Malaysia’s Exports Show Signs of Recovery

Malaysia’s exports show signs of recovery with a slower contraction of -13.7% YoY in September 2023. Last month, Malaysia’s exports witnessed a slower contraction rate of -13.7% year-on-year (YoY), marking an improvement from August 2023 when the decline was at -18.7% YoY.

This positive development was complemented by a notable month-on-month (MoM) surge of +8.2% in exports, primarily driven by manufactured goods, with significant increases in Electrical and Electronics (E&E) products at +25.7% MoM and optical & scientific equipment at +12.5% MoM.

Better exports figures

Semiconductor Exports Lead the Rebound

The recovery in exports was particularly evident in the semiconductor industry, with a notable +9.6% MoM increase in manufacturing exports.

This rebound in semiconductor exports contributed to the deceleration of the year-on-year decline in exports, which moderated to -11.8% YoY in September, down from -17.7% YoY in August.

Steadfast Projections

Despite the improved export performance, our forecasts for the year remain unchanged. We anticipate a -6.4% decline in exports and a -6.9% decline in imports for the full year. These projections take into account the overall economic conditions and the ongoing global trade dynamics.

The recent export data offers a glimmer of hope for Malaysia’s trade sector, although challenges and uncertainties persist. The rebound in semiconductor exports and the resilience of the manufacturing sector are positive signs, but the situation will continue to be closely monitored as the year progresses.

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