Negatively Impacted by Covid-19 as a Result of MCO During the Month

Malaysia’s exports declined sharply for the second consecutive month by 23.8% yoy in April (-4.7% in March), its sharpest decline since September 2009, attributed mainly to the enforcement of the movement control order (MCO) in the country, from 18 March to 3 May 2020, which resulted in most factories and businesses were closed during this period. The pandemic also caused major disruptions to the global supply chain amid containment or quarantines in most other countries. On a month-to-month basis, the decline in exports growth also accelerated from 7.6% in March to -19% in April, indicating weakness in exports across the board.

On a yoy basis, the decline in exports was attributed to the sharp drop in demand for manufactured goods (-23.4%), mining goods (-31.6%) and agriculture goods (-13.8%) in April. Exports of manufactured goods were weighed down by a sharp decline in E&E products, which contracted by 21.7% yoy (-39.9% in March), where this was its ninth consecutive month of decline and its largest monthly contraction since May 2009, dragged down by weak demand for telecommunications equipment, parts and accessories (-28.4%), electrical apparatus and parts (-55.3%) and thermionic valves, tubes and photocells (-3.8%). Meanwhile, exports of other manufactured goods also contracted, such as manufactures of metal (-54.2%), machinery, equipment and parts (-53.3%), optical and scientific equipment (-34.8%) and petroleum products (-23.2%). However, exports of rubber products increased by 11.7% yoy compared to 3.5% in March.

Source: Affin Hwang Research - 5 Jun 2020