Highest Trade, Exports and Imports for the Month of June 

Malaysia’s trade performance continued the growth momentum in June 2021 with trade increasing by 29.3% to RM188.7 billion compared to June 2020. Exports recorded the 10th consecutive month of year-on-year (y-o-y) expansion since September 2020, registering a strong growth of 27.2% to RM105.47 billion. This was the third time exports exceeded RM100 billion. Imports increased by 32.1% to RM83.23 billion and trade surplus expanded by 11.7% to RM22.24 billion. Trade, exports and imports recorded the second-highest monthly value thus far after April 2021. This was also the highest monthly value for the month of June and double-digit growth for five successive months. 

The export growth was contributed by strong demand for petroleum products, electrical and electronic (E&E) products, mainly electronic integrated circuits used in the production of smartphones, cars, computers and home appliances as well as rubber products. Exports to all major markets namely ASEAN, China, the United States (US), the European Union (EU) and Japan recorded double-digit expansion. On a month-on-month (m-o-m) basis, trade, exports, imports and trade surplus increased by 10.4%, 14.3%, 5.9% and 61.7%, respectively.

Trade for the second quarter (Q2) of 2021 increased by 39% to RM550.4 billion, compared to Q2 2020. Exports surged by 44% to RM303.37 billion and imports expanded by 33.3% to RM247.02 billion. This was the highest quarterly value for trade, exports and imports thus far. A trade surplus of RM56.35 billion was recorded for the period, surged by 122.7%.

Compared to the first quarter (Q1) 2021, trade, exports and imports grew by 8.8%, 7.5% and 10.5%, respectively while the trade surplus contracted by 4%.

Malaysia's total trade surpassed RM1 trillion in just six months, the shortest period to breach this milestone. For the first half of 2021, trade totalled RM1.056 trillion, an expansion of 26% from the same period last year. Exports rose by 30.2% to RM585.56 billion and imports increased by 21.1% to RM470.53 billion. This was the highest half-year value recorded for trade, exports and imports. Trade surplus surged by 87.7% to RM115.04 billion.

Export Performance of Major Sectors

All Sectors Recorded Double-Digit Export Growth 

In June 2021, exports of all three sectors recorded strong double-digit growth compared to the same month last year. Exports of manufactured goods, which accounted for 86.6% of total exports, increased by 25.8% y-o-y to RM91.3 billion and was the seventh consecutive month of double-digit growth. Export products which expanded more than RM1 billion were seen for petroleum products, E&E products, rubber products, chemicals and chemical products, palm oil-based manufactured products as well as manufactures of metal.

Exports of agriculture goods (8.3% share) grew by 40% to RM8.81 billion compared to June 2020 driven mainly by higher exports of palm oil and palm oil-based agriculture products. 

Exports of mining goods (4.7% share) rose by 32.9% y-o-y to RM4.96 billion, registering double-digit growth for three straight months. The expansion was underpinned by higher exports of crude petroleum and liquefied natural gas (LNG). 

Major exports in June 2021:

• E&E products, valued at RM37.16 billion and accounted for 35.2% of total exports, increased by 14.1% from June 2020;
• Petroleum products, RM9.59 billion, 9.1% of total exports, surged by 113.6%;
• Rubber products, RM7.26 billion, 6.9% of total exports, surged by 103.5%;
• Palm oil and palm oil-based agriculture products, RM7.07 billion, 6.7% of total exports, increased by 51%; and
• Chemicals and chemical products, RM6.62 billion, 6.3% of total exports, increased by 53.3%

Compared to May 2021, exports of manufactured and agriculture goods were up by 15.8% and 17.6%, respectively. Exports of mining goods was down by 12.3%. 

For the period of January to June 2021, exports of manufactured goods grew by 32.6% to RM509.33 billion compared to the same period of 2020, supported by higher exports of E&E products, rubber products, manufactures of metal, petroleum products as well as chemicals and chemical products. Exports of agriculture goods rose by 33.3% to RM42.32 billion, buoyed by higher exports of palm oil and palm oil-based agriculture products. Exports of mining goods totalled RM31.65 billion, declined marginally by 0.4% on the back of lower exports of LNG. 

Trade Performance with Major Markets

ASEAN – Trade, Exports and Imports Sustained Strong Growth 

In June 2021, trade with ASEAN rose by 25.8% y-o-y to RM44.98 billion, accounted for 23.8% of Malaysia’s total trade. Exports sustained double-digit growth since February 2021, increasing by 22.7% to RM27.05 billion. The expansion was contributed by higher exports of chemicals and chemical products as well as petroleum products. Imports from ASEAN expanded by 30.8% to RM17.93 billion.

