In August 2023, Malaysia's trade surplus experienced a notable contraction both year-on-year and month-over-month, attributed to a moderation in export growth, according to the latest statistics released by the Department of Statistics. The trade surplus for the month plunged by 67.3%, decreasing to 5.7 billion ringgit from a much higher 17.3 billion ringgit recorded in the previous year.
Additionally, this figure represented an 11.5% reduction compared to July's surplus. Despite the decline in surplus, Malaysia's total goods exports still marked a 12.1% increase in August compared to the same month of the previous year, reaching a total of 129.2 billion ringgit. This growth, however, was softer than July's 12.3% increase.
Interestingly, the growth in August outperformed analysts’ predictions, which had forecasted an 11.8% rise according to a Reuters poll. On the import side, Malaysia witnessed a substantial year-on-year increase of 26.2%, bringing total imports to 123.5 billion ringgit. This growth rate exceeded the previous month's increase of 25.4% and was higher than the 21.2% expected by analysts. When examining the data for the first eight months of the year, exports revealed a growth of 6% year-on-year, while imports surged 16.8% during the same period, reflecting a dynamic trading environment. Malaysia's primary trading and export markets in August showcased significant performance, with the United States leading at 45.4 billion ringgit worth of goods exported, representing an impressive year-on-year increase of 45.4%.
Exports to Singapore rose 18.9% year-on-year, totaling 12.4 billion ringgit, while shipments to mainland China climbed 4.8% to reach 15.5 million ringgit. On the import front, notable shipments included 26.3 billion ringgit worth of goods from China, up 26.3% year-over-year, and a dramatic increase in imports from the United States, totaling 15.4 billion ringgit with a staggering 115.7% increase.
Additionally, imports from Singapore also saw a boost, rising 4.4% to 13.1 billion ringgit. In a recent statement earlier this September, Abdul Rasheed Ghaffour, the Governor of Bank Negara Malaysia, provided insights into the nation’s economic prospects, indicating expectations for continued growth in both the economy and exports extending into 2024. "Currently, Malaysia’s economic progression is bolstered by robust private consumption, substantial investment growth, and a consistent increase in external demand.
We project that GDP growth will trend towards the upper limit of the 4% to 5% forecast range in 2024," Ghaffour mentioned during a business forum held in London, highlighting optimism amidst the fluctuating trade dynamics..