TRADE PERFORMANCE FOR JUNE 2022 AND THE PERIOD OF JANUARY-JUNE 2022 

New Record High for Trade, Exports and Imports

Malaysia trade performance in June 2022 continued its stellar performance, registering an all-time record high for trade, exports and imports. Trade increased by 43.4% to RM270.39 billion compared to June 2021, the 17th consecutive month of double-digit growth. Exports recorded the 11th consecutive month of double-digit expansion, registering a strong growth of 38.8% to RM146.16 billion. Imports rose by 49.3% to RM124.23 billion while trade surplus declined marginally by 0.8% to RM21.93 billion.

The export growth was contributed by strong demand for electrical and electronic (E&E) products, petroleum products, liquefied natural gas (LNG) as well as palm oil and palm oil-based agriculture products. Exports to most major trading partners notably ASEAN, the United States (US), the European Union (EU) and Japan recorded double-digit growth. Highest monthly export value was registered to ASEAN, the US and the EU.

On a month-on-month (m-o-m) basis, trade, exports, imports and trade surplus expanded by 18.4%, 21.3%, 15.2% and 72.7%, respectively.

Trade for the second quarter (Q2) of 2022 grew by 32.7% to RM730.36 billion, compared to Q2 2021. Exports climbed by 30.0% to RM394.24 billion and imports increased by 36.1% to RM336.13 billion. This was the highest quarterly value for trade, exports and imports. Trade surplus edged up by 3.2% to RM58.11 billion.

Compared to the first quarter (Q1) 2022, trade, exports and imports rose by 16.9%, 14.3% and 20.1%, respectively while trade surplus contracted by 10.6%.

For the first half (H1) of 2022, trade was up by 28.2% to RM1.355 trillion from the same period last year. Exports increased by 26.1% to RM739.13 billion and imports grew by 30.9% to RM616.00 billion. Trade surplus climbed by 6.7% to RM123.13 billion. This was the highest half year value recorded for trade, exports, imports and trade surplus.

In June 2022, exports of all three sectors recorded strong double-digit growth compared to the same month last year. Exports of manufactured goods reached its highest monthly value at RM122.07 billion or 83.5% of total exports, increased by 33.8% year-on-year (y-o-y) and was the 11th consecutive month of double-digit growth. Export products which expanded more than RM1 billion were seen for E&E products, petroleum products, machinery, equipment and parts, manufactures of metal as well as optical and scientific equipment.

Exports of agriculture goods (8.8% share) rose by 46.8% y-o-y to RM12.93 billion, the highest monthly value. The increase was driven mainly by higher exports of palm oil and palm oil-based agriculture products.

Exports of mining goods (7.2% share) leaped by 116.3% y-o-y to RM10.53 billion underpinned by higher exports of LNG and crude petroleum.

Major exports in June 2022:

• E&E products, valued at RM52.34 billion and accounted for 35.8% of total exports, increased by 40.9% from June 2021;
• Petroleum products, RM19.47 billion, 13.3% of total exports, surged by 104.1%;
• Palm oil and palm oil-based agriculture products, RM10.72 billion, 7.3% of total exports, surged by 51.7%;
• Chemicals and chemical products, RM6.90 billion, 4.7% of total exports, increased by 4.1%; and
• LNG, RM6.27 billion, 4.3% of total exports, surged by 153.1%.

Compared to May 2022, exports of manufactured, agriculture and mining goods were up by 21.6%, 20.0% and 20.3%, respectively.

For the period of January to June 2022, exports of manufactured goods edged up by 22.0% to RM621.61 billion compared to the same period of 2021, supported by higher exports of E&E products, petroleum products, palm oil-based manufactured products as well as manufactures of metal. Exports of agriculture goods rose by 44.3% to RM61.06 billion, buoyed by higher exports of palm oil and palm oil-based agriculture products. Exports of mining goods surged by 66.3% to RM53.01 billion on the back of robust exports of LNG and crude petroleum.

