Malaysia's Merchandise Trade Registered Growth of 3% in 2012
MUMBAI, April 30, 2013 /PRNewswire/ --
Malaysia's merchandise trade registered growth of 3% in 2012 amid tepid global demand. Export growth albeit at a lower level, was contributed by demand for both manufactured goods and commodities from markets within Asia. Moderate recovery in the electrical and electronic (E&E) industry following increased demand for semiconductors and telecommunication parts from the United States of America (USA) in Q2 and Q3 of 2012 further supported this growth.
As early as October last year, trade already breached the one trillion ringgit mark. However, the dip in prices of certain commodities in Q3 and Q4 impacted Malaysia's trade performance. The year ended with total trade at RM1.31 trillion (US$423.9 billion) compared with RM1.27 trillion (US$415.5 million) recorded in 2011.
On a year-on-year basis, exports rose to RM702.19 billion (US$227.3 billion). Protracted problems in Europe had continued to affect Malaysia's exports while the slow economic recovery in the USA, Japan and the deceleration in China and India impacted the export momentum in 2012. Imports rose 5.9% in 2012 from a year earlier, contributed by higher imports of capital goods for infrastructure needs and investment requirements.
Intermediate goods mainly for manufacturing activities constituted the major share of imports at 61.4%. Imports of intermediate goods declined by 3.4%, following lower manufacturing activities and inventory stockpiles. The country's trade surplus remained high at RM94.82 billion (US$ 30.7 billion), making it the 15th consecutive year of trade surplus achieved since November 1997.
Asia, being the world's fastest growing consumer market with rising income and a growing middle class, had propped up intra-regional and global trade last year. Currently intra-regional trade amongst Asian countries, account for more than 50% of the region's total trade.
It was the dynamism of Asia that sustained the region's resilience against the economic turmoil in the Eurozone and in the USA. As the countries within the region develop further, they tend to source from one another and establish linkages with each other.
Malaysia is well positioned to benefit from this development as evident from the large proportion of the country's trade with the region. In 2012, trade with Asia increased by 4.1% to reach RM938.65 billion (US$ 303.9 billion) or 71.7% share of Malaysia's global trade. ASEAN, a dynamic economic grouping within Asia, accounted for 27.3% share of Malaysia's total trade. Complementarities among economies in ASEAN, with increasing trends towards vertical specialization, accelerated trade and investment initiatives among countries of the region.
In addition, regional and bilateral Free Trade Agreements (FTAs) have facilitated trade and investments across Asia to support growth among partner countries. Given Asia's role as an important growth centre in the world economy, the focus of promotion activities in 2012 were on markets within Asia. This is part of the on-going strategy to penetrate, develop and sustain fast growth markets in the region, to strengthen Malaysia's trade.
MALAYSIA-INDIA BILATERAL TRADE
Improved preferential access coupled with economic growth and high manufacturing activities led to export growth of 4.2% to India in 2012. Exports to India, was valued at RM29.33 billion (US$ 9.5 billion) and it accounted for 68.9% share of total exports to the South Asia region. Imports increased by 15.9% to RM11.82billion (US$ 3.83 billion).
India moved up one notch to become Malaysia's 11th largest trading partner in 2012, from 12th position in 2011, with 3.1% share of Malaysia's total trade. Palm oil exports to India increased by RM2.34 billion (US$ 764.71 million) to RM7.38 billion (US$ 2.39 billion) accounting for 25.2% share of total exports to India. The increase was due to several factors including the lower supply availability of domestic vegetable oils especially rapeseed oil, the competitiveness of palm oil prices against other competing oils and higher intake of crude palm oil due to zero import duty.
Manufactured goods accounted for 49.2% or RM14.44 billion (US$ 4.67 billion) of total exports to India. Significant increase was recorded for transport equipment, a 'one off' supply of floating production storage and offloading dock for the oil and gas industry in India. Other sectors that recorded increases were optical and scientific equipment mainly parts and accessories for oscilloscope and spectrum analyser, air conditioning machines & parts, acetic acid and polyesters yarn.
In 2013, Malaysia External Trade Development Corporation (MATRADE) is planning few trade promotion events in India. The most immediate is an event in Indore, Madhya Pradesh, on the 24th April at Association of Industries Madhya Pradesh office and in Ahmedabad, Gujarat, on 25th April in Radisson Blu Hotel. During this event, MATRADE is bringing a Malaysian delegation to boost bilateral trade between the two nations.
