• Exports rose by 47.3% yoy; Imports rose by 50.3% yoy in May

• Trade surplus narrowed to RM13.7bn

• Exports slipped below RM100bn in May

• Imports continued double-digit growth for the fourth consecutive month

• Exports to major trading partners continued double-digit growth in May

• Base effects bloat global trade data in May

• The pace of near-term trade recovery to be affected by lockdown

Malaysia’s export growth rose by 47.3% yoy in May from RM62.7bn in May 2020 to RM92.3bn. Exports sustained double-digit growth for the fourth straight month but moderated from April print of 63.0% yoy. Domestic export stood at RM78.7bn contributed 85.2% to the total exports, grew by 45.9% yoy (Apr: +84.0%; Mar: +38.5%; Feb: +10.5%; Jan: +6.3%). The re-exports which were valued at RM13.7bn, surged by 56.1% yoy (Apr: +11.0%; Mar: +3.7%; Feb: +65.0%; Jan: +7.5%). Meanwhile, imports rose the most since 1998, surged by 50.3% to RM78.6bn in May compared to 24.4% growth in the previous month. Total trade rose by 48.7% to RM170.9bn, sustaining the sixth consecutive month of expansion. Trade balance recorded a surplus of RM13.7bn in May, an increase of 32.3% from RM10.4bn from a year ago.

On a month-on-month basis, exports, imports and total trade posted decreases of 12.6%, 7.8%, and 10.4% respectively. Meanwhile, trade balance shrank by 32.5% during the period.

In the five months to May 2021, exports increased 31.1% yoy to RM480.1bn. Reexports valued at RM85.8bn and grew 21.4% yoy and accounted for 17.9% of total exports. Domestic exports rose 33.4% to RM394.3bn from a year ago. Imports also registered an increase of 20.1% yoy to RM387.3bn. Malaysia’s trade from January to May 2021 grew by 26.0% to RM867.4bn. Trade surplus was valued at RM92.8bn, rose by 112.2% compared to the same period of 2020.

Source: BIMB Securities Research - 29 Jun 2021