Trade rises 18.6% to RM252.65bil in August, fastest growth rate in 22 months

KUALA LUMPUR: Malaysia’s trade has continued its stellar performance in August, growing 18.6 per cent year-on-year to RM252.65 billion — the fastest growth rate in 22 months, according to the Investment, Trade and Industry Ministry (MITI).

In a statement today, it said exports continued its growth momentum for the fifth consecutive month, rising 12.1 per cent to RM129.16 billion, while imports expanded by 26.2 per cent to RM123.49 billion, marking the 52nd consecutive month of trade surplus since May 2020.

“Export growth in August was primarily driven by increased demand for electrical and electronic (E&E) products, palm oil and palm oil-based agriculture products, machinery, equipment and parts as well as optical and scientific equipment.

“During the first eight months of 2024, trade posted the highest periodic value ever, expanding by 10.9 per cent to RM1.905 trillion year-on-year, with exports up by six per cent to RM991.36 billion and imports expanding 16.8 per cent to RM913.18 billion, resulting in a trade surplus of RM78.17 billion,” the ministry said.

In terms of markets, it said exports to all major trading partners, namely ASEAN, China, the United States (US), the European Union and Taiwan had expanded.

Exports to the US surged to a new record high, mainly due to higher demand for E&E products such as semiconductor devices and integrated circuits.

Citing the World Semiconductor Trade Statistics (WSTS), MITI said WSTS has forecasted the global semiconductor sales to grow by 16 per cent this year, led by stronger performance in computing end-markets.

MITI also said the International Monetary Fund (IMF) has maintained its global gross domestic product (GDP) growth forecast at 3.2 per cent for this year, while highlighting concerns about potential inflation risks and ongoing trade tensions.

“For Malaysia, the IMF reaffirmed its GDP growth projection at 4.4 per cent for 2024, indicating a stable economic outlook. The estimation is consistent with Malaysia’s 5.1 per cent GDP growth in the first half of 2024 (1H2024) which exceeded the 4.1 per cent growth recorded in 1H2023.

“Despite these positive developments, MITI and its agencies will remain vigilant against any potential challenges or global disruptions to ensure that Malaysia could sustain its economic momentum,” it added. – BK