For further information about these events, please email on [email protected]
ANNEX 1
MALAYSIA'S GLOBAL TRADE
2012 2011
Value Value
(US$ Million) (US$ Million)
Total Trade 423,967.86 415,519.04
Export 227,333.57 228,059.46
Import 196,634.29 187,459.58
Balance of Trade 30,699.28 40,599.87
MALAYSIA'S EXPORTS BY PRODUCT SECTOR
Description 2012 2011
Value Share Value Share
US$ (Million) (%) US$ (Million) (%)
Total Exports 227,333.57 228,059.46
Electrical & Electronic
Products 74,859.28 32.9 77,536.27 34
Palm Oil 18,158.19 8 21,142.69 9.3
Liquefied Natural Gas (LNG) 17,976.69 7.9 17,009.42 7.5
Refined Petroleum Products 16,651.08 7.3 11,938.30 5.2
Chemicals & Chemical Products 15,012.41 6.6 15,422.17 6.8
Crude Petroleum 10,441.44 4.6 10,912.97 4.8
Machinery, Appliances & Parts 8,157.65 3.6 7,759.74 3.4
Optical & Scientific
Equipment 7,420.98 3.3 6,130.85 2.7
Manufactures Of Metal 6,521.73 2.9 7,014.58 3.1
Rubber Products 6,520.49 2.9 5,949.48 2.6
- Source: Department of Statistic Malaysia
- Exchange rate is based on Central Bank of Malaysia
RM YEAR
US$ 1 = 3.3333 2008
3.5246 2009
3.2211 2010
3.0600 2011
3.0888 2012
MALAYSIA'S IMPORTS BY PRODUCT SECTOR
Description 2012 2011
Value Share Value Share
US$
US$ (Million) (%) (Million) (%)
Total Imports 196,634.29 187,459.58
Electrical & Electronic
Products 56,656.60 28.8 58,218.09 31.1
Machinery, Appliances & Parts 17,110.83 8.7 15,349.86 8.2
Chemicals & Chemical Products 16,844.47 8.6 16,713.35 8.9
Refined Petroleum Products 16,119.27 8.2 11,205.93 6
Transport Equipment 12,690.75 6.5 9,857.47 5.3
Manufactures Of Metal 10,378.15 5.3 10,738.11 5.7
Crude Petroleum 8,968.68 4.6 7,846.32 4.2
Iron & Steel Products 8,167.57 4.2 8,116.23 4.3
Optical & Scientific
Equipment 5,908.98 3 5,995.69 3.2
Processed Food 4,603.48 2.3 4,266.86 2.3
- Source: Department of Statistic Malaysia
- Exchange rate is based on Central Bank of Malaysia
RM YEAR
US$ 1 = 3.3333 2008
3.5246 2009
3.2211 2010
3.0600 2011
3.0888 2012
ANNEX 2
MALAYSIA - INDIA BILATERAL TRADE
Total Trade Trade Balance
Year Export Import Value Value
(US$ (US$
Million) Million) (US$ Million) (US$ Million)
2008 7,418.58 3,083.38 10,501.96 4,335.20
2009 4,910.01 2,233.55 7,143.56 2,676.46
2010 6,498.90 2,476.79 8,975.69 4,022.11
2011 9,200.77 3,330.55 12,531.31 5,870.22
2012 9,496.95 3,825.41 13,322.36 5,671.54
MALAYSIA'S EXPORT TO INDIA BY PRODUCT SECTOR
Product Sectors 2012 2011
Value Share Value Share
US$ US$
(Million) % (Million) %
TOTAL EXPORTS 9,496.95 100 9,200.77 100
Palm Oil 2,389.47 25.2 1,648.42 17.9
Electrical & Electronic Products 1,839.92 19.4 2,164.36 23.5
Crude Petroleum 1,655.59 17.4 1,994.78 21.7
Chemicals & Chemical Products 1,008.18 10.6 1,003.51 10.9
Transport Equipment 455.34 4.8 108.78 1.2
Saw Logs & Sawn Timber 345.66 3.6 376.39 4.1
Manufactures Of Metal 342.77 3.6 449.81 4.9
Machinery, Appliances & Parts 286.91 3 273.99 3
Refined Petroleum Products 204.00 2.1 109.62 1.2
Iron & Steel Products 137.01 1.4 131.38 1.4
- Source: Department of Statistic Malaysia
- Exchange rate is based on Central Bank of Malaysia
RM YEAR
US$ 1 = 3.3333 2008
3.5246 2009
3.2211 2010
3.0600 2011
3.0888 2012
MALAYSIA'S IMPORT FROM INDIA BY PRODUCT SECTOR
Product Sectors 2012 2011
Value Share Value Share
US$ US$
(Million) % (Million) %
TOTAL IMPORTS 3,825.41 100 3,330.55 100
Refined Petroleum Products 690.44 18 134.45 4
Chemicals & Chemical Products 625.44 16.3 618.11 18.6
Live Animals & Meat 338.84 8.9 298.85 9
Other Agricultures 238.13 6.2 320.55 9.6
Cereal 230.65 6 222.20 6.7
Electrical & Electronic Products 200.20 5.2 278.33 8.4
Processed Food 186.57 4.9 39.98 1.2
Machinery, Appliances & Parts 165.30 4.3 187.55 5.6
Manufactures Of Metal 148.41 3.9 360.43 10.8
Iron & Steel Products 133.32 3.5 130.71 3.9
- Source: Department of Statistic Malaysia
- Exchange rate is based on Central Bank of Malaysia
RM YEAR
US$ 1 = 3.3333 2008
3.5246 2009
3.2211 2010
3.0600 2011
3.0888 2012
Source: Economic Planning Unit, Malaysia
About MATRADE:
MATRADE has been envisioned with the responsibility of positioning Malaysia as a Globally Competitive Trading Nation. MATRADE's mission is to develop and promote Malaysia's exports to the world and its functions are:
- To promote, assist and develop Malaysia's external trade with particular emphasis on the export of manufactured and semi-manufactured products and, on a selective basis, imports;
- To formulate and implement a national export marketing strategy to promote the export of manufactured and semi-manufactured products;
- To undertake commercial intelligence and market research and create a comprehensive database of information for the improvement and development of trade;
- To organise training programmes to improve the international marketing skills of the Malaysian exporters;
- To enhance and protect Malaysia's international trade interests abroad;
- To represent Malaysia in any international forum in respect of any matter relating to trade;
- To develop, promote, facilitate and assist in service areas related to trade; and
- To advise the Government on matters affecting or in any way connected with trade and to act as the agent of the Government or for any person, body or organisation on such matters.
MATRADE is also actively involved in assisting foreign companies to source for suppliers of Malaysian products and services, and is represented worldwide at 40 locations in major commercial cities. In Malaysia, MATRADE has five local branches in Penang, Terengganu, Johor, Sabah, and Sarawak.
Primary Media Contact: Jane, [email protected], 91-9833526456
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