Malaysia Oct Trade Surplus Widened as Imports Decline

By Chester Tay

Malaysia's trade surplus in October grew 26% compared with the same period a year earlier as exports growth was benign while imports remained subdued amid weak domestic demand.

The country's trade surplus rose to 22.12 billion ringgit ($5.44 billion) amid weaker imports of industrial supplies like nickel and capital goods like electrical machinery, Ministry of International Trade and Industry data showed Friday.

October's trade surplus compared with MYR17.57 billion a year ago and MYR21.97 billion in September.

Exports grew 0.2% to MYR91.05 billion, versus a 13.6% increase in September. October's exports were supported mainly by higher exports to the U.S., China, India and U.K.

Exports of manufactured goods in October, which contributed to 87.8% of total exports, rose 2.5%, mainly due to higher exports of rubber products, electrical and electronic products, solid-state storage devices, wood, iron and steel products.

Exports to China rose 5.4% to MYR28.97 billion while exports to the U.S. expanded 12.7% to MYR17.13 billion.

Imports fell 6.0% to MYR68.93 billion, dragged mainly by intermediate and capital goods, particularly electrical machinery, equipment and parts.

For the first 10 months of 2020, Malaysia's surplus rose 16.3% to MYR147.04 billion. Exports declined 3.3% to MYR800.59 billion while imports contracted 6.8% to MYR653.55 billion.

Write to Chester Tay at [e-mail]

(END) Dow Jones Newswires

11-26-20 2339ET