Trade Performance with Major Markets

ASEAN – New Record High for Exports

In June 2022, trade with ASEAN surged by 65.5% y-o-y to RM74.00 billion, accounted for 27.4% of Malaysia’s total trade. Exports sustained double-digit growth since August 2021, soared by 55.2% to RM41.59 billion and was the highest monthly value. The expansion was contributed by higher exports of petroleum products, E&E products and crude petroleum. Imports from ASEAN leaped by 80.9% to RM32.41 billion.

Breakdown of exports to ASEAN countries:

• Singapore RM21.53 billion, increased by 71.6%
• Thailand RM5.87 billion, ↑23.7%
• Indonesia RM5.27 billion, ↑75.5%
• Viet Nam RM4.41 billion, ↑16.5%
• Philippines RM2.65 billion, ↑27.5%
• Myanmar RM866.6 million, ↑360.4%
• Brunei RM574.2 million, ↑167.9%
• Lao PDR RM278.3 million, ↑4,164.4%
• Cambodia RM130.3 million, ↓40.1%

Exports to major markets in ASEAN that recorded expansion were Singapore which rose by RM8.99 billion due to higher exports of E&E products, Thailand (↑RM1.12 billion, LNG), Indonesia (↑RM2.27 billion, petroleum products), Viet Nam (↑RM623.7 million, crude petroleum) and the Philippines (↑RM572.4 million, petroleum products).

On a m-o-m basis, trade, exports and imports expanded by 10.6%, 12.4% and 8.2%, respectively.

In H1 2022, trade with ASEAN increased by 37.4% to RM370.61 billion compared to the same period of 2021. Exports to this region rose by 31.6% to RM212.89 billion following higher exports of E&E products, petroleum products, crude petroleum, machinery, equipment and parts as well as chemicals and chemical products. Imports from ASEAN was up by 46.0% to RM157.72 billion.

China – Trade Registered 19 Months of Double-Digit Expansion

In June 2022, trade with China which made up 16.5% of Malaysia’s total trade grew by 17.3% y-o-y to RM44.52 billion, the 19th successive month of double-digit growth. Exports to China climbed by 4.2% to RM18.34 billion contributed mainly by higher exports of E&E products, metalliferous ores and metal scrap as well as LNG. Imports from China rose by 28.6% to RM26.17 billion.

Compared to May 2022, trade, exports and imports were up by 19.8%, 20.2% and 19.6%, respectively.

Trade with China during the first six months of 2022 edged up by 16.4% to RM232.30 billion compared to the same period of 2021. Exports rose by 13.7% to RM101.03 billion underpinned by higher exports of E&E products, LNG as well as palm oil and palm oil-based products. Imports from China increased by 18.7% to RM131.27 billion.

The US – Exports Recorded New High

Trade with the US in June 2022 grew by 35.4% y-o-y to RM25.91 billion, comprising

9.6% of Malaysia’s total trade. Exports recorded the fourth successive month of double- digit growth, expanding by 30.6% to RM16.86 billion and was the highest value registered. The increase was attributed mainly to higher exports of E&E products. Imports from the US climbed by 45.6% to RM9.05 billion.

On a m-o-m basis, trade, exports and imports recorded growth of 29.4%, 40.7% and 12.5%, respectively.

During the first six months of 2022, trade with the US rose by 21.0% to RM124.72 billion compared to the same period of 2021. Exports increased by 16.5% to RM79.28 billion driven by robust exports of E&E products. Imports from the US expanded by 29.8% to RM45.45 billion.

The EU – Highest Export Value Ever Registered

Trade with the EU which represented 8.0% of Malaysia’s total trade in June 2022 grew by 37.2% y-o-y to RM21.72 billion. Exports achieved a new record high, expanding by 39.4% to RM12.53 billion. This was the ninth straight month of double digit growth driven by higher exports of E&E products, manufactures of metal, palm oil and palm oil- based agriculture products as well as petroleum products. Imports from the EU climbed by 34.3% to RM9.20 billion.

