Strong exports rise mark the end of 2013

The December figure marked a six month rise in export figures since July 2013. For December, imports rose by 14.8 percent annually. The country registered a total trade of RM122 billion which was 14.6 percent higher from a year ago.

For the full year 2013,Malaysia recorded total exports value of RM719.8 billion which was a 2.4 percent increase compared to the previous year. Total imports for 2013 stood at RM649.2 billion buoyed higher manufacturing activities and domestic consumption. Trade surplus for 2013 was RM70.6 billion which marked the 16th consecutive year of trade surplus.

The strong showing for exports in December was lifted by exports of electrical and electronics (E&E) products and rising exports to China. E&E products accounted for 30.9 percent of total exports which was a rapid increase compared to 12 percent in December 2012. Among Malaysia’s top exports were refined petroleum products, liquefied natural gas and palm oil.

Malaysia’s top export destinations were China (14.8 percent), Singapore (13.2 percent), Japan (9.9 percent), European Union (9.9 percent) and United States (8 percent).

There was a 14.8 percent increase to RM56.3 billion compare to the previous year in imports. Intermediate goods valued at RM30 billion or 53.2 percent of total imports while capital goods totalled RM10 billion of 17.8 percent of total imports.

Consumption goods accounted for 7.7 percent or RM4.4 billion of total imports.

According to a report by Bank Islam Securities, the Semiconductor Industry Association announced that global semiconductor sales for 2013 reached US$305.6 billion, which is its highest ever.

Worldwide semiconductor market is forecasted to grow by 4.1 percent to US$317 billion surpassing the historical high of US$300 billion registered in 2011.

Malaysian semiconductor exports are expected to benefit from the recovery cycle in the E&E sector. Bank Islam Securities in its report cited a recovery cycle in the E&E sector since the second half of 2013.

It expects the sector to experience modest growth in 2014. The growth in trade was in line with the steady expansion in manufacturing activity as the JPMorgan Global Manufacturing PMI (Purchasing Managers Index) remained at expansionary level of 52.9 in January.

“The world economy is slated for modest growth in 2014 led by rising demand in advanced economies such as the United States, EU and Japan,” said chief economist of RAM Holdings, Dr Yeah Kim Leng.