Remarkable growth of trade performance with exports up by 12.3%

Malaysia’s trade performance showed remarkable growth in July 2024, achieving an 18.3% year-on-year increase, the fastest in 21 months. The total trade value for July reached RM255.88 billion, driven by strong exports and imports. Exports rose by 12.3% to RM131.15 billion, while imports surged by 25.4% to RM124.73 billion, resulting in a trade surplus of RM6.42 billion.

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Key drivers of export growth included palm oil products, machinery, petroleum products, and electrical and electronic goods, with significant demand from major markets such as ASEAN, the US, EU, and Taiwan.

Trade expanded

From January to July 2024, trade expanded by 9.8% to RM1.652 trillion, marking the highest trade value for this period. This was supported by a 5.1% rise in exports and a 15.5% increase in imports, leading to a cumulative trade surplus of RM72.52 billion.

The strong trade performance coincides with Malaysia’s robust GDP growth of 5.9% in Q2 2024, which aligns with Bank Negara Malaysia’s GDP forecast of 4.0% to 5.0% for the year. However, the World Trade Organization (WTO) cautions that geopolitical tensions could impact global trade recovery despite an overall positive outlook.

Exports in July

In July 2024, Malaysia’s exports showed strong double-digit growth across all major sectors. Manufactured goods, which made up 85.5% of total exports, rose by 10.6% year-on-year (y-o-y) to RM112.08 billion, driven by increased demand for machinery, petroleum products, and electrical and electronic (E&E) products. Agricultural exports grew significantly by 32.8% to RM10.07 billion, boosted by palm oil demand, while mining goods exports increased by 10.2% to RM8.04 billion, led by liquefied natural gas (LNG).

In terms of trade with major markets, Malaysia saw substantial growth, particularly with the US, where exports reached an all-time high, and Taiwan, which recorded a 55% y-o-y increase in exports. Trade with ASEAN, China, the EU, and Free Trade Agreement (FTA) partners also posted strong gains.

Overall, during the first seven months of 2024, Malaysia’s trade with key partners and FTA members continued to expand, driven by robust exports across various sectors. Total imports in July 2024 rose by 25.4% y-o-y, led by a 41.2% surge in intermediate goods imports.