Malaysia’s exports accelerated and grew at a much faster than expected pace in March, thanks to strong shipments of electronics, while deliveries to the US surged ahead of a slew of upcoming tariffs.
Exports in March totalled RM137.31 billion, a 6.8% increase when compared to the same month in 2024, the Ministry of Investment, Trade and Industry (Miti) said in a statement on Friday. The rate was higher than the median 2.6% predicted in a Bloomberg survey and February’s 6.2% pace.
“Moving forward, however, there is a need for caution, given the uncertainties of global demands, which may temper growth in investments and domestic demand,” Miti said. “As a small, open trading nation, Malaysia is inevitably exposed to heightened external uncertainties.”
The rise in exports, which sharply raised Malaysia’s overall trade surplus, came ahead of reciprocal tariffs announced by US President Donald Trump that will apply to all of its trading partners. The US has since paused the sweeping import tariffs, and imposed a headline 10% levy for 90 days.
China, Malaysia’s biggest trading partner, alone faces up to a 245% tariff on exports to the US.
Shipments of electrical and electronics products, which account for more than 40% of Malaysia's total exports, soared 25% year-on-year to an all-time high in March. Outbound deliveries of machinery, equipment and parts grew 12.3%.
However, exports of petroleum products contracted 32.5%, while that of liquefied natural gas shrank 11% in February. Exports of palm oil increased 3.3%, turning around from an 8% decline in February.
In terms of markets, exports to the US jumped 51%. Exports to Malaysia’s largest trading partner China slipped 1.3%, but were 25.9% higher to Hong Kong and up 31% to Taiwan.
Gross imports, meanwhile, unexpectedly decreased 2.8% in March from a year earlier, compared with a 1.4% gain predicted and a 5.5% year-on-year rise in the prior month.
Inbound shipments of intermediate goods — semi-processed materials and components used in final assembly — declined 0.6%, due to lower imports of primary fuel and lubricants. Capital goods imports were 19.2% lower, dragged down by non-transport capital goods.
Consumption goods imports, however, grew 3.6% driven by durable products.
Malaysia's trade surplus hit the highest since June 2023, totalling RM24.72 billion, nearly doubling year-on-year and month-on-month.
On a month-on-month basis, exports were 16.1% higher, while imports were up 6.6% in March.
Source: The Edge Malaysia
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
