KUALA LUMPUR- Malaysia’s exports rose more than expected in January from a year earlier, boosted by higher shipments of manufactured goods, the trade ministry said on Tuesday.
Exports rose 8.7 percent from a year earlier to 122.43 billion ringgit ($25.56 billion), more than the 3 percent growth estimated by 17 economists surveyed by Reuters.
Exports of manufactured goods, which accounted for 84.7 percent of total shipments, improved by 9.3 percent year-on-year, the trade ministry said in a statement.
“The export growth was boosted by higher shipments of petroleum products, machinery, equipment and parts, iron and steel products as well as manufactures of metal,” the ministry said.
Exports of palm oil and palm oil-based agriculture products from the world’s second-biggest producer increased by 16.3 percent to 6.15 billion ringgit, the ministry added.
Members of the Association of Southeast Asian Nations (ASEAN) accounted for 27.6 percent of Malaysia’s total trade, increasing to 17.4 percent in January from a year earlier, with exports growing 9.5 percent.
Malaysia’s exports to the United States improved 11.9 percent , while exports to the European Union were up 6.4 percent . However, exports to China fell 7.6 percent as a result of lower shipments of electrical and electronic goods.
Imports in January grew 18.8 percent from a year earlier to 112.3 billion ringgit, data from the trade ministry showed, versus an 8 percent increase expected in the Reuters poll.
Malaysia recorded a trade surplus of 10.12 billion ringgit in January.
Malaysia’s economy in the fourth quarter of 2023 likely expanded 3.4 percent from a year earlier, marginally faster than the previous three-month period, though a slump in exports and easing activity signaled weakening momentum.
While all major sectors registered an expansion in the October-December period, growth in construction slowed to 2.5 percent from a year earlier, from 7.2 percent in the previous quarter, and manufacturing growth was nearly stagnant at 0.1 percent, official advance estimates released by the Statistics Department showed.
In the third quarter of 2023, gross domestic product (GDP) expanded 3.3 percent as buoyant domestic spending offset weak external demand. Malaysia’s exports, which have been in decline since March, contracted 8 percent in 2023, according to trade data released separately on Friday.
The department began releasing preliminary estimates on quarterly economic performance in October last year, citing demand for more timely statistics and to comply with international best practices.
Malaysia’s full-year economic growth is expected to come in at 3.8 percent in 2023, the department said, below the government’s projection of a 4 percent expansion and a sharp drop from a 22-year high of 8.7 percent in 2022.
Malaysia’s growth outlook was expected to remain cloudy in coming months, analysts said, flagging risks including a possible spike in inflation following planned subsidy cuts this year.
