MALAYSIA’s trade surplus grew by 20.9 per cent year-on-year in September to reach a record RM31.7 billion (S$9.57 billion), according to fresh data released by the Department of Statistics Malaysia (Oct 19).

The country’s total trade expanded by 31.4 per cent to RM256.9 billion, compared to RM195.5 billion in September last year.

For the third quarter this year, Malaysia’s trade surplus increased 5.6 per cent to RM64.3 billion in the third quarter 2022, according to a statement by the Ministry of International Trade and Industry.

Total trade for the third quarter of 2022 increased 42 per cent year-on-year to RM774.9 billion. Exports expanded 38.3 per cent to RM419.6 billion and imports rose 46.5 per cent to RM355.3 billion, the highest quarterly value for trade, exports and imports.

In September, exports grew 30.1 per cent year-on-year to RM144.2 billion, just below a forecast of 31.2 per cent by a group of 15 economists surveyed by Reuters. The expansion in exports was driven by higher shipments of electrical and electronic (E&E) products, petroleum products and palm oil products.

Singapore and China were the biggest export destinations for Malaysia, contributing 28.5 per cent to the country’s exports in September.

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In the same month, Malaysia’s exports to Singapore totalled RM21 billion, an increase of 29.1 per cent year-on-year, driven by higher exports of E&E and petroleum products as well as machinery, equipment and parts.

China was the second largest export destination, with an export value of RM20.1 billion - up 8 per cent year-on-year - on higher exports of E&E products, liquified natural gas, palm oil and palm oil-based agriculture products.

Imports growth, meanwhile, rose 33 per cent year-on-year to RM112.6 billion, much lower than the economists’ forecast of 46.5 per cent in the same Reuters poll. China and Singapore remained as the two major countries for Malaysia’s imports with a total contribution of 31.2 per cent to total imports.

China, as the biggest import country for Malaysia, has seen the import value grow by 19.5 per cent to RM23.8 billion, stimulated by growing demand for machinery, equipment and parts, E&E as well as chemical products.

Malaysia’s imports from Singapore rose 30.2 per cent to RM11.3 billion in September, attributed to higher imports of petroleum and E&E products.

On a monthly comparison, exports and trade surplus increased by 2.2 per cent and 86.1 per cent, while trade and imports decreased by 3.2 per cent and 9.4 per cent respectively.