KUALA LUMPUR (July 18): Malaysia’s exports grew at a much slower than expected pace in June from a year earlier, driven largely by shipments of machinery and natural gas, while deliveries of key electronics contracted, official data on Thursday showed.

Exports totalled RM126.05 billion in June, an increase of just 1.7% against RM123.94 billion in the same month last year, the Ministry of Investment, Trade and Industry said in a statement. That compares to the median estimate of a 3.3% rise in a Bloomberg survey of economists. In May, exports grew 7.3% year-on-year (y-o-y).

Shipments of electrical and electronic products, which account for more than one-third of gross exports, declined 1.6% in June, while that of petroleum products fell 7.3%. However, exports of machinery, equipment and parts surged 25%, while liquefied natural gas was up nearly 24%.

In terms of markets, exports to China - Malaysia’s biggest trading partner -  slipped 2%. Exports to Japan were down by 19%, while outbound deliveries to the US rose 14%, and were 55% higher to Taiwan.

For the second quarter, exports gained 5.8% when compared to the same three months in 2023.

Gross imports in June, however, grew 17.8% from a year earlier to RM111.76 billion. Inbound deliveries of intermediate goods - such as automotive parts and electronic component - soared 37%. Capital goods imports increased 24%, while consumption goods were up 14%.

Total imports surged 15% y-o-y in the second quarter.

Trade surplus more than halved to RM14.29 billion in June, making it the 50th consecutive month of surplus since May 2020, from RM29.07 billion in June 2023.

On a month-on-month basis, exports were down 1.6%, and imports shrank 5.4%. Trade surplus, however, expanded 44% in June when compared to May.

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