• Exports rebounded 8.8% yoy; Imports decreased 5.6% yoy in June
• Total trade balance expanded 2.2% yoy in June
• Exports declined 14.3% yoy whilst imports contracted 15.1% yoy in 2Q20
• Exports of manufactured and agriculture goods recovered with double digit growth
• Decrease in imports was attributed to intermediate goods
• Global trade continues to contract
• Export to pick up going forward but cautious on renewed global infections

Malaysia’s exports rebounded in June 2020, growing by 8.8% yoy to RM82.9bn due to higher exports to China and also electrical and electronic (E&E) products and rubber products. This export growth was the highest since November 2018. Reexports increased by 5.3% yoy to RM12.9bn and accounted for 15.5% of total exports. Domestic exports rose by 9.5% or RM6.1bn to RM70.0bn. In contrast, imports fell 5.6% to RM62.0bn, resulting in a trade surplus of RM20.9bn in June, a growth of 98.7% yoy. This was also the largest trade surplus ever recorded thus far. The largest trade surplus was previously recorded in October 2019 with a value of RM17.3bn. Total trade in June expanded by 2.2% yoy to RM144.8bn.

On a month-on-month (m-o-m) basis, total trade, exports, and imports recorded double digit growth of 26.0%, 32.3% and 18.6%, respectively, while trade surplus surged by 101.1%. This better performance is in line with the gradual lifting of restrictions due to Covid-19 pandemic in Malaysia and globally.

Total trade for 2Q20 was valued at RM393.0bn, declined by 14.7% yoy. Exports totalled RM210.3bn, a decrease of 14.3% yoy while imports amounted to RM182.7bn, contracting by 15.1% yoy. A trade surplus of RM27.6bn was recorded for the period, dropped by 9.1%. Compared to 1Q20, total trade, exports and imports declined by 10.8%, 11.9% and 9.4%, respectively. Trade surplus shrank by 25.2% qoq.

For 1H20, total trade amounted to RM833.4bn, contracted by 7.0% yoy. Exports during the period totalled RM449.0bn, a decline of 6.8% and imports was valued at RM384.4bn, decreasing by 7.2%. A trade surplus of RM64.6bn was recorded for the period, slipped by 4.1% yoy.

Source: BIMB Securities Research - 29 Jul 2020