• Total trade surged by 33.6% yoy to RM228.4bn in May
   
• Exports advanced by 30.5% yoy though imports surged stronger by 37.3% yoy in May

• Trade surplus shrank to the lowest since May 2020 to RM12.6bn

• A strong growth in global exports, but external risks may weigh

• Malaysia’s overall trade may face with multiple headwinds

Malaysia’s trade kept an uptrend momentum as trade, exports, and imports hit the fastest growth in 6 months in May. Exports advanced by 30.5% yoy to RM120.5bn in May 2022, its double-digit growth for the tenth consecutive month and a rebound against April (+20.8%). Trade growth could have been much higher however if not for base effect disadvantage though was pushed by higher commodities exports especially oil prices. Domestic export, which contributed 79.7% to the total exports, gained by 22.1% yoy (Apr: +21.8%; Mar: +22.7%; Feb: +17.9%; Jan: +26.4%) to RM96.1bn. The re exports, which were valued at RM24.5bn, spiked by 79.1% yoy (Apr: +16.8%; Mar: +37.9%; Feb: +11.7%; Jan: +13.9%). Consistent with export performance, imports also registered double-digit growth of 37.3% to RM107.9bn in May, a rebound from 22.1% growth in April, an all-time high and its third straight month exceeding the RM100bn mark. Total trade surged by 33.6% to RM228.4bn, its sixteenth consecutive month of double-digit growth since February 2021. A less-than-favourable trade mix pushed trade surplus to slowdown or by 8.3% yoy to RM12.6bn, the smallest trade surplus since May 2020.

Source: BIMB Securities Research - 20 Jun 2022