• Exports augmented by 23.5% yoy; Imports enlarged by 26.4% yoy in January

• Trade surplus stood at RM18.4bn

• Export growth moderated but still maintained double-digit growth in January

• Import remained double-digit growth for the twelfth consecutive month

• Omicron has no significant impact on global trade yet

• External trades to remain resilient and will be one of key factors to support

Malaysia’s growth for 2022 Malaysia’s export growth augmented by 23.5% yoy in January 2022 from RM89.6bn in January 2021 to RM110.7bn. January’s export maintained double-digit growth for the sixth consecutive month and stayed above RM100bn for the five straight months. This was the 17th consecutive month of year-on-year expansion since September 2020. The performance was underpinned by sustained global demand, higher commodities and global oil prices. Domestic export, which contributed 82.1% to the total exports, expanded by 26.1% yoy (Dec: +30.7%) to RM90.9bn. The re-exports, which were valued at RM19.8bn, grew by 13.2% yoy (Dec: +22.3%). Meanwhile, imports growth enlarged by 26.4% to RM92.3bn in January, up from 23.6% growth in the previous month. Total trade rose by 24.8% to RM203.0bn, the twelfth consecutive month of double-digit growth since February 2021. Trade balance recorded a trade surplus of RM18.4bn in January, an increase of 10.9% from RM16.6bn from a year ago.

Malaysia's export expansion was supported mainly by higher exports to China, Singapore, the United States, the European Union, Japan, Hong Kong, and Thailand. The main products which contributed to the increase in exports were electrical and electronics products, petroleum products, palm oil and palm-based products, chemical and chemical products, manufacture of metal, and liquefied natural gas (LNG).

On a month-on-month basis, export, imports, total trade, and trade surplus posted decreases of 10.6%, 0.6%, 6.3%, and 40.6%, respectively.

Source: BIMB Securities Research - 21 Feb 2022