• Exports dropped 1.5% in January

• Imports slipped by 2.4%

• Trade surplus increased 4.2% yoy to RM12.0bn

• Exports to China fell

• Export growth declined on lower sales of E&E products and commodities

• Imports decreased due to lower uptake of capital and consumption goods

• Vulnerable global trade with the Covid-19 outbreak

• Supply chains disruptions put Malaysia’s external sector under pressure

Malaysia’s exports in January 2020 posted a decline of 1.5% yoy to RM84.1bn on lower sales of electrical and electronic (E&E) products and commodities. Re-exports was valued at RM16.3bn which dropped 6.7% and accounted for 19.4% of total exports. Domestic exports decreased marginally RM141.5m or 0.2% to RM67.8bn. This is largely due to seasonally subdued regional industrial activity during the lunar new year festivities, compounded by industrial disruptions arising from the COVID- 19 outbreak. Similarly, imports also fell 2.4% yoy to RM72.1bn. The trade surplus which was valued at RM12.0bn, rose RM484.4 million or 4.2% yoy, the highest monthly trade surplus for the month of January since January 2011.

On a mom basis, exports decreased 2.7% whilst imports posted a decrease of 2.4%. On seasonally adjusted terms, exports registered a decline of 1.3% and imports fell 0.9%. The trade surplus registered a decrease of RM496.1 million or 4.0% as compared to the previous month.

Total trade amounted RM156.2bn, shrank 2.0% yoy or RM3.1bn. It also posted a drop of RM4.1bn or 2.6% when compared to December 2019.

Source: BIMB Securities Research - 4 Mar 2020