Breakdown of exports to ASEAN countries:

• Singapore RM12.60 billion, increased by 15.1%
• Thailand RM4.74 billion, increased by 25.6%
• Viet Nam RM3.79 billion, increased by 37.4%
• Indonesia RM3.02 billion, increased by40%
• Philippines RM2.08 billion, increased by 20.6%
• Brunei RM402.2 million, increased by 55.3%
• Cambodia RM217.4 million, increased by 76%
• Myanmar RM188.3 million, decreased by 36.5%
• Lao PDR RM6.5 million, increased by 103.1% 

Exports to major markets in ASEAN that recorded expansion were Singapore which increased by RM1.65 billion due to higher exports of petroleum products, Thailand (increased by RM965.5 million, chemicals and chemical products), Viet Nam (increased by RM1.03 billion, E&E products), Indonesia (increased by RM863.2 million, petroleum products) and the Philippines (increased by RM355.6 million, petroleum products). 

Compared to May 2021, trade, exports and imports expanded by 3.8%, 5.4% and 1.5%, respectively.

In H1 2021, trade with ASEAN expanded by 28.8% to RM269.92 billion compared to the same period of 2020. Exports to this region rose by 26.3% to RM161.93 billion following higher exports of E&E products, chemicals and chemical products, petroleum products, manufactures of metal as well as machinery, equipment and parts. Imports from ASEAN were up by 32.6% to RM107.99 billion.

China – New Record High for Exports

In June 2021, trade with China rose by 30.5% y-o-y to RM37.91 billion, accounting for 20.1% of Malaysia’s total trade. Exports to China recorded the eighth consecutive month of double-digit growth, increasing by 18.5% to RM17.56 billion and was the highest value recorded. The expansion in exports was contributed mainly by higher exports of E&E products and petroleum products. Imports from China rose by 43% to RM20.35 billion.

Compared to May 2021, trade, exports and imports increased by 13.4%, 26.6% and 4%, respectively.

Trade with China during the first six months of 2021 expanded by 32.7% to RM199.51 billion compared to the same period of 2020. Exports rose by 27.7% to RM88.87 billion underpinned by higher exports of E&E products, manufactures of metal as well as LNG. Imports from China increased by 37.1% to RM110.64 billion.

The US – Highest Export Value Ever Registered

Trade with the US in June 2021 increased by 24.1% y-o-y to RM19.27 billion, accounting for 10.2% of Malaysia’s total trade. Exports recorded the 13th successive month of double-digit growth since June 2020, expanding by 32% to RM12.91 billion and was the highest value ever registered. The increase was attributed mainly to higher exports of manufactured goods especially rubber products, E&E products, manufactures of metal, machinery, equipment and parts as well as chemicals and chemical products. Imports from the US rose by 10.6% to RM6.36 billion. On a m-o-m basis, trade, exports and imports recorded growth of 17.2%, 24.3% and 5%, respectively. 

During the first six months of 2021, trade with the US was higher by 27.8% to RM103.22 billion compared to the same period of 2020. Exports surged by 47.3% to RM68.06 billion driven by an increase in exports of rubber products, E&E products, optical and scientific equipment, wood products as well as machinery, equipment and parts. Imports from the US grew by 1.6% to RM35.16 billion.

The EU – Seven Consecutive Months of Double-Digit Export Growth

Trade with the EU which made up 8.4% of Malaysia’s total trade in June 2021 expanded by 31.5% y-o-y to RM15.83 billion. Exports recorded seven straight months of double-digit growth, increased by 24.1% to RM8.99 billion driven by higher exports of rubber products, palm oil-based manufactured products, E&E products as well as palm oil and palm oil-based agriculture products. Imports from the EU edged up by 42.6% to RM6.84 billion. Breakdown of exports to the top 10 EU markets which accounted for 90.2% of Malaysia’s total exports to the EU were: 

• Germany RM2.64 billion, increased by 30%
• Netherlands RM2.42 billion, increased by 17.1%
• Italy RM641.4 million, increased by 34.4%
• Belgium RM553.2 million, increased by 59.1%
• France RM454.5 million, decreased by 7.9%
• Spain RM439.8 million, increased by 34.1%
• Poland RM291.6 million, increased by 31.5%
• Czech Republic RM265.4 million, decreased by 0.2%
• Slovenia RM214.1 million, increased by 13%
• Sweden RM184.1 million, increased by 73.4%

Exports to the EU major markets that recorded growth notably Germany, expanded by RM608.6 million attributed to growing demand for rubber products and the Netherlands, expanded by RM354.3 million due to higher exports of palm oil-based manufactured products

On a month-on-month basis, trade, exports and imports were up by 18.1%, 19.9% and 15.9%, respectively.

During H1 2021, trade with the EU rose by 27.9% to RM86.3 billion compared to H1 2020. Exports expanded by 33% to RM50.94 billion contributed by higher exports of rubber products and E&E products. Imports from the EU increased by 21.3% to RM35.37 billion.

