• Exports and imports rallied in July

• Trade surplus narrowed to RM8.0bn

• Robust export growth was spurred by manufacturing and mining sector

• Upbeat momentum in global economy to support growth recovery in external demand

Malaysia's exports rose 30.9% yoy in July to RM78.6bn, underpinned by higher exports of manufactured products and mining goods. July's imports grew 21.8% yoy, sharply up from the 3.7% growth posted in June. Export outperformed imports for three months in row and marked the 237th consecutive month of trade surplus. However, trade surplus narrowed to RM8.0bn in July as compared to RM9.9bn posted in the earlier month.

On monthly basis, both exports and imports recovered in July. Export rebounded by 7.6% (Jun: -8.0%) or RM5.5bn whereas imports improved to 11.7% from -14.5% in June. In seasonally adjusted terms, export and import expanded in July; 8.7% and 7.7% respectively.

Total trade surged by 26.7% yoy and valued at RM149.2bn in July as compared to 7.0% posted in the prior month. On monthly basis, the total trade rallied to 9.5% or RM12.9bn as compared to a decline recorded in June (-11.1%).

Malaysia's total trade surpassed the RM1 trillion marks with a value of RM1.008tn in the first seven months of the year, growing 22.7% from the corresponding period last year. This was the fastest period trade breached the one trillion mark, two months earlier than the normal trend. Exports increased by 22.3% to RM529.7bn while imports rose by 23% to RM478.7bn, resulting in a trade surplus of RM51.0bn.

Source: BIMB Securities Research - 7 Sept 2017