MARKET DEVELOPMENT
June Trade Balance Boosted By Higher Exports, Lower Imports
June Trade Balance Boosted By Higher Exports, Lower Imports
07/08/2015 (The Star) - Malaysia’s June trade balance at RM8bil in June was the highest in five months, underpinned by higher exports and lower imports from a year ago, said MIDF Equities Research.
The research house said on Thursday the country’s trade statistics experienced a “positive surprise” with the trade balance improving from RM5.5bil in May to RM8bil in June.
“The value is the highest for the past five months since global trade activity entered a slump February this year. The high trade balance is thanks to our higher exports growth by 5.0% on-year which is the highest increment year to date,” it said in a statement on Thursday.
MIDF Research said June imports saw a slight decline by 1.5% on-year to RM56.3 billion, with capital goods falling by 16.5% for the same period.
Exports, meanwhile, surged to RM64.3bil, the highest in the second quarter with 5% on-year growth.
MIDF said first half exports contracted by 3.1% on-year due to falling oil and gas prices.
Second quarter performance, it said, was relatively better than the first quarter by 1% quarter-on-quarter but still experienced a downturn on on-year basis of 3.7%.
Petroleum products, crude petroleum and liquefied natural gas (LNG) led the decline with a contraction of 28.9%, 23.5% and 25.5% on on-year basis respectively.
“By taking the petroleum products, crude petroleum and LNG out of the equation, Malaysia’s exports actually improved by 4.0% for the first half of 2015.
The electrical and electronics (E&E) sector lead the gains in exports and imports, increasing by RM2.8bil (13.5%) on-year and RM2.1bil (9.8%) on a month-on-month basis.
For the first half of 2015, the sector contributed about 35.2% of total exports.
MIDF expects the industry to continue its growth momentum in the coming months.
“As a side note, we believe the launching of a few major smartphone models in August and September partly contribute to the boost of E&E industry in May and June,” it said.
MIDF added that petroleum products and crude petroleum experienced slower demand in June compared to May.
On a month-on-month basis, crude petroleum fell by 11.1% while petroleum products fell by 7.1%.
“Despite that, Malaysia’s overall exports experienced a substantial gain in June, reflecting that Malaysia’s economy has become more diverse and resilient towards external economic volatility.
“Additionally, palm oil sector experienced a significant comeback in June, partly due to the higher demand from Pakistan and India for the incoming fasting month and Eid Fitr festival,” it said.
The research house said on Thursday the country’s trade statistics experienced a “positive surprise” with the trade balance improving from RM5.5bil in May to RM8bil in June.
“The value is the highest for the past five months since global trade activity entered a slump February this year. The high trade balance is thanks to our higher exports growth by 5.0% on-year which is the highest increment year to date,” it said in a statement on Thursday.
MIDF Research said June imports saw a slight decline by 1.5% on-year to RM56.3 billion, with capital goods falling by 16.5% for the same period.
Exports, meanwhile, surged to RM64.3bil, the highest in the second quarter with 5% on-year growth.
MIDF said first half exports contracted by 3.1% on-year due to falling oil and gas prices.
Second quarter performance, it said, was relatively better than the first quarter by 1% quarter-on-quarter but still experienced a downturn on on-year basis of 3.7%.
Petroleum products, crude petroleum and liquefied natural gas (LNG) led the decline with a contraction of 28.9%, 23.5% and 25.5% on on-year basis respectively.
“By taking the petroleum products, crude petroleum and LNG out of the equation, Malaysia’s exports actually improved by 4.0% for the first half of 2015.
The electrical and electronics (E&E) sector lead the gains in exports and imports, increasing by RM2.8bil (13.5%) on-year and RM2.1bil (9.8%) on a month-on-month basis.
For the first half of 2015, the sector contributed about 35.2% of total exports.
MIDF expects the industry to continue its growth momentum in the coming months.
“As a side note, we believe the launching of a few major smartphone models in August and September partly contribute to the boost of E&E industry in May and June,” it said.
MIDF added that petroleum products and crude petroleum experienced slower demand in June compared to May.
On a month-on-month basis, crude petroleum fell by 11.1% while petroleum products fell by 7.1%.
“Despite that, Malaysia’s overall exports experienced a substantial gain in June, reflecting that Malaysia’s economy has become more diverse and resilient towards external economic volatility.
“Additionally, palm oil sector experienced a significant comeback in June, partly due to the higher demand from Pakistan and India for the incoming fasting month and Eid Fitr festival,” it said.