13/12/2011 (The Star) - Asian market spurred Malaysia's total trade between January and October to breach RM1 trillion mark with exports clinching 15.8% growth, the highest monthly figure ever recorded.

Exports surged by 9.1% to RM557.16bil while imports rose 8.5% to RM474.72bil, bringing total trade to RM1.052 trillion, up by 8.8%. This resulted in a trade surplus of RM102.44bil.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed, in announcing the trade figures yesterday, said exports maintained a steady growth momentum, recording RM63.57bil in October, the highest monthly exports ever registered. This was up by 15.8% compared with a year ago.

“The positive export performance for the past 10 months makes Malaysia's export target for the year set at between 6% and 7% realisable,” he said in a statement.

However, ripple effects from the eurozone and the US financial doldrums may hit Asia. Hence, it was important for Malaysian manufacturers and exporters to be on alert and be prepared for the challenges ahead, he said.

Mustapa said imports rose 4.6% to RM50.35bil while total trade expanded by 10.6% to RM113.91bil.

Compared with September, total trade, exports and imports in October were higher by 5.7%, 8.3% and 2.6% respectively, Mustapa said.

He said manufactured exports, which accounted for 64.8% of total exports in October, increased by 2.2% from a year ago. Overall, manufactured goods contributed 10.5% to October exports growth.

The major thrust was provided by chemicals and chemical products, metal manufactures and rubber products, which surged by 24.3%, 38.5% and 23.7% respectively, and helped offset the impact of the lower exports of electrical and electronics (E&E) products, which slid by 9%.

Commodities, mainly liquefied natural gas (LNG), palm oil, crude and refined petroleum products, contributed 76.2% to export growth in October.

Mustapa said exports to Asean countries stood at RM15.8bil, up by 16.2% from last year. This accounted for 24.8% of Malaysia's total exports in October.

He said higher exports were registered for refined petroleum products, crude petroleum, chemicals and chemical products, palm oil, metal manufactures, tin, iron and steel products, optical and scientific equipment and non-metallic mineral products.

He said exports to all Asean countries, except for Laos, registered growth, with the strongest seen to Indonesia, Thailand, the Philippines and Vietnam.

In October, exports to China continued to thrive, expanding 37.1% year-on-year to RM8.66bil, with a large product range that included commodities and manufactured goods such as E&E products, metal manufactures, chemicals and chemical products and processed food, he said.

Mustapa said Japan remained Malaysia's third-largest export destination. From meeting post-tsunami and earthquake requirements to new demands arising from supply chain disruptions caused by the massive floods in Thailand, exports to Japan rose 29.6% to RM7.52bil.

Increased exports were seen for LNG, machinery, appliances and parts, palm oil, wood products, chemicals and chemical products as well as optical and scientific equipment.

The minister said exports to the European Union increased 5% to RM6.49bil due mainly to higher exports of metal manufactures and palm oil. He said Germany, the Netherlands and France remained the top three export markets.

The United States retained its position as the fourth-largest export market, with 7.9% share of Malaysia's total exports in October, he said.

The year-end festive season seemed to have little impact on increasing demand, he said, adding that encouraging export growth was seen in October to green field markets such as India, Bangladesh and Nigeria.

He said total imports in October increased 4.6% to RM50.35bil from October last year. Intermediate goods worth RM31.99bil accounted for 63.5% of total imports, capital goods 15.5% and consumption goods 7.2%, he said. - Bernama