• Exports tumbled 23.8% yoy; Imports decreased 8.0% yoy in April

• Malaysia recorded first trade deficit since October 1997

• Export performance at over 10-year low as shipments of all key products declined

• Surge in growth of capital goods imports mitigate declined in imports

• Global exports retreat as Covid-19 hits

• Covid-19 continues to cloud trade outlook

Malaysia's exports tumbled 23.8% yoy to RM64.9bn in April, compared to 4.7% drop in March. It was the largest decline since September 2009. The decrease was due to the shutdown of most of the economic sectors since the enforcement of the Movement Control Order (MCO) on March 18 due to the Covid-19 pandemic. The coronavirus pandemic had also disrupted the global supply chain. Re-exports was valued at RM18.6bn registering an increase of 38.2% yoy and accounted for 28.7% of total exports. However, domestic exports which involved high value-added activities decreased 35.4% or RM25.4bn to RM46.3bn. Imports dropped by 8.0% yoy to RM68.4bn after a 2.7% decline in March. As a result, Malaysia unexpectedly posted a trade deficit of RM3.5bn in April, swinging from RM10.8bn surplus a year ago. This was the first trade deficit since October 1997, during the Asian financial crisis of 1997, amid the negative impact the coronavirus pandemic. Malaysia’s total trade amounted to RM133.3bn, decreased RM26.2bn or 16.4% compared to April 2019.

On a mom basis, exports declined 19.0% whilst imports expanded 0.9%. On seasonally adjusted terms, exports shrank 15.4% and imports grew 4.9%. Total trade in April decrease RM14.6bn or 9.9% when compared to March 2020.

Malaysia’s trade during the first four months of 2020 dropped by 3.5% to RM573.8bn compared to the corresponding period of 2019. Exports during the period registered a decrease of 5.5% to RM303.6bn and imports declined marginally by 1.2% to RM270.1bn. Trade surplus was valued at RM33.5bn, declined by 29.9% compared to the same period of 2019.

Source: BIMB Securities Research - 5 Jun 2020