.8% growth in the previous month. The export surge was likely supported by restocking and frontloading of semiconductors—Malaysia’s key export—which remain exempt from the 19% U.S. tariff imposed on other Malaysian goods. That said, other shipments also rose in September in annual terms, including agricultural products and mining goods. Geographically, exports to ASEAN and the U.S. jumped in September compared to August.
Meanwhile, imports bounced back in September, growing by 8.5% in year-on-year terms after a 1.8% drop in the prior month. The growth was mainly driven by larger imports of non-transport capital goods and durable consumer products.