• Total trade rose by 39.8% YoY to RM252.7bn

• Exports increased by 38.0% YoY; Imports rose 41.9% YoY in July

• Trade surplus narrowed to RM15.5bn in July

• Global exports gains steam, but slowdown risks remain

• Malaysia’s trade may be adversely impacted by weaker global growth

Malaysia’s trade continued its upward trajectory in July 2022, chalking up double-digit growth for trade, exports and imports. Trade rose by 39.8% to RM252.7bn compared to July 2021, the 18th consecutive month of double-digit growth and the second highest in record after the high RM270.2bn in June. However, export growth moderated slightly to 38.0% YoY from +38.7% in June. This was the 23rd consecutive month of increase in exports, and the 12th straight month of double-digit growth. The increase was driven by both domestic exports and re-exports. Domestic exports stood at RM102.1bn and contributed 76.2% to total exports which jumped by 33.4% YoY. On the same note, re-exports with a value of RM32.0bn, increased by 55.1% YoY. Meanwhile, imports growth remained positive but moderated to 41.9% to RM118.6bn. As imports rose faster than exports, trade surplus narrowed to RM15.5bn in July from RM21.9bn in June.

On a month-on-month basis, total trade and trade surplus slipped by 6.5% and 29.1%, respectively. Exports fell by 8.2% MoM or RM12.0bn whilst imports dropped by 4.5% MoM or RM5.6bn. On a seasonally adjusted terms (MoM), exports decreased by 12.4% while imports decreased by 10.0%.

For January to July 2022, trade was up by 29.9% to RM1.61tn from the same period last year with exports and imports increasing by 27.8% and 32.5% respectively. Trade surplus climbed by 7.4% to RM138.6bn. Trade, exports, imports and trade surplus registered the highest value for the period.

Source: BIMB Securities Research - 22 Aug 2022