• Exports expanded by 6.6% yoy; Imports increased 1.3% yoy in January

• Trade surplus narrowed to RM16.6bn

• Growth in exports driven by higher exports of manufactured goods

• Imports expanded for second straight month

• Robust demand from major trading partners

• Global external trade remained strong

• Exports are expected to remain resilient supported by the global semiconductor upcycle

Malaysia’s exports in January 2021 continued its positive growth, expanding by 6.6% yoy from RM84.1bn in January 2020 to RM89.6bn. Export has expanded for five consecutive months, whilst this was the highest export value ever recorded for the month of January. The expansion was supported by increase in global demand notably for electrical and electronic (E&E) and rubber products as well as front loading activities prior to the festive season. The increase in exports was also supported by both domestic exports and re-exports. Domestic export stood at RM72.1bn contributed 80.5% to the total exports, grew by 6.3% yoy (Dec: +8.3%). While, the re-exports which was value at RM17.5bn, went up by 7.5% yoy (Dec: +22.9%). Imports rose by 1.3% to RM73.0bn in January, slightly slower compared to 1.6% growth in December. Total trade rose by 4.1% to RM162.6bn, the highest value registered for the month of January. Trade surplus surged by 38.0% yoy to RM16.6bn, sustaining a double-digit growth for eight consecutive months.

Malaysia's export expansion was supported mainly by higher exports to China, Singapore, the United States, the European Union, Hong Kong and Vietnam. The main products which contributed to the increase in exports were electrical and electronics products, rubber products and manufacture of metal.

On a month-on-month basis, exports, imports, total trade and trade balance posted a decrease of 6.4%, 2.7%, 4.8% and 19.8% respectively.

Source: BIMB Securities Research - 1 Mar 2021