• Exports increased 2.5% yoy in May

• Imports slowed 1.4% yoy

• Trade surplus shrank to RM9.1bn

• Total trade expanded by 2.0% yoy in May 2019

• Exports of agriculture products rebounded

• Global trade dip yet again

• Trade growth accelerates despite the trade tensions between the US and China

Malaysia’s trade registered a stronger growth in May despite the trade tensions between the US and China. Exports rose by 2.5% to RM84.1bn amid a surge in palm oil shipments, the highest export value ever registered for the month of May. Domestic exports recorded an increase of 8.8% or RM5.8bn to RM71.6bn. However, re-exports was valued at RM12.5bn registering a decline of 23.1% yoy and accounted for 14.8% of total exports. Imports expanded by 1.4% to RM75.1bn. Faster export growth compared to imports has resulted in a higher trade surplus of RM9.1bn, surged by 11.9% compared to May last year.

On a mom basis, exports slipped by 1.2% from RM85.2bn. Imports, however, expanded 1.0% mom or RM0.8bn from RM74.3bn. On seasonally adjusted terms, exports and imports declined by 1.2% and 4.0% respectively.

Total trade which was valued at RM159.2bn increased RM3.1bn or 2.0% yoy in May. However, it fell RM292.7m or 0.2% mom.

For the first 5 months of 2019, total trade increased by 0.1% to RM753.9bn compared to the same period of 2018. Exports grew by 0.3% to RM405.4bn while imports shrank by 0.3% to RM348.5bn. Trade surplus rose by 4.3% to RM56.8bn during the period.

Source: BIMB Securities Research - 4 Jul 2019