• Exports expanded 4.7%; imports rose 7.9% in December

• Trade surplus narrows to RM7.3bn

• Slower export growth was driven by manufacturing sector

• Exports increase by 12.4% and imports up 14.4% in 4Q17

• 2017 full year exports growth to 18.9% (+1.2% in 2016) and imports increase by 19.9% (+1.9% in 2016)

• Exports growth still has legs

Malaysia’s exports expanded at slower pace in December by 4.7% yoy to RM79.3bn from a significant 14.5% increase in the prior month. It marked the slowest exports growth in 2017. Similarly, imports rose by 7.9% yoy to RM72.1bn, following a 15.3% rise in the preceding month. Trade surplus of RM7.3bn was registered in December, making it the 242nd consecutive month of trade surplus since November 1997.

On monthly basis, exports and imports declined by -5.0% and -2.0% respectively. In seasonally adjusted terms, exports dropped 8.2% while imports fell by 9.8%.

Total trade in December 2017 rose by 6.2% yoy to RM151.4bn and compared to previous month it posted a decline of RM5.7bn or -3.6%.

Malaysia’s trade registered stellar performance in 2017, growing at the highest rate in 13 years. Trade surged by 19.4% to RM1.8tn, compared to RM1.5tn recorded the previous year. Exports totaled RM935.4bn, an increase of 18.9% while imports stood at RM838.1bn, rose by 19.9%. Trade surplus of RM97.2bn was recorded, higher by 10.3% yoy. The total value of trade, exports, imports and trade balance for 2017 had surpassed that of the whole of 2016, respectively.

Source: BIMB Securities Research - 8 Feb 2018