Japan – Fourth Consecutive Month of Double-Digit Export Expansion

In June 2021, trade with Japan which comprised 6.4% of Malaysia’s total trade grew by 23.4% y-o-y to RM12.07 billion. Exports rose by 17.8% to RM5.74 billion, the fourth straight month of double-digit expansion since March 2021. Significant export growth was seen for LNG, rubber products, petroleum products as well as palm oil and palm oil-based agriculture products. Imports from Japan was up by 28.9% to RM6.32 billion.

Compared to May 2021, trade and imports increased by 2.5% and 11.8%, respectively while exports decreased by 6.1%.

For H1 2021, trade with Japan was up by 22.1% to RM73.93 billion compared to H1 2020. Exports expanded by 18.2% to RM37.03 billion as a result of higher exports of E&E products, rubber products and manufactures of metal. Imports from Japan increased by 26.3% to RM36.91 billion. 

Trade with FTA Partners

In June 2021, trade with Free Trade Agreement (FTA) partners which made up 66.1% of Malaysia’s total trade increased by 29.1% y-o-y to RM124.71 billion. Exports to FTA partners grew by 23.3% to RM68.86 billion and imports expanded by 37% to RM55.85 billion.

Increase in exports was recorded to Hong Kong SAR, by 6.5% to RM6.41 billion due to higher exports of E&E products, India (increased by 88.7% to RM3.93 billion, palm oil and palm oil-based agriculture products), Australia (increased by 78.2% to RM3.24 billion, petroleum products), the Republic of Korea (increased by 8.4% to RM3.01 billion, petroleum products), Turkey (increased by 54% to RM970.7 million, manufactures of metal), Pakistan (increased by 26.7% to RM590 million, palm oil-based manufactured products), New Zealand (increased by 2.9% to RM274.9 million, other vegetable oil) and Chile (increased by 44.6% to RM81.3 million, rubber products). 

Compared to May 2021, trade, exports and imports increased by 7.7%, 9.9% and 5.1%, respectively.

Trade with FTA partners during the first six months of 2021 which constituted 66.9% of Malaysia’s total trade grew by 26% to RM706.74 billion compared to the same period of 2020. Exports expanded by 26.4% to RM390.14 billion and imports rose by 25.6% to RM316.6 billion. 

Import Performance

Total imports in June 2021 expanded by 32.1% y-o-y to RM83.23 billion. The three main categories of imports by end use which accounted for 71.6% of total imports were:

• Intermediate goods, valued at RM43.71 billion or 52.5% of total imports, increased by 25.3%, following higher imports of processed industrial supplies particularly copper and articles;
• Capital goods, valued at RM8.57 billion or 10.3% of total imports, grew by 15.2%, due mainly to higher imports of capital goods (except transport equipment), primarily parts for machinery and mechanical appliances; and
• Consumption goods, valued at RM7.35 billion or 8.8% of total imports, rose by 19.2%, as a result of higher imports of processed food and beverages mainly for household consumption, especially meat and edible meat offal. 

During January to June 2021, imports increased by 21.1% to RM470.53 billion from the same period of 2020. Imports of intermediate goods grew by 21.5% to RM258.55 billion, capital goods (RM49.96 billion, increased by 6.9%) and consumption goods (RM41.59 billion, increased by 18.5%). 

Note:
It should be noted that, conceptually, the export and import figures in the external trade statistics are different from that in the goods account of the balance of payments compilation. The compilation of international merchandise trade statistics is usually based on customs records, which essentially reflect the physical movement of goods across borders, and follow international guidelines on concepts and definitions 
i.e. International Merchandise Trade Statistics: Concepts and Definitions 2010 (IMTS 2010) which is different from the principles of the System of National Accounts (SNA) and the Balance of Payments Compilation. Goods are defined in the SNA as “physical objects for which a demand exists, over which ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets”.
“This is a preliminary release, full details would be published in the “MONTHLY EXTERNAL TRADE STATISTICS” report by the Department of Statistics, Malaysia, to be disseminated on Wednesday, 4th August 2021 and can be downloaded through statistic at the Department of Statistics, Malaysia’s portal (https://www.dosm.gov.my/v1).
+ This media release can be accessed through the portal of Malaysian External Trade Statistics, Ministry of International Trade and Industry (http://www.miti.gov.my) and Malaysia External Trade Development Corporation (http://www.matrade.gov.my). The June 2021 data is provisional and subject to revision in later issue. With effect from reference month April 2018, selection of codes for exports and imports of palm oil and palm oil-based products has been reviewed and revised for better representation of the product and this has resulted in some changes to the data.
FTA partners comprises 19 countries: China, Singapore, Japan, Thailand, Republic of Korea, Indonesia, India, Australia, Viet Nam, Philippines, New Zealand, Turkey, Pakistan, Myanmar, Cambodia, Brunei, Chile, Lao PDR and Hong Kong SAR. With effect from the reference month of February 2020, the United Kingdom no longer be a Member State of the European Union (EU).