KUALA LUMPUR: Malaysia's exports contracted by 6.8% to RM77.70bil in September, the lowest in three months and were much steeper than expected due to a decline in exports of electrical and electronic (E&E) products.

The Ministry of International Trade and Industry said in a statement on Monday that manufactured goods in September 2019 amounted to RM66.34bil or 85.4% of total exports.

Exports of these manufactured goods, contracted by 5.8% mainly due to lower exports of E&E products, petroleum products, chemicals and chemical products as well as textiles, apparels and footwear.

However, increases were registered in exports of transport equipment, optical and scientific equipment as well as machinery, equipment and parts, MITI said.

RAM Ratings had forecast Malaysia’s exports to decline 0.6% in September (August: -0.8%) with more downside risks from possible India's trade curbs. Last September, exports were RM83.34bil.

However, a Bloomberg survey had been more upbeat as the consensus was September exports to climb 0.2% and imports to increase by 2.3%.

September's total trade were RM147.07bil compared with RM151.11bil a year ago. The trade surplus fell to RM8.337bil, down 46.5% from RM15.5bil a year ago. It was also down 23.5% on-month.

Total September exports

MITI said exports of mining goods (7.3% share) totalled RM5.69bil, down by 15.2% due to lower exports of crude petroleum due to lower volume and average unit value (AUV).

Exports of agriculture goods (6.7% share) totalled RM5.17bil, down by 8.3% due to lower exports of palm oil and palm oil-based agriculture products, especially palm oil which recorded a decline of 9.3% to RM3.05bil following lower volume and AUV.

E&E products, valued at RM29.04bil and constituted 37.4% of total exports, decreased by 12.2% from September 2018;

Petroleum products, RM5.34bil, 6.9% of total exports, decreased by 13.4%;



Chemicals and chemical products, RM4.33bil, 5.6% of total exports, decreased by 11.5%;

Optical and scientific equipment, RM3.55bil, 4.6% of total exports, increased by 12.8%; and

Palm oil and palm oil-based agriculture products, RM3.43bil, 4.4% of total exports, decreased by 9.4%.

Compared to August 2019, exports of manufactured goods, agriculture goods and mining goods exports declined by 3.4%, 13.5% and 5%, respectively.

Asean exports

MITI said exports to major markets in Asean that recorded contraction were Singapore, which decreased by RM1.42bil and Thailand (down RM181.1mil) due to lower exports of E&E products and Vietnam (down RM140.1mil, petroleum products).

China exports, imports

In September 2019, trade with China which represented 17.2% of Malaysia’s total trade or RM25.25bil, rebounded by 3.8% y-o-y after a decline of 7.9% in August.

Exports totalled RM10.85bil, contracted by 3% on lower exports of E&E products, chemicals and chemical products, petroleum products and liquefied natural gas (LNG).

Products that recorded increases were palm oil and palm oil based agriculture products, paper and pulp products, optical and scientific equipment as well as processed food. Imports from China expanded by 9.7% to RM14.4bil

Exports to US

Exports to the US continued to grow for six straight months with an increase of 6.6% y-o-y to RM8.22bil in September 2019.

Higher exports of manufactured goods were recorded particularly E&E products, wood products, manufactures of metal, non-metallic mineral products as well as transport equipment. Imports from the US decreased marginally by 0.04% to RM5.56bil.

September imports

Total imports in September 2019 grew by 2.4% to RM69.37bil from RM67.77bil in September 2018.

The recovery in imports surprised on the upside as RAM Ratings evisaged imports to contract 0.4% after the sharp 12.5% fall in August. Bloomberg consensus was an increase of 2.3%.

MITI said the three main categories of imports by end use which accounted for 77.4% of total imports were intermediate goods, capital goods and consumption goods.

Iintermediate goods, valued at RM39.93bil or 57.6% share of total imports, increased by 11.1%, following higher imports of primary fuel and lubricants particularly mineral fuels and oils.

Capital goods, valued at RM7.85bil or 11.3% of total imports, up by 7.3%, due mainly to higher imports of capital good (except transport equipment) particularly parts of electrical machinery and equipment.

Consumption goods, valued at RM5.93bil or 8.5% of total imports, expanded by 15.1%, as a result of higher imports of semi-durables particularly plastics and articles.