Kuala Lumpur, Feb 8 – Malaysia’s trade in 2016 remained resilient despite the uncertainties in the global environment. Total trade grew by 1.5% to reach RM1.485 trillion, compared to RM1.463 trillion in the previous year, the Minister for International Trade and Industry Datuk Seri Mustapa bin Mohamed announces.
The increase was contributed by higher trade with China, which expanded by RM10.09 billion, the United States of America (USA) (↑RM6.87 billion), Republic of Korea (↑RM3.56 billion), Taiwan (↑RM3.29 billion) and Saudi Arabia (↑RM3.04 billion).
Significant increases were also recorded with Turkey (↑RM2.81 billion), Hong Kong SAR (↑RM1.93 billion), India (↑RM1.85 billion), Mexico (↑RM1.64 billion), Brazil (↑RM1.52 billion), Bangladesh (↑RM1.48 billion), ASEAN (↑RM1.41 billion) and the European Union (EU) (↑RM549.6 million).
“Exports rose by 1.1% to RM785.93 billion and imports increased by 1.9% to RM698.66 billion, resulting in a trade surplus of RM87.27 billion, the 19th consecutive year of trade surplus since 1998,” adds Mustapa.
The Minister points out that major contributors to export growth in 2016 were:
• Expansion of manufactured and agricultural exports by 3.2% and 4.7%, respectively, compensating for the lower performance of mining goods;
• Continued growth for electrical and electronics (E&E) exports driven by strong global demand for electronic devices;
• Rising exports to ASEAN by 5.4% with significant growth to Singapore, CLMV (Cambodia, Laos, Myanmar and Viet Nam) countries and the Philippines;
• Higher exports to Free Trade Agreements (FTA) partners; particularly to Turkey, India and Pakistan; • Robust export growth to advanced countries, in particular, the USA and Euro zone notably Germany, Belgium, Italy and Hungary; and
• Greater demand from emerging markets such as Mexico and countries in South Asia.
China – Largest Trading Partner For Eight Successive Years
China continued to be the largest trading partner with Malaysia for the 8th consecutive year since 2009. In 2016, Malaysia’s trade with China increased by 4.4% to RM240.91 billion.
Exports to China were valued at RM98.56 billion, declined by 2.9% while imports increased by 10.1% to RM142.35 billion. Lower exports were recorded for commodities and manufactured goods particularly, LNG, natural rubber, palm oil and palm-based agriculture products, petroleum products, manufactures of metal as well as E&E products.
However, exports of chemicals and chemical products, optical and scientific equipment, processed food, transport equipment and wood products registered increases.
China was Malaysia’s largest import source with 20.4% share of total imports in 2016. Higher imports were registered for petroleum products, E&E products, chemicals and chemical products as well as machinery, equipment and parts.
Exports to the EU Continued to Expand
Trade with the EU increased by 0.4% to RM149.05 billion. Malaysia’s exports to the EU were higher by 1.2% or RM913 million to RM79.84 billion.
Germany, the Netherlands, the United Kingdom, France and Belgium remained the top five export destinations in the region, accounting for 78.8% of Malaysia’s total exports to the EU.
Among the top ten EU countries, six registered positive growth in exports, namely, Germany which increased by 13.5%, Belgium (↑11.9%), Italy (↑10.1%), Czech Republic (↑9%), Spain (↑0.4%) and France (↑0.1%).
The main contributors for the increase in exports to the EU were machinery, equipment and parts, optical and scientific equipment, chemicals and chemical products, transport equipment as well as apparels.
Imports from the EU declined by 0.5% to RM69.22 billion and the main import products were E&E products, machinery, equipment and parts as well as transport equipment.