Malaysia’s exports unexpectedly shrank in June amid a sharp decline in shipments of oil and gas products as well as lower deliveries to China, official data on Friday showed.
Exports totalled RM121.72 billion in June, down 3.5% when compared to the same month last year, according to the Ministry of Investment, Trade and Industry. A Bloomberg survey had predicted a median 5.4% growth for June.
The contraction was the second this year after May’s 1.1% year-on-year dip. On a month-on-month basis, exports were down 3.9%.
“In terms of the US tariff measures, Malaysia remains committed to continuing engagement to achieve a balanced and mutually beneficial bilateral trade arrangement,” the ministry said.
Shipments of electrical and electronics products — which made up 44% of total exports — inched up 1.3% in June from a year earlier. Exports of palm oil as well as machinery, equipment and parts also climbed in June.
However, outbound deliveries of petroleum products plunged 28% and that of liquefied natural gas fell 27%.
In terms of markets, exports to Malaysia’s largest trading partner China decreased 9.3% in June. However, exports to advanced economies of the US and European Union gained.
Meanwhile, gross imports expanded 1.2% to RM113.13 billion, led by demand for non-transport goods and durables. When compared to May, imports in June were up 1.2%.
Imports of capital goods surged 22% while that of intermediate goods — semi-finished products for final assembly such as electronic components — declined 1.2% in June due to lower primary fuel and lubricants. Consumption goods import increased 1.6%.
The sharp decline in exports, combined with the slight increase in imports, led to trade surplus narrowing 40% year-on-year in June to RM8.59 billion. On a month-on-month basis, however, trade surplus expanded 11 times in June.
Source: theedgemalaysia