Malaysia’s exports defied expectations with a strong rebound in July, thanks to a sharp surge in shipments of electronics.
Exports climbed to RM140.45 billion, the highest since September 2022, marking a 6.8% increase from a year earlier, according to the Ministry of Investment, Trade and Industry (Miti). The print outperformed Bloomberg’s median forecast of a 3.2% contraction. In June, exports had shrunk 3.5%.
A broadly similar tariff rate imposed by the US across Asean will “continue to support our competitiveness,” Miti said. The ministry added that it will stay vigilant amid shifting global trade dynamics and rising geopolitical tensions.
Shipments of electrical and electronic (E&E) products, which made up 45% of total exports, jumped 22.5% year-on-year in July. Optical and scientific equipment, processed food, as well as machinery, equipment and parts, also supported the gains in July.
In total, manufactured goods, which made up 87% of total shipments, rose 9% in July. Despite the overall rebound, exports of petroleum products fell 27%, palm oil and palm oil-based agricultural goods declined 12.1%, and liquefied natural gas (LNG) dropped 7.2%.
By destination, exports to Malaysia’s largest trading partner China increased 6.8%, while shipments to Taiwan surged 46.6%. Exports to the US and European Union also posted gains.
Gross imports edged up 0.6% year-on-year to RM125.47 billion, driven by stronger demand for non-transport capital goods and durables. On a monthly basis, imports rose 15%.
Capital goods imports — physical assets used in production — jumped 14.5%, led by optical and scientific equipment, and E&E products.
Intermediate goods imports fell 17.8%, weighed down by lower shipments of lubricants and metal products. Consumption goods imports declined 5%, reflecting softer demand for non-durables such as processed food.
Malaysia’s trade surplus more than doubled to RM14.98 billion in July, expanding 74% month-on-month.
Source: theedgemalaysia