• Exports accelerated 17.9% yoy; imports increased by 11.6% in January

• Exports and imports also picked up on monthly basis

• Trade surplus widened to RM9.7bn

• Higher export growth was driven by all major sectors

• Exports likely to moderate

Malaysia’s exports accelerated by 17.9% yoy to RM82.9bn due to higher demand for manufactured goods especially electrical and electronic (E&E) products and improvement in mining and agriculture sector. Exports returned to post double-digit growth in January after logging a slower pace of growth in December at 4.7%. This was the highest export value ever recorded for the month of January, surpassing RM70.27bn registered in January 2017. Likewise, import grew at a faster rate in January which increased by 11.6% (Dec: +7.9%) to RM73.2bn. As a result, trade surplus widened to RM9.7bn and making it the 243th consecutive month of trade surplus since November 1997.

On monthly basis, exports and imports picked up by 4.4% (Dec: -5.0%) and 1.5% (Dec: -2.0%) respectively after a significant decline in December. On seasonally adjusted terms, exports and imports rallied by 12.5% and 5.0%, respectively.

Total trade in January 2018 increased by 14.9% yoy to RM156.0bn as compared to RM135.8 in January 2017.

Source: BIMB Securities Research - 6 Mar 2018