Breakdown of exports to the top 10 EU markets which accounted for 92.0% of Malaysia’s total exports to the EU were:
• Netherlands RM4.65 billion, increased by 92.1%;
• Germany RM2.68 billion, ↑1.4%;
• Italy RM1.14 billion, ↑77.8%;
• France RM864.6 million, ↑90.2%;
• Belgium RM602.0 million, ↑8.8%;
• Spain RM481.7 million, ↑9.5%;
• Poland RM391.8 million, ↑34.4%;
• Czech Republic RM259.2 million, ↓2.3%;
• Slovenia RM237.3 million, ↑10.8; and
• Hungary RM224.7 million, ↑39.6%.

Exports to the EU major markets that recorded growth notably the Netherlands, edged up by RM2.23 billion attributed to strong demand for palm oil and palm oil-based agriculture products, Germany, (↑RM37.6 million, E&E products) and Italy, (↑RM499.0 million, manufactures of metal).

On a m-o-m basis, trade, exports and imports rose by 24.8%, 28.5% and 20.1%, respectively.

During H1 2022, trade with the EU increased by 24.4% to RM107.52 billion compared to H1 2021. Exports expanded by 25.1% to RM63.85 billion contributed by higher exports of E&E products, manufactures of metal, palm oil and palm oil based products as well as iron and steel products. Imports from the EU edged up by 23.5% to RM43.66 billion.

Japan – Double-Digit Export Growth for 16 Consecutive Months

In June 2022, trade with Japan which constituted 5.9% of Malaysia’s total trade grew by 32.9% y-o-y to RM15.84 billion. Exports jumped by 55.8% to RM8.71 billion, the 16th successive month of double-digit expansion buoyed by strong exports of LNG. Imports from Japan climbed by 12.7% to RM7.13 billion.

Compared to May 2022, trade, exports and imports were up by 17.9%, 24.0% and 11.3%, respectively.

For H1 2022, trade with Japan edged up by 16.0% to RM86.11 billion compared to H1 2021. Exports rose by 23.8% to RM46.13 billion as a result of higher exports of LNG. Imports from Japan increased by 8.0% to RM39.98 billion.

Trade with FTA Partners

In June 2022, trade with Free Trade Agreement (FTA) partners which absorbed 65.8% of Malaysia’s total trade expanded by 43.0% y-o-y to RM178.00 billion. Exports to FTA partners grew by 39.8% to RM95.95 billion and imports climbed by 47.0% to RM82.06 billion.

Increases in exports were recorded to Hong Kong SAR, by 41.5% to RM9.08 billion supported by growing exports of E&E products, India, (↑39.1% to RM5.47 billion, crude petroleum) and Turkiye (↑62.1% to RM1.58 billion, manufactures of metal). Meanwhile, exports to the Republic of Korea, expanded by 47.2% to RM4.59 billion, Australia (↑40.9% to RM4.56 billion), New Zealand (↑319.7% to RM1.15 billion) and Pakistan (↑33.2% to RM785.9 million) due to higher exports of petroleum products.

Compared to May 2022, trade, exports and imports grew by 15.8%, 17.0% and 14.5%, respectively.

Trade with FTA partners during the first six months of 2022 which took up 66.6% of Malaysia’s total trade rose by 27.6% to RM902.43 billion compared to the same period of 2021. Exports expanded by 27.1% to RM496.00 billion and imports increased by 28.3% to RM406.42 billion.

Import Performance

Total imports in June 2022 grew by 49.3% y-o-y to RM124.23 billion. The three main categories of imports by end use which accounted for 68.3% of total imports were:

• Intermediate goods, valued at RM64.41 billion or 51.8% of total imports, increased by 46.9%, following higher imports of processed industrial supplies;

• Capital goods, valued at RM11.15 billion or 9.0% of total imports, grew by 30.4%, due mainly to higher imports of industrial transport equipment; and

• Consumption goods, valued at RM9.23 billion or 7.4% of total imports, rose by 25.6%, as a result of higher imports of processed food and beverages mainly for household consumption.

During January to June 2022, imports was up by 30.9% to RM616.00 billion from the same period of 2021. Imports of intermediate goods grew by 32.8% to RM344.14 billion, capital goods (RM56.23 billion, ↑12.5%) and consumption goods (RM50.37 billion, ↑21.1%).