Malaysia's Trade Performance in 2010

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Embargo until 1801, Wednesday, 2nd

February 2011

MENTERI

PERDAGANGAN ANTARABANGSA DAN INDUSTRI

MALAYSIA

PRESS RELEASE

MALAYSIA S TRADE PERFORMANCE IN 2010

The Minister of International Trade and Industry (MITI), YB Dato SriMustapa Mohamed announced that after a 16.5% decline in total traderegistered in 2009, Malaysias trade rebounded in 2010 by registering18.3% growth. The impressive growth was attributed to the global

economic recovery which boosted demand for both manufactured goodsand commodities.

Total trade in 2010 breached the RM1 trillion mark to register a value of

Embargo until 1801, Wednesday,

2nd February 2011


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Total trade in 2010 breached the RM1 trillion mark to register a value of


February 2011

To ensure Malaysian companies benefited from the global economicrecovery in 2010, MATRADE as the national trade promotion agencyundertook over 200 programmes in the areas of Exporters Developmentand Export Promotion. Participation in overseas promotion activitiesfocused on retaining share in traditional markets, expanding into the fastgrowing markets of the BRIC countries, as well as diversifying intoemerging markets of West Asia, Central Asia and Africa.

Focus was also given to international brand building efforts to differentiateMalaysian products and services in highly competitive markets through 3major branding exercises, which were participation in I-Saloni, a leadingfurniture trade fair in Italy, Malaysia International Halal Showcase(MIHAS) for the promotion of Halal industry and Malaysia ServicesExhibition (MSE) for the branding of services sector.

EXPORT PERFORMANCE 2010

Malaysia s exports to almost all markets recorded positive growth.Significant increases in exports were seen to Egypt (58.1%), NewZealand (57.4%), Philippines (43.7%), Bangladesh (43.2%), South Africa(40.7%), Taiwan (39.9%), Vietnam (39.7%), India (23.3%) and J apan(21.8%). This was contributed by higher exports of electrical and

electronic (E&E) products, chemicals and chemical products,manufactures of metal, crude petroleum, palm oil, processed food, as wellas refined petroleum products.


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COMPOSITION OF EXPORTS

In terms of export composition, manufactured goods accounted for thelargest proportion with a share of 72.1%, while mining and agricultureaccounted for 15.9% and 11.2% of exports respectively.

Fuelled by the strong demand for E&E products, chemical and chemicalproducts, optical and scientific equipment, manufactures of metal andrubber products, manufactured goods contributed 57.5% to the exportsgrowth of 15.6% registered in 2010.

Main contributor to increase in exports of manufactured goods was theE&E products, with exports of RM249.8 billion or 39.1% of total exports, aslight reduction compared to 41.2% in 2009. E&E products that accountedfor the increase in exports were parts & accessories for ADP machines,data processing equipment, storage units for ADP machines, televisionreception apparatus, photosensitive semi conductor devices, electrical

machinery and apparatus, switching apparatus, transistors, diodes,electric control panels and parts.

Major export destinations for E&E products that contributed to theincrease in exports were the PRC, J apan, Singapore, the UAE, the USA,

Thailand, India, France and Vietnam.

Exports of chemicals & chemical products registered an impressivegrowth of 23.8% to RM40.82 billion, contributing 6.4% to total exports.

The PRC, Indonesia and J apan were the main export markets for thei d t f l h l h l d th i d i ti l ti i


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The high average unit value and growing demand for commoditiesboosted the exports, namely for palm oil, liquified natural gas (LNG),refined and crude petroleum as well as crude rubber, which collectivelycontributed 42.7% to the growth of exports of 15.6% in 2010.

The commodities which recorded impressive export growth were palm oilwhich increased by 25.9% to RM48.42 billion LNG by 22.1% to RM38.10billion, crude petroleum by 21.3% to RM31.03 billion, crude rubber whichsurged by 106.5% to RM9.21 billion.

UTILISATION OF FREE TRADE AGREEMENTS (FTAs)

FTAs negotiated bilaterally, and at the ASEAN level further enhancedmarket access for Malaysia s products.

Apart from ASEAN, Malaysia has concluded bilateral Free Trade

Agreements with J apan, Pakistan, New Zealand, Chile and India; withASEAN, Malaysia has concluded agreements with the PRC, the Republicof Korea (ROK), as well as Australia and New Zealand, and the FTA ingoods with J apan and India.

For 2010, there was an increase of 35.8% in the utilisation of PreferentialCertificate of Origin based on the 509,897 Certificate of Origins issued

compared with 375,589 issued in 2009. Exports performance under FTAsand GSP, recorded an increase of 37.9% in the FOB value of exports toRM103.83 billion compared with RM75.30 billion in 2009.


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February 2011

MALAYSIA EXTERNAL TRADE STATISTICS

PRELIMINARY RELEASE *

TRADE PERFORMANCE FOR THE MONTH OF DECEMBER 2010 AND THE YEAR

OF 2010#

Malaysia s total exports in December 2010 increased by 4.6% to RM57.16 billion

compared with December 2009. This was the highest exports value ever recorded forthe month of December. Imports expanded by 11.5% to RM47.48 billion, resulting in a

total trade of RM104.64 billion, an increase of 7.6% from the corresponding month in

2009. A trade surplus of RM9.69 billion was registered, making it the 158th

consecutive month of trade surplus since November 1997.

Compared with November 2010, exports in December 2010 increased by 8.5% while

imports expanded by 8.6% and total trade was 8.6% higher.

Total trade in 2010 was valued at RM1.169 trillion, an increase of 18.3% from

RM988.24 billion in 2009 and 1.2% lower compared with RM1.183 trillion registered in

2008, the highest total trade ever recorded by the country. This was contributed byexports of RM639.43 billion and RM529.19 billion of imports. Exports expanded by

15.6% while imports rose 21.7% compared with 2009, resulting in a trade surplus of

ANNEX 1


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February 2011

EXPORTS IN DECEMBER 2010

The increase in exports in December 2010 of RM2.49 billion from a year ago was

largely contributed by higher exports of palm oil, refined petroleum products,

chemicals and chemical products, manufactures of metal, crude rubber, iron and steel

products as well as optical and scientific equipment. On a month-on-month basis,

exports expanded by 8.5% attributed mainly to higher exports of electrical and

electronic (E&E) products, refined petroleum products, chemicals and chemical

products, machinery, appliances and parts as well as iron and steel products.

The performance of major export products is shown in Chart 1, while Chart 2 shows

the performance of the top five major export destinations in December 2010.


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February 2011

Exports to J apan expanded by 11.7% to RM6.23 billion compared with RM5.57 billion

in December 2009, attributed mainly to higher exports of E&E products, refined

petroleum products and crude petroleum.

Exports to the European Union (EU) was valued at RM6.03 billion, 1.3% lower

compared with RM6.11 billion in December 2009. This was due to lower exports of

E&E products, palm oil, wood products, manufactures of metal and transport

equipment.

Exports to major EU countries:

Netherlands RM 1.66 billion Germany RM 1.66 billion United Kingdom RM 645.1 million France RM 610.6 million

Italy RM 364.1 million Belgium RM 197.6 million

Spain RM 164.0 million Sweden RM 105.6 million Finland RM 91.4 million

Poland RM 70.4 million

Exports to the United States of America (USA) was valued at RM5.21 billion, a decline

of 4.6% from RM5.46 billion registered a year ago, mainly due to lower exports of E&E

products.


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February 2011

IMPORTS IN DECEMBER 2010

Total imports in December 2010 increased by 11.5% to RM47.48 billion from RM42.58billion in December 2009, due mainly to higher imports of intermediate and capital

goods.

The three main categories of imports by end use:

Intermediate goods valued at RM31.77 billion or 66.9% of total imports;

Capital goods (RM7.36 billion or 15.5% of total imports); and

Consumption goods (RM3.32 billion or 7.0% of total imports).

The performance of major import products is shown in Chart 3.


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Germany 1.87 3.9 Saudi Arabia 1.15 2.4

Total imports from ASEAN amounted to RM12.01 billion or 25.3% of Malaysias total

imports in December 2010.

TRADE DURING THE YEAR OF 2010

EXPORTS

Total exports increased by 15.6% to RM639.43 billion in 2010, compared with

RM553.30 billion in 2009. Major markets that registered significant increases in

exports were Egypt (58.1%), New Zealand (57.4%), Philippines (43.7%), Bangladesh

(43.2%), South Africa (40.7%), Taiwan (39.9%), Viet Nam (39.7%), India (23.3%) and

J apan (21.8%). The increase in exports to Egypt, Bangladesh and South Africa was

mainly contributed by higher exports of palm oil.

Top ten export destinations:

Export value Share of total(RM billion) exports (%)

Singapore 85.43 13.4 PRC 80.60 12.6 J apan 66.29 10.4 USA 60.96 9.5


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February 2011

The export performance of major products during the period is shown in Chart 4.

IMPORTS

Total imports increased by 21.7% to RM529.19 billion in 2010 compared with

RM434.94 billion in 2009.

The three main categories of imports by end use:

Intermediate goods valued at RM363.15 billion or 68.6% of total imports, an

increase of 22.1% from the corresponding period in 2009;


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The import performance of major products during the period is shown in Chart 5.

Top ten import sources:

Import value Share of total(RM billion) imports (%)

J apan 66.55 12.6 PRC 66.43 12.6 Singapore 60.44 11.4 USA 56.36 10.7 Thailand 32.98 6.2 Indonesia 29.40 5.6 ROK 28.69 5.4 Taiwan 23.83 4.5

Germany 21.34 4.0 Hong Kong SAR 12.68 2.4


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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, which do not fully conform to 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 at 1201 hours, Friday, 11th

February 2011.

+ This report can be accessed through the homepages of the Department of Statistics, Malaysia (http://www.statistics.gov.my)under Latest Releases: 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 December 2010 data are not fully validated. The validated data would be updated in the annual publication of the

External Trade Statistics, 2010.
http://www.matrade.gov.my/http://www.miti.gov.my/http://www.statistics.gov.my/


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TABLE 1: SUMMARY OF MALAYSIAS EXTERNAL TRADE

Year/ Total Exports Total Imports Trade Balance Total TradePeriod (RM Million) (RM Million) (RM Million) (RM Million)

2009P

J anuary 38,269.6 30,160.8 8,108.8 68,430.4

February 39,556.9 27,498.6 12,058.3 67,055.5

March 43,571.5 31,026.1 12,545.4 74,597.6

April 41,104.8 33,716.8 7,388.0 74,821.5

May 42,918.6 32,904.8 10,013.7 75,823.4

J une 45,073.6 35,951.9 9,121.7 81,025.5

ul 48,823.9 40,979.6 7,844.3 89,803.5

August 47,785.7 38,229.2 9,556.5 86,014.9

September 47,195.5 37,923.1 9,272.4 85,118.7

October 54,256.1 42,788.4 11,467.6 97,044.5

November 50,066.3 41,185.8 8,880.4 91,252.1

December 54,672.9 42,575.2 12,097.7 97,248.2

2009 (Jan-Dec)p 553,295.3 434,940.4 118,354.9 988,235.6

2010

J anuary 52,447.3 39,515.7 12,931.6 91,963.1

February 46,840.4 35,168.9 11,671.5 82,009.3

March 59,419.6 45,092.6 14,327.0 104,512.2April 52,015.5 42,760.6 9,254.9 94,776.1

May 52,280.5 44,152.6 8,127.9 96,433.0

J une 52,829.5 46,786.2 6,043.2 99,615.7


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TABLE 2: MAJOR EXPORT PRODUCTS

ProductsDecember

2010iNovember

2010pDecember

2009p

RM Million RM Million RM Million

Total Exports 57,164.8 52,699.3 54,672.9

Electrical & Electronic Products 21,144.2 19,217.6 22,679.6

Palm Oil 5,006.7 5,068.3 3,444.0

Chemicals & Chemical Products 3,792.5 3,502.1 3,144.0

Refined Petroleum Products 3,356.6 2,501.2 2,289.5LNG 3,286.8 3,166.6 3,307.3

Crude Petroleum 2,288.3 2,469.2 3,211.8

Machinery, Appliances & Parts 1,891.0 1,621.0 1,935.2

Manufactures Of Metal 1,848.0 1,736.8 1,394.8

Optical & Scientific Equipment 1,516.1 1,518.6 1,254.5

Rubber Products 1,451.4 1,281.5 1,211.3

TABLE 3: MAJOR EXPORT MARKETS

MarketsDecember

2010iNovember

2010pDecember

2009p

RM Million RM Million RM Million

Total Exports 57,164.8 52,699.3 54,672.9

Singapore 7,902.8 7,265.4 7,527.9

PRC 6,906.9 7,193.6 7,325.5

J apan 6,225.8 5,792.7 5,572.1


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CHART 1: MALAYSIAS MONTHLY EXTERNAL TRADE PERFORMANCE, 2004-2010

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Malaysia's Trade Performance in 2010

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