Bank Negara Malaysia forecasts the country’s trade performance for 2024 to increase by 5.2%, with exports expected to grow by 5.0%.

Investment, Trade and Industry (MITI) Deputy Minister Liew Chin Tong said this in the Dewan Rakyat today, citing the growth in Malaysia’s trade performance is supported by the positive growth in the global semiconductor cycle (Tech Up Cycle), with the global semiconductor market expected to increase by 16% this year according to the World Semiconductors Trade Statistics.

“This growth includes semiconductor products, computing, AI, automotive, and communications. Malaysia, ranked as the 10th largest global exporter of E&E goods and the 6th largest exporter of semiconductors in 2023, is set to benefit from these developments.

“While export growth in 2024 will also be supported by positive prospects for major commodities such as palm oil and crude petroleum,” Liew said in reply to a question raised by Muhammad Ismi Mat Taib [Parit], on Malaysia’s export growth until June 2024.

He added statistics on Malaysia’s external trade are current up to May 2024. Data for June 2024 will only be released by the Department of Statistics Malaysia on July 18, 2024.

“For the period from January to May 2024, Malaysia’s total trade increased by 8.7% to RM1.158 trillion compared to the same period in 2023, which totalled RM1.066 trillion. Exports increased by 4.5% to RM605.25 billion, while imports rose by 13.7% to RM553.24 billion,” Liew said.

From January to May 2024, exports of machinery, equipment, and parts increased by 21.8% to RM27.54 billion. This was driven by an increase in machinery and equipment for semiconductor manufacturing to support the E&E sector.

In May 2024, Malaysia’s trade remained resilient and robust, recording double-digit year-on-year growth of 10.3% to RM246.31 billion. This marks the fifth consecutive month of year-on-year growth. Exports increased for the second consecutive month, growing by 7.3% to RM128.22 billion. Meanwhile, imports increased by 13.8% to RM118.09 billion, resulting in a trade surplus of RM10.14 billion. This marks the 49th consecutive month of trade surplus since May 2020.

He added the main export commodities for the period from January to May 2024 were:

   – Electrical and electronic (E&E) products, valued at RM228.38 billion, contributing 37.7% to total exports, a decrease of 1.9% compared to the same period in 2023;

   – Petroleum products, RM57.07 billion, accounting for 9.4% of total exports, down 7.7%;

   – Chemicals and chemical products, RM30.34 billion, 5% of total exports, up 2.6%;

   – Palm oil and palm-based agricultural products, RM29.56 billion, 4.9% of total exports, up 2.6%; and

   – Machinery, equipment, and parts, RM27.54 billion, 4.6% of total exports, up 21.8% compared to the same period in 2023.

The main export markets for the period from January to May 2024 were:

    – ASEAN, valued at RM181.43 billion, contributing 30% to total exports, up 4.9%;

    – China, RM74.33 billion, 12.3% of total exports, down 1.3%;

    – United States, RM71.37 billion, 11.8% of total exports, up 11.6%;

    – European Union (EU), RM47.36 billion, 7.8% of total exports, up 1.9%; and

    – Japan, RM36.94 billion, 6.1% of total exports, up 0.3%.

These statistics illustrate Malaysia’s strong export performance and the positive outlook for its trade sector in 2024, Liew said.