Malaysia’s June trade surplus rises in contrast to market expectations

Malaysia’s trade balance during the month of June posted an unexpected surplus on an annual basis, contrasting to what markets had earlier anticipated, following higher shipments of manufactured goods, which included electronics and electrical, timber and refined-petroleum products.

Malaysia's exports posted surprise growth in June, rebounding 3.4 percent from a year earlier, contrasting with the 4.2 percent decline forecasted in a Reuters poll of analysts, data released by the Department of Statistics showed Friday.

June's trade surplus was 5.5 billion ringgit (USD1.36 billion), up from 3.3 billion ringgit in May. Exports to the United States rose 22 percent, the highest annual growth recorded this year, driven by higher demand for electrical and electronic products, as well as optical and scientific equipment.

Further, annual exports of manufactured goods grew 6.7 percent, despite lower shipments of palm oil and liquefied natural gas, data released by the Ministry of International Trade and Industry showed Friday. Malaysia's imports in June grew 8.3 percent from a year earlier, up from the previous month's 3.1 percent rise.

Exports to the European Union grew 4.1 percent from a year earlier, but those to China fell 20.3 percent, due to lower exports of commodities and manufactured goods. In the first half of 2016, exports grew 1.2 percent while imports rose 1.4 percent from the same period last year. Meanwhile, a trade surplus of 41.8 billion ringgit was recorded, compared with 41.7 billion ringgit during the first half of 2015.