Malaysia Trade Surplus Beats Forecasts in October
Malaysia posted a MYR 9.8 billion trade surplus in October of 2016, narrowing from a MYR 12.2 billion surplus a year earlier but beating market estimates of a MYR 8.1 billion surplus, as exports fell more than imports.
12/7/2016 9:53:51 AM
Year-on-year sales declined by 8.6 percent to MYR 69.2 billion, following a 3.0 percent drop in September and faster than market estimates of a 5.8 percent fall. It was the second straight month of decline and the largest drop since April 2015, as sales decreased for: crude petroleum (-27.9 percent), LNG (-40.2 percent), timber and timber based products (-11.4 percent) and refined petroleum products (-1.4 percent). In contrast, outbound shipments increased for: palm oil and palm based products (+2.1 percent) and electrical & electronic products (+1.2 percent).
Exports dropped to the EU (-12 percent), the US (-3.5 percent), Japan (-29.1 percent), Singapore (-7.5 percent), and Thailand (-8.9 percent). In contrast, outbound shipments rose to China (+3.4 percent).
Imports fell 6.6 percent year-on-year to MYR 59.4 billion, compared to a 0.1 percent drop in the preceding month and much higher than market consensus of a 0.2 percent fall. Purchases went down for all categories: capital goods (-2.0 percent, due to both capital goods except for transport equipment: -9.1 percent) ; consumption goods (-8.0 percent, due to food & beverages processed, mainly for household: -11.6 percent and semi-durable: -9.2 percent), and intermediate goods (-8.9 percent, due to parts & accessories of capital goods except transport equipment : -11.9 percent and fuels & lubricants, processed, others : -52.2 percent).
In September 2016, trade surplus stood at MYR 7.6 billion.