Exports of manufactured goods in March 2021 reached their highest monthly value at RM91.21 billion or 86.9% of total exports, grew by 34.9% year-on-year (y-o-y). The expansion was due mainly to higher shipments of E&E products, rubber products, manufactures of metal, chemicals and chemical products as well as machinery, equipment and parts. These products recorded the highest export value thus far.

Exports of agriculture goods (7.1% share) surged by 43.8% to RM7.48 billion compared to March 2020 buoyed mainly by higher exports of palm oil and palm oil-based agriculture products.

Exports of mining goods (5% share) declined by 24.1% y-o-y to RM5.23 billion on account of lower exports of liquefied natural gas (LNG), crude petroleum as well as metalliferous ores and metal scrap.

Major exports in March 2021:  

• E&E products, valued at RM39.54 billion and constituted 37.7% of total exports, increased by 47.1% from March 2020;
  
• Rubber products, RM7.32 billion, 7% of total exports, surged by 210.6%;
• Chemicals and chemical products, RM6.32 billion, 6% of total exports, increased by 32.3%;
• Palm oil and palm oil-based agriculture products, RM5.46 billion, 5.2% of total exports, increased by 54.1%; and
• Manufactures of metal, RM5.32 billion, 5.1% of total exports, increased by 88.4%.

On a month-on-month (m-o-m) basis, exports of manufactured, agriculture and mining goods expanded by 20.2%, 31.4% and 0.8%, respectively.

During the first three months of 2021, exports of manufactured goods rose by 21.9% to RM245.9 billion compared to the same period of 2020, on account of higher exports of E&E products, rubber products, manufactures of metal, chemicals and chemical products, machinery, equipment and parts as well as optical and scientific equipment. Exports of agriculture goods grew by 15.2% to RM18.17 billion attributed to higher exports of palm oil and palm oil-based agriculture products. Exports of mining goods contracted by 21.9% to RM15.36 billion due to lower exports of LNG and crude petroleum.

Trade Performance with Major Markets

ASEAN - E&E Products Continued to Boost Exports

In March 2021, trade with ASEAN contributed RM47.76 billion or 25.7% to Malaysia’s total trade, increased by 22.3% y-o-y. Exports continued its double-digit expansion of 17.4% to RM28.52 billion, backed mainly by higher exports of E&E products. Imports from ASEAN accelerated by 30.3% to RM19.24 billion.

Breakdown of exports to ASEAN countries:

• Singapore RM14.97 billion, increased by 31.6%

• Thailand RM4.38 billion, increased by 29.0%
• Viet Nam RM4.24 billion, increased by 101.1%
• Indonesia RM2.75 billion, decreased by 46.4%
• Philippines RM1.64 billion, increased by 6.5%
• Brunei RM244.9 million, increased by 34.8%
• Cambodia RM154.6 million, increased by 6.9%
• Myanmar RM146.6 million, decreased by 65.4%
• Lao PDR RM5.4 million, decreased by 24.7%

Exports to major markets in ASEAN that recorded expansion include Singapore, which increased by RM3.6 billion due to higher exports of E&E products, Thailand (increased by RM985.1 million, chemicals and chemical products), Viet Nam (increased by RM2.13 billion, E&E products) and the Philippines (increased by RM99.9 million, E&E products).

Compared to February 2021, trade, exports and imports were up by 16.6%, 16.8% and 16.4%, respectively.

During Q1 2021, trade with ASEAN increased by 14.3% to RM131.73 billion, compared to the same period of 2020. Exports to this region rose by 12.8% to RM78.68 billion following higher exports of E&E products as well as chemicals and chemical products. Imports from ASEAN increased by 16.5% to RM53.05 billion.

China – Five Consecutive Months of Double-Digit Export Growth

In March 2021, trade with China surged by 36.1% y-o-y to RM33.86 billion, representing 18.2% of Malaysia’s total trade. Exports to China recorded double-digit growth for five consecutive months, surged by 46.6% to RM16.07 billion on higher exports of E&E products, manufactures of metal as well as iron and steel products. Imports from China expanded by 27.8% to RM17.8 billion.

On a m-o-m basis, trade, exports and imports recorded growth of 17.8%, 25.4% and 11.6%, respectively.

Trade with China during the period of January to March 2021 grew by 31.3% to RM92.53 billion compared to the same period of 2020. Exports expanded by 36.3% to RM41.99 billion, boosted by higher exports of E&E products, manufactures of metal as well as iron and steel products. Imports from China rose by 27.3% to RM50.53 billion.

The US – Exports of Rubber and E&E Products Remained Strong

Trade with the US in March 2021 rose by 41.8% y-o-y to RM18.26 billion, accounting for 9.8% of Malaysia’s total trade. Exports continued to expand with double-digit growth of 67.5% to RM12.31 billion. Higher shipments were recorded mainly for rubber products and E&E products. Imports from the US increased by 7.6% to RM5.94 billion.

Compared to February 2021, trade, exports and imports were higher by 21.3%, 23.3% and 17.4%, respectively.

During the first three months of 2021, trade with the US rose by 17.1% to RM49.24 billion compared to the same period of 2020. Exports increased by 35.9% to RM32.62 billion driven by higher exports of rubber products and E&E products. Imports from the US was lower by 8% to RM16.62 billion.

The EU – Trade, Exports and Imports Recorded Double-Digit Growth

Total trade with the EU which constituted 8.7% of Malaysia’s total trade in March 2021 rose by 38.9% y-o-y to RM16.21 billion. Exports surged by 45.9% to RM9.85 billion, underpinned by higher exports of rubber products, E&E products as well as transport equipment. This was the fourth consecutive months of double-digit expansion to the EU. Imports from the EU grew by 29.2% to RM6.36 billion.

All top 10 EU markets which accounted for 91.3% of Malaysia’s total exports to the EU recorded increases namely, the Netherlands (increased by 26.3%), Germany (increased by 55.8%), Italy (increased by 54.1%), Belgium (increased by 69%), France (increased by 52.5%), Spain (increased by 44.7%), Poland (increased by 160.9%), the Czech Republic (increased by 61%), Slovenia (increased by 111.5%) and Sweden (increased by 96.5%).

Compared to February 2021, trade, exports and imports grew by 27.1%, 27.3% and 26.9%, respectively.

For the first three months of 2021, trade with the EU expanded by 17.6% to RM42.18 billion from the same period of 2020. Exports grew by 24% to RM25.61 billion on account of higher exports of rubber products and transport equipment. Imports from the EU rose by 8.9% to RM16.57 billion.

Japan - Manufactured Goods Continued to Drive Exports

In March 2021, trade with Japan which constituted 7.4% of Malaysia’s total trade increased by 21% y-o-y to RM13.8 billion. Exports grew for two straight months, recording a growth of 14.4% to RM6.74 billion. Exports of manufactured goods continued to expand since September 2020, surged by 45.8% to RM4.81 billion mainly on higher exports of E&E products, rubber products, optical and scientific equipment as well as manufactures of metal. Imports from Japan grew by 28.1% to RM7.05 billion.

On a m-o-m basis, trade, exports and imports increased by 20.9%, 17.5% and 24.3%, respectively.

For the period of January to March 2021, trade with Japan expanded by 10.6% to RM36.86 billion compared to the same period of 2020. Exports rose by 5% to RM18.96 billion on account of higher exports of E&E products, rubber products, manufactures of metal as well as optical and scientific equipment. Imports from Japan increased by 17.2% to RM17.9 billion.

Trade with FTA Partners

In March 2021, trade with Free Trade Agreement (FTA) partners which made up 66.7% of Malaysia’s total trade rose by 26% y-o-y to RM123.97 billion. Exports to FTA partners grew by 25.8% to RM69.49 billion and imports expanded by 26.3% to RM54.47 billion.

An increase in exports was recorded to Hong Kong SAR, by 39% to RM 6.79 billion due to higher exports of E&E products, India (increased by 70.6% to RM3.59 billion, palm oil and palm oil-based agriculture products), Turkey (increased by 164.4% to RM1.43 billion, manufactures of metal), Chile (increased by 94% to RM74.2 million, rubber products) and the Republic of Korea (increased by 0.9% to RM3.12 billion, E&E products).

Compared to February 2021, trade, exports and imports rose by 17.5%, 19.1% and 15.6%, respectively.

Trade with FTA partners for the first three months of 2021 which accounted for 67% of Malaysia’s total trade increased by 17% to RM338.93 billion. Exports grew by 16.2% to RM188.54 billion and imports expanded by 18% to RM150.39 billion.

Import Performance

Total imports in March 2021 grew by 19.2% y-o-y to RM80.79 billion from March 2020. The three main categories of imports by end use which accounted for 73.1% of total imports were:

• Intermediate goods, valued at RM43.65 billion or 54% of total imports, increased by 12.4%, following higher imports of processed industrial supplies particularly non-monetary gold;
• Capital goods, valued at RM8.32 billion or 10.3% of total imports, grew by 93.4%, due mainly to higher imports of capital goods (except transport equipment), primarily parts of machinery and mechanical appliances; and 
• Consumption goods, valued at RM7.12 billion or 8.8% of total imports, rose by 13%, as a result of higher imports of durables, especially jewellery.

From January to March 2021, imports increased by 10.8% to RM223.51 billion from the same period of 2020. Imports of intermediate goods grew by 4.6% to RM121.38 billion, capital goods (RM23.15 billion, increased by 32.7%) and consumption goods (RM19.56 billion,  increased by 10.1%).