Malaysia's exports have experienced a significant decline in September due to slower global demand and uncertainty surrounding commodity prices. The Ministry of Investment, Trade and Industry reported that exports dropped by 13.7% compared to the same period last year, amounting to 124.47 billion ringgit ($26.2 billion). Imports also saw a decrease of 11.1%, totaling MYR99.95 billion. As a result, the trade surplus rose to MYR24.52 billion, up from MYR17.31 billion in August.
Factors Contributing to the Decline
The ministry attributed the year-over-year decline to factors like slower global demand and uncertainty surrounding commodity prices. It also acknowledged that the high base of comparison from September last year exacerbated the fall in exports.
Forecasts and Performance
According to a Wall Street Journal poll of economists, the median forecast predicted a 17.2% decline in exports and a 13.4% drop in imports, resulting in a trade surplus of MYR22.5 billion. However, Malaysia's September exports saw a month-on-month increase of 8.2%, while imports rose by 2.1%.
Trade with Key Partners
In September, Malaysia experienced a decline in exports to China, which dropped by 17.3% on a yearly basis to MYR16.62 billion. Similarly, exports to the United States decreased by 9.3% year-on-year to MYR14.79 billion.
Below are the figures for Malaysia's trade with its five largest export and import trading partners in September:
Exports Value (MYR Millions) % Change YoY
- Total: 124,475 -14
- Singapore: 18,485 -12
- China: 16,619 -17
- USA: 14,793 -9.3
- Hong Kong: 8,965 -12
- Japan: 7,347 -25
Imports Value (MYR Millions) % Change YoY
- Total: 99,952 -11
- China: 21,650 -9
- Singapore: 12,115 7.6
- USA: 7,668 -26
- Taiwan: 6,811 -25
- Japan: 5,600 -21
In conclusion, Malaysia's exports have faced a significant decline in September due to various factors impacting global demand and commodity prices. Despite this, the country has seen a positive month-on-month growth in both exports and imports.