Malaysia’s Exports Record Significant Increase in April 2024 – MITI

Malaysia’s Exports Record Significant Increase in April 2024 – MITI

KUALA LUMPUR Malaysia’s trade maintained strong performance and an upward trend in April 2024, recording a double-digit growth of 12.1 percent to RM221.74 billion compared to April 2023. This marks the fourth consecutive month of year-on-year growth.

In a statement, the Ministry of Investment, Trade, and Industry (MITI) stated that, aligned with the recovery of global trade, exports in April 2024 rebounded by 9.1 percent year-on-year to RM114.72 billion after two consecutive months of decline.

“This growth was driven by increased exports of machinery, equipment and parts, chemicals and chemical products, crude petroleum, palm oil and palm oil-based agricultural products, as well as iron and steel products.

“In terms of markets, exports to ASEAN, the United States (US), and the European Union (EU) recorded double-digit growth, while exports to China recovered from the negative growth recorded in the previous month.

“This indicates that economic recovery is taking place in Malaysia’s key export markets,” it said.

Additionally, imports in April 2024 increased by 15.6 percent year-on-year to RM107.02 billion, driven by strong imports of intermediate goods primarily used in the manufacturing of goods for export.

For the 48th consecutive month since May 2020, Malaysia has recorded a trade surplus, amounting to RM7.7 billion.

MITI noted that the first four months of 2024 recorded the highest values ever for trade, exports, and imports for this period. Trade increased by 8.3 percent to RM912.27 billion compared to the same period in 2023. Exports grew by 3.8 percent to RM477.05 billion, and imports rose by 13.7 percent to RM435.22 billion, resulting in a trade surplus of RM41.83 billion.

Compared to March 2024, trade, exports, imports, and trade surplus in April 2024 were lower by 9.3 percent, 10.8 percent, 7.6 percent, and 39.4 percent, respectively. This reduction was due to decreased trade with major trading partners, namely Taiwan ROC, ASEAN, India, Japan, and the United Arab Emirates (UAE).

In terms of goods, lower trade was recorded for electrical and electronic (E&E) products, petroleum products, and liquefied natural gas (LNG).

Malaysia’s exports to Free Trade Agreement (FTA) partners in April 2024 increased by 4.4 percent year-on-year to RM78.03 billion. Among FTA partners, Hong Kong SAR, Mexico, and Canada recorded increased exports, driven by strong E&E exports.

The positive trend in Malaysia’s trade, exports, and imports for the January to April 2024 period aligns with projections of global trade recovery. According to the World Trade Organization (WTO), global goods trade is expected to increase by 2.6 percent this year after experiencing a contraction in 2023.

The Organization for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF) also project a sharp recovery in goods flows in 2024 after a slowdown in 2023. The IMF’s April 2024 World Economic Outlook revised the global GDP growth forecast higher to 3.2 percent for 2024 (January 2024 estimate: 3.1 percent) due to stronger-than-expected performance in the United States.

Malaysia’s GDP growth is projected to expand by 4.4 percent in 2024 (January 2024 estimate: 4.3 percent).

Additionally, the International Institute for Management Development (IMD) World Competitiveness Ranking 2023 positioned Malaysia as the 27th most competitive country in economic governance (2022: 32nd).

This will stimulate Malaysia’s trade, creating more job opportunities that will support the expansion of Malaysia’s economy.

Guided by the New Industrial Master Plan 2030, MITI is also attracting more high-quality investments that will enhance the value of Malaysia’s manufacturing and service exports in the future.

As a result, investments amounting to RM329.5 billion were approved in 2023, the highest value ever recorded, including manufacturing projects worth RM152 billion. Once these manufacturing projects are implemented, they are expected to significantly boost trade, especially in high-value sectors.

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