• Exports surged 11.8% in February

• Imports rose 11.3%

• Trade surplus increased 14.1% yoy to RM12.6bn

• Rebound in exports contributed by manufacturing and agriculture sectors

• Imports of intermediate goods expanded by double digit

• Exports to major partners increased

• Covid-19 represents an unprecedented disruption to the global trade

• Climb in February exports unlikely to sustain as Covid-19 pandemic paint grim picture

Malaysia's exports climbed 11.8% yoy in February, the strongest on-year growth in 16 months, on higher demand for most segments of manufactured goods. Exports in January contracted 1.5% after a surprise rebound in December. Re-exports was valued at RM9.8bn which dropped 6.3% and accounted for 13.1% of total exports. However, domestic exports recorded an increase of 15.2% or RM8.5bn to RM64.7bn. Trade surplus in February 2020 was valued at RM12.6bn, grew by 14.1% yoy. This was the largest trade surplus recorded for the month of February thus far.

However, on a mom basis, exports declined 11.5% whilst imports posted a decrease of 14.2%. On seasonally adjusted terms, exports registered a decline of 0.1% and imports fell 2.0%. The trade surplus registered an increase of RM586.5m or +4.9% when compared to the previous month.

Malaysia’s trade over the past 2 months grew by 3.9% to RM292.5bn. Exports during the period registered an increase of 4.3% to RM158.6bn and imports rose by 3.5% to RM133.9bn. Trade surplus in January to February 2020 was valued at RM24.7bn, expanded by 9.2% compared to RM22.6bn for the same period of 2019.

Source: BIMB Securities Research - 6 Apr 2020