KUALA LUMPUR: Malaysia's trade performance recorded double digit growth of 12.1 per cent year-on-year (yoy) in April 2024 to RM211.74 billion compared to April last year, said the Investment, Trade and Industry Ministry (MITI).
In a statement today (May 20), MITI said that in line with the global trade recovery, exports in April 2024 rebounded by 9.1 per cent year on year (yoy) to RM114.72 billion after two consecutive months of contraction.
"The growth was contributed mainly by higher exports of machinery, equipment, and parts, chemicals and chemical products, crude petroleum, palm oil, and palm oil-based agriculture products, as well as iron and steel products," it said.
In terms of markets, MITI said exports to Asean, the United States (US), and the European Union (EU) recorded double-digit growth, while exports to the People's Republic of China (China) rebounded from negative growth recorded in the previous month.
"This reflects the growing economic recovery in Malaysia's key export markets.
"Imports in April 2024 grew by 15.6 yoy to RM107.02 billion, contributed by strong imports of intermediate goods used mainly for the manufacturing of products for exports," it said.
For the 48th consecutive month since May 2020, MITI said Malaysia experienced a trade surplus of RM7.7 billion.
According to MITI, the first four months of 2024 recorded the highest values ever for the period for trade, exports, and imports.
"Trade grew by 8.3 per cent to RM912.27 billion compared to the corresponding period last year. Exports increased by 3.8 per cent to RM477.05 billion, and imports were higher by 13.7 per cent to RM435.22 billion, resulting in a trade surplus of RM41.83 billion," it said.
Meanwhile, MITI said compared to March 2024, trade, exports, imports, and trade surplus in April 2024 were lower by 9.3 per cent, 10.8 per cent, 7.6 per cent and 39.4 per cent, respectively.
The contraction was attributed to lower trade with major trading partners, namely Taiwan, ROC, ASEAN, India, Japan, and the United Arab Emirates (UAE), it said.
Malaysia's exports to Free Trade Agreement (FTA) partners in April 2024 increased by 4.4% year over year to RM78.03 billion.
Among the FTA partners that registered export expansion were Hong Kong SAR, Mexico, and Canada, led by robust exports of E&E products.
MITI said the positive trend of Malaysia's trade, exports, and imports for January to April 2024 is in line with the expected recovery of global trade.
According to the World Trade Organisation (WTO), global goods trade is expected to grow by 2.6 per cent this year following a contraction in 2023.
Meanwhile, the International Institute for Management Development (IMD) World Competitiveness Ranking 2023 ranked Malaysia as the 27th most competitive country in economic governance (2022: 32nd).
"This improved performance in our global competitive ranking will ultimately stimulate Malaysia's trade, subsequently creating more job opportunities that will support the expansion of Malaysia's economy," it said.
Moving forward, MITI said the RM329.5 billion of approved investments last year, the highest on record, also includes manufacturing projects valued at RM152 billion.
Once implemented, these manufacturing projects, particularly those in higher value sectors, are also expected to boost trade.
"Such 'patient and enduring' capital is also expected to create jobs and spur more opportunities for small and medium enterprises (SMEs), particularly those that feed into bigger exporters and multinationals' supply chains.
"Out of 2,386 manufacturing projects approved from 2021 to 2023, 1,802 (75.5 per cent) have been implemented, while 551 (23.1 per cent) are in the planning stage (e.g., identifying locations, negotiating with developers